Organizational Diversity

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Organizational Diversity
Hitt et al Chapter 2 Abridged and Augmented

• MGT 5371-001
• Managing Organizational Behavior Design
• May 6-5-07
• John D. Blair, PhD
• Georgie G. William B. Snyder Professor in
  Management

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Diversity issue?
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Strategic Importance of Organizational Diversity

• Improves
• corporate culture
• recruitment
• relationships with clients and customers
• Builds competitive advantage
• Understand and serve diverse customer base
• Heterogeneous teams deal better with complex
  problems and challenging tasks
• More commitment to organizations mission

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Diversity Defined

• Diversity is a characteristic of a group of
  people suggesting differences among those people
  on any relevant dimension.

• Diversity is a group characteristic, not an
  individual characteristic.

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Characteristics that Create Diversity in the
Workplace

• Gender
• Race
• Ethnicity
• Age
• Personality
• Geographical diversity

• Structural diversity
• Role
• Functional responsibility
• Religion
• Social class
• Sexual orientation
• Education
• Experience

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Exhibit 2-1
Exhibit 2.1
Affirmative Action Programs vs. Diversity
Management Programs
Affirmative Action Diversity Management
Purpose
To prevent and remedy discrimination
To create an inclusive work environment where all
associates are empowered to perform their best
Assimilation
Assumes individuals will individually assimilate
into the organization individuals will adapt
Assumes that managers and the organizations will
change (i.e., culture, policies, and systems
foster an all-inclusive work environment)
Focus
Recruitment, mobility, and retention
Creating an environment that allows all
associates to reach their full potential
Cause of Diversity Problems
Does not address the cause of problems
Attempts to uncover the root causes of diversity
problems
Time Frame
Temporary, until there is appropriate
representation of disadvantaged groups
Ongoing, permanent changes
Adapted from Exhibit 2.1 Differences between
Affirmative Action Programs and Diversity
Management Programs
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Context of Organization Diversity

• Multicultural organization
• An organization in which the organizational
  culture fosters and values cultural differences
• Plural organization
• An organization that has diverse workforces and
  takes steps to be inclusive and respectful of
  people from different cultural backgrounds, and
  diversity is tolerated but not fostered
• Monolithic organization
• An organization that is demographically and
  culturally homogeneous

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Forces of Change

• Workplace demographics (see next slide)
• Increase in the service economy
• Global economy
• Requirements for teamwork

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Forces of Change Demographics
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Effective Diversity Management in
High-Involvement Organizations

• Individual outcomes
• Commitment to the organization
• Job involvement
• Satisfaction
• Group outcomes
• Decision making
• Creativity
• Complex tasks
• Organizational outcomes
• Productivity
• Return on equity
• Market performance

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Laws Preventing Discrimination
Exhibit 2.3
Federal Laws Preventing Employment Discrimination
Law Employers Covered Who Is Protected
Title VII of the 1964 Civil Rights Act, Civil
Rights Act of 1991
Private employers, state and local governments,
education institutions, employment agencies, and
labor unions with 15 or more individuals
Everyone based on race, color, religion, sex, or
national origin
Equal Pay Act of 1963
Virtually all employers
Men and women who perform substantially equal work
Age Discrimination in Employment Act of 1967
Private employers, state and local governments,
education institutions, employment agencies, and
labor unions with 20 or more individuals
Individuals who are 40 years old or older
Title I of the Americans with Disabilities Act of
1990
Private employers, state and local governments,
education institutions, employment agencies, and
labor unions with 15 or more individuals
Individuals who are qualified and have a
disability
Source U.S. Equal Employment Opportunity
Commission, 2002, http//www.eeoc.gov/facts/qanda.
html
Adapted from Exhibit 2.3 Federal Laws Preventing
Employment Discrimination
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Diversity biases in the workplace

• Prejudice.
• Discrimination.
• The glass ceiling effect.
• Sexual harassment.
• Verbal abuse.
• Pay discrimination.

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Prejudice and Discrimination

• Prejudice
• Unfair negative attitudes we hold about people
  who belong to social or cultural groups other
  than our own
• Discrimination
• Behavior that results in unequal treatment of
  individuals based on group membership
• Modern racism
• Subtle forms of discrimination that occur because
  people know that it is wrong to be prejudiced
  against other racial groups and believe
  themselves not to be racists

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Stereotyping

• Stereotypes
• A generalized set of beliefs about the
  characteristics of a group of individuals

What thoughts come to mind when you perceive the
individuals in these photographs?
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Common Stereotypes
Exhibit 2.4
Common Stereotypes Applied to Various Groups of
People
Women People with Disabilities White Men
Dependent Passive Uncompetitive Unconfident Unambi
tious Warm Expressive
Quiet Helpless Hypersensitive Bitter Benevolent In
ferior Depressed
Responsible for societys problems Competitive Int
elligent Aggressive Ignorant Racist Arrogant
Black People Japanese Men Jewish People
Athletes Underqualified Poor Good
dancers Unmotivated Violent Funny
Meticulous Studious Workaholics Racist Unemotional
Defer to authority Unaggressive
Rich Miserly Well-educated Family-oriented Cliquis
h Status conscious Good at business
Sources M.E. Heilman, Sex Bias in Work
Settings The Lack of Fit Model, in B.M. Staw
and L.L. Cummings (Eds.), Research in
Organizational Behavior, Vol. 5 (Greenwich, CT
JAI Press, 1983), pp. 269298 C.S. Fichten and
R. Amsel, Trait Attributions about College
Students with a Physical Disability Circumplex
Analysis and Methodological Issues, Journal of
Applied Social Psychology 16 (1986) 410427
T.H. Cox, Jr., Cultural Diversity in
Organizations Theory, Research and Practice (San
Francisco Berrett-Koehler Publishers, 1993).
Adapted from Exhibit 2.4 Common Stereotypes
Applied to Various Groups of People
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Exhibit 2.4
Common Stereotypes Applied to Various Groups of
People
Athletes Accountants Arab People
Dumb Strong Sexist Macho Male Uneducated Greedy
Smart Nerdy Unsociable Good at math Bad
dressers Quiet Dishonest
Terrorists Extremely religious Extremely
sexist Rich Hate Americans Jealous of
Americans Dont value human life
Sources M.E. Heilman, Sex Bias in Work
Settings The Lack of Fit Model, in B.M. Staw
and L.L. Cummings (Eds.), Research in
Organizational Behavior, Vol. 5 (Greenwich, CT
JAI Press, 1983), pp. 269298 C.S. Fichten and
R. Amsel, Trait Attributions about College
Students with a Physical Disability Circumplex
Analysis and Methodological Issues, Journal of
Applied Social Psychology 16 (1986) 410427
T.H. Cox, Jr., Cultural Diversity in
Organizations Theory, Research and Practice (San
Francisco Berrett-Koehler Publishers, 1993).
Adapted from Exhibit 2.4 Common Stereotypes
Applied to Various Groups of People
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Problems With Stereotyping

• Stereotypes are difficult to dispel, although
  nearly always incorrect when applied to
  individuals
• Guide what information we look for, process, and
  remember
• Enduring human quality we all hold stereotypes

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Problems With Stereotyping
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Social Identity

• Social identity
• A persons knowledge that he or she belongs to
  certain social groups, where belonging to those
  groups has emotional significance

Sample Self-Identity Structures
Adapted from Exhibit 2.5 Sample Self-Identity
Structures
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Social Identity

• Social identity structure different from that of
  the majority can be difficult
• Persons social identity becomes more salient and
  noticeable
• May make people feel they have to behave in ways
  that are unnatural for them in certain contexts
• Minority group members fear losing this social
  identity
• People often evaluate others based on their
  membership in social groups

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Power Differentials

• Ascribed status
• Status and power that is assigned by cultural
  norms and depends on what groups to which one
  belongs
• High-status individuals speak more and use
  stronger influence tactics than members of
  low-status groups
• People belonging to groups with different amounts
  of power and status may avoid interacting with
  one another and may form cliques with members of
  their own groups

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Power Differentials
Power Differentials
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Dominant versus minority cultures
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Communication Problems

• Language issues
• Different languages
• Different fluency in a language
• Cultural norms
• Willingness to openly disagree
• Importance of maintaining face or dignity
• Definition of agreement
• Time devoted to establishing personal
  relationships
• Willingness to speak assertively
• Preference for written or oral communication
• Personal space and nonverbal communication

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Poor Structural Integration
Percentage of people who are female and/or racial
and ethnic minority group members
Avg. All Functions
Marketing
Finance
Sales
HR
Top Management
0
0
2
0
0.5
Middle Management
0
1
10
2
3.25
Level
Supervisor
0
5
15
5
6.25
Staff
25
25
40
26
29
Line Worker
60
65
80
75
70
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Good Structural Integration
Percentage of people who are female and/or racial
and ethnic minority group members
Avg. All Functions
Marketing
Finance
Sales
HR
Top Management
35
35
35
35
35
Middle Management
35
35
35
35
35
Level
Supervisor
35
35
35
35
35
Staff
35
35
35
35
35
Line Worker
35
35
35
35
35
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Effectively Creating and Managing Diversity

• Commitment of the organizations leaders
• Communicate message through multiple channels
• Top leaders personally lead all diversity efforts
• Vice presidents sponsor employee councils
• All managers held accountable for advancing
  diversity initiatives
• May require associates to be diversity advocates
  before promotion into leadership positions

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Effectively Creating and Managing Diversity Cont.

• Integration with the strategic plan
• Define and measure diversity effectiveness
• Associates attrition rate
• Associates work satisfaction
• Increased market share and new customer bases
• External awards for diversity efforts
• Satisfaction with workplace climate

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Effectively Creating and Managing Diversity Cont.

• Associate involvement
• Focus groups
• Employee satisfaction surveys
• Cultural diversity audits
• Informal employee feedback hotlines

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Effectively Creating and Managing Diversity Cont.

• Individual efforts
• Avoid rushing to judgment about others
• Take responsibility for being the gatekeeper at
  meetings

• Get to know people who are different from you
• Stick up for others when you see unfair behaviors