Organizational Diversity

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Chapter 2

• Organizational Diversity

2
Chapter Outline

• Diversity Defined
• Forces of Change
• Diversity Outcomes
• Roadblocks to Diversity

3
Diversity Defined

• Diversity
• Characteristics of a group of people that refer
• to differences among those people on any
• relevant dimension.
• Primary dimensions
• Secondary dimensions

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Diversity Defined

• Multicultural organization
• Organizational culture fosters values
  differences
• Plural organization
• Diverse workforce, but not necessarily equally
  integrated
• Take steps to be inclusive diversity is
  tolerated
• Monolithic organization
• Homogeneous
• Extreme occupational segregation

5
Forces of Change

• Changing Workforce Demographics
• Increase in the Service Economy
• Global Economy
• Requirements for Teamwork

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Forces of Change

• Changing Workforce Demographics
• Decrease in non-Hispanic whites
• Continued aging
• Labor shortage (2015-2025)
• Proportion of 65 increasing
• Continued increase in working mothers
• Opportunities challenges

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Forces of Change

• Increase in Service Economy
• 75 of all U.S. jobs
• Effective interpersonal skills/communication
• Diversity increasingly
• important

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Forces of Change

• Global Economy
• Different forms of communication
• New organizational structures
• New career opportunities
• More competition, change, mergers, downsizing,
  stress
• Need more sensitivity to cultural differences
• Learn from the best, wherever they may be

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Forces of Change

• Requirements for Teamwork
• Provide better-quality goods/services
• Synergy leading to better team performance
• Diversity must be effectively managed

10
Diversity Outcomes

• Potential Positives
• Organizational commitment
• Job involvement
• Job satisfaction
• Recruiting tool
• Better decision making
• Creativity innovation
• Better performance

• Potential Negatives
• Withdrawal
• Poor performance
• Lawsuits legal costs
• Bad publicity/boycotts
• Decrease in applicants
• Conflict
• Communication problems
• In-group/out-group dynamics

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Diversity Outcomes

• Results are mixed
• Diversity alone does not guarantee good
  organizational performance
• Effective diversity management is key
• Its what the organization does
• with diversity that matters!

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Roadblocks to Diversity

• Prejudice
• Negative attitude
• Discrimination
• Behavior resulting in unequal treatment
• Modern Racism
• Unconscious prejudice
• Stereotyping
• We all hold stereotypes

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Roadblocks to Diversity

• Differences in Social Identity
• I am Catholic , I am a Republican
• Tend to favor members of our own group
• Power Differentials
• Assigned by cultural norms
• High-status individuals speak more use stronger
  influence tactics
• Cliques may form

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Roadblocks to Diversity

• Communication Problems
• Those less fluent in dominant language my
  contribute less
• Groups may form excluding those who do not speak
  their language
• Numerous cultural differences
• Importance of saving face
• Amount of time to personal relationships
• Willingness to speak assertively
• Nonverbal communication

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Roadblocks to Diversity

• Poor Structural Integration
• Pink-collar ghetto or glass ceiling
• Creates power status differences, which then
  become associated with gender or race

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Effective Diversity Management

• Commitment by the organizations leaders
• Walk the talk
• Integration of diversity with the strategic plan
• Measurable ways diversity contributes
• Attrition rate
• Work satisfaction
• Increased market share/new customer base
• Involvement of all associates
• Focus groups, employee surveys/feedback