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Addressing Employment Discrimination at Wal-Mart

This chapter explores the issue of employment discrimination at Wal-Mart, specifically the gender pay gap. It discusses the need for Wal-Mart to address these issues and offers suggestions on the promotion policy and pay structure. Additionally, it examines the importance of diversity in the workplace and the business benefits it brings. The chapter also covers the challenges posed by surface-level and deep-level diversity.

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Addressing Employment Discrimination at Wal-Mart

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  1. Management 4th Edition Chuck Williams Chapter 12 ManagingIndividualsand a DiverseWork Force Prepared byDeborah BakerTexas Christian University

  2. What Would You Do? Wal-Mart Headquarters, Bentonville, Arkansas. • An employment discrimination suit against Wal-Mart revealed that women were consistently paid less than men in the same jobs • Pressure is building for Wal-Mart to address these issues, and it is affecting stockholder satisfaction What should Wal-Mart do to address these issues? What should be the company promotion policy?What should be done about its pay structure?

  3. Predicted U.S. Population, by Race, 2005-2070

  4. Diversity and Why It Matters After reading this section, you should be able to: • describe diversity and why it matters.

  5. Diversity Is Not Affirmative Action How to Build aBusiness Case for Diversity Diversity: Differences That Matter 1

  6. May exist without a program Broad focus Not legally based Create a positive work environment Generally accepted Diversity Is Not Affirmative Action Diversity Affirmative Action • A purposeful, established program • Narrow focus • Legal requirement • Compensate for past discrimination • Controversial 1.1

  7. Affirmative Action 1.1

  8. The purpose of affirmative action programs is to… • compensate for past discrimination • prevent ongoing discrimination • provide equal opportunities to all, regardless of race, color, religion, gender, or national origin Affirmative Action Programs 1.1

  9. no one is advantaged or disadvantaged • “we” is everyone. • everyone can do his or her best work. • differences are respected and not ignored. • everyone feels comfortable. General Purpose of Diversity Programs To create a positive work environment where… 1.1 Adapted from Exhibit 12.2

  10. Cost Savings Attracting and Retaining Talent Driving Business Growth Diversity Makes Good Business Sense 1.2

  11. Diversity Makes Good Business Sense Cost Savings • Reduces turnover • Decreases absenteeism • Avoids expensive lawsuits 1.2

  12. Diversity Makes Good Business Sense Attracting and Retaining Talent • Attracts better and more diverse job applicants • Have higher stock market performance • Encourages workers to stay 1.2

  13. Diversity Makes Good Business Sense Driving Business Growth • Improves understanding of the marketplace • Improves quality of problem solving 1.2

  14. Diversity and Individual Differences After reading these sections, you should be able to: • Understand the special challenges that the dimensions of surface-level diversity poses for managers. • Explain how the dimensions of deep-level diversity affect individual behavior and interactions in the workplace.

  15. Surface-Level Diversity Age Personality Attitudes Physical Capabilities Race/ Ethnicity Deep-Level Diversity Values/Beliefs Gender Surface and Deep-Level Diversity Adapted from Exhibit 12.3

  16. Age Gender Race/Ethnicity Mental orPhysical Disabilities Surface-Level Diversity 2

  17. Age • Treating people differently because of their age • Performance does not decline with age • Older employees show better judgment, and are less likely to quit, show up late, or be absent • Age discrimination is more pervasive than managers think 2.1

  18. Gender • Treating people differently because of their gender • Glass ceiling • invisible barrier that keeps women and minorities from advancing to the top of the organization • Can be diminished by: • mentoring • stopping unintentional behavior 2.2

  19. Gender 2.2 Exhibit 12.4

  20. Gender 2.2 Exhibit 12.5

  21. Race / Ethnicity • Treating people differently because of their race or ethnicity • Employment disparities do exist • Legislation has lessened the problem • Reduce by: • eliminating unclear selection and promotion criteria • training managers who make hiring and promotion decisions 2.3

  22. Web Link http://www.usdoj.gov/crt/ada/adahom1.htm Mental or Physical Disabilities • Disability is a mental or physical impairment that substantially limits one or more major life activities • Disability discrimination means treating people differently because of their disabilities • Reduce by: • educating to address incorrect stereotypes • committing to reasonable workplace accommodations • recruiting qualified workers with disabilities 2.4

  23. Physical changes Quieter workspace Training and other written materials TTYs for use with telephones, computer hardware and software Time off for treatment Reasonable Accommodationsfor Disabled Workers 2.4 Adapted from Exhibit 12.6

  24. Socio-Economics & Diversity • Can the model of surface- and deep-level diversity accommodate socio-economic difference as a metric? Why or why not? 3

  25. Incorporating Religion into the Mix • Amric Singh filed a lawsuit against Manhattan’s police department claiming he was fired for wearing a turban on the job. 3

  26. Deep-Level Diversity “Big Five”Dimensionsof Personality Other Work-RelatedAspects ofPersonality 3

  27. Extraversion Emotional Stability Agreeableness Conscientiousness Openness to Experience Big Five Dimensions of Personality 3.1

  28. What Really WorksConscientiousness Motivational Effort 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 71% Job Performance 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 66% 3.1

  29. Authoritarianism Machiavellian Tendencies Type A/B Personality Locus of Control Positive / Negative Affectivity Work-Related Personality Dimensions 3.2

  30. Work-Related Personality Dimensions • Authoritarianism • the extent to which an individual believes there should be power and status differences • Machiavellianism • believe that virtually any type of behavior is acceptable if it leads to goal accomplishment 3.2

  31. Work-Related Personality Dimensions • Type A/B personality dimension • the extent to which people tend toward impatience, hurriedness, and hostility • Type A personalities • hard driving, competitive, perfectionist, angry, unable to relax • Type B personalities • Easygoing, patient, able to relax, engage in leisure activities 3.2

  32. Work-Related Personality Dimensions • Locus of control: the degree to which people believe that their actions influence what happens to them • Internal locus of control (what happens to you is under your control) • External locus of control (what happens to you is beyond your control) 3.2

  33. Work-Related Personality Dimensions • Affectivity: the stable tendency to experience positive or negative moods and to react in a generally positive or negative way. • Positive affectivity • consistently focusing on the positive aspects • Negative affectivity • consistently focusing on the negative aspects • Mood linkage • a phenomenon where one worker’s negativity spreads to others 3.2

  34. How Can Diversity Be Managed? After reading these sections, you should be able to: • explain the basic principles and practices that can be used to manage diversity.

  35. DifferentDiversityParadigms DiversityPrinciples DiversityTraining andPractices Managing Diversity 4

  36. DIVERSITYPARADIGM FOCUS Discriminationand Fairness Equal opportunity Fair treatment Recruitment of minorities Strict compliance with laws Access and Legitimacy Acceptance and celebration of differences Learning And Effectiveness Integrating deep-level differences into organization Diversity Paradigms 4.1 Adapted from Exhibit 12.7

  37. Organizational Plurality A work environment where: • All members are empowered to contribute in a way that maximizes the benefits to the organization, customers, themselves • The individuality of each member is respected by not segmenting or polarizing people based on their membership in a group 4.1

  38. Values common ground Makes a distinction between individual andgroup differences Less likely to encounter conflict, backlash,and divisiveness Focuses on bringing different talent andperspectives together Benefits of the Learning and Effectiveness Diversity Paradigm 4.1

  39. Web Link http://www.eeoc.gov Diversity Principles • Carefully and faithfully follow and enforce all equal employment opportunity laws • Treat group differences as important, but not special • Tailor opportunities to individuals, not groups • Reexamine, but maintain, high standards • Solicit negative as well as positive feedback • Set high but realistic goals 4.2 Adapted from Exhibit 12.9

  40. Awareness Training Skills-BasedDiversity Training Diversity Training and Practices Training Practices • Diversity Audits • Diversity Pairing • Minority Experiences 4.3

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