Chapter 2 Organizational Diversity

1. Chapter 2OrganizationalDiversity Michael A. Hitt C. Chet Miller Adrienne Colella Slides by Ralph R. Braithwaite

2. Exploring Behavior in Action Diversity in the LAFD • What are your thoughts about the openingscenario? • Are there jobs that should be left to onegender or the other? Why or why not? • Have you seen discrimination based on race? • Were the consequences as a result of the Los Angeles Fire Department’s actions too lenient, too severe, or just right? • Do you think the “steps to remedy the situation” are enough? Why or why not?

3. Knowledge Objectives • Define organizational diversity and distinguish between affirmative action and diversity management. • Distinguish multicultural, plural, and monolithic organizations. • Describe the demographic characteristics of the U.S. population and explain their implications for the composition of the workplace. • Discuss general changes in the United States that are increasing the importance of managing diversity effectively. • Understand why successfully managing diversity is extremely important for high-involvement work organizations. • Discuss the various roadblocks to effectively managing a diverse workforce. • Describe how organizations can successfully manage diversity.

4. Diversity Defined A characteristic of a group of people where differences exist on one or more relevant dimensions such as gender. Diversity is a group characteristic, not an individual characteristic.

5. Gender Race Ethnicity Age Religion Social Class Sexual Orientation Personality Functional Experience Geographical Background Common Dimensions

6. Quote Thoughts? “The effects of diversity can result from any attribute that people use to tell themselves that another person is different.” K. Y. Williams and C. A. O’Reilly

7. Examples of Definitions Thoughts?

8. 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 organization’s mission

9. Affirmative Action Diversity Management Purpose Prevent and remedy discrimination Create an inclusive, empowered work environment Assimilation Assumes individuals will assimilate and adapt Assumes that managers and the organizations will change Focus Recruitment, mobility, and retention Allows all associates to reach their full potential Cause of Problems Does not address the cause of problems Attempts to uncover the root causes of diversity problems Time Frame Temporary, until representation of disadvantaged groups Ongoing, permanent changes Affirmative Action vs.Diversity Management Adapted from Exhibit 2-1: Differences between Affirmative Action Programs and Diversity Management Programs

10. Organizational Diversity MulticulturalOrganization PluralOrganization MonolithicOrganization

11. Forces of Change • Changing workforce demographics – percentage by race, age and sex – Exhibit 2-2 • Increase in the service economy • Global economy • Requirements for teamwork

12. IndividualOutcomes GroupOutcomes OrganizationalOutcomes High-Involvement Organizations • Commitment to theorganization • Job involvement • Satisfaction • Decision making • Creativity • Complex tasks • Productivity • Return on equity • Market performance

13. $10.5M & $8M $192.5M $176M $508M $250M $47M $132.5M Societal and Moral Outcomes

14. Equal Pay Act of 1963 Age Discrimination in Employment Act of 1967 Title I of the Americans with Disabilities Act of 1990 Laws Preventing Discrimination Title VII of the1964 Civil Rights Act, Civil RightsAct of 1991 Adapted from Exhibit 2-3: Federal Laws Preventing Employment Discrimination

15. The Case of France • Religious discrimination • Discrimination issues in hiring • Promotional issues • Thoughts on the policy of not collecting data on race and ethnicity or no affirmative action laws? • Thoughts on what these companies are doing? ExperiencingStrategic OB

16. Roadblocks to Diversity

17. Prejudice Discrimination Modern Racism Prejudice and Discrimination

18. 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?

19. Common Stereotypes Women People withDisabilities White Men Black People Japanese Men Jewish People Athletes Accountants Arab People Adapted from Exhibit 2-4: Common Stereotypes

20. Stereotyping – Difficult to Stop • Tough to dispel • Guide what information we lookfor, process and remember • Seems to be an enduring humanquality – everyone has somestereotypes

21. Women, Work and Stereotypes • While things have improved, are there still gender issues in the workplace? • Are the issues faced by the women in the text unique and unusual? • What are your thoughts about the survey conducted by Elle and MSNBC.com? ExperiencingStrategic OB

22. Social Identity A person’s knowledge that he or she belongs to certain social groups, where belonging to those groups has emotional significance. Key Points: • Person’s social identity becomes more salient and noticeable when in the minority on an important dimension • Having a social identity different than the majority may make people feel they have to behave in ways that are unnatural for them in certain contexts • Minority group members often fear losing their social identity • People often evaluate others based on their membership in social groups

23. Sample Self-Identity Structures Adapted from Exhibit 2-5: Sample Self-Identity Structures

24. Sources of Power ExpertKnowledge Formal Position ControlRewards andResources BeingIrreplaceable

25. Ascribed Status Status and power that is assigned by cultural norms and depends on group membership • 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

26. Communication Problems • Different languages • Different levels of fluency in the dominant language • Excluding those who don’t speak the language

27. Communication Disagreement Among Cultures • Willingness to openly disagree • Importance of maintaining “face” or dignity • The way “agreement” is defined • Time devoted to establishing personal relationships • Willingness to speak assertively • Mode of communication - written or verbal • Personal space and nonverbal communication

28. Structural Integration The degree to which minorities and women are represented in all occupations within an organization. Two levels exist – poorly integrated and well integrated. The next two slides show examples of each – both organizations have approximately 35% of the employees being female and/or minority.

29. Average All Functions Marketing Finance Sales HR 0% 0% 2% 0% 0.5% Top Management 0% 1% 10% 2% 3.25% Middle Management 0% 5% 15% 5% 6.25% Supervisor 25% 25% 40% 26% 29% Staff 60% 65% 80% 75% 70% Line Worker Poor Structural Integration Percentage of people who are female and/or racial and ethnic minority group members Adapted from Exhibit 2-6: Examples of Poorly Integrated and Well-Integrated Organizations

30. Average All Functions Marketing Finance Sales HR Top Management 35% 35% 35% 35% 35% Middle Management 35% 35% 35% 35% 35% Supervisor 35% 35% 35% 35% 35% Staff 35% 35% 35% 35% 35% Line Worker 35% 35% 35% 35% 35% Good Structural Integration Percentage of people who are female and/or racial and ethnic minority group members Adapted from Exhibit 2.6: Examples of Poorly Integrated and Well-Integrated Organizations

31. Roadblocks • Poor integration creates power and status differentials – become associated with gender and race • Poor integration fosters negative stereotypes • Women and minorities who are successful may be perceived to have token status • Women and minorities perception – impossible to move up

32. Commitment of Leaders • Communicate through multiple channels • Personally lead all diversity efforts • Sponsor employee councils • Ensure cross-cultural communication • Be accountable for advancing diversity initiatives

33. Promoting a Positive Diversity Environment ManagerialAdvice Thoughts? • Principles • Pause to short circuit the emotion and reflect • Connect with others in ways that affirm the importance of relationships • Question interpretations and explore blind spots • Obtain genuine support that doesn’t necessarily validate initial points of view but rather helps in gaining a broader perspective • Shift the mindset

34. Integration With the Strategic Plan • Increased market share and new customer bases • External awards for diversity efforts • Associates’ attrition rate • Associates’ work satisfaction • Associates’ and managers’ satisfaction with workplace climate Common measures of diversity effectiveness include:

35. Associate Involvement • Discussion groups froma cross-section of staff • Employee satisfaction surveys • Cultural diversity audits • Informal employee feedback hotlines • Develop and support affinity groups – groups that share common interests • Provide training

36. Diversity Initiatives at Denny’s • Recruiting • Retention • Development • External partnerships • Communication • Training • Staffing and infrastructure

37. The Strategic Lens • How does organizational diversity contribute to an organization’s competitive advantage? • What actions are required to create diversity in an organization, particularly in one that has homogeneous membership at present? • How does diversity in an organization affect its strategy?

38. Questions