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Diversity in the Workplace
OverviewHow Diverse Are We and Why Is Diversity Important? Types of Diversity Laws and Executive Orders Prohibiting DiscriminationChallenges of DiversityStrategies for Managing Diversity Programs for Managing Diversity
US Workforce is More Diverse than Ever Before
More women are working than ever beforeThe workforce will continue to get olderThe number of immigrants has increasedEthnic and racial diversity is increasing
Why is Diversity Important?The service economy
Interactions between people are keyCustomer base is more diverseSimilarities between people ease process
Globalization of businessDoing business with people from around world
The changing labor marketCompany mergers and buy-outs
Types of DiversityGender DiversityAge DiversityCultural DiversitySexual OrientationFamily SituationsPhysical and Psychological DisabilitiesPolitical ViewsPersonal Idiosyncrasies
Proportion of Women in the Workforce 1950-2000
Source: U..S. Bureau of Labor Statistics
0
10
20
30
40
50
60
70
Year
Perc
en
t
Gender Diversity: Nonstandard work
More women in workforce today than everBetter educated than ever
Most “nonstandard” workers (those who do not hold regular, full-time jobs) are women
55% of workers paid by temporary agencies are women70% of part-time workers are women
Stereotypes still remainGlass ceiling, etc.
Gender Diversity: Wages and Income
In 2000, women who worked full-time, year round earned 74.3 cents for each dollar earned by menOver a lifetime of work, the average 25-year-old woman who works full-time, year round until she retires at 65 will earn $523,000 less than the average working man58% of the workers who benefited from the last minimum wage increase were women
Age Diversity
As population ages, more older workers are availableRe-entry of middle-aged women to workRetirees returning to supplement pensionInternships bring in more younger employees
Cultural DiversityAffects values, view of the worldMore than 40% of new entrants into U.S. workforce from non-“majority” groups
About 22% new immigrantsAbout 20% African-American or Hispanic
Growing international businessEmployees maintain ties to national and cultural heritage
Cultural Diversity (Hofstede)Managers and employees vary on 5 dimensions of national culture:
1. Individualism vs. collectivism
2. Power distance: extent to which a society accepts the fact that power in institutions and organizations is distributed unequally
3. Uncertainty Avoidance: The extent to which a society feels threatened by uncertain and ambiguous situations and tries to avoid them
4. Quantity vs. Quality of Life (also masc/fem)
5. Long term orientation
Comparison of US vs. World Average on Hofstede’s Dimensions
Power Distance
Masculine
Long term
Individualism Uncertainty Avoidance
Power Distance
Masculine
Long term
Individualism Uncertainty Avoidance
Sexual Orientation Diversity
Approximately 10-14% of the US workforce is lesbian, gay, or bisexual (LGB; Powers, 1996)
Disclosure of sexual orientation is a critical and complex decision that is affected by many factors (Ragins et al., 2001)
Sexual Orientation Diversity
Most discrimination laws (e.g., CRA of 1964) do not protect sexual identityDiscrimination against employees who are or who are perceived to be LGB is legal in most workplaces (Button et al., 1997; van der Meide, 2000)
25-66% of LGB employees report discrimination. This number is likely much higher due to low disclosure rates (Badgett, 1996; Driscoll et al., 1996; Schneider, 1987)
Other Types of Diversity
Family situationsSingle employees (mothers and others)
Physical and psychological disabilities
Americans with Disabilities ActPolitical viewsPersonal idiosyncrasies
The pay gap, 1985-2000 median weekly earnings of full-time workers, as a percentage of those of white men
0
20
40
60
80
100
120
1985 1990 1995 1999
White men
Black men
White women
Hispanic men
Hispanicwomen
Source: U.S. Census Bureau, Statistical Abstract of the United States, 2000, Table 696, p. 437.
Where Women and Minorities ManageFemale Black HispanicPercentage of total, 1999
All occupations 46.5%11.3% 10.3%Managerial and professional 49.5 8.0 5.0Executive, administrative and managerial 45.1 7.6 5.6Public officials and administrators 51.1 14.0 4.9Financial managers 51.1 7.0 5.4Personnel and labor relations managers 60.4 10.9
6.3Purchasing managers 47.4 8.9
5.6Marketing, advertising, and PR 37.6 4.8 2.7 Educational administrators 62.5 15.0 4.8Health care managers 77.4 8.9
6.6Property and real estate managers 49.4 6.6 8.9Management-related occupations 57.8 9.8 5.3
Source: U.S. Census Bureau, Statistical Abstract of the United States, 2000, table 669, pp. 416-418.
Federal Laws and Executive Orders Prohibiting Job Discrimination
Equal Pay Act (1963)Civil Rights Act (1964; amended 1972, 1991)Executive Order 11246 (1965)Age Discrimination in Employment Act (1967)
Equal Employment Opportunity Act (1972)Pregnancy Discrimination Act (1972)Americans with Disabilities Act (1978)Family and Medical Leave Act (1993)
Challenges of DiversityAvailability Challenge
In past employers could control diversity•More people than jobs
Qualified employees have become scarce•Employers must become more flexible•Realize “Different does not mean deficient”
Fairness challengeIn past, typically viewed as equal treatment•Equal Employment Opportunity
Now employers must embrace new diversity•Essentially focus on “differences”
Challenges of DiversitySynergy challenge
More and more group-based workDiversity can create positive and negative conflict•Can facilitate creative problem-solving•Can close down communication•Can derail group processes
Group leaders must minimize destructive conflict and maximize diversity of input
Strategies for Managing Diversity
Articulate a clear diversity mission, set objectives, and hold managers accountable.Spread a wide net in recruitment to find the most diverse possible pool of qualified candidates.Identify promising women and minorities and provide them with mentors and other kinds of support.Set up diversity councils to monitor the company’s goals and progress toward them.
Programs for Managing Diversity: Diversity Training
Providing managers with trainingHow to recruit/hire diverse employeesHow to orient/integrate new employees
Providing all employees with trainingRealizing the differences that existLearning how differences affect working environmentHow to maximize productivity without ignoring employee differences
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