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Michael A. Hitt

C. Chet Miller

Adrienne Colella

Chapter 2 OrganizationalOrganizational

DiversityDiversity

Slides by Ralph R. Braithwaite

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Diversity in the LAFDDiversity in the LAFD• What are your thoughts about the opening

scenario?

• 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?

Exploring Behavior in Action

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Knowledge ObjectivesKnowledge Objectives1. Define organizational diversity and distinguish between

affirmative action and diversity management.2. Distinguish multicultural, plural, and monolithic

organizations.3. Describe the demographic characteristics of the U.S.

population and explain their implications for the composition of the workplace.

4. Discuss general changes in the United States that are increasing the importance of managing diversity effectively.

5. Understand why successfully managing diversity is extremely important for high-involvement work organizations.

6. Discuss the various roadblocks to effectively managing a diverse workforce.

7. Describe how organizations can successfully manage diversity.

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Diversity DefinedDiversity 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.

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

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QuoteQuote“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

Thoughts?

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Examples of DefinitionsExamples of Definitions

Thoughts?

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Strategic Importance of Strategic Importance of Organizational DiversityOrganizational 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

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Affirmative Action vs.Affirmative Action vs.Diversity ManagementDiversity Management

Adapted from Exhibit 2-1: Differences between Affirmative Action Programs and Diversity Management Programs

Ongoing, permanent changesTemporary, until representation of disadvantaged groups

Time Frame

Attempts to uncover the root causes of diversity problems

Does not address the cause of problems

Cause of Problems

Allows all associates to reach their full potential

Recruitment, mobility, and retention

Focus

Assumes that managers and the organizations will change

Assumes individuals will assimilate and adapt

Assimilation

Create an inclusive, empowered work environment

Prevent and remedy discrimination

Purpose

Diversity ManagementAffirmative Action

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Organizational DiversityOrganizational Diversity

MulticulturalMulticulturalOrganizationOrganization

PluralPluralOrganizationOrganization

MonolithicMonolithicOrganizationOrganization

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Forces of ChangeForces of Change• Changing workforce demographics –

percentage by race, age and sex – Exhibit 2-2

• Increase in the service economy

• Global economy

• Requirements for teamwork

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High-Involvement OrganizationsHigh-Involvement Organizations• Commitment to the

organization• Job involvement• Satisfaction

IndividualOutcomes

• Decision making• Creativity• Complex tasks

• Productivity• Return on equity• Market performance

GroupOutcomes

OrganizationalOutcomes

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Societal and Moral OutcomesSocietal and Moral Outcomes

$10.5M & $8M$192.5M

$176M

$132.5M

$250M$47M

$508M

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Laws Preventing DiscriminationLaws Preventing Discrimination

Adapted from Exhibit 2-3: Federal Laws Preventing Employment Discrimination

Title VII of the1964 Civil

Rights Act,

Civil RightsAct of 1991

Equal Pay Act of 1963

Age Discrimination in Employment

Act of 1967

Title I of the Americans with Disabilities Act

of 1990

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The Case of FranceThe 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

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Roadblocks to DiversityRoadblocks to Diversity

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Prejudice and DiscriminationPrejudice and Discrimination

Prejudice Discrimination

Modern Racism

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StereotypesStereotypesA 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 StereotypesCommon Stereotypes

Adapted from Exhibit 2-4: Common Stereotypes

White MenWhite MenWomenWomen People withPeople withDisabilitiesDisabilities

Jewish PeopleJewish PeopleBlack PeopleBlack People Japanese MenJapanese Men

Arab PeopleArab PeopleAthletesAthletes AccountantsAccountants

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Stereotyping – Difficult to StopStereotyping – Difficult to Stop• Tough to dispel

• Guide what information we lookfor, process and remember

• Seems to be an enduring humanquality – everyone has somestereotypes

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Women, Work and StereotypesWomen, Work and Stereotypes

ExperiencingStrategic OB

• 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?

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Social IdentitySocial IdentityA 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

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Sample Self-Identity StructuresSample Self-Identity Structures

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

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Sources of PowerSources of Power

ExpertKnowledge

FormalPosition

ControlRewards andResources

BeingIrreplaceable

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Ascribed StatusAscribed StatusStatus 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

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Communication ProblemsCommunication Problems• Different languages

• Different levels of fluency in the dominant language

• Excluding those who don’t speak the language

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Communication Disagreement Communication Disagreement Among CulturesAmong 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

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Structural IntegrationStructural 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.

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Poor Structural IntegrationPoor Structural Integration

Middle Management

0% 0% 2% 0%

0% 1% 10% 2%

0% 5% 15% 5%

25% 25% 40% 26%

60% 65% 80% 75%

0.5%

3.25%

6.25%

29%

70%

FinanceM

arketing

HR

Sales

Average A

ll

Functions

Top Management

Supervisor

Staff

Line Worker

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

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Good Structural IntegrationGood Structural IntegrationPercentage of people who are female and/or racial and ethnic minority group members

35% 35% 35% 35% 35%

35% 35% 35% 35% 35%

35% 35% 35% 35% 35%

35% 35% 35% 35% 35%

35% 35% 35% 35% 35%

Top Management

Supervisor

Staff

Middle Management

Line Worker

FinanceM

arketing

HR

Sales

Average A

ll

Functions

Adapted from Exhibit 2.6: Examples of Poorly Integrated and Well-Integrated Organizations

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RoadblocksRoadblocks• 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

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Commitment of LeadersCommitment of Leaders• Communicate through multiple channels

• Personally lead all diversity efforts

• Sponsor employee councils

• Ensure cross-cultural communication

• Be accountable for advancing diversity initiatives

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ManagerialAdvice

Promoting a Positive Promoting a Positive Diversity EnvironmentDiversity Environment

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

Thoughts?

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Integration With the Integration With the Strategic PlanStrategic 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:

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Associate InvolvementAssociate Involvement• Discussion groups from

a 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

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Diversity Initiatives at Denny’sDiversity Initiatives at Denny’s• Recruiting

• Retention

• Development

• External partnerships

• Communication

• Training

• Staffing and infrastructure

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The Strategic LensThe Strategic Lens

1. How does organizational diversity contribute to an organization’s competitive advantage?

2. What actions are required to create diversity in an organization, particularly in one that has homogeneous membership at present?

3. How does diversity in an organization affect its strategy?

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QuestionsQuestions