Chapter 5
Managing Diverse Employees In a Multicultural Environment
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Sources of Diversity
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Diversity Concerns Ethical imperative for equal opportunity Effectively managing diversity can
improve organizational effectiveness There is substantial evidence that
diverse individuals continue to experience unfair treatment
Glass ceiling
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Major EEO Laws
Insert Table 5.1
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Age and Women Aging U.S. Population
– Median age in the United States is 36.2 years– By 2030 20 % of the population will be over 65
Women in the Workplace– U.S. workforce is 46% percent female– Women’s median weekly earnings are $572
compared to $714 for men– Women hold 16% of corporate officer
positions
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Race and Ethnicity Census Bureau distinguishes between the
following races– American Indian, Asian, African-American, Native
Hawaiian and White Ethnicity refers to whether a person is
Hispanic or not Hispanic Most Hispanics prefer to be identified by their
country of origin The racial and ethnic diversity of the U.S.
population is increasing exponentially
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Capabilities and Disabilities Providing reasonable accommodations
for individuals with disabilities Promoting a nondiscriminatory
workplace environment Educating the organization
about disabilities and AIDS
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Other Forms of Diversity Accommodation for Religious Beliefs
– Scheduling of critical meetings– Providing flexible time off for holy days– Posting holy days for different religions on
the company calendar Socioeconomic background
– Being sensitive and responsive to those who might not be as well off as others
Sexual Orientation
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Critical Managerial Roles When managers commit to diversity, it
legitimizes diversity efforts of others Top-management commitment and rewards
are critical for success Effective management of diversity hinges on:
– Minorities start out at a slight disadvantage due to the perception of others in the organization
– Slight differences in treatment can accumulate and result in major disparities over time
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Justice Distributive Justice
– The distribution of organizational resources based on meaningful contribution
Procedural Justice– The use of fair procedures to determine how
to distribute organizational resources– Exists when managers:
• Carefully appraise a subordinate’s performance• Take into account any environmental obstacles • Ignore irrelevant personal characteristics
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What Diversity Provides A variety of points of view and approaches
to problems and opportunities A wider range of creative ideas More attention to the needs of diverse
customers Increased retention of valued
organizational members Expected/required by other firms
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Perception The process through which people select,
organize, and interpret what they experience Inaccurate perceptions are likely to lead to
bad decisions and inappropriate actions Bad managerial decisions include:
– Not hiring qualified people– Failing to promote top-performing subordinates– Promoting poorly performing managers because
they have the same “diversity profile”
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Perception Schema
– Abstract knowledge structure that allows people to organize and interpret information
Stereotype– Simplistic beliefs about the typical
characteristics of particular groups of people Bias
– Systematic tendency of using information in ways that result in inaccurate perceptions
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Biases Similar-to-me effect
– Perceive others who are similar to ourselves more positively than we perceive people who are different
Social status effect– Perceive individuals with high social status more
positively than those with low social status Salience effect
– Focus attention on individuals who are conspicuously different
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Overt Discrimination Knowingly and willingly denying diverse
individuals access to opportunities and outcomes in an organization
Unethical and illegal Violation of the principles of distributive
and procedural justice Subjects firm to lawsuits
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Managing Diversity Secure top management commitment Strive to increase the accuracy of
perceptions Increase diversity awareness and skills Pay close attention to evaluations Consider the numbers Reward employees Provide training Encourage mentoring
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Diversity Awareness Programs Provide members with accurate information
about diversity Uncover personal biases and stereotypes Assess personal beliefs, attitudes, and values
and learning about other points of view Develop an atmosphere in which people feel
free to share their differing perspectives Improve understanding of others who are
different
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Sexual Harassment Types of Sexual Harassment
– Quid pro quo– Hostile work environment
Eliminating Sexual Harassment– Develop and clearly communicate a policy – Use a fair complaint procedure – Take corrective action as soon as possible– Provide sexual harassment education and
training
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Sexual Harassment Every charge should be taken seriously Those who go along with it can be victims Employees sometimes wait before filing a
complaints Alternate ways to report incidents should be
provided Employees who report sexual harassment
must have their rights protected Allegations should be kept confidential
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Sexual Harassment Investigations of charges and disciplinary
action should proceed in a timely manner Managers must protect employees from third-
party employees as well Sexual Harassment Policy
– Should be communicated to each new employee and reviewed with current employees
– Suppliers and customers need to be familiar with the policy
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