Chapter 2

Organizational Behavior

Chapter 2

Managing Diversity: Releasing Every Employee's Potential

Managing diversity is a sensitive, potentially, volatile, and sometimes uncomfortable issue. Yet

managers are required to deal with it in the name of organizational survival. Accordingly, the purpose

of this chapter is to help you get a better understanding of this important context for organizational

behavior. We begin by defining diversity. Next, we build the business case for diversity and discuss

the barriers and challenges associated with managing diversity. The chapter concludes by describing

the organizational practices used to manage diversity effectively.

Define diversity and review the four layers of diversity.

Diversity – the host of individual differences that many people different from an similar to each

other.

Layers of diversity

Four layers of diversity have been identified to help distinguish the important ways in which people

differ. Taken together, these layers define your personal identity and influence how each of a sees the

world. The four layers are like a wheel with personality in the center going out words internal

dimensions, external dimensions, and organizational dimensions.

Personality is at the center of the diversity wheel, it represents a stable set of characteristics that is

responsible for a person’s identity. The next layer of diversity consists of a set of internal dimensions

that are referred to as surface level dimensions of the diversity. These dimensions, for the most part,

are not within our control, that they strongly influence our attitudes and expectations and assumptions

about others, which, in turn, influences our behavior.

That external influences layer of diversity is referred to as secondary dimensions of diversity. They

represent individual differences that we have a greater ability to influence for control. Examples include

where you grew up and in today, your religious affiliation, whether you are married and have children,

and your work experiences. These dimensions also exert a significant influence on our perceptions,

behavior, and attitudes.


Explain the difference between affirmative action and managing

diversity.

Affirmative action and managing diversity

Effectively managing diversity requires organizations to adopt a new way of thinking about

differences among people. Rather than pitting one group against another, managing diversity entails

recognition of the unique contribution every employee can make.

Affirmative action is an outgrowth of equal employment opportunity (EEO) legislation. The goal of this

legislation is to outlaw discrimination and encourage organizations to proactively prevent discrimination.

Discrimination occurs when employment decisions about an individual are due to reasons not

associated with performance or are not related to the job.

Affirmative action focuses on achieving the quality of opportunity in an organization.

Some important United States Federal laws and regulations protecting employees:

Labor relations

o Privacy act

o Immigration reform and control act

o Polygraph protection act

o Worker adjustment and retraining notification act

o Sarbanes Oxley act


Compensation and benefits

o Employee retirement income security act

o Family and medical leave act

o Health Insurance portability and accountability act

Health and safety

o Occupational safety and health act (OSHA)

o Consolidated omnibus budget reconciliation act

Equal employment opportunity

o Equal pay act

o Civil rights act –title VIII

o Age discrimination in employment act

o Pregnancy discrimination act

o Americans with disabilities act

o Civil rights act

As you can see, many forms of discrimination are outlawed. Many of these Federal laws are enforced

by the Equal Employment Opportunity commission, and individuals may sue for back pay and punitive

damages when they feel they have been discriminated against.

In contrast to the proactive perspective of EEO legislation, affirmative action is an artificial intervention

aimed at giving management a chance to correct an imbalance, an injustice, a mistake, or outright

discrimination that occurred in the past. Affirmative action does not legitimize quotas. Quotas are

illegal. They can only be imposed by judges who conclude that a company has engaged in

discriminatory practices. It also is important to note that under no circumstances does affirmative action

require companies to hire unqualified people.


Although affirmative action created tremendous opportunities for women and minorities, it does not

foster the type of thinking that is needed to effectively manage diversity. Affirmative action programs

also were found to negatively affect the women and minorities expected to benefit from them.

Research demonstrated that women and minorities, supposedly hired on the basis of affirmative action,

felt negatively stigmatized as unqualified or incompetent. They also experienced lower job satisfaction

and more stress than employees supposedly selected on the basis of merit. Another study, however,

showed that these negative consequences were reduced for women when a merit criterion was

included in hiring decisions. In other words, women hired under affirmative action programs felt better

about themselves and exhibited higher performance when they believed they were hired because of

their competence rather than their gender.

Managing diversity entails enabling people to perform up to their maximum potential. It focuses

on changing an organization's culture and infrastructure such that people provide the highest

productivity possible.

Ann Morrison, a diversity expert, conducted a study of 16 organizations that successfully manage

diversity. Her results uncovered three key strategies for success: education, enforcement, and

exposure.

In summary, both consultants and academics believe that organization should strive to manage

diversity rather than simply using affirmative action. This conclusion was supported by a study of 200

African American and white males and females employed and Retail Stores. Results revealed that

employees viewed leaders as more accepting of diversity and more desirable to work for when they

demonstrated behaviors consistent with managing diversity as opposed to affirmative action.

Building the business case for managing diversity

The rationale for managing diversity goes well beyond legal, social, in moral reasons. Quite simply, the

primary reason for managing diversity is the ability to grow and maintain a business in an increasingly

competitive marketplace. Many companies understand and endorse this proposition. For example,

IBM, Texaco, and Nordstrom’s was decided to focus on hiring and promoting diverse employees in

order to help create and market products to a broader and more diverse customer base.

Organizations cannot use diversity as a strategic advantage if employees fail to contribute their full

talents, abilities, motivation, and commitment. It is thus essential for in an organization to create an


environment or culture that allows all employees to reach the fullest potential. Managing diversity is a

critical component of creating such an organization.

Increasing diversity in the workforce

Workforce demographics, which are statistical profiles of the characteristics and composition of

the adult working population, are an invaluable human resource planning aid. They enable

managers to anticipate and adjust for surpluses or shortages of appropriately skilled individuals.

Experts predict that population under age 45 will begin shrinking 6% annually in 2000 and will create a

serious shortage of skilled workers in the future. In turn, these shortages will increase the amount of

work that is outsourced to other countries around the world. Unfortunately, these predictions are ready

are occurring. For example, a survey of 500 employers in Florida indicated that 52% were experiencing

a lack of skilled workers and the bureau of labor statistics estimated a shortfall of 10 million knowledge

workers in the United States by 2010.

Moreover, general population demographics get managers a preview of the values and motives of

current and future employees. Demographic changes in the United States workforce during the last two

or three decades have immense implications for organizational behavior. Four demographic based

characteristics of the work force that have implications for organizational behavior:

1. Women are encountering a glass ceiling

2. Racial groups are in countering a glass ceiling and perceived discrimination

3. There is a mismatch between workers' educational attainment and occupational requirements

4. The workforce is aging

Describe the glass ceiling and the four top strategies used by women

to break the glass ceiling.

Women are encountering a glass ceiling - in spite of the fact that women constituted 46% and the labor

force in 1996 and are expected to represent 48% by year 2010; they continue to encounter the glass

ceiling. The glass ceiling represents an invisible barrier the separates women and minorities

from advancing into top management positions. Women, therefore, find themselves stuck in lower


level jobs, ones that do not have a profit and loss responsibility, and those with less visibility and

influence. In general, these positions result in a lack of power because the jobholder does not have

control over others, resources, or technology. The end result is that women face legitimate power

deficits while trying to climb the corporate ladder.

There are a variety of statistics that support the existence of a glass ceiling. Women receive 77% of

men’s earnings, women receive fewer stock options, and women receive fewer promotions. Women

still have not broken into the highest echelon of corporate America to a significant extent. For example,

there are only 10 and 23 female CEOs in the fortune 500 and the fortune 1000 as of February 2007.

Further, the majority of women in top jobs are working in staff rather than line positions. In general,

roles associated with nine jobs contain more power and influence and staff positions.

Research has found that four strategies were identified as critical toward breaking the glass ceiling: (1)

consistently exceeding performance expectations, (2) developing a style with which male

managers are comfortable, (3) seeking out difficult or challenging assignments, and (4) having

influential mentors. CEOs concluded that women do not get promoted because they lacked

significant general management or line experience and women have not been in the executive talent

pool for a long a period of time to get selected. In contrast, the female executives indicated that male

stereotyping and preconceptions and exclusion from informal networks were the biggest inhibitors to

their promotability. These findings suggest that it is important to sensitize CEOs to the corporate

culture faced by female employees. Breaking the glass ceiling will only occur when senior

management has a good understanding of the unique experiences associated with being in the

minority.

Review the demographic trends pertaining to racial groups,

educational mismatches, and an aging workforce.

Racial groups are encountering a glass ceiling and perceived discrimination

Historically, the United States has been a black and white country. This pattern no longer exists

according to the U.S. census bureau which shows that Asians and Hispanics are expected to have the

largest growth in population between year 2000 and 2050. The Asian population will triple by 2050 and

the Hispanics will increase by 118%.


Unfortunately, three additional trends suggest that current day minority groups are experiencing their

own glass ceiling. First, minorities in general are advancing less in the managerial and professional

ranks than whites. Second, the number of race based charges of discrimination that were deemed to

show reasonable cause by the EEO commission increased.

In addition to a racially based glass ceiling, a number of research study showed that minorities

experienced more perceived discrimination than whites. Studies conducted demonstrated that blacks

perceived that they experienced more discrimination by slower rates of promotion and less

psychological support. It thus is not surprising that the turnover rate for black managers is 40% higher

than their white counterparts. Finally, several studies have shown that blacks experience significant

amount of races and read a distress, which in turn affects their physical and psychological well being.

Mismatch between educational attainment and occupational requirements

Approximately 27% of the labor force has a college degree, and it pays to graduate from college. At the

same time, however, three trends suggest a mismatch between educational attainment and the

knowledge and skills needed by employers. First, recent studies show that college graduates, while

technically and functionally competent, are lacking in terms of teamwork skills, critical thinking, and

analytic reasoning. Second, there is a shortage of college graduates in technical fields related to

science, math, and engineering. Third, organizations are finding that high school graduates working an

entry level positions do not possess the basic skills needed to perform effectively. The latter tree and is

partly due to a national high school dropout rate estimated at 33% and the existence of about 90 million

functionally illiterate adults in the United States. Literacy is defined as " an individuals ability to read,

write, and speak English, compute and solve problems at levels of proficiency necessary to function on

the job and in society, to achieve one schools, and develop one's knowledge and potential." Illiteracy

has cost corporate America around $60,000,000,000 a year in lost productivity. These statistics are

worrisome to both government officials and business leaders.

The key issue confronting organizations in the United States, and any country that once to compete in a

global economy, is whether or not the population has a skills and abilities needed to drive economic

growth. Unfortunately, results from a study commissioned by the National Center on education and the

economy suggest that the United States is losing ground on this issue. Our international counterparts

are increasingly getting more education. Our relative position in the world's education league tables

have continued its long slow decline, the structure of the global economy has continued to fall. Every


day, more and more of the work that people do ends up in a digitized form. Because this is so,

employers everywhere have access to a worldwide work force composed of people who do not have

moved to protest Spain work teams that are truly global. Because of this, American workers at every

skill level are in direct competition with workers in every corner of the globe.

These conclusions underscore the fact that a mismatch between educational attainment and

occupational requirements have both short and long-term implications for organizations and countries

alike. American companies are more likely to outsource technical work to countries like India and

China, to hire more immigrants to fill entry level positions, and to spend more money on employee

training.

America's population and workforce are getting older. Between 1995 and 2020, the number of

individuals in the United States over age 65 will increase by 60%, the 45 to 64 year old population by

34% and those between ages 18 and 44 by 4%. Life expectancy is increasing as well. The number of

people living into their eighties is increasing rapidly, in this group disproportionately suffers from chronic

illness.

An aging population in the United States also underscore a potential skill gap in the future. As those

employees in the baby boom generation retire - 76 million people born between 1946 and 1964 - the

U.S. work force will lose the skills, knowledge, experience, and relationships possessed by the more

than 1/4 all Americans. This situation will likely create skill shortages and fast growing technical fields.

Highlight the managerial implications of increasing diversity in the

workforce.

Regardless of gender, race, or age, all organizations need employees who possess the skills and

abilities needed to successfully complete their jobs. To attract the best workers, companies need to

adopt policies and procedures that meet the needs of all employees.

Organizations can also help women to break through the glass ceiling by making sure that they have

the developmental assignments that prepare them for promotional opportunities.

Given the projected increase in the number of Hispanics entering the workforce for the next 25 years,

managers should consider progressive methods to recruit, retain, and integrate this segment of the


population into their organizations. Research further reveals that the retention and career progression

of minorities can be significantly enhanced through effective mentoring. Findings also demonstrated

that people of color should be mentored differently than their white counterparts.

Mismatches between the amount of education needed to perform current jobs and the amount of

education possessed by members of the workforce are growing around the world. This trend creates

three potential problems for organizations. First, there will be a shortage of qualified people in technical

fields. To combat this issue some companies offer some type that paid apprenticeship or internship to

attract high school students. Second, on the job remedial skills and literacy training will be necessary to

help the growing number of dropouts and illiterates cope with job demands. Finally, organizations will

continue to be asked to help resolve the educational problems in the United States. There are several

organizations that make corporate contributions to education and school reform.

As the baby boomer generation reaches retirement age after the turn of the century, the work force will

be top heavy with older employees, creating the problem of career plateauing for younger workers.

Career plateauing is defined as that point in a career which future hierarchical mobility seems

unlikely. Career plateauing is associated with stress and dissatisfaction. Unfortunately, this problem is

intensified by the fact that organizations are flattening - and reducing the number managerial jobs - in

order to save costs and increase efficiency. Managers will need to find alternatives of them promotions

to help employees satisfy their needs and to feel successful, and employees will need to take a much

more active role in managing their careers.

Three of recommendations for managing an aging workforce -the first involves the need to help

employees deal with personal issues associated with elder care. Eldercare is a critical issue for

employees that have aging parents, and failing to deal with it can drive up and employer's costs.

Second, employers need to make a concerted effort to keep older workers engage and committed in

their skills current. The following seven initiatives can help accomplish this objective.

1. Provide challenging work assignments that makes a difference to the firm

2. Give the employee considerable autonomy and latitude in completing a task

3. Provide equal access to training and learning opportunities when it comes to a new technology

4. Provide frequent recognition for skills, experience, and wisdom gained over the years


5. Provide mentoring opportunity's whereby older workers can pass on accumulated knowledge to

younger employees

6. Ensure that older workers receive sensitive, high quality supervision

7. Designed a work environment that is both stimulating and fun

The final recommendation involves process and managing the cost of Health Care, which has risen at

an average rate of 14% and is likely to increase as a population ages.

Explain the positive and negative effects of diversity by using social

categorization theory and information/decision-making theory.

Social categorization theory – similarity leads to linking an attraction

The social characterization perspective holds that similarities and differences are used as a

basis for categorizing self and others into groups with ensuing categorizations distinguishing

between one’s own in group and one or more out groups. People tend to like and trust in group

members more than out group members and does generally tend to favor in group over and out groups.

Workgroup members are more positively inclined for their group and the people within it if fellow board

members are seminar rather than dissimilar to the self.

This perspective further implies that similarity leads to liking and attraction, thereby fostering a host of

positive outcomes. If this were the case, one would expect that the more homogeneous a workgroup,

the higher the member commitment and the group cohesion, and the lower the amount of interpersonal

complex. There is a large body of research supporting propositions to ride from the social

categorization model.

Research has shown that people who were different from their work units in racial or ethnic background

or less psychologically committed to their organizations, less satisfied with their careers. Demographic

diversity is also associated with less corporation, higher employee turnover and employee defiance and

lower profits. All told then, the social categorization model supports the idea that homogeneity is better

than heterogeneity in terms of affecting work related attitudes, behavior, and performance.


Information/decision – making theory refers that diversity leads to better task relevant process

and decision making.

The second theoretical point of view, are referred to as information/decision-making theory, a rise of

opposite predictions, proposing that diverse groups should outperform homogeneous groups. The logic

of this very was described as follows: the idea is that diverse groups are more likely to possess a

broader range of task-relevant knowledge, skills, and abilities that are distinct and non redundant and to

have different opinions and perspectives on the task at hand. This not only gives diverse groups a

larger pool of resources, but may also have other beneficial effects.

This perspective highlights three positive effects of diverse workgroups. First, diverse groups are

expected to do better in earlier phases of problem-solving because they’re more likely to use diverse

backgrounds to generate a more comprehensive few of a problem. Second, the existence of diverse

perspectives can help groups to brainstorm or uncover more novel alternatives during problem-solving

activities. Finally, diversity can enhance the number of contacts a group or work unit has at its disposal.

This broad network enables groups to gain access to new information and expertise, which results in

more support for decisions than homogeneous groups.

Team performance is positively related to a diversity and gender, ethnicity, age, and education.

Heterogeneous groups also were found to produce better quality decisions and demonstrated higher

productivity than homogeneous groups. This occurs through the sharing of diverse ideas and

perspectives. A summary of 40 years of diversity research support that diversity can promote creativity

and improve a team’s decision-making.

Reconciling the effects of diverse work environments –there are both positive and negative effects

associated with diversity. Consistent was social categorization theory, there is a negative relationship

between the amount of diversity in a workgroup and the quality of interpersonal processes and group

dynamics within a workgroup. This negative revelation ultimately results in negative outcomes because

of the positive relationship between the quality of interpersonal processes and group dynamics and

outcomes. For example, gender and racial diversity in a workgroup foster more interpersonal conflict,

which in turn results in lower job satisfaction, higher turnover, and lower productivity.

In contrast, research regarding the information/decision-making theory tells us that the amount of

diversity in a workgroup is positively associated with task-relevant processes and decision making,


which in turn fosters positive outcomes. Gender and racial diversity in this case lead to positive

outcomes because they lead to improved task related processes and decision making.

Considerations of what management can do to reduce the potential negative effects: first, organizations

can target training to improve the inherent negative relationship between a workgroups diversity and it’s

interpersonal processes and group dynamics. For example, training can be used to help employees

develop interpersonal skills and a greater appreciation for diversity. Second, managers can seek ways

to help employees ease the tensions of working in diverse groups. Finally, steps could be taken to

reduce and negative effects of unconscious stereo typing and increase the use of group goals in

heterogeneous groups. Rewarding groups to accomplish their goals might encourage group members

to focus on their common objectives rather than on their demographic differences that are unrelated to

performance.

Identify the barriers and challenges to managing diversity.

Diversity is a sensitive, potentially volatile, and sometimes uncomfortable issue. Organizations

encounter significant barriers when trying to move forward with managing diversity. The following is a

list of the most common barriers to implementing successful diversity programs:

1. Inaccurate stereotypes and prejudice – this barrier manifests itself in the belief that differences

are viewed as weaknesses. In turn, this promotes the view that diversity hiring will mean

sacrificing competence and quality.

2. Ethnocentrism – that ethnocentrism barrier represents the feeling that one’s cultural rules and

norms are superior or more are appropriate than the rules and norms of another culture.

3. Poor career planning – this barrier is associated with the lack of opportunities for diverse

employees to get the type of work assignments that qualify them for senior management

positions.

4. An unsupportive and hostile working environment for diverse employees – sexual, racial, and

age harassment are common examples of hostile work environments. Whether perpetrated

against women, men, are older individuals, hostile environments are demeaning, unethical, and

appropriately called “work environment pollution.” The EEOC codes employers legally

accountable for behavior that creates a hostile work environment. Sexual harassment, under the


context of man and women working together in groups, is the most frequent type of hostile

environment charge filed with the EEOC. Sexual harassment also happens to be an

international problem. (sexual harassment is a growing problem in China)

5. Lack of political savvy on the part of diverse employees – diverse employees may not get

promoted because they do not know how to “play the game” of getting along and getting ahead

in an organization. Research reveals that women and people of color are excluded from

organizational networks.

6. Difficulty in balancing career and family issues – women still the same the majority of the

responsibility as a shed with raising children. This makes it harder for women to work evenings

and weekends or too frequently travel once they have children. Even without children in the

picture, household chores take more of a woman’s time than a man’s time.

7. Fears of reverse discrimination – some employees believe that managing diversity is a

smokescreen for reverse discrimination. This belief leads to a very strong resistance between

people feel that one person’s gain is another’s loss.

8. Diversity is not seen as an organizational priority – this leads to settle resistance that shows up

in the form of complaints and negative attitudes. Employees may complain about the time,

energy, and resources devoted to diversity that could have been spent during “real work”.

9. The need to revamp the organization’s performance appraisal and reward system – performance

appraisals and reward systems must reinforce the need to effectively manage diversity. This

means that success be based on a new set of criteria.

10.Resistance to change – effectively managing diversity entails significant organizational and

personal change. People resist change for many different reasons.

In summary, managing diversity is a critical component of organizational success.

Discuss the organizational practices used to effectively manage

diversity as identified by R Roosevelt Thomas, Jr.

A framework for managing diversity by categorizing organizational initiatives was developed by R.

Roosevelt Thomas, Jr. a diversity expert. He identified eight generic action options that can be used to


address any type of diversity issue. The following reviews Thomas’s framework in order to provide you

with a broad understanding about how organizations are effectively managing diversity. After

describing each action option, we discuss relationships among them.

1. Include/exclude – this choice is an outgrowth of affirmative action programs. Its primary goal is

to either increase or decrease the number of diverse people at all levels of the organizations.

2. Deny – people using this option deny that differences exist. Denial may manifest itself in

proclamations that all decisions are color, gender, and age blind and that success is solely

determined by merit and performance.

3. Assimilate – the basic premise behind this alternative is that all diverse people will learn to fit in

or become like the dominant group. It only takes time and reinforcement for people to see the

light. Organizations initially assimilate employees through their recruitment practices and the

use of company orientation programs. New hires generally are picked through orientation

programs that aim to provide employees with the organization’s preferred values and a list of

standard operating procedures. Employees then are encouraged to refer to the policies and

procedures manual when they are confused about what to do in a specific situation. These

practices create homogeneity among employees.

4. Suppress – differences are squelched or discouraged when using this approach. This can be

done by telling or reinforcing others to quit whining and complaining about issues. The old

“you’ve got to pay your dues” line is another frequently used way to promote the status quo.

5. Isolate – this option maintains the current way of doing things by setting the diverse person off to

the side. In this way the individual is unable to influence organizational change. Managers can

isolate people by putting them on special projects. Entire workgroups or departments are

isolated by creating functionality independent, frequently referred to as “silos”.

6. Tolerate – toleration entails acknowledging differences but not valuing or accepting them. It

represents the live and let live approach that superficially allows organizations to give lip service

to the issue of managing diversity. Toleration is different from isolation in that it allows for the

inclusion of diverse people. However, differences are not really valued or accepted when an

organization uses this option.


7. Build relationships – this approach is based on the premise that good relationships can

overcome differences. It addresses diversity by fostering quality relationships – characterized by

acceptance and understanding – among diverse groups.

8. Foster mutual adaptation – in this option, people are willing to adapt or change their views for the

sake of creating positive relationships with others. This implies that employees and

management alike must be willing to accept differences, and most important, agree that

everyone and everything is open for change. Companies can foster mutual adaptation through

their recruitment and retention strategies as well their benefit packages. Consider the amount

and mutual adaptation that has occurred with respect to the issue of sexual preference. Howard

Bell, chief diversity officer at Raytheon, offers keen insight about why organizations should

consider fostering mutual adaptation. “over the next 10 years we’re going to need anywhere

from 30,000 to 40,000 new employees and we can’t afford to turn our backs on anyone in the

talent pool”

Conclusions about action options –these can be used alone or in combination, some are clearly better

than others. Exclusion, denial, assimilation, suppression, isolation, and toleration are among the least

preferred options. Inclusion, building relationships, and mutual adaptation are preferred strategies.

That said, Thomas reminds us that mutual adaptation is the only approach that unquestionably

endorses the philosophy behind managing diversity. In closing this discussion, it is important to note

that choosing how to manage diversity is a dynamic process that is determined by the context at hand.

For instance, some organizations are not ready for mutual adaptation. The best one might hope for in

this case is the inclusion of diverse people.

Summary of Key Concepts

Define diversity and review the four layers of diversity. Diversity represents the individual

differences that make people different from and similar to each other. Diversity pertains to

everybody. It is not simply an issue of age, race, gender, or sexual orientation. The layers of diversity

define an individual's personal identity and constitute a perceptual filter that influences how we interpret

the world. Personality is at the center of the diversity wheel. The second layer of diversity consists of a

set of internal dimensions that are referred to as surface-level dimensions of diversity. The third layer is

composed of external influences and is called secondary dimensions of diversity. The final layer of

diversity includes organizational dimensions.


Explain the difference between affirmative action and managing diversity. Affirmative action is an

outgrowth of equal employment opportunity legislation and is an artificial intervention aimed at giving

management a chance to correct past discrimination. Managing diversity entails creating a host of

organizational changes that enable all people to perform up to their maximum potential.

Explain the glass ceiling and the four top strategies used by women to break the glass ceiling. The

glass ceiling is an invisible barrier blocking women and minorities from top management positions. The

top four strategies used by women included the following: consistently exceed performance

expectations, develop a style with which male managers are comfortable, seek out difficult or

challenging assignments, and find influential mentors.

Review the demographic trends pertaining to racial groups, educational mismatches, and an aging

workforce. With respect to racial groups, Asians and Hispanics are expected to have the largest growth

in the population between 2000 and 2050, and minority groups will constitute 49.9% of the population in

2050. Minority groups also are experiencing a glass ceiling. There is a mismatch between workers'

educational attainment and occupational requirements. The workforce is aging.

Highlight the managerial implications of increasing diversity in the workforce. There are eight broad

managerial implications:(a) To attract the best workers, companies need to adopt policies and

programs that meet the needs of all employees; (b) managers should consider progressive methods to

recruit, retain, and integrate Hispanic workers into their organizations; (c) mentoring programs are

needed to help minorities advance within the organizational hierarchy; (d) there will be a shortage of

qualified people in technical fields; (e) on-the-job remedial skills and literacy training will be needed to

help the growing number of dropouts and illiterates cope with job demands; (f) organizations will need

to provide tangible support education if the United States is to remain globally competitive; (g) the

problem of career plateauing needs to be managed; and (h) there are three broad recommendations for

managing an aging workforce.

Explain the positive and negative effects of diversity by using social categorization theory and

information/decision-making theory. Social categorization theory implies that similarity leads to liking

and attraction, thereby fostering a host of positive outcomes. This theory supports the idea that

homogeneity is better than heterogeneity because diversity causes negative interpersonal processes

and group dynamics. The information/ decision-making theory is based on the notion that diverse


groups should outperform homogenous groups because diversity is positively associated with task-

relevant processes and decision making.

Identify the barriers and challenges to managing diversity. There are 10 barriers to successfully

implementing diversity initiatives: (a) inaccurate stereotypes and prejudice, (b) ethnocentrism, (c) poor

career planning, (d) an unsupportive and hostile working environment for diverse employees, (e) lack of

political savvy on the part of diverse employees, (f) difficulty in balancing career and family issues, (g)

fears of reverse discrimination, (h) diversity is not seen as an organizational priority, (i) the need to

revamp the organization's performance appraisal and reward system, and (j) resistance to change.

Discuss the organizational practices used to effectively manage diversity as identified by R Roosevelt

Thomas, Jr. There are many different practices organizations can use to manage diversity. R.

Roosevelt Thomas, Jr, identified eight basic responses for handling any diversity issue: include/

exclude, deny, assimilate, suppress, isolate, tolerate, build relationships, and foster mutual adaptation.

Exclusion, denial, assimilation, suppression, isolation, and toleration are among the least preferred

options. Inclusion, building relationships, and mutual adaptation are the preferred strategies.

Chapter 2

Documents

Transcript of Chapter 2