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CHAPTER 2
Diversity in Organizations
LEARNING OBJECTIVES
After studying this chapter, students should be able to:
2-1. Describe the two major forms of workplace diversity.
2-2. Demonstrate how workplace discrimination undermines organizational effectiveness.
2-3. Describe how the key biographical characteristics are relevant to OB.
2-4. Explain how other differentiating characteristics factor into OB
2-5. Demonstrate the relevance of intellectual and physical abilities to OB.
2-6. Describe how organizations manage diversity effectively.
INSTRUCTOR RESOURCES
Instructors may wish to use the following resources when presenting this chapter.
Text Exercises
An Ethical Choice: Affirmative Action for Unemployed Veterans
Personal Inventory Assessments: Intercultural Sensitivity Scale
Myth or Science?: “Bald is Better”
Career OBjectives: Is It Okay To Be Gay At Work?
Point/Counterpoint: Affirmative Action Programs Have Outlived Their Usefulness
Questions for Review
Experiential Exercise: Differences
Ethical Dilemma: Getting More Women on Board
Text Cases
Case Incident 1: Walking the Walk
Case Incident 2: The Encore Career
Instructor’s Choice
This section presents an exercise that is NOT found in the student's textbook. Instructor's Choice
reinforces the text's emphasis through various activities. Some Instructor's Choice activities are
centered on debates, group exercises, Internet research, and student experiences. Some can be
used in class in their entirety, while others require some additional work on the student's part.
The course instructor may choose to use these at any time throughout the class—some may be
more effective as icebreakers, while some may be used to pull together various concepts covered
in the chapter.
Web Exercises
At the end of each chapter of this Instructor’s Manual, you will find suggested exercises and
ideas for researching OB topics on the Internet. The exercises “Exploring OB Topics on the
Web” are set up so that you can simply photocopy the pages, distribute them to your class, and
make assignments accordingly. You may want to assign the exercises as an out-of-class activity
or as lab activities with your class.
Summary and Implications for Managers
This chapter looks at diversity from many perspectives, paying particular attention to three
variables—biographical characteristics, ability, and diversity programs. Diversity management
must be an ongoing commitment that crosses all levels of the organization.
Understand your organization's anti-discrimination policies thoroughly and share them
with your employees.
Assess and challenge your stereotype beliefs to increase your objectivity.
Look beyond readily observable biographical characteristics and consider the individual’s
capabilities before making management decisions.
Fully evaluate what accommodations a person with disabilities will need and then
fine-tune a job to that person’s abilities.
Seek to understand and respect the unique biographical characteristics of your
employees; a fair but individualistic approach yields the best performance.
This chapter opens with a vignette describing how Henry’s Turkey Service of Texas successfully exploited a loophole
in the Fair Labor Standards Act of 1938. The exploitation of the disabled men is a tragic example of mistreating
people for the ways in which they are different. Not only were the men abused by their supposed caretakers, but
they also suffered workplace discrimination that kept them in debilitating roles without regard to their abilities or
needs. In this chapter, we look at how organizations should work to maximize the potential contributions of a
diverse workforce. Because each of us is different from others in a myriad of ways, we consider diversity in many
different forms. We also show how individual differences in abilities affect employee behavior and effectiveness in
organizations.
BRIEF CHAPTER OUTLINE
I. Introduction
A. In this chapter, we’ll learn how individual characteristics like age, gender, race, ethnicity,
and abilities can influence employee performance.
B. We’ll also see how managers can develop awareness about these characteristics and
manage a diverse workforce effectively.
I. Diversity
A. Demographic Characteristics
1. Predicted change to the U.S. workforce has happened. The predominantly white,
male managerial workforce of the past has given way to a gender-balanced,
multiethnic workforce.
2. This permanent shift toward a diverse workforce means organizations need to make
diversity management a central component of their policies and practices.
B. Levels of Diversity
1. Demographics mostly reflect surface-level diversity.
2. Secondary diversity factor is deep-level diversity.
II. Discrimination
1. Discrimination is to note a difference between things.
B. Stereotype Threat
1. Stereotype threat describes the degree to which we internally agree with the
generally negative stereotyped perceptions of our groups.
2. People become their own worst enemies when they feel a stereotype threat.
a. They may unconsciously exaggerate the stereotype.
b. They may over-identify with the stereotype.
c. They may over-compensate for the stereotype threat they feel.
d. They may perform differently when reminded of their stereotyped group.
3. Stereotype threat has serious implications for the workplace. Employees who feel it
may have lower performance, lower satisfaction, negative job attitudes, decreased
engagement, decreased motivation, higher absenteeism, more health issues, and
higher turnover intentions.
4. The following organizational changes can be successful in reducing stereotype threat:
increasing awareness of how stereotypes may be perpetuated, reducing differential
and preferential treatment through objective assessments, banning stereotyped
practices and messages, confronting micro-aggressions against minority groups, and
adopting transparent practices that signal the value of all employees.
C. Discrimination in the Workplace
1. Unfair discrimination is assuming stereotypes about groups and refusing to recognize
differences.
2. Exhibit 2-1 lists definitions and examples of different types of discrimination.
3. Biographical characteristics such as age, gender, race, disability, and length of
service are some of the most obvious ways employees differ.
4. Start with factors that are readily available in an employee’s personnel file. There is a
sizable amount of research on these factors.
D. Age
1. The relationship between age and job performance is likely to be an issue of
increasing importance during the next decade for several reasons.
2. Employers hold mixed feelings about older workers.
a. They see a number of positive qualities older workers bring to their jobs, such as
experience, judgment, a strong work ethic, and commitment to quality.
b. But older workers are also perceived as lacking flexibility and resisting new
technology.
3. What effect does age actually have on turnover, absenteeism, productivity, and
satisfaction?
a. The older you get, the less likely you are to quit your job.
4. It’s tempting to assume that age is also inversely related to absenteeism.
a. Most studies do show an inverse relationship, but close examination finds it is
partially a function of whether the absence is avoidable or unavoidable.
5. Many believe productivity declines with age.
a. It is often assumed that skills like speed, agility, strength, and coordination decay
over time and that prolonged job boredom and lack of intellectual stimulation
contribute to reduced productivity.
6. A final concern is the relationship between age and job satisfaction, where the
evidence is mixed.
a. A review of more than 800 studies found that older workers tend to be more
satisfied with their work, report better relationships with coworkers, and are more
committed to their employing organizations.
b. Other studies, however, have found a U-shaped relationship.
E. Sex
1. Few issues initiate more debates, misconceptions, and unsupported opinions than
whether women perform as well on jobs as men do.
a. The best place to begin to consider this is with the recognition that few, if any,
important differences between men and women affect job performance.
b. A recent meta-analysis of job performance studies found that women scored
slightly higher than men on performance measures.
2. Yet biases and stereotypes persist.
a. Men are more likely to be chosen for leadership roles.
3. Women still earn less money than men for the same positions, even in traditionally
female roles.
a. Working mothers also face “maternal wall bias” by employers, which limits their
professional opportunities, and both men and women face discrimination for their
family caregiving roles.
4. Many countries have laws against sexual discrimination.
F. Race and Ethnicity
1. Controversial Issue.
2. Additional characterizations.
a. English Speaker
b. Hispanic
3. Research into effects of race and ethnic diversity.
a. Employees tend to favor colleagues of their own race in performance evaluations,
promotion decisions, pay raises.
b. African Americans and Hispanics perceive discrimination to be more prevalent in
the workplace.
c. African Americans generally do worse than whites in employment decisions and
are often discriminated against even in controlled experiments.
d. While better representation of all racial groups in organizations remains a goal, an
individual of minority status is much less likely to leave the organization if there
is a feeling of inclusiveness, known as a positive diversity climate.
G. Disabilities
1. With the Americans with Disabilities Act (ADA) in 1990, individuals with disabilities
became an increasing number in the U.S. workforce.
2. A person is disabled who has any physical or mental impairment that substantially
limits one or more major life activities.
3. The “reasonable accommodation” is problematic for employers.
4. Strong biases exist against those with mental impairment.
5. Research on workers with disabilities have found:
a. They receive higher performance evaluations based on lower performance
expectations.
b. They are less likely to be hired.
H. Hidden Disabilities
1. Hidden, or invisible disabilities, generally fall under the category of sensory
disabilities, chronic illness or pain, cognitive or learning impairments, sleep disorders,
and psychological challenges.
2. As a result of recent changes to the Americans with Disabilities Act Amendments Act
of 2008, U.S. organizations must accommodate employees with a very broad range of
impairments.
3. However, employees must disclose their conditions to their employers in order to be
eligible for workplace accommodations and employment protection.
I. Other Differentiating Characteristics
1. Tenure
a. The issue of the impact of job seniority on job performance has been subject to
misconceptions and speculations.
b. Tenure, expressed as work experience, appears to be a good predictor of employee
productivity.
2. Religion
a. Although employees are protected by U.S. federal law regarding their religion, it
is still an issue in the workplace.
b. Religious discrimination claims have been a growing source of discrimination
claims in the United States.
3. Sexual Orientation and Gender Identity
a. Federal law does not protect employees against discrimination based on sexual
orientation.
b. Recent developments suggest that we may be on the cusp of change.
c. Many organizations have implemented policies and procedures protecting
employees on the basis of sexual orientation.
d. Companies are increasingly putting in place policies to govern how their
organizations treat transgender employees.
4. Cultural Identity
a. People choose their cultural identity, and they also choose how closely they
observe the norms of that culture.
b. Cultural norms influence the workplace, sometimes resulting in clashes.
c. A company seeking to be sensitive to the cultural identities of its employees
should look beyond accommodating its majority groups and instead create as
much of an individualized approach to practices and norms as possible.
III. Ability
A. Ability is an individual’s current capacity to perform various tasks in a job.
B. Intellectual Abilities
1. Intellectual abilities are abilities needed to perform mental activities—thinking,
reasoning, and problem solving.
2. Most societies place a high value on intelligence, and for good reason.
3. The seven most frequently cited dimensions making up intellectual abilities are
number aptitude, verbal comprehension, perceptual speed, inductive reasoning,
deductive reasoning, spatial visualization, and memory. (Exhibit 2-2)
a. If you score high on verbal comprehension, you’re more likely to also score high
on spatial visualization.
4. Researchers recognize a general factor of intelligence, general mental ability
(GMA).
5. Evidence strongly supports the idea that the structures and measures of intellectual
abilities generalize across cultures.
6. Jobs differ in the demands they place on intellectual abilities.
a. The more complex a job in terms of information-processing demands, the more
general intelligence and verbal abilities will be necessary to perform successfully.
b. Where employee behavior is highly routine and there are few or no opportunities
to exercise discretion, a high IQ is not as important to performing well.
7. Although intelligence is a big help in performing a job well, it doesn’t make people
happier or more satisfied with their jobs.
C. Physical Abilities
1. Introduction
a. Though the changing nature of work suggests intellectual abilities are increasingly
important for many jobs, physical abilities have been and will remain valuable.
b. Nine basic abilities involved in the performance of physical tasks. (Exhibit 2-3)
IV. Implementing Diversity Management Strategies
A. Introduction
1. Having discussed a variety of ways in which people differ, we now look at how a
manager can and should manage these differences.
2. Diversity management makes everyone more aware of and sensitive to the needs
and differences of others.
B. Attracting, Selecting, Developing, and Retaining Diverse Employees
1. One method of enhancing workforce diversity is to target recruiting messages to
specific demographic groups underrepresented in the workforce.
2. The selection process is one of the most important places to apply diversity efforts.
a. Managers who hire need to value fairness and objectivity in selecting employees
and focus on the productive potential of new recruits.
3. Individuals who are demographically different from their coworkers may be more
likely to feel low commitment and leave, but a positive diversity climate can help.
a. All workers appear to prefer an organization that values diversity.
C. Diversity in Groups
1. Groups are an essential part of organizational settings.
a. If employees feel no cohesion or sense of membership, group attributes are likely
to be less.
b. Does diversity help or hurt group performance?
(1) Whether diverse or homogeneous teams are more effective depends on the
characteristic of interest.
(2) On the other hand, teams of individuals who are highly intelligent,
conscientious, and interested in working in team settings are more effective.
c. In other cases, differences can be a strength.
(1) Groups of individuals with different types of expertise and education are more
effective than homogeneous groups.
D. Effective Diversity Programs
1. Effective diversity programs have three components:
a. They teach managers about the legal framework for equal employment
opportunity and encourage fair treatment of all people regardless of their
demographic characteristics.
b. They teach managers how a diverse workforce will be better able to serve a
diverse market of customers and clients.
c. They foster personal development practices that bring out the skills and abilities
of all workers, acknowledging how differences in perspective can be a valuable
way to improve performance for everyone.
2. Much concern about diversity has to do with fair treatment.
3. Organizational leaders should examine their workforce to determine whether target
groups have been underutilized.
4. If groups of employees are not proportionally represented in top management,
managers should look for any hidden barriers to advancement.
5. Communications should focus as much as possible on qualifications and job
performance; emphasizing certain groups as needing more assistance could well
backfire.
V. Summary and Implications for Managers
A. This chapter looked at diversity from many perspectives, paying particular attention to
three variables—biographical characteristics, ability, and diversity programs.
B. Diversity management must be an ongoing commitment that crosses all levels of the
organization.
1. Understand your organization's anti-discrimination policies thoroughly and share
them with your employees.
2. Assess and challenge your stereotype beliefs to increase your objectivity.
3. Look beyond readily observable biographical characteristics and consider the
individual’s capabilities before making management decisions.
4. Fully evaluate what accommodations a person with disabilities will need and then
fine-tune a job to that person’s abilities.
5. Seek to understand and respect the unique biographical characteristics of your
employees; a fair but individualistic approach yields the best performance.
EXPANDED CHAPTER OUTLINE
I. Introduction
A. In this chapter, we look at how organizations work to maximize the potential
contributions of a diverse workforce.
B. Because each of us is different from others in a myriad of ways, we consider diversity in
many different forms.
C. We also show how individual differences in abilities affect employee behavior and
effectiveness in organizations.
II. Diversity
A. In this chapter, we’ll learn how individual characteristics like age, gender, race, ethnicity,
and abilities can influence employee performance.
B. We’ll also see how managers can develop awareness about these characteristics and
manage a diverse workforce effectively.
C. Demographic Characteristics
1. The predominantly white, male managerial workforce of the past has given way to a
gender-balanced, multiethnic workforce.
2. Earnings gaps between groups have narrowed.
3. Aging workforce is an important concern both in the U.S. and globally.
D. Levels of Diversity
1. Demographics mostly reflect surface-level diversity.
2. Secondary diversity factor is deep-level diversity.
III. Discrimination
A. Discrimination is to note a difference between things.
B. Stereotype Threat
1. Stereotype threat describes the degree to which we internally agree with the
generally negative stereotyped perceptions of our groups.
2. People become their own worst enemies when they feel a stereotype threat.
a. They may unconsciously exaggerate the stereotype.
b. They may over-identify with the stereotype.
c. They may over-compensate for the stereotype threat they feel.
d. They may perform differently when reminded of their stereotyped group.
3. Stereotype threat has serious implications for the workplace.
4. Employees who feel it may have lower performance, lower satisfaction, negative job
attitudes, decreased engagement, decreased motivation, higher absenteeism, more
health issues, and higher turnover intentions.
5. The following organizational changes can be successful at reducing stereotype threat:
increasing awareness of how stereotypes may be perpetuated, reducing differential
and preferential treatment through objective assessments, banning stereotyped
practices and messages, confronting micro-aggressions against minority groups, and
adopting transparent practices that signal the value of all employees.
C. Discrimination in the Workplace
1. Unfair discrimination is assuming stereotypes about groups and refusing to recognize
differences.
2. Exhibit 2-1 lists definitions and examples of different types of discrimination.
3. Under increasing legal scrutiny and social disapproval, most overt forms have faded,
but this may have resulted in an increase in covert forms such as incivility or
exclusion.
4. Some forms are difficult to root out because they are unobservable.
5. Whether intentional or not, serious negative consequences may arise for employers.
6. Diversity is a broad term, and workplace diversity can describe any characteristic that
makes one person different from another.
IV. Biographical Characteristics
A. Introduction
1. Biographical characteristics such as age, race, gender, disability, and length of
service are some of the most obvious ways employees differ.
2. Start with factors that are readily available in an employee’s personnel file. There is a
sizable amount of research on these factors.
B. Age
1. The relationship between age and job performance is likely to be an issue of
increasing importance during the next decade for many reasons.
a. First, the workforce is aging.
b. Another reason is U.S. legislation, for all intents and purposes, outlaws mandatory
retirement.
(1) Most U.S. workers today no longer have to retire at age 70.
2. Employers hold mixed feelings about older workers.
a. They see a number of positive qualities older workers bring to their jobs, such as
experience, judgment, a strong work ethic, and commitment to quality.
b. But older workers are also perceived as lacking flexibility and resisting new
technology.
c. And when organizations are actively seeking individuals who are adaptable and
open to change, the negatives associated with age clearly hinder the initial hiring
of older workers and increase the likelihood they will be let go during cutbacks.
3. What effect does age actually have on turnover, absenteeism, productivity, and
satisfaction?
a. The older you get, the less likely you are to quit your job.
b. As workers get older, they have fewer alternative job opportunities as their skills
have become more specialized to certain types of work.
c. Their long tenure also tends to provide them with higher wage rates, longer paid
vacations, and more attractive pension benefits.
4. It’s tempting to assume that age is also inversely related to absenteeism.
a. Most studies do show an inverse relationship, but close examination finds it is
partially a function of whether the absence is avoidable or unavoidable.
b. In general, older employees have lower rates of avoidable absence than do
younger employees.
c. However, they have equal rates of unavoidable absence, such as sickness
absences.
5. Many believe productivity declines with age.
a. It is often assumed that skills like speed, agility, strength, and coordination decay
over time and that prolonged job boredom and lack of intellectual stimulation
contribute to reduced productivity.
(1) The evidence however, contradicts those assumptions.
6. A final concern is the relationship between age and job satisfaction, where the
evidence is mixed.
a. A review of more than 800 studies found that older workers tend to be more
satisfied with their work, report better relationships with coworkers, and are more
committed to their employing organizations.
b. Other studies, however, have found a U-shaped relationship.
(1) Several explanations could clear up these results, the most plausible being that
these studies are intermixing professional and nonprofessional employees.
(2) When we separate the two types, satisfaction tends to continually increase
among professionals as they age, whereas it falls among nonprofessionals
during middle age and then rises again in the later years.
C. Sex
1. Few issues initiate more debates, misconceptions, and unsupported opinions than
whether women perform as well on jobs as men do.
a. The best place to begin to consider this is with the recognition that few, if any,
important differences between men and women affect job performance.
b. A recent meta-analysis of job performance studies found that women scored
slightly higher than men on performance measures.
2. Women still earn less money than men for the same positions, even in traditionally
female roles.
a. Working mothers also face “maternal wall bias” by employers, which limits their
professional opportunities, and both men and women face discrimination for their
family caregiving roles.
b. Research has shown that workers who experience the worst form of overt sexual
discrimination or sexual harassment have higher levels of psychological stress,
and these feelings in turn are related to lower levels of organizational commitment
and job satisfaction, and higher intentions to leave.
c. Research continues to underline that although the reasons for employee turnover
are complex, it is detrimental to organizational performance, particularly for
intellectual positions, for managerial employees, in the United States, and in
medium-sized firms.
D. Race and Ethnicity
1. Race is a controversial issue.
a. We define race as the heritage people use to identify themselves; ethnicity is the
additional set of cultural characteristics that often develops with race.
b. Typically, we associate race with biology and ethnicity with culture, but there is a
history of self-identifying for both classifications.
c. Laws against race and ethnic discrimination are in effect in many countries,
including Australia, the United Kingdom, and the United States.
d. While better representation of all racial groups in organizations remains a goal, an
individual of minority status is much less likely to leave the organization if there
is a feeling of inclusiveness, known as positive diversity climate.
2. Research into effects of race and ethnic diversity.
a. Employees tend to favor colleagues of their own race in performance evaluations,
promotion decisions, pay raises.
b. African-Americans generally do worse than whites in employment decisions.
c. Most research shows that members of racial and ethnic minorities report higher
levels of discrimination in the workplace.
d. Discrimination leads to increased turnover, which is detrimental to organizational
performance.
e. Some research suggests that having a positive climate for diversity overall can
lead to increased sales.
E. Disability
1. With the Americans with Disabilities Act (ADA) in 1990, individuals with disabilities
became an increasing number in the U.S. workforce.
2. It requires reasonable accommodation for disabilities.
3. A person is disabled who has any physical or mental impairment that substantial
limits one or more major life activities.
4.
5. The “reasonable accommodation” is problematic for employers.
6. Research on workers with disabilities have found:
a. They receive higher performance evaluations based on lower performance
expectations.
b. They are less likely to be hired.
F. Hidden Disabilities
1. Hidden, or invisible, disabilities generally fall under the categories of sensory
disabilities, autoimmune disorders, chronic illness or pain, cognitive or learning
impairments, sleep disorders, and psychological challenges.
2. As a result of recent changes to the Americans with Disabilities Act Amendments Act
of 2008, U.S. organizations must accommodate employees with a very broad range of
impairments.
3. However, employees must disclose their conditions to their employers in order to be
eligible for workplace accommodations and employment protection.
4. Research suggests that disclosure helps all – the individual, others, and organizations.
5. Disclosure may increase the job satisfaction and well-being of the individual, help
others understand and assist the individual to succeed in the workplace, and allow the
organization to accommodate the situation to achieve top performance.
G. Other Differentiating Characteristics
1. Tenure
a. The issue of the impact of job seniority on job performance has been subject to
misconceptions and speculations.
(1) Extensive reviews of the seniority-productivity relationship have been
conducted.
2. Religion
a. Although employees are protected by U.S. federal law regarding their religion, it
is still an issue in the workplace.
(1) Perhaps the greatest religious diversity issue in the United States today
revolves around Islam.
(2) Perhaps as a result of different perceptions of religion’s role in the workplace,
religious discrimination claims have been a growing source of discrimination
claims in the United States.
3. Sexual Orientation and Gender Identity
a. Sexual orientation
