Chapter 2 Diversity in Organizations Page 42
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.
(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
MyLab Management
oWatch it!: Verizon: Diversity
oPersonal Inventory Assessments: Intercultural Sensitivity Scale
oTry it!: Human Resources
Myth or Science?: “Bald is Better”
Career OBjectives: Should I Come Out At Work?
Point/Counterpoint: Affirmative Action Programs Have Outlived Their Usefulness
Questions for Review
Experiential Exercise: Differences
Ethical Dilemma: Voiding the “License to Discriminate”
Text Cases
Case Incident 1: Can Organizations Train Diversity?
Case Incident 2: The Encore Career
Chapter 2 Diversity in Organizations Page 43
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
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. We paid particular attention to three
variables—biographical characteristics, abilities, and diversity programs. Diversity management
must be an ongoing commitment that crosses all levels of the organization. Policies to improve
the climate for diversity can be effective, and diversity management can be learned.
Understand your organization’s anti-discrimination policies thoroughly and share them
with all 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; remain open and encouraging for
individuals to disclose any hidden disabilities.
Evaluate fully 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 a single commercial kitchen in San Francisco’s Mission District
is enabling low-income, female food entrepreneurs from diverse ethnic backgrounds to formalize, grow, and develop
their businesses. La Cocina provides affordable kitchen space (at roughly a third of the San Francisco market rate),
specialized knowledge of the food industry, and business development opportunities to these diverse entrepreneurs
so that these women can have an opportunity to do what they love to do while fostering an inclusive, vibrant San
Francisco united by the love of food. The barriers and hardships facing immigrants and women such as those in the
San Francisco area are substantial, and they are examples of why diversity is so important for organizations. The
story of La Cocina, and the impact it has had on the food industry across America, is one hopeful account of a
business incubator drawing strength from a diverse community. 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
myriad ways, we consider diversity in many different forms. We also show how individual differences in abilities
Chapter 2 Diversity in Organizations Page 44
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. The predominantly white, male managerial workforce of the past has given way to a
gender-balanced, multiethnic workforce.
2016, women comprised 46.8 percent.
b. Both in the United States and internationally, women today are much more likely
wages comparable to those of men.
2. In addition, the earnings gap between whites and other racial and ethnic groups in the
minorities in the workforce.
a. Hispanics will increase from 13 percent of the workforce in 2014 to 25.1 percent
percent.
3. These changes are increasingly reflected in the makeup of managerial and
B. Levels of Diversity
1. Although much has been said about diversity in age, race, gender, ethnicity, religion,
just the tip of the iceberg.
2. These characteristics mostly reflect surface-level diversity, not thoughts and
from certain demographic backgrounds.
3. However, evidence has shown that people are less concerned about demographic
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 engage in self-handicapping.
Chapter 2 Diversity in Organizations Page 45
employment tests or training.
3. Stereotype threat has serious implications for the workplace. It can lead to
stereotyping Judging someone on the basis of our perception of the group to which
that person belongs.
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, confronting
signal the value of all employees.
C. Discrimination in the Workplace
1. Unfair discrimination is assuming stereotypes about groups and refusing to recognize
differences.
III. Biographical Characteristics
A. Biographical characteristics such as age, gender, race, disability, and length of service
are some of the most obvious ways employees differ.
B. 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.
technology.
3. What effect does age actually have on turnover, absenteeism, productivity, and
satisfaction?
versus younger employees.
5. The majority of studies have shown “virtually no relationship between age and job
Development and Gerontology.
a. Related to performance, there is a conception that creativity lessens as people age.
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.
Chapter 2 Diversity in Organizations Page 46
C. Other studies, however, have found that job satisfaction increases up to middle age, at
which point it begins to drop off. 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.
D. Race and Ethnicity
1. Race is a controversial issue in society and in organizations.
a. We define race as the heritage people use to identify themselves; ethnicity is the
promotion decisions, pay raises.
b. Members of racial and ethnic minorities report higher levels of discrimination in
the workplace.
c. African Americans generally do worse than whites in employment decisions.
d. While better representation of all racial groups in organizations remains a goal, an
E. 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. Research on workers with disabilities have found:
expectations.
b. They are less likely to be hired.
F. 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.
impairments.
Chapter 2 Diversity in Organizations Page 47
3. However, employees must disclose their conditions to their employers in order to be
eligible for workplace accommodations and employment protection.
G. Other Differentiating Characteristics
1. Tenure
performance.
b. Organizational tenure appears to be a good predictor of employee productivity.
2. Religion
a. There are few—if any— countries in which religion is a nonissue in the
workplace. For this reason, employers are prohibited by law from discriminating
United Kingdom, and the United States.
b. Religious discrimination claims have been a growing source of discrimination
claims in the United States.
3. Sexual Orientation and Gender Identity
a. While much has changed, the full acceptance and accommodation of lesbian, gay,
progress.
b. Perhaps as a result of perceived discrimination, many LGBTQ employees do not
disclose their status.
c. U.S. federal law does not protect employees against discrimination based on
sexual orientation, although 29 states and more than 160 municipalities do.
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.
IV. 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.
Chapter 2 Diversity in Organizations Page 48
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).
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
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)
V. 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. Research has shown that women and minorities have greater interest in employers
that make special efforts to highlight a commitment to diversity in their recruiting
materials. Hat fail to show
3. Diversity advertisements that fail to show women and minorities in positions of
organizational leadership send a negative message about the diversity climate at an
organization.
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. Expatriate Adjustment
Chapter 2 Diversity in Organizations Page 49
poor performance, prejudice, and misunderstanding.
3. Studies suggest that organizations should select employees for international
assignments who are capable of adjusting quickly and then ensure they have the
support they need for their assignment.
E. Effective Diversity Programs
1. Effective diversity programs have three components:
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.
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.
VI. Summary and Implications for Managers
organization.
C. Policies to improve the climate for diversity can be effective, and diversity management
can be learned.
1. Understand your organization’s anti-discrimination policies thoroughly and share
them with your employees.
5. Seek to understand and respect the unique biographical characteristics of each
individual; a fair but individualistic approach yields the best performance.
EXPANDED CHAPTER OUTLINE
Chapter 2 Diversity in Organizations Page 50
I. Introduction
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
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.
D. Levels of Diversity
1. Although much has been said about diversity in age, race, gender, ethnicity, religion,
and disability status, experts now recognize that these demographic characteristics are
just the tip of the iceberg.
2. These characteristics mostly reflect surface-level diversity, not thoughts and
from certain demographic backgrounds.
3. However, evidence has shown that people are less concerned about demographic
differences if they see themselves as sharing more important characteristics, such as
personality and values, that represent deep-level diversity.
III. Discrimination
that person belongs.
C. 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 engage in self-handicapping.
training.
4. Stereotype threat has serious implications for the workplace.
5. It can lead to underperformance on tests, performance evaluations, training exercises,
negotiations, and everyday interactions with others as well as to disengagement, poor
Chapter 2 Diversity in Organizations Page 51
experiencing the threat.
6. 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
D. 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,
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.