978-1305502215 Chapter 9 Part 2

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Managing Human Resources and Diversity •

a. Employees who are poor performers can be dismissed. Productive employees

often resent disruptive, low-performing employees who are allowed to stay with

the company and receive pay comparable to theirs.

b. Employers can use exit interviews as an inexpensive way to learn about pockets

of dissatisfaction within the organization and use that information to reduce future

turnover. An exit interview is an interview conducted with departing employees

to determine why they are leaving.

2. Enlightened companies try to find a smooth transition for departing employees. By

showing concern, the company communicates the value of human resources and helps

maintain a positive corporate culture.

E. Managing Diversity Exhibit 9.11

1. Leaders at most companies strive to avoid discriminatory policies and practices that

lead to lawsuits. In addition, many companies have learned that valuing and

supporting diverse employees pays off.

VII. DIVERSITY IN THE WORKPLACE

A. Diversity in Corporate America Exhibit 9.12, Exhibit 9.13

1. Managers are learning that the differences people bring to the workplace enable their

companies to compete globally and tap into rich sources of new talent. Moreover,

vast changes are occurring in today’s workplace and consumer base. The average

worker is older now, and many more women, people of color, and immigrants are

seeking job and advancement opportunities.

a. Unprecedented generational diversity. Today’s workforce is in a state of flux as a

blend of three generations (baby boomers, Gen-X, and Gen-Y) present new

management challenges.

b. Aging workers. Baby boomers are continuously bumping up the average age of

the workforce. While the number of workers between 25 and 45 years old is

expected to decline from 66.9 percent to 63.7 percent by 2020, the number of

baby boomers age 55 years and older will leap from 19.5 percent to 25.2 in the

same period.

c. Increased diversity. Foreign-born workers make up 16 percent of the U.S.

workforce and are most likely employed in service industries, such as food

preparation, cleaning, and maintenance. Of the total number of foreign-born

workers, nearly half are Hispanic and 23 percent are Asian.

d. More women workers. Today, women outnumber men in the workplace, and their

numbers are projected to grow slightly faster, at 7.4 percent compared to 6.3

percent for men.

2. The ability of organizations to manage diversity has not kept pace with these

demographic trends, thus creating a number of significant challenges for minority

workers and women. Corporations that truly value diversity will recognize pay

inequality and discrimination in the workplace and make progress toward eliminating

them.

B. Diversity on a Global Scale

Managers across the globe wrestle with many of the same diversity challenges as U.S.

managers, especially concerning the progression of women into upper management

positions. To boost the percentage of women on the corporate boards of European

countries, the European Union is studying whether to introduce quotas across the

continent. Japanese companies have an even greater struggle to bridge the gender gap on

corporate boards. Part of it relates to tepid economic growth and societal expectations.

The progression of women into executive positions continues to be slow in both U.S. and

global corporations, but innovative companies are initiating programs to boost women’s

advancement into higher levels of responsibility.

VIII. MANAGING DIVERSITY

A. Diversity and Inclusion Exhibit 9.14

1. Diversity is defined as all the ways in which employees differ. Many companies

once defined diversity in terms of race, age, gender, lifestyle, and disability. Today,

companies are embracing a more inclusive definition of diversity that recognizes a

spectrum of differences that influence how employees approach work, interact with

each other, derive satisfaction from their work, and define who they are as people in

the workplace.

2. Inclusion is the degree to which an employee feels like an esteemed member of a

group in which his or her uniqueness is highly appreciated. Inclusion creates a strong

sense of belonging where all people can have their voices heard and appreciated.

3. Managing diversity, a key management skill in today’s global economy, means

creating a climate in which the potential advantages of diversity for organizational or

group performance are maximized while the potential disadvantages are minimized.

B. Diversity of Perspective

1. Diversity of perspective is achieved when a manager creates a heterogeneous team

made up of individuals with diverse background and skill sets. By tapping into the

strengths of diversity, teams are more likely to experience higher efficiency, better

quality, less duplication of effort among team members, and increased innovation and

creativity.

C. Dividends of Workplace Diversity Exhibit 9.15

1. Corporations that build strong, diverse organizations reap numerous dividends,

including:

a. Better use of employee talent. Companies with the best talent are the ones with

the best competitive advantage.

b. Increased understanding of the marketplace. A diverse workforce is better able

to anticipate and respond to changing consumer needs.

c. Enhanced breadth of understanding in leadership positions. Diverse top

management teams tend to be less myopic in their perspectives.

d. Increased quality of team problem solving. Teams with diverse backgrounds

bring different perspectives to a discussion that result in more creative ideas and

solutions.

e. Reduced costs associated with high turnover, absenteeism, and lawsuits.

Companies that foster a diverse workforce reduce turnover, absenteeism, and the

risk of lawsuits.

IX. FACTORS SHAPING PERSONAL BIAS

NEW MANAGER SELF-TEST: VALUING WORKPLACE DIVERSITY

This exercise helps students understand their attitudes towards workplace diversity reflected in

their personal values.

A. Workplace Prejudice, Discrimination, and Stereotypes Exhibit 9.16

1. Prejudice is the tendency to view people who are different as being deficient.

Discrimination occurs when people act out their prejudicial attitudes toward other

people who are targets of their prejudice. Although blatant discrimination is not as

widespread as in the past, bias in the workplace often shows up in subtle ways. A

stereotype is a rigid, exaggerated, irrational belief associated with a particular group

of people. To be successful managing diversity, managers need to eliminate harmful

stereotypes from their thinking, shedding any biases that negatively affect the

workplace. Managers can learn to value differences, which means they recognize

cultural differences and see them with an appreciative attitude.

2. Stereotype threat describes the psychological experience of a person who, usually

engaged in a task, is aware of a stereotype about his or her identity group suggesting

that he or she will not perform well on that task. People most affected by stereotype

threat are those we consider as disadvantaged in the workplace due to negative

stereotypes–racial and ethnic minorities, members of lower socioeconomic classes,

women, older people, gay and lesbian individuals, and people with disabilities.

B. Ethnocentrism

1. Ethnocentrism is the belief that one’s own group and subculture are inherently

superior to other groups and cultures, thus making it difficult to value diversity. The

business world tends to reflect values, behaviors, and assumptions based on the

experiences of a homogeneous, white, middle-class, and male workforce. Most

management theories presume workers share similar values, beliefs, motivations,

and attitudes about work and life in general.

2. Ethnocentric viewpoints produce a monoculture that accepts only one way of doing

things and one set of values and beliefs. These assumptions create a dilemma for

people of color, women, gay people, disabled, the elderly, and others who feel

pressure to conform and are presumed deficient because of differences. Valuing

diversity means ensuring that all people are given equal opportunities in the

workplace.

3. The goal for organizations seeking cultural diversity is pluralism rather than a

monoculture and ethnorelativism rather than ethnocentrism. Ethnorelativism is the

belief that groups and subcultures are inherently equal. Pluralism means an

organization accommodates several subcultures. It seeks to fully integrate into the

organization the employees who feel isolated and ignored. Most organizations are

making a conscious effort to shift from a monoculture to pluralism.

X. FACTORS AFFECTING WOMEN’S CAREERS

A. The Glass Ceiling

1. The glass ceiling is an invisible barrier that exists for women and minorities that

limits their upward mobility in organizations. They can look up through the ceiling

and see top management, but prevailing attitudes and stereotypes are invisible

obstacles to their own advancement. This barrier also impedes the career progress of

minorities.

2. In particular, Asian managers bump up against the bamboo ceiling, a combination of

cultural and organizational barriers that impede Asians’ career progress.

3. To break through the glass ceiling into senior management roles, top executives

suggest female and minority managers follow this advice:

a. Be assertive and ask for what you want. Many Asian managers have found

themselves stereotyped as “not top manager material” because they are too quiet

and unassertive. Women in general are also uncomfortable asking for what they

want, for fear of being perceived as too aggressive or too selfish.

b. Highlight your achievements. Women tend to downplay their accomplishments

and insights to avoid being judged as unfeminine.

Discussion Question #10: If talkative men are viewed as powerful and competent, why do you

think talkative women are seen as less capable and pushy? Do you think this perception would

be different in an organization with a large percentage of female managers at top levels?

Managing Human Resources and Diversity •

Notes_________________________________________________________________________

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B. Opt-Out Trend

Many women choose to get off the fast track long before they hit the glass ceiling. In this

opt-out trend, highly-educated, professional women are deciding that corporate success

isn’t worth the price in terms of reduced family and personal time. Some are opting out

to be stay-at-home moms, while others want to continue working, but just not in the kind

of fast-paced, competitive, aggressive environment that exists in most corporations.

Critics argue that this is just another way to blame women themselves for the dearth of

female managers at higher levels.

C. The Female Advantage

Some people think women might actually be better managers, partly because of a more

collaborative, less hierarchical, relationship-oriented approach that is in tune with today’s

global and multicultural environment. As attitudes and values change with changing

generations, the qualities women seem to possess may lead to a gradual role reversal in

organizations. Women of all races and ethnic groups are outpacing men in earning

bachelor’s and master’s degrees. Over all, women’s participation in both the labor force

and civic affairs has steadily increased since the mid-1950s, while men’s participation

has slowly but steadily declined.

Discussion Question #8: Until Sheryl Sandberg was promoted to chief operating officer of

Facebook in 2012, its board was composed of only men. Yet a majority of Facebook’s 845

million users are women. Given this demographic, explain how Facebook might benefit from

increasing the presence of women on its corporate board.

NOTES________________________________________________________________________

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D. Increasing Awareness of Sexual Harassment

Sexual harassment creates an unhealthy and unproductive work environment and is illegal.

As a form of sexual discrimination, sexual harassment in the workplace is a violation of the

1964 Civil Rights Act. Sexual harassment in the classroom is a violation of the Education

Amendment of 1972. The following categories describe various forms of sexual

harassment.

1. Generalized. This form involves sexual remarks and actions not intended to lead

to sexual activity.

2. Inappropriate/offensive. Though not sexually threatening, it causes discomfort in

a coworker and limits the offended person’s freedom and ability to function at

Managing Human Resources and Diversity •

work.

3. Solicitation with promise of reward. This action treads a fine line as an attempt to

“purchase” sex, with the potential for criminal prosecution.

4. Coercion with threat of punishment. The harasser coerces a coworker into sexual

activity by using the threat of power to jeopardize the victim’s career.

5. Sexual crimes and misdemeanors. These acts, if reported, would be considered

felony crimes and misdemeanors.

SUGGESTED ANSWERS TO END-OF-CHAPTER DISCUSSION

QUESTIONS

1. Does it seem like a good idea to let a big data computer program make hiring decisions, as

some companies like Xerox are doing, as described in this chapter? What types of positions

do you think this might be suitable for? What might be some drawbacks to this approach?

Big data computer programs have a role in hiring, but should not be used exclusively because

2. Assume that it is the year 2027. In your company, central planning has given way to

frontline decision making and bureaucracy has given way to teamwork. Shop floor workers

use handheld devices and robots. A labor shortage currently affects many job openings, and

the few applicants you do attract lack skills to work in teams, make their own production

decisions, or use sophisticated technology. As vice president of HRM since 2013, what

should you have done to prepare for this situation?

This way you have the right skills and the right mixture of people in your workforce. This would

have to be accomplished through effective recruiting and selection techniques. Another vital

thing you should have done is provided training and development for your people so that they

had the skills to work in teams, make decisions, and use sophisticated technology. Having made

this investment in people, you would also want to have provided the compensation, including

benefits, needed to maintain this effective workforce.

3. Is it wise for managers to evaluate a candidate’s tweets or postings on social networking

sites as grounds for rejection before even interviewing him or her? What might be ethical

and legal issues that managers should consider? Discuss.

4. As HR manager for a small company that makes computer games and software, what are

some steps that you might take to create an employer brand?

5. One HR manager recently got a thank-you note on her iPhone that said “Thx 4 the Iview!

Wud ♥ to wrk 4 u!!!” The manager had liked the candidate’s interview, but after getting the

note, she put him in the reject pile. Do you think it was fair for the manager to automatically

reject the candidate? Should “textspeak” be considered acceptable workplace

communication? Discuss.

6. How would you go about deciding whether to use a job-based, skills-based, or pay-for-

performance compensation plan for employees in a textile manufacturing plant? For

waitstaff in a restaurant? For salespeople in an insurance company?

The decision of what type of compensation plan to use should reflect the organization’s overall

strategy. Because the textile industry is quite mature, the textile manufacturing plant’s strategy

7. Evaluate your own experiences with people from other backgrounds. How well do you think

those experiences prepared you to understand the unique needs and dilemmas of a diverse

workforce?

8. Until Sheryl Sandberg was promoted to chief operating officer of Facebook in 2012, its

board was composed of only men. Yet a majority of Facebook’s 845 million users are

women. Given this demographic, explain how Facebook might benefit from increasing the

presence of women on its corporate board.

Some people think women might actually be better managers, partly because of a more

9. Describe employees who are most vulnerable to stereotype threat. Why is it important for

managers to understand that some employees may experience stereotype threat?

members of lower socioeconomic classes, women, older people, gay and bisexual men, and

people with disabilities. Employees who experience stereotype threat may feel more anxiety

about their performance at work due to the anticipation of extra scrutiny and worry that their

failure will reflect not only on themselves as individuals but on the larger group to which they

belong.

10. If talkative men are viewed as powerful and competent, why do you think talkative women

are seen as less capable and pushy? Do you think this perception would be different in an

organization with a large percentage of female managers at top levels?

This is an example of a stereotype about women; talkative, pushy, and less capable.

APPLY YOUR SKILLS: SELF-LEARNING

How Tolerant Are You?

This exercise helps students understand how tolerant they are of people who are different from

themselves.

APPLY YOUR SKILLS: GROUP LEARNING

Management Competencies

An important responsibility of the Human Resources Department at many companies is to

develop a list of management competencies and then to provide training to help managers

improve on those competencies. Students are asked to make notes for each of several

competencies provided in the exercise, then discuss their notes in groups and agree on the

expected behaviors for each competency. Then, students should take turns stating the

competencies they believe will be easiest and hardest for them to master.

APPLY YOUR SKILLS: ETHICAL DILEMMA

Sunset Prayers

1. Continue the current policy that leaves it up to the Muslim workers as to when they leave the

assembly line to perform their sunset rituals.

This is not a good course of action. With an increasingly higher percentage of assembly-line

workers leaving the line to perform sunset rituals, production will likely be negatively impacted.

2. Try to hire the fewest possible Muslim workers so the work line will be efficient on second

shift.

3. Ask the Muslim workers to delay their sunset prayers until a regularly scheduled break

occurs, pointing out that North Woods is primarily a place of business, not a house of

worship.

This may be the best of the three alternatives. Having a large number of workers leaving the

APPLY YOUR SKILLS: CASE FOR CRITICAL ANALYSIS

The Right Way with Employees?

1. What kind of employee social contract is assumed by Kirby and by Drew? Explain.

Kirby appears to assume a more traditional social contract that is based on the concept that the

2. If you were an HR manager at the company, which view would you support? Why?

While Drew’s proposed across-the-border cuts in employees might help the company in the

Kirby’s approach might take a little longer in helping the company recover from the crisis, but it

is more likely to be effective in the long run.

3. HR departments hire and develop human capital to serve the organization’s strategy and

drive performance. Which approach—Kirby’s or Drew’s — is more likely to have a greater

positive impact on performance? Discuss.

ON THE JOB VIDEO CASE ANSWERS

Barcelona Restaurant Group: Managing Human Resources

1. List the three main activities of (HRM) and identify which activity is examined at length in the

video.

2. Of the various steps in Barcelona’s employee selection process, the job interview is the

briefest. Do you agree with the company’s approach to interviewing? Why or why not?

Students’ opinions will vary. For most firms, the selection process involves multiple tools for

3. Identify Barcelona’s three-stage process for matching job applicants with its organizational

objectives, and explain how each stage reveals the fit between job applicants and the needs of

the restaurant.

The video highlights Barcelona’s three-stage selection process: