CHAPTER 13
MANAGING DIVERSITY
CHAPTER OUTLINE
Do You Know Your Biases?
I. Diversity in the Workplace
A. Diversity in Corporate America
B. Diversity on a Global Scale
II. Managing Diversity
IV. Factors Affecting Women’s Careers
A. The Glass Ceiling
B. Opt-Out Trend
C. The Female Advantage
V. Achieving Cultural Competence
ANNOTATED LEARNING OBJECTIVES
After studying this chapter, students should be able to:
1. Understand the pervasive demographic changes occurring in the domestic and global
marketplace and how corporations are responding.
The importance of cultural diversity and employee attitudes that welcome cultural differences
will result from the inevitable changes taking place in the workplace, in our society, and in the
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2. Understand how the definition of diversity has grown to recognize a broad spectrum of
differences among employees, the importance of fostering a sense of inclusion, and the
dividends of a diverse workforce.
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
3. Recognize the complex attitudes, opinions, and issues that employees bring to the workplace,
including prejudice, discrimination, stereotypes, and ethnocentrism.
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
4. Recognize the factors that affect women’s opportunities, including the glass ceiling, the opt–
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out trend, and the female advantage.
The glass ceiling is an invisible barrier that separates women and minorities from top
management positions. They can look up through the ceiling and see top management, but
5. Explain the five steps in developing cultural competence in the workplace.
A successful diversity plan leads to a workforce that demonstrates cultural competence in the
long run. Cultural competence is the ability to interact effectively with people of different
cultures. There are five steps to implementing a diversity plan.
• Uncover diversity problems in the organization. Organizations can’t assess their progress
toward cultural competence without first investigating where the culture is right now. A
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6. Describe how diversity initiatives and training programs help create a climate that values
diversity.
Leading companies are changing structures and policies to facilitate and support diversity. Most
large organizations have formal policies, as well as structured grievance procedures and
complaint review processes. Companies are also developing policies to support the recruitment
7. Understand how multicultural teams and employee affinity groups help organizations
respond to the rapidly changing and complex workplace.
The importance of multicultural teams and employee affinity groups is rapidly increasing in
today’s global marketplace. Multicultural teams—teams that are made up of members from
diverse national, racial, ethnic, and cultural backgrounds—provide even greater potential for
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membership is voluntary. There has been a rapid growth of employee network groups for
minorities who have faced barriers to advancement in organizations.
LECTURE OUTLINE
DO YOU KNOW YOUR BIASES?
Your day-to-day behavior sends signals about your biases and values. Some personal biases are
active and well known to yourself and others. Other biases are more subtle. Passive biases can
I. DIVERSITY IN THE WORKPLACE Exhibit 13.1
A. Diversity in Corporate America Exhibit 13.2, Exhibit 13.3
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
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.
2. The ability of organizations to manage diversity has not kept pace with these
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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
II. MANAGING DIVERSITY
A. Diversity and Inclusion Exhibit 13.4
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,
2. Inclusion is the degree to which an employee feels like an esteemed member of a
3. Managing diversity, a key management skill in today’s global economy, means
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
C. Dividends of Workplace Diversity Exhibit 13.5
2. Corporations that build strong, diverse organizations reap numerous dividends,
including:
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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
e. Reduced costs associated with high turnover, absenteeism, and lawsuits.
Companies that foster a diverse workforce reduce turnover, absenteeism, and the
risk of lawsuits.
III. FACTORS SHAPING PERSONAL BIAS
A. Workplace Prejudice, Discrimination, and Stereotypes Exhibit 13.6
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
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
NEW MANAGER SELF-TEST: VALUING WORKPLACE DIVERSITY
This exercise helps students understand their attitudes towards workplace diversity reflected in
their personal values.
B. Ethnocentrism
1. Ethnocentrism is the belief that one’s own group and subculture are inherently
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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
3. The goal for organizations seeking cultural diversity is pluralism rather than a
monoculture and ethnorelativism rather than ethnocentrism. Ethnorelativism is the
IV. 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
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. Gain profit-and-loss experience. For managers who want to be considered for top-
level jobs, it is important to have experience in line position with profit-and-loss
responsibilities.
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d. Display confidence and credibility in your body language. Consultant Carol
Discussion Question #7: What are the glass ceiling and bamboo ceiling, and why do you think
they have proven to be such a barrier to women and minorities?
Notes_________________________________________________________________________
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B. Opt-Out Trend
1. 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
Discussion Question #8: Why do you think a large number of women are opting out of corporate
management? Discuss whether this trend is likely to continue over the next ten years.
NOTES________________________________________________________________________
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C. The Female Advantage
1. Some people think women might actually be better managers, partly because of a
more collaborative, less hierarchical, relationship-oriented approach that is in tune
V. ACHIEVING CULTURAL COMPETENCE Exhibit 13.7
A. A successful diversity plan leads to a workforce that demonstrates cultural competence in
the long run. Cultural competence is the ability to interact effectively with people of
different cultures. There are five steps to implementing a diversity plan.
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1. Uncover diversity problems in the organization. Organizations can’t assess their
progress toward cultural competence without first investigating where the culture is
right now. A cultural audit is a tool that identifies problems or areas needing
improvement in a corporation’s culture.
VI. DIVERSITY INITIATIVES AND PROGRAMS Exhibit 13.8
A. Enhancing Structures and Policies
1. Many leading companies are changing structures and policies to facilitate and support
a diverse workforce. Most large organizations have formal policies against racism
B. Expanding Recruitment Efforts
1. A new approach to recruitment means making better use of recruiting strategies,
1. One of the most successful structures for eliminating the glass ceiling is the
mentoring relationship. A mentor is a higher-ranking organizational member who is
D. Increasing Awareness of Sexual Harassment
1. Sexual harassment creates an unhealthy and unproductive work environment and is
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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.
a. Generalized. This form involves sexual remarks and actions not intended to lead
to sexual activity.
E. Using Multicultural Teams
1. Multicultural teams are made up of members from diverse national, racial, ethnic,
and cultural backgrounds. These teams provide even greater potential for enhanced
creativity, innovation, and value in today’s global marketplace. Diverse teams tend to
F. Encouraging Employee Affinity Groups
1. Employee affinity groups are based on social identity, such as gender or race, and
are organized by employees to focus on concerns of employees from that group. The
2. Employees, not the organization, form network groups, and membership is voluntary;
however, successful organizations support and encourage affinity groups. Although
affinity groups seem to be in direct opposition to the trend toward multicultural
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Discussion Question #5: How might employee affinity groups contribute to the advancement of
women and minorities to higher-level positions in an organization?
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Answers to End-of-Chapter Discussion Questions
1. What specific strategies might a manager employ to create a work environment that fosters
inclusion?
Decades ago, many companies defined diversity in terms of race, gender, age, 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
2. Evaluate your own experiences so far with people from other cultural backgrounds. How
well do you think those experiences prepared you to understand the unique needs and
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dilemmas of a diverse workforce?
In addressing the question, students should clearly demonstrate their understanding of the unique
3. 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
collaborative, less hierarchical, relationship-oriented approach that is in tune with today’s global
4. Describe employees who are most vulnerable to stereotype threat. Why is it important for
managers to understand that some employees may experience stereotype threat?
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
5. How might employee affinity groups contribute to the advancement of women and minorities
to higher-level positions in an organization?
Employee affinity groups will help women and minorities grow and develop into higher-level
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in the organization. Affinity groups pursue a variety of activities, such as meetings to educate
top managers, mentoring programs, networking events, training sessions and skills seminars,
minority intern programs, and community volunteer activities. Affinity groups give people a
6. What is the first step in creating a culturally competent culture? What does this first step
reveal?
The first step in creating a culturally competent culture is uncovering diversity problems in the
7. What are the glass ceiling and bamboo ceiling, and why do you think they have proven to be
such barriers to women and minorities?
The glass ceiling is an invisible barrier that prevents women and minorities from advancing to
top management positions. In particular, Asian managers bump up against the bamboo ceiling, a
combination of cultural and organizational barriers that impede Asians’ career progress. As
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8. Why do you think a large number of women are opting out of the corporate world? Discuss
whether this trend is likely to continue over the next ten years.
Women are opting out of the corporate world because they see that they must sacrifice their
personal lives with their families, their health, and face a high stress level. They want time with
9. Describe how a diversity of perspective boosts creativity and innovation in the workplace.
Why do managers consider a diversity of perspective a competitive advantage?
Diversity of perspective is achieved when a manager creates a heterogeneous team made up
10. How might organizations strike a balance between respecting and meeting the needs of a
diverse workforce and shaping a high-performance corporate culture where shared values
contribute to the accomplishment of strategic goals?
One good way to strike such a balance is by creating multicultural teams in the organization.
Multicultural teams are made up of members from diverse national, racial, ethnic, and cultural
Apply Your Skills: Experiential Exercise
How Tolerant Are You?
This exercise helps students understand how tolerant they are of people who are different from
themselves.
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Apply Your Skills: Small Group Breakout
Personal Diversity
Students begin by listing six ways in which they feel different from others, then answer four
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.
2. Try to hire the fewest possible Muslim workers so the work line will be efficient on second
shift.
This is also not a good course of action. First, it would probably qualify as discrimination based
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
assembly line at the same time could be considered an unreasonable accommodation. Frank
Apply Your Skills: Case for Critical Analysis
True To Myself
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1. If you were Ethney, how would you try to conduct yourself at the oil company? Would you
act differently from your normal personality? Do you think your approach would be
successful? Why?
It is important to be “true to yourself” in order to bring new ideas and fresh perspective to the
company. Fitting in or simply emulating male counterparts will only take you so far. The very
2. What other strategies might Ethney adopt to work with the oil company men as an active
member of the team? What are the pros and cons of each strategy?
It is important that Ethney establishes a working relationship with her male counterparts by
bringing into play all her managerial skills and feminine instincts. She needs to be firm and
assertive when necessary and yet not seem too aggressive or dominating.
3. What does it mean to be “true to yourself”? Is being true to yourself more important than
achieving personal career success in a male-dominated company? Is it okay to enable the
continuation of an “unhealthy” work environment for women? Why do you think the way you
do about this?
Being true to oneself does not translate to being stubborn or fixed to one’s point of view. Being
“true to yourself” simply means being who you are without being afraid of voicing your
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On the Job Video Case Answers
Mitchell Gold + Bob Williams
1. What are advantages and disadvantages of diversity at Mitchell Gold and Bob Williams?
A commitment to employee diversity can help MG+BW maximize performance, creativity,
problem solving, innovation, and recruitment. In the video, Mitchell Gold sees diversity as a way
2. Which belief is championed at MG+BW: ethnocentrism or ethnorelativism?
Corporate culture at MG+BW is based on a belief in ethnorelativism, or the view that groups and
3. How might a commitment to diversity at MG+BW help managers with globalization?
As companies go global, managers must deal with people from diverse countries and