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A. Prison Labor
Many do not spend a lot of time thinking about what prison inmates do with their time, but in
most cases they work at jobs inside the prisons. This is a source of concern for the U.S. labor
movement, but it is increasingly a source of concern for human resource managers as well.
B. A Living Wage
There are proponents in the United States who suggest that one should work instead toward
paying employees a “living wage”—that is enough to allow a family to live above poverty
C. Immigration
Congress had been debating how to deal with the large number of illegal immigrants in the
United States, and many people were angry. This was also an important issue for HR
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Chapter 8:Managing a New and Diverse Workforce
D. Social Responsibility and Social Entrepreneurship
Corporate social responsibility (CSR) is one label that has been frequently used to describe a
dedication to build organizations that are accountable, responsible, transparent, and
ecologically sustainable. Today, there is recognition that one must integrate environmental
Closing Case: Social Entrepreneurship and HR
Case Summary
In the aftermath of the devastating earthquake that struck the island nation of Haiti a few years
ago, Oregon-based Mercy Corps arrived with a team of emergency-response experts from around
the world. Focusing on immediate humanitarian needs, the team delivered food to overwhelmed
hospitals and set up services to provide clean water. Obviously, Mercy Corps isn’t a newcomer to
the enterprise of providing humanitarian aid. Founded in 1979 as the Save the Refugees Fund, a
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Chapter 8:Managing a New and Diverse Workforce
Case Questions
1. In what ways is HR for Mercy Corps to be similar to HR at a global business like
Starbucks or Dell?
Students’ answers for this question might vary. The dimensions of diversity—such as age,
2. How is HR at Mercy Corps likely to be different from HR at a global business?
Students’ answers for this question might vary. The HR strategies for dealing with
3. In general, why do people choose to work for a non-for-profit organization? What unique
advantages and disadvantages does this pose to managers?
Students’ answers to this question might vary. People might choose to work for a non-for-
profit organization for many reasons. First, it helps employees broaden their skills with
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Chapter 8:Managing a New and Diverse Workforce
However, one major disadvantage is that the compensation and benefit packages provided
capital and insufficient staff.
4. Are there special issues of diversity that may be highly relevant to organizations like
Mercy Corps? If so, what are they?
Students’ answers for this question might vary. There might be special issues of diversity
The following items appear on the in-text Instructor Prep Cards. These notes and
suggested talking points should help instructors conduct these exercises with the students.
Discussion Questions
1. Define diversity.
Diversity exists in a group when its members differ from one another along one or more
2. What are the basic trends in diversity in the United States today? What accounts for these
trends?
There are a number of reasons for this increase in diversity.
• Changing demographics in the labor force is one such factor.
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mores.
3. Distinguish between identical treatment and equitable treatment in an organizational
setting.
Identical treatment means that you treat people the same way regardless of their
4. What are the four most common bases of diversity that are relevant to managers and their
organizations?
The most common bases of diversity are age, gender, ethnicity, and disability; but other
5. What trends are apparent regarding age, gender, and ethnicity in the workplace?
The average age of U.S. workers is gradually increasing and will continue to do so for the
6. How does diversity contribute to competitiveness? How does diversity contribute to
conflict?
Six arguments have been proposed for how diversity contributes to competitiveness.
• The cost argument suggests that organizations that learn to cope with diversity will
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Chapter 8:Managing a New and Diverse Workforce
Diversity in an organization can also become a major source of conflict for various
reasons. One potential avenue for conflict is when an individual thinks that someone has
been hired, promoted, or fired because of her or his diversity status. Another source of
conflict stemming from diversity is through misunderstood, misinterpreted, or
inappropriate interactions between or among people of different groups.
7. Identify and discuss various individual strategies for managing diversity.
The different individual strategies for managing diversity include:
• Understanding—while people need to be treated fairly and equitably, managers must
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Chapter 8:Managing a New and Diverse Workforce
8. What is a multicultural organization? Do you think such an organization exists?
A multicultural organization is one that has achieved a high level of diversity, one that can
9. What are the special issues faced when managing knowledge workers?
Employees who add value simply because of what they know are usually referred to as
knowledge workers, and how well these employees are managed is seen as a major factor
in determining which firms will be successful in the future. Knowledge workers include
10. How are social issues and the human resource management function linked?
Human resource managers are more involved with social issues because Employees,
especially younger employees in the twenty-first century, are more interested in social
Ethical Dilemmas in HR Management
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Chapter 8:Managing a New and Diverse Workforce
Scenario Summary
The senior human resource executive of a firm had succeeded in increasing the diversity in its
workforce substantially. However, the firm had some unfortunate financial setbacks and the
Questions
1. What are the ethical issues in this situation?
It is laudable to have a diverse workforce and to retain workers on the basis of
2. What are the basic arguments for and against the different criteria in selecting employees
to be laid off?
If the senior human resource executive use productivity, the firm will gain in efficiency
3. What do you think most managers would do? What would you do?
Students’ answers might vary. Because of the direct benefits of productivity and the
Assignment
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Purpose: The purpose of this exercise is to help develop increasingly important human resource
skills as they relate to multicultural issues and challenges.
Step 1: Read and reflect on the scenario that follows:
A firm has recently undergone a significant increase in its workforce. Many of the new workers
Step 2: Answer the following questions.
1. Think of as many causes as you can for each of the two problems you face.
The problem with sexual harassment may be due to a difference in laws and cultures of the
2. Determine how you might address each problem, given the potential array of factors that
might have contributed to each?
First, one must talk to the individuals who claim harassment and to others who are
3. What role may the organization culture be playing in this situation, apart from issues of
multiculturalism?
The organization may not have trained the new hires or the older hires in aspects of
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Chapter 8:Managing a New and Diverse Workforce
4. What role may multiculturalism be playing in this situation, apart from issues of
organization culture?
If these new hires are recent immigrants, they may not have had time to become socialized