Chapter 5
Managing Diversity
Employing and properly managing a diverse workforce is a challenge for most organizations. In
the United States, we are faced with a growingly diverse population, which has necessitated
changes in how we look at employees. With the push in the 1960’s toward civil rights, and the
women’s movement, managers are now more aware of the needs of special groups. However,
diversity isn’t always black or white, male or female. There are many aspects of diversity that a
manager must consider. These topics, along with the management initiatives to better manage
diversity are presented in this chapter.
LEARNING OBJECTIVES
2. Describe the changing workplaces in the United States and around the world.
4. Discuss the challenges managers face in managing diversity.
5. Describe various workplace diversity management initiatives.
It’s Your Career
Find a Great Sponsor/ Mentor—Be a Great Protége
What do you want from your career? If your goal is to move to higher and into more challenging
positions of responsibility, then consider finding influential people, sponsors or mentors, who will
work with you to get ahead. Mentors can help you by advocating for your career
path/promotion; assisting you in dealing with problems/conflicts; expanding your perception of
what you can do; helping you “connect” with senior executives and other influential people; and
advising you on “how” to be promotable. From your mentor’s perspective, you will be their
protégé. The term comes from the French word meaning to protect. Your mentor will protect
you by helping prepare you for more challenging responsibilities. Here’s what you need to know
about sponsor/protégé relationships:
2. TRUSTWORTHINESS and LOYALTY and DEPENDABILITY are absolutely critical.
Be loyal. Keep your sponsor “in the know.”
3. BE SELECTIVE in seeking out your sponsor(s)/mentor(s). Look for individuals who
4. NURTURE the relationship. Have regular meetings—face-to-face, by phone, or by e-
mail.
CHAPTER OUTLINE
5.1 DIVERSITY 101
Diversity has many meanings. What does diversity mean in the context of the
workplace? Does diversity refer only to people or does it refer to other aspects such as
language, past experiences, and abilities? In this section, the authors address this
question and explore why diversity is an important consideration for organizations.
A. What is Workplace Diversity?
2. Diversity has traditionally been considered a term used by human
3. Dictionary definitions of diversity refer to variety, differences, multiformity
(instead of uniformity), or dissimilarities (instead of similarities).
4. The Society for Human Resource Management says that diversity is often
used to refer to differences based on ethnicity, gender, age, religion,
5. The authors have chosen to define workplace diversity as the ways in
6. Surface-level diversity are easily perceived differences that may trigger
7. Deep-level diversity are differences in values, personality, and work
preferences that can affect the way people view organizational work
rewards, communicate, react to leaders, negotiate, and generally behave
at work.
FUTURE VISION: Trending Now: Global Diversity and Inclusion (D&I)
and Inclusion (D&I)
A ten-year look at Diversity Inc’s Top 50 companies shows that they are
outperforming the Dow Jones Industrial Average by 22 percent and the
NASDAQ by 28 percent. McKinsey & Company found that companies ranked in
the top quartile for diversity had returns on equity of an average of 53 percent
higher than companies with less diversity.
Where can you find the most diverse work forces? According to Global Diversity
Rankings, Norway, New Zealand, Iceland, Australia, Switzerland,
the Netherlands, and Canada head up the list.
It’s absolutely critical for organizations to scrutinize and transform the ways
B. Why is Managing Workforce Diversity So Important?
Many companies view diversity as a positive benefit for organizations. The
benefits fall into three main categories: people management, organizational
performance, and strategic (see Exhibit 5-2).
1. People Management
a. Positive and explicit workforce diversity efforts can help
organizations attract and keep talented diverse people and make
2. Organizational Performance
a. The performance benefits that organizations get from workforce
diversity include cost savings and improvements in organizational
3. Strategic
a. Diverse employees bring a variety of viewpoints and approaches
to opportunities, which can improve how the organization markets
5.2 THE CHANGING WORKPLACE
In this section, we look at the demographic trends of the U.S. population and then at
global diversity trends. These trends will be reflected in a changing workplace, thus
making this information important for managers to recognize and understand.
A. Characteristics of the U.S. Population.
1. Total Population:
a. The total population of the U.S. was 296 million in 2005. It is
2. Racial/Ethnic Groups
3. Aging Population
a. In 2005, the median age for the U.S. population was 36.7 years.
4. Impact of these Trends
a. Population trends are likely to have a major impact on U.S.
workplaces. These trends include the increasing number of
foreign-born U.S. workers and an aging workforce.
b. According to a recent analysis released by the U.S. Census
Bureau, nearly one in six American workers is foreign-born. While
some of these jobs will be low paying, others will be white-collar
jobs.
B. What About Global Workforce Changes?
1. Total World Population
a. The total world population in 2010 is estimated at almost 7 billion
2. An Aging Population
a. The world’s population is now aging at an unprecedented rate.
5.3 TYPES OF WORKFORCE DIVERSITY
Workplace diversity comes in several forms. All of these forms have potential
ramifications for management. (See Exhibit 5-5)
A. Age
1. With many of the nearly 85 million baby boomers still employed and
2. Both Title VII of the Civil Rights Act of 1964 and the Age Discrimination in
3. Perceptions of older workers are often inaccurate. On the positive side,
many believe that older workers bring a number of good qualities to the
5. As boomers retire, 76 million members of Generation Y are either already
B. Gender
1. While women now make up almost half of the workforce (49.8%), gender
diversity issues are still quite prevalent in organizations.
3. While women make up more than half of today’s college students,
research shows that men start their careers at a higher level than women.
4. Gender is often perceived as a determinant of work performance;
6. Research evidence indicates that a “good” manager is still perceived as
predominantly masculine. But the reality is that women tend to use a
broader, more effective range of leadership styles to motivate and engage
C. Race and Ethnicity
1. The issue of race and diversity has been an emotionally charged topic in
the United States.
2. Race is defined as the biological heritage (including physical
3. Ethnicity is related to race, but it refers to social traits—such as one’s
4. Research shows that individuals in workplaces tend to favor colleagues of
6. Other research shows that African Americans generally do worse than
whites in decisions related to the workplace. However, there is little
difference between the races on absenteeism, applied work skills, or
accident rates.
D. Disabilities/Abilities
1. The Americans with Disabilities Act (ADA) passed in 1990 prohibits
discrimination against persons with disabilities and also requires
2. The U.S. Equal Employment Opportunity Commission classifies a person
3. Disabilities include some conditions not normally associated with the
4. Not every job can be made to accommodate an individual with a
5. Exhibit 5-6 describes some of the fears that employers may have about
the disabled as well as the reality.
E. Religion
1. Title VII of the Civil Rights Act prohibits discrimination on the basis of
religion (as well as race/ethnicity, country of origin, and sex).
3. Religious beliefs can prohibit or encourage some work behaviors. For
behavior.
F. GLBT: Sexual Orientation and Gender Identity
1. Currently, U.S. federal law does not prohibit discrimination against
2. While laws have been passed in Europe to prohibit discrimination based
3. In the absence of legislation, many employers have taken varying
4. Many large companies are taking a stand and creating policies that
protect the rights of LGBT employees.
G. Other Types of Diversity
1. Diversity is not limited to the topics above; it refers to any dissimilarities or
differences that might be present in a workplace.
2. Other types of workplace diversity that managers might confront and have
to deal with include socioeconomic background (social class and income-
5.4 CHALLENGES IN MANAGING DIVERSITY
While the majority of managers understand the value of a diverse workforce, there are
still challenges they face in the implementation of equitable workplace policies and
differing employee perceptions.
A. Personal Bias
2. Bias is a term that describes a tendency or preference toward a particular
perspective or ideology.
3. One outcome of our personal biases can be prejudice, a preconceived
belief, opinion, or judgment toward a person or a group of people.
5. Both prejudice and stereotyping can lead to someone treating others who
6. Exhibit 5-7 shows the definitions and examples of different types of
discrimination.
7. Discrimination has potential financial consequences for organizations and
Leader Making a Difference
In this example of leaders who make a difference, we see the accomplishments of Dr. Rohini
Anand, who came to the United States, earned her PhD, and is now the chief diversity officer at
Sodexo. Growing up in India, Dr. Anand didn’t know that she was different, until she moved to
the U.S. Once here, she has maintained a strong commitment to diversity education. Sodexo
is now consistently recognized as one of Diversity Inc.’s top companies for promoting diversity.
What can you learn from this leader making a difference?
B. Glass Ceiling
1. The term glass ceiling, first used in a Wall Street Journal article, refers to
the invisible barrier that separates women and minorities from top
2. Potential causes for the glass ceiling have ranged from lack of mentoring,
5.5 WORKPLACE DIVERSITY INITIATIVES
While the challenges to create and maintain a diverse workforce are daunting,
organizations have taken steps to foster and promote workplace diversity. Some of
these initiatives are listed below.
A. The Legal Aspect of Workplace Diversity
1. Federal legislation has been a compelling force to push workplace
2. Exhibit 5-8 describes the major equal employment opportunity laws with
which organizations must comply
B. Top Management Commitment to Diversity
2. Policies and procedures must be in place to ensure that grievances and
concerns are addressed immediately.
3. The organizational culture needs to be one where diversity and inclusion
C. Mentoring
1. Mentoring is a process whereby an experienced organizational member
2. A good mentoring program should help diverse employees with high
potential move up the organization’s career ladder.
3. Exhibit 5-9 looks at what a good mentor does.
D. Diversity Skills Training
1. Diversity skills training is specialized training to educate employees
2. Experts estimate that $80 billion has been spent over the last 10 years on
diversity programs.
3. Two types of diversity training:
a. Diversity awareness training helps to make employees aware of the
environment.
E. Employee Resource Groups
2. These groups are usually formed by the employees themselves, not the
3. Employee resource groups are useful in that diverse groups have the
ANSWERS TO REVIEW AND DISCUSSION
QUESTIONS
Student answers to these questions will vary.
5-1. Why is it important for an organization to have a clear definition of diversity?
Diversity has been defined in many ways and because of the emotionally charged history of civil
rights and the push for greater diversity in the U.S., it is important that everyone work from the
5-2. Distinguish between surface-level diversity and deep level diversity. Why is it important to
understand the difference between the two?
5-3. What are the major trends in the changing populations of the United States and the world?
5-4. Distinguish between race and ethnicity.
In the text, race is defined as the biological heritage (including physical characteristics such as
5-5. What challenges do managers face in creating accommodating and safe work
environments for employees?
5-6. Explain the relationship between bias, prejudice, stereotyping, and discrimination.
These topics can be seen as linked together like a chain. Bias is a tendency or preference
toward a particular perspective or ideology. Unchecked, a bias can lead to prejudice, a
5-7. What U.S. federal laws are important to workplace diversity initiatives?
The important federal laws for workplace diversity are: Equal Pay Act (1963), Civil Rights Act,
5-8. Why do you think the glass ceiling has proven to be a barrier to women and minorities?
The text cites several potential causes for the glass ceiling including: lack of mentoring, sex
PERSONAL INVENTORY ASSESSMENTS
Student answers to these questions will vary.
INVENTORY ASSESSMENTS
ETHICS DILEMMA
Student answers to these questions will vary.
This dilemma challenges students to think about the ethics of possible discrimination based on
employee attributes other than gender, race, ethnic background, and disabilities. In this
exercise, students are asked to consider the possible discrimination against smokers and those
who are overweight. Students are asked about the ethics of charging higher insurance
5-11. What biases, prejudices, and stereotypes do people have of smokers and overweight
people?
5-12. What ethical issues might arise in workplaces with individuals who fit into these two
groups? As a manager, how might you handle such issues?
(LO: 3, Explain the different types of diversity found in workplaces, AACSB: Diverse and
multicultural work environments)
SKILLS EXERCISE: DEVELOPING YOUR
VALUING DIVERSITY SKILL
In this exercise, students are asked to work on skills that will help them better value diversity.
The skills are based on eight actions that managers may take to aid them in creating a diverse
workforce and communicating the value of diversity to its employees. The skills in this exercise
are on valuing diversity. To practice this skill, students are given three scenarios and asked
how they would handle these situations. Students should be encouraged to review Section 5.5,
organizational initiatives for dealing with diversity. Some students may emphasize diversity
awareness as a way to resolve problems described in each scenario. While this is a positive
step, get students to take the next step toward diversity skill training. (LO: 5, Describe various
WORKING TOGETHER: TEAM EXERCISE
In groups of three to four individuals, students are to research how to form diversity resource
groups. Sources of information on resource groups include: http://www.diversityinc.com/
http://www.hrc.org/index.htm
Companies with resource groups include:
MY TURN TO BE A MANAGER
• Describe your experiences with people from other backgrounds. What challenges
have you faced? What have you learned that will help you in understanding the
unique needs and challenges of a diverse workplace? (LO: 4, Discuss the challenges
managers face in managing diversity, AACSB: Diverse and multicultural work
environments)
• Go to DiversityInc.com [www.diversityinc.com] and find the latest list of Top 50
Companies for Diversity. Select three companies from this list. Describe and
• Think of times when you may have been treated unfairly because of stereotypical
thinking. What stereotypes were being used? How did you respond to the treatment?
• Go to the Web site of Catalyst [www.catalyst.org] and find the Research &
Knowledge tab. Click on “Browse Research & Knowledge.” Go through the list and
find the research on “Women in Management, Global Comparison.” What surprised
you the most about the data shown there? Why? Find two examples of companies
that are doing each of the four workplace diversity initiatives. Write a short
• Steve’s and Mary’s suggested readings: C. Harvey and M. J. Allard, Understanding
(Thousand Oaks, CA: Sage Publications, 2004). (LO: 1, Define workplace diversity
• Pick one of the laws listed in Exhibit 5-8. Research that law looking for these
elements: Whom does the law cover? What does the law prohibit? What are the
• In your own words, write down three things you learned in this chapter about being a
good manager. Self-knowledge can be a powerful learning tool. Go to
mymanagementlab and complete any of these self-assessment exercises: What
Are My Attitudes Toward Workplace Diversity? Am I Well-Suited for a Career as a
Global Manager? What’s My Attitude Toward Older People? and What Are My
Gender Role Perceptions? Using the results of your assessments, identify personal
strengths and weaknesses. What will you do to reinforce your strengths and improve
ANSWERS TO CASE APPLICATION 1
QUESTIONS
Student answers to these questions will vary.
From Top to Bottom
5-13. How might population trends affect a professional services organization like PwC? What
might it have to do to adapt to these trends?
When answering this question, students should address the fact that PwC is a labor-intensive
organization that depends upon a staff of highly qualified and motivated employees. To draw
5-14. What challenges might PwC face in adapting to a more diverse applicant pool of college
graduates?
5-15. Businesses often face the dilemma of retaining diverse employees once they’re trained.
What can PwC do to retain its diverse employees?
5-16. What advantages do you think PwC’s mentoring program provides? What potential
drawbacks might there be?
5-17. PwC’s “rotating” chief diversity officer is an unusual approach. What advantages do you
see to such an arrangement? Drawbacks?
A rotating position offers the advantage of having partners bring a different perspective to the
ANSWERS TO CASE APPLICATION 2
QUESTIONS
Student answers to these questions will vary.
Women in Management at Deutsche Telekom
5-18. What do you think of this “quota” approach that Deutsche Telekom is pursuing? What
benefits and drawbacks does such an approach have?
5-19. What issues might Deutsche Telekom face in recruiting female university graduates? How
could they address these issues?
5-20. What issues might the company face in introducing changes in work-family programs?
Again, how could they address these issues?
5-21. What workplace diversity initiatives discussed in the chapter might be appropriate for
Deutsche Telekom? What would be involved in implementing these initiatives?
There are a variety of programs that could be used for the new female managers including