Management Chapter 8 Managing New And Diverse Workforce Managing New And Diverse Workforce

Unlock access to all the studying documents.

View Full Document

Chapter 8: Managing a New and Diverse Workforce

Chapter 8

Managing a New and Diverse Workforce

Learning Objectives

Opening Case: Dealing with Differences

Chapter Outline

Closing Case: (Native) American Diversity

Discussion Questions

Additional Resource: The Surprising Solution to Workplace Diversity

Learning Objectives

After studying this chapter, students should be able to accomplish the following objectives.

2. Identify and describe the major dimensions of diversity in organizations

4. Describe individual and organizational strategies and approaches to coping with diversity

and discuss the multicultural organization

6. Relate human resource management to social issues

Opening Case: Dealing with Differences

Case Summary

The Americans with Disabilities Act of 1990 (ADA) forbids discrimination on the basis of

disability and further requires that employers make reasonable accommodation for disabled

employees. Moreover, by employing a diverse workforce, they are often better able to engage

with and understand a larger customer base.

Rick, a construction engineer who broke his back in an auto accident, is a paraplegic suffering

from vocal-cord damage. However, he holds a productive job, managing complaints for

building-construction projects. David, whose job requires speech-recognition software and a

Chapter 8: Managing a New and Diverse Workforce

In addition to the sort of hardware, software, and peripherals that help people like Rick and

David perform jobs requiring computer access, assistive technology includes lower-tech

equipment such as walkers and wheelchairs—much of which makes accommodating disabled

workers less expensive than one might think. Both Rick and David suffer from permanent

disabilities, but experts estimate that as many as 20 percent of Americans will experience some

form of physical disability at some point in their careers or lives.

Think It Over

1. Can you identify examples of ADA accommodations in general and assistive technology in

particular at your school or employer?

2. What are the implications of assistive technology for a large business with global

operations?

Students’ answers will vary. Several large business firms realize the capabilities of

Chapter Outline

Introduction

This chapter is primarily about workforce diversity in organizations. Other new challenges also

face organizations today, and some of these will be addressed here as well. One of these is

managing knowledge in organizations. Some challenges are involved with managing human

resources while trying to address social concerns, including some discussion of human resource

management and social entrepreneurship.

I. The Nature of Workforce Diversity

A. The Meaning of Workforce Diversity

Chapter 8: Managing a New and Diverse Workforce

Diversity exists in a group or organization when its members differ from one another along

one or more important dimensions. Diversity should be conceptualized as a continuum and

thought of in terms of degree or level of diversity along relevant dimensions.

B. Trends in Workforce Diversity

Organizations today are becoming increasingly diverse along many different dimensions.

Several different factors have accounted for these trends and changes. Changing

demographics in the labor force is one such factor. A related factor that has contributed to

diversity has been the increased awareness by organizations that they can improve the overall

quality of their workforce by hiring and promoting the most talented people available

regardless of gender, race, or any other characteristics. Another reason for the increase in

diversity has been legislation and legal actions that have forced organizations to hire more

broadly.

Chapter 8: Managing a New and Diverse Workforce

Childhood Arrivals) and begin deportation. He has also called upon Congress to enact

legislation for ways of dealing with these immigrants (addressing such issues as potential

paths to citizenship) before these deportations begin. To date, Congress has not been able to

enact any new legislation, but, while President Trump has continued to threaten action, no

action has been taken.

C. Diversity Management versus Other Concepts

Equal employment opportunity means treating people fairly and equitably and taking

actions that do not discriminate against people in protected classes on the basis of some illegal

criterion. But diversity management places a much heavier emphasis on recognizing and

appreciating differences among people at work and attempting to provide accommodations for

those differences to the extent that is feasible and possible.

Similarities among People at Work

Regardless of how different people appear to be, almost all employees share some

fundamental similarities. For example, most people work to satisfy some set of needs that

Differences among People at Work

Common differences include characteristics such as gender, ethnicity, and age. But the list

of differences among individuals is much longer and ranges from religious beliefs to

dietary preferences to political philosophies.

Identical Treatment versus Equitable Treatment

The real essence not only of Title VII but also of the more contemporary perspective on

workforce diversity is that it is appropriate to acknowledge differences among people as

Chapter 8: Managing a New and Diverse Workforce

try to balance treating everyone the same with treating everyone equitably. The ADA

specifically states that an organization cannot discriminate against a person with a

disability as long as he or she can perform the essential functions of the job with or without

a reasonable accommodation.

II. Dimensions of Diversity

A. Age Distributions

The average age of U.S. workers is gradually increasing and will continue doing so for the

next several years. Another factor that contributes to workforce aging is improved health and

B. Gender

As more and more females have entered the workforce, organizations have subsequently

experienced changes in the relative proportions of male to female employees. Figure 8.3

highlights these trends in gender composition (as well as ethnicity) in the workplace.

These trends aside, a significant gender-related problem that many organizations face today is

the so-called glass ceiling. The term describes a real and subtle but nonphysical barrier that

C. Ethnicity

A third major dimension of cultural diversity in organizations is ethnicity, or the ethnic

composition of a group or organization. The biggest changes, over the years have involved

Chapter 8: Managing a New and Diverse Workforce

whites and Hispanics. The percentage of African Americans has remained relatively stable

(10.9 percent in 1990, 11.8 percent in 2000, and 12.7 percent in 2010), while Asian

D. Disability

Unlike other dimensions of diversity, reactions to persons with disabilities vary dramatically

as a function of several dimensions of the disability. One of these dimensions is termed

“origin”; that is, if the disability is perceived as being avoidable (for example, someone who

E. Other Dimensions of Diversity

One of these is sexual orientation. The Supreme Court has upheld the right for same sex

couples to be married, in fact, there is no federal law generally prohibiting discrimination

Chapter 8: Managing a New and Diverse Workforce

In addition to sexual orientation and religion, other dimensions of diversity are also relevant.

For instance, single parents, people with special dietary preferences (e.g., vegetarians), and

people with different political ideologies and viewpoints also represent meaningful

dimensions of diversity in today’s organizations. Another dimension of diversity that is

seldom discussed is Native American standing.

Contemporary Challenges in HR: Serving the Guests

Tourism is projected by some experts to be the world’s largest employer within the next

few years. The challenge for any international destination is to teach employees about the

key differences that a nonnative traveler will have that should be accommodated when

that traveler arrives at a service experience. Whether the issue is one of language,

customs, or service expectations, the employee serving the international customer must

be alert to the many variations that different travelers will bring. HR often plays a major

role in addressing these issues.

The post-9/11 period in the United States is a good example. This tragic act of terrorism

created a surge of patriotism that spanned nearly all Americans in all jobs. This became

reports of situations where the hospitality to ensure a welcoming atmosphere for all

visitors was not so well done. If an organization is supposed to be providing a service to

all customers, then it is incumbent on managers to ensure that employees are prepared for

the variations in customers.

In general, organizations that serve international customers are well-advised to ensure

Chapter 8: Managing a New and Diverse Workforce

reactions did you have to the things you saw and the people you first met upon entry

into the foreign country? How did these affect your feelings about and perceptions

of the country you entered?

Students’ answers will vary. Some students who have traveled to other countries

may share their initial impressions of the country/countries they have traveled to and

may share whether the travel influenced any prior ideas or expectations they had

about the country/countries they visited.

2. Identify local businesses near you that serve a diverse clientele and note examples

of how they engage with that clientele.

Students’ answers will vary. Examples may include a well-known restaurant that has

received good reviews particularly because of the staff who are polite and attentive,

especially to the needs of tourists and foreigners.

III. The Impact of Diversity on Organizations

No doubt organizations are becoming ever more diverse. Diversity provides both opportunities

and challenges and plays several important roles in organizations today.

A. Diversity and Social Change

Diversity in organizations both facilitates and is facilitated by social change in the

B. Diversity and Competitiveness

In general, six arguments have been proposed for how diversity contributes to

competitiveness. These six arguments are illustrated in Figure 8.4.

• The cost argument suggests that organizations that learn to cope with diversity will

generally have higher levels of productivity and lower levels of turnover and

absenteeism.

Chapter 8: Managing a New and Diverse Workforce

workforces will generally be more creative and innovative than will less diverse

organizations.

• Related to the creativity argument is the problem-solving argument. Diversity carries

with it an increased pool of information. But in a more diverse organization, the unique

information is larger.

• The systems flexibility argument for diversity suggests that organizations must become

more flexible as a way of managing a diverse workforce.

C. Diversity and Conflict

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 his or her diversity status.

Another source of conflict stemming from diversity is through misunderstood, misinterpreted,

or inappropriate interactions between or among people of different groups. Some evidence

D. The Bottom Line on Diversity

Despite the arguments, the data supporting the positive effects of diversity on organizational

outcomes is not as clear as one might believe. This has led some scholars to propose a

IV. Managing Diversity in Organizations

A. Individual Strategies for Dealing with Diversity

Chapter 8: Managing a New and Diverse Workforce

One key element of managing diversity in an organization consists of four actions that

individuals themselves can take.

• The first element in the strategy is understanding the nature and meaning of diversity.

B. Organizational Strategies for Dealing with Diversity

Individuals can play an important role in managing diversity, but the organization itself must

also play a fundamental role.

Organizational Policies

The extent to which an organization embraces the premise of equal employment

opportunity determines to a large extent the potential diversity within an organization.

Another aspect of organizational policies that affects diversity is how the organization

Organizational Practices

Organizations can also help manage diversity through various ongoing practices and

procedures. In general, the idea is that diversity is characterized by differences among

people, so organizations can manage that diversity more effectively by following practices

Chapter 8: Managing a New and Diverse Workforce

family arrangements, religious holidays, cultural events, and so forth, may each require

that employees have some degree of flexibility in their work schedules. An organization

that truly values diversity will make every reasonable attempt to accommodate such a

need.

Even if diversity exists within the broader organizational context, an organization that does

not reflect diversity in groups like committees and teams implies that diversity is not a

fully ingrained element of its culture. Increasing board diversity would be a useful step in

making any company more inclusive.

Diversity Training

Many organizations are finding diversity that training is an effective means for managing

diversity and minimizing its associated conflict. Diversity training is specifically designed

Organizational Culture

An organization that really wants to promote diversity must shape its culture so that it

clearly underscores top management commitment to and support of diversity in all of its

forms throughout every part of the organization. With top management support, and

reinforced with a clear and consistent set of organizational policies and practices, diversity

can become a basic and fundamental part of an organization.

C. The Multicultural Organization

A multicultural organization is one that has achieved high levels of diversity, one that can

capitalize fully on the advantages of the diversity, and one that has few diversity-related

problems. One recent article described the six basic characteristics of such an organization.

This perspective is shown in Figure 8.5.

• The multicultural organization is characterized by pluralism. Every group represented in

Chapter 8: Managing a New and Diverse Workforce

reflection of the organization’s external labor market.

• The multicultural organization achieves full integration of its informal networks. This

characteristic suggests that no barriers to entry and participation in any organizational

activity exist.

• The multicultural organization is characterized by an absence of prejudice and

discrimination. Discrimination is nonexistent not because it is illegal but because of the

lack of prejudice and bias.

• In the multicultural organization, no gap in organizational identification is based on a

cultural identity group.

• The multicultural organization experiences low levels of intergroup conflict.

V. Managing Knowledge Workers

In today’s economy, many organizations are now really trading in knowledge, and this presents a

special set of challenges for the HR manager. Investment firms are selling their special

knowledge about how to manage a portfolio and plan for retirement or some other goal,

consulting firms are selling expertise in dealing with the many management problems that face

organizations, and many other types of businesses are actually dealing primarily in knowledge

rather than goods or services. With these shifts also came the recognition that knowledge was

also a commodity within an organization that needed to be leveraged and managed.

A. Organizational Learning

Organizational learning refers to the process by which an organization “learns” from past

mistakes and adapts to its environment. First, the process begins with individual learning and

change. Second, whereas the individual learning process is cognitive, organizational learning

Organizational memory refers to the collective, institutional record of past events. Some of

these events and processes are written down or stored electronically so that a physical record

Chapter 8: Managing a New and Diverse Workforce

information is shared and distributed throughout the organization so that all employees now

share a view of what this information means and how it can be used to change, organizational

learning is said to have occurred. When this information and its interpretation also become

part of the organizational memory, change and adaptation can continue for some time. This

type of learning and the adaptation involved will clearly be critical to firms as they try to

compete effectively in the 21st century.

B. 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. They tend to work in high-tech firms

and are usually experts in some abstract knowledge base. They often believe that they have

the right to work autonomously, and they identify more strongly with their profession than

they do with any organization.

VI. Human Resource Management and Social Issues

Employees, especially younger employees in the twenty-first century, are more interested in

social issues than employees have been for quite some time. There is an increasing awareness

that the needs of the organization can be met while addressing the needs of the employees or of

society as a whole, and there is also an increasing concern with social issues in general. These

key social issues are shown in Figure 8.6.

A. Prison Labor

Chapter 8: Managing a New and Diverse Workforce

One problem is that U.S. citizens (or legal immigrants) who need to work to support their

family will either not find jobs or will be forced to work for lower wages because an employer

can always go to illegal immigrants if necessary, even though these illegal immigrants cannot

really support their families on the wages they earn.

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

concerns with every aspect of a firm’s strategic management.

Closing Case: (Native) American Diversity

Case Summary

Diversity conversations seldom include Native Americans. There is even disagreement over how

these individuals should be identified. But whether we use the terms “American Indian” or

“Native American,” or refer to their tribal affiliation (Cherokees are the largest, with over

poverty, early parenthood, and substance abuse. But while all Civil Rights legislation applies to

Native Americans (Native Americans were granted citizenship rights in 1924), few cases have

been brought on behalf of Native Americans. In fact, it was only in 1997 that the Civil Rights

Division of the U.S. Department of Justice first enforced the education statues on behalf of

Native Americans by ordering a Utah school district to build a new high school in a remote

community populated mostly by Navajo and Paiute tribe members.

Case Questions

1. Why do you think Native Americans are so seldom discussed in the context of diversity?

2. If you were an HR manager, what special strategies might you adopt to recruit more

Native Americans to apply for positions in your organization?

Chapter 8: Managing a New and Diverse Workforce

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.

• A related factor that has contributed to diversity has been increased awareness by

3. Distinguish between identical treatment and equitable treatment in an organizational

setting.

4. What are the four most common bases of diversity that are relevant to managers and their

organizations?

5. What trends are apparent regarding age, gender, and ethnicity in the workplace?

The average age of workers in the United States is gradually increasing and will continue

to do so for the next several years. Another factor that contributes to workforce aging is

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

generally have higher levels of productivity and lower levels of turnover and

absenteeism.

Chapter 8: Managing a New and Diverse Workforce

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.

Some evidence suggests that conflict may be specially pronounced between older and

younger women in the workplace, because older women feel that they have sacrificed

family for career and resent the relatively greater accommodation made for women today.

Conflict can arise as a result of fear, distrust, or individual prejudice. Members of the

dominant group in an organization may worry that newcomers from other groups pose a

personal threat to their own position in the organization.

7. Identify and discuss various individual strategies for managing diversity.

The following are the different individual strategies for managing diversity.

• Understanding: While people need to be treated fairly and equitably, managers must

8. What is a multicultural organization? Do you think such an organization exists?

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

10. How are social issues and the human resource management (HRM) function linked?

Employees, especially younger employees in the 21st century, are more interested in social

issues than employees have been for quite some time. Some of these causes include

Additional Resource

The Surprising Solution to Workplace Diversity

Ask students to watch the video titled The Surprising Solution to Workplace Diversity, which is