Managing Diversity

Diversity

Characteristics of individuals that shape their identities and the experiences they have in society

The workplace is becoming increasingly diverse with respect to:

• age,

• race,

• gender,

• language,

• ability,

• religion, and

• sexual orientation

Age

Any organization needs a good mix of age.• Younger workers bring enthusiasm and passion

to the organization. They are the impetus for change. They also have lower salaries.

• Older workers have the experience to bridle the younger workers. They provide the culture and norms. They have higher salaries.

Race

Minorities will form the majority of Americans,

Hispanics (not blacks) will be the most populous minority, and

The English language as we know it may not exist

U.S. Census Bureau 2050 population projection

50% "white" 20% Hispanic 15% Black 10% Asian

Hispanics

Fastest growing US minority (will surpass Blacks around 2029)

About 50% of Hispanics living in America do NOT speak English in their homes

Hispanics place high value on religious and family priorities

Hispanics

Certain states are experiencing especially rapid growth in its Hispanic population

• California 9.2 million

• Texas 5.3 million

• New York 2.4 million

• Florida 2.0 million

• Illinois 1.1 million

Asians

Asians place high value on education and work priorities

Gender

Women will experience ever-increasing levels of workplace equity.

Glass ceiling • general cultural barrier excluding certain types

of individuals from upper‑level management in larger companies

Gender

Objective comparison indicate that women have improved considerably more than other minority groups

• Example: pay differences, recently 71 cents on the dollar versus historical 50 cents on the dollar.

Successful Female Managers

Working Woman's1996 ranking of best-paid female executives:• Linda Wachner, CEO, Warnaco Group,

$11.16 million

• Jill Barad, CEO, Mattel, $6.17 million

• Carol Bartz, CEO, Autodesk, $5.51 million

• Sally Crawford, COO, Healthsource, $4.02 million

Successful Female Managers

Working Woman's1996 ranking of best-paid female executives:• Estée Lauder, Chairwoman Emeritus, Estée

Lauder, $3.82 million

• Cuneo, Executive VP, Conseco, $3.68 million

• Jane Hirsh, Pres. IB, Copley Pharmaceutical, $3.39 million

Successful Female Managers

Working Woman's1996 ranking of best-paid female executives:• Nancy Pedor, CEO, Gymboree, $3.19 million

• Donna Karan, CEO, Donna Karan International, $.2.73 million

For Your Information

Two-thirds of professional women working fulltime say they would turn down the presidency of their company if it were offered.

The source is USA Today, Tu/10/29/96, p. B1

Reasons

Reasons frequently cited include • "too stressful,"

• "happy with current job,"

• "value personal/family time,"

• "too little experience," and

• "too much responsibility."

Abilities

ADA -- American Disabilities Act • Became law in the 1990's

• 50% of all cases involve wrongful discharge

• 20% of all cases involve inadequate access

• 15% of all cases involve bias in hiring

Many cases are only tangentially related to the spirit of the law

• Example: Medical test anxiety

Sexual Orientation

Prejudice, Discrimination, & Stereotypes

Corporate Culture--Beliefs and norms that govern organizational behavior in a firm.

Prejudice--A preconceived judgment about an individual or group of people.

Discrimination--Unfair or inequitable treatment based on prejudice.

Types of Discrimination

Two types of discrimination can be brought against employers:

• Unequal or DISPARATE TREATMENT

• ADVERSE IMPACT

Unequal or DISPARATE TREATMENT

A firm intentionally discriminates against a worker or candidate. Pure bias. Outright discrimination.

ADVERSE IMPACT

UNINTENTIONAL DISCRIMINATION. An exclusion by the company that is not MEANT to DISCRIMINATE but does.

• Ex. Height requirements for FIREFIGHTERS OR

POLICE. They did not mean to do so, but women and some groups like HISPANICS were often discriminated against in the hiring process.

Important Legislation

Equal Pay Act 1963 Civil Rights Act of 1964 and 1991 Americans with Disabilities Act Age Discrimination in Employment Act Sexual Harassment provisions of Civil

Rights Acts

Equal Pay Act 1963

Prohibits discrimination on the basis of sex in the payment of wages or benefits where

• “men and women perform work of similar skill, effort and responsibility for the same employer under similar working conditions.”

Civil Rights Act of 1964

Concern with Title 7 which includes most of employment-related legislation.

• “prohibits employers from basing employment decisions on a person’s race, color, religion, sex or national orgin.”

Civil Rights Act of 1964

Important: Section 703 A

• “unlawful employment practice for employer to discriminate in areas of compensation, terms, conditions or privileges of employment.”

Terms and conditions include promotion, safety, employment contracts. Covers most public and private firms.

Civil Rights Act of 1991

Made it easier for employees to sue but put “caps” on the damages that an employee could receive under Civil Rights Act.

• $300,000

Civil Rights Act of 1964 and 1991

Civil Rights Acts 1964 or 1991 DO NOT cover Sexual Orientation

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

Investigates complaints, tries to reconcile the parties and gives a “right to sue letter” if evidence is found for the worker.

AMERICAN’S WITH DISABILITIES ACT 1990

Title 1 covers workplace.

• Protects applicants and workers with disabilities against discrimination.

• Individual with Disability. “ Person who has a mental or physical impairment that substantially limits one or more major life activities, has a record of such an impairment or is regarded as having such an impairment.

• Major life activities that an average person can perform with little or no difficulty such as walking, breathing, seeing, hearing, speaking, learning, working.

AMERICAN’S WITH DISABILITIES ACT 1990

• Covers persons with AIDS and HIV

• Covers recovering alcoholics and drug addicts that are no longer using substances.

• Divides job into “marginal” and “Essential” tasks.

• Essential tasks are those critical to the performing of the job.

• Marginal tasks are those that could be easily placed with another worker.

AMERICAN’S WITH DISABILITIES ACT 1990

• Disabled must be able to do “essential” tasks.

• Firms must make “reasonable accommodation” to the needs of disabled workers.

• Employers may ask if the applicant has “any conditions that may prohibit successful performance on the job.

• Promotes “job related questions.”

AMERICAN’S WITH DISABILITIES ACT 1990

• Disabilitiy or health information must be kept separate from other employment records.

Age Discrimination in Employment Act

Prohibits discrimination for workers 40 years or older

Employers cannot ask age on application.

Firms can “get around” this by looking at other information provided by applicant

Sexual Harassment

Defined as “unwelcome sexual advances, requests for sexual favors and other verbal or physical contact of a sexual nature.”

Sexual Harassment

Two categories:

• Quid Pro Quo: Sexual activity is demanded in return for getting or keeping a job.

• Hostile Work Environment. When behavior of co-workers, supervisors, customers or anyone else in work environment is sexual in nature and seen as offensive.

Sexual Harassment

Third Party Harassment: Managers responsible for actions of workers and customers.

Sexual Harassment

Action should be swift toward someone identified as causing sexual harassment.

• Write up complaint in personnel record and sign.

• Talk to the victim and tell him/her that problem has been followed up on.

• Have a written and known policy.

Summary of Title VII, ADA and ADEA

It is illegal to discriminate in the following ways:

• Staffing: (i.e., hiring and firing, promotion, transfer, layoff, recall)

• Compensation: (i.e., worker assignment, worker classifications benefits)

• Job advertisements, recruitment, testing

• Use of company facilities

• Training and apprenticeship programs

• Pay, retirement plans and disability leave.

When can a company discriminate?

If it is a Bona Fide Occupational Qualification.

• A characteristic which is “reasonably necessary to the operation of the particular business”

• Race cannot be a BFOQ.

When can a company discriminate?

Employers can discriminate in pay due to bona fide seniority system, merit or incentive systems.

“Protected classes” are groups that have had so much discrimination in the past that the courts have given them special status.

• Minorities and women.

What should supervisors do?

Document practices Have consistent practices Promote and hire qualified workers Base decisions on proof Be honest, consistent, know company

policies Motivate workers

What should supervisors to do?

Know how to conduct performance analysis

Discuss work when employee fails to meet performance standards.

Communicate with employees