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Chapter Two

Managing Diversity:
Releasing Every Employee’s
Potential

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999


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Chapter Two Outline
■ Defining Diversity
- Dimensions of Diversity
- Affirmative Action and Valuing Diversity
■ Building the Business Case for Managing Diversity
- Increasing Diversity in the Workforce
- Managing Diversity: A Competitive Advantage
■ Organizational Practices Used to Effectively Manage
Diversity
- R. Roosevelt Thomas, Jr.’s Generic Action Options
- Ann Morrison Identifies Specific Diversity
Initiatives
■ Barriers and Challenges to Managing Diversity
Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999
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Primary and Secondary Dimensions of


Diversity
First M
First
t i onn language ex iMlitial
caatio language epxe irtya
u priee ry
Edduc rniec
WoWork
E nec
e
stystyrlke
Age
le Sexual Age

ReRlelig
Sexual
Comm unic

orientation

igioion Inocm
Comsmtylteyle

orientation
Gender

n Inc o e
Gender
ns
unica atio

Mental/ physical
Mental/
abilitiesphysical
and
tion

abilities and
characteristics Ethnic

me
characteristics Ethnic
heritage
heritage
FaFam
stasta
mi il

Race orkrk ncee


Race
ly y
tustus

Wo ie c Primary
W periren
Orga exxpe dimensions
O n e
rorleganizizaationa Geographic Secondary
role and ltiona l Geographic
and evel l location dimensions
leve location
l
© The MGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Comparison of Affirmative Action,
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Valuing Diversity, and Managing


Diversity
Who Conceptual
Focus Driver Benefits Foundation
Affirmative Achieving Laws Targeted Assimilation
Action equality groups model
Valuing Appreciation Ethics All Diversity
Diversity of differences employees model
Managing Building skills Corporate The Synergy
Diversity and changing strategy organization model
policies and all
employees

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999


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Implications of Increasing
Diversity
❶ Progressive human resource programmes needed to
attract and retain the best workers
❷ Educational mismatches create lack of skilled entry-
level workers and underemployed college graduates
❸ Career plateauing increases for younger workers
➍ Managerial initiatives are needed to adapt to an aging
workforce

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999


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Competitive Advantages of
Managing Diversity
■ Lower Costs and Improved Employee
Attitudes
■ Improved Recruiting Efforts
■ Increased Sales and Market Share
■ Increased Creativity and Innovation
■ Increased Group Problem-Solving and
Productivity

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999


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Generic Action Options for


Managing Diversity
❖ Include/Exclude
❖ Deny
❖ Assimilate
❖ Suppress
❖ Isolate
❖ Tolerate
❖ Build Relationships
❖ Foster Mutual Adaptation
Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999
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Specific Diversity Initiatives


■ Accountability Practices - Pertain to treating diverse
employees fairly
- Create administrative procedures
aimed at integrating diverse
employees into management ranks
■ Development Practices - Pertain to preparing diverse
employees for greater
responsibility and advancement
- Training programmes, networks
and support groups, and mentoring
are frequently used
■ Recruitment Practices - Pertain to attracting qualified
diverse employees at all levels
Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999
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Barriers and Challenges to


Managing Diversity
❶ Inaccurate stereotypes and prejudice
❷ Ethnocentrism
❸ Poor career planning
❹ Unsupportive and hostile work environment
❺ Lack of political savvy by diverse workers
❻ Balancing career and family issues
❼ Fears of reverse discrimination
❽ Diversity not seen as a priority
❾ Outdated performance appraisal and reward systems
❿ Resistance to change

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999

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