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Managing the Diverse Workforce

McGraw-Hill

2003 The McGraw-Hill Companies, Inc. All rights reserved.

Diversity: A Brief History



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Managing diversity
recognizing the characteristics common to specific groups of employees while dealing with such employees as individuals and supporting, nurturing, and utilizing their differences to the organizations advantage  understanding and appreciating employee differences to build a more effective and profitable organization  not a new issue



European immigrants came to the U.S. throughout the 1800s and early 1900s 1960s - white male members of ethnic and religious groups accepted
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McGraw-Hill

Diversity: A Brief History (cont.)



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Managing diversity (cont.)



melting pot notion



ethnic and racial differences were blended into an American pure in fact, most racial and ethnic groups retained their identities realization that a diversified workforce can provide a competitive advantage

companies are more accommodating of differences



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Diversity Today


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Diversity
broad term used to refer to all kinds of differences  members of different groups share common values, attitudes, and perceptions



there is still much diversity within each group

Managing diversity
must be aware of characteristics common to a group  must manage employees as individuals  must support, nurture, and utilize these differences to the organizations advantage


McGraw-Hill

2003 The McGraw-Hill Companies, Inc. All rights reserved.

Components Of A Diversified Workforce

Gender Age Racial and ethnic minorities Immigrants Physically and mentally disabled Workforce Diversity

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Other Religious affiliation Veteran status Sexual orientation Expectations and values Lifestyle Skill level Educational level Economic class Workstyle Function and/or position within the company
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McGraw-Hill

How Effective Is Your Diversity Program?

Ineffective 2% Somewhat ineffective Undecided 13% 8% Somewhat effective 49% Very Effective 8%

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Effective 22%

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Diversity Today (cont.)



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Size of the workforce

U.S. civilian labor force is expected to reach 158 million by 2010  slowing in both the number of people joining the labor force and the rate of labor force growth  U.S. traditionally had a surplus of labor



number of jobs created expected to exceed the growth of the labor force

employers likely to outsource some work

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2003 The McGraw-Hill Companies, Inc. All rights reserved.

Diversity Today (cont.)



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Workers of the future



until recently, white, American born males dominated the U.S. workforce


now, they only account for 15 percent of the net growth

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2003 The McGraw-Hill Companies, Inc. All rights reserved.

11 - 9

Women In The Workforce

Women make up about 47 percent of the workforce  99 percent of women will work for pay at some point in their lives  Overall labor force participation rate of women continues increasing while the participation rate of men declines  The long-term increase in the female labor force largely reflects the greater frequency of paid work by mothers  Today, 40 percent of multiple job holders are women  One of every five married women who works outside the home earns more than her husband

McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights reserved.

Diversity Today (cont.)



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Workers of the future (cont.)



gender issues - a growing number of women working outside the home



balancing work life with family responsibilities and parenting presents an enormous challenge


employers offer benefits such as on-site child care and physical therapy, in-home care for disabled and elderly family members

average full-time working female earns about 75% of the average full-time working male
 

disparities greatest at the executive level glass ceiling - invisible barrier hindering women and minorities from moving beyond a certain level in the corporate hierarchy  women often faced with the choice between career and family
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McGraw-Hill

Diversity Today (cont.)



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Workers of the future (cont.)



gender issues (cont.)



sexual harassment - conduct of a sexual nature that has negative consequences for employment


quid pro quo harassment - submission to or rejection of sexual conduct is used as a basis for employment decisions hostile environment - unwelcome sexual conduct has the purpose or effect of reasonably interfering with job performance or creating an intimidating, hostile, or offensive working environment

the changing status of women has given men the opportunity to redefine their roles, expectations, and lifestyles

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Minorities And Immigrants

 

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Nonwhites make up about one-third of the growth rate in the workforce Ethnic Americans now comprise nearly 25 percent of the total population By 2020, most of Californias entry-level workers will be Hispanic English has become the second language for much of the population in California, Texas, and Florida The number of foreign-born U.S. residents is at its highest level in U.S. history (one in ten residents) The younger Americans are, the more likely they are to be persons of color 6.8 million people in the U.S. identify themselves as multiracial
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McGraw-Hill

Diversity Today (cont.)



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Workers of the future (cont.)



minorities and immigrants - growing percentage of the workforce

 

term minority as typically used may quickly be outdated troubling disparities

  

unemployment rates are higher for minorities weekly earning are lower for minorities fewer executive, administrative, and managerial people of color

organizations are trying to provide more opportunities for minorities

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2003 The McGraw-Hill Companies, Inc. All rights reserved.

Percentage Of Minority Managers

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1995

10.60%

Senior
1992 1995
7.40%

15.10%

Middle
1992 1995
11.20%

19.30%

Front-line
1992
14.50%

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2003 The McGraw-Hill Companies, Inc. All rights reserved.

Diversity Today (cont.)



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Workers of the future (cont.)  mentally and physically disabled - largest unemployed minority population is the U.S.


Americans with Disabilities Act (ADA)



 

disability - a physical or mental impairment that substantially limits one or more major life activities caused a dramatic increase in accessibility to public facilities unemployment rate for disabled persons remains virtually unchanged

 

disabled lack access to educational and workplace environments attitudes of employers an important barrier to employment

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2003 The McGraw-Hill Companies, Inc. All rights reserved.

Diversity Today (cont.)



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Age of the workforce



average age is increasing

 

people of ages 50 to 65 will increase people of ages 16 to 24 is expected to drop

entry-level workers will be in short supply  retirement-age workers can be encouraged to remain or reenter the workforce on a flexible or part-time basis

 

results in cost savings on turnover and training capitalizes on the experience of older workers

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2003 The McGraw-Hill Companies, Inc. All rights reserved.

Top Five Approaches For More Fully Utilizing Older Employees

Approaches to More Fully Utilizing Older Employees Benefit packages targeted toward older employees Part-time work arrangements with continuation of benefits Educating managers about ways to utilize older employees Increased availability of part-time work for older employees (regardless of benefits) Skill training for older employees
McGraw-Hill

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Approaches Considered Very or Moderately Effective (%)

Businesses that Have Implemented the Approach (%)

68% 64 60

18% 30 25

55 55

36 44
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Diversity Today (cont.)



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Future jobs and workforce qualifications

the U.S. is becoming a predominantly service-oriented economy  people without high school diplomas are at a distinct disadvantage  gap is growing between the knowledge and skills jobs require and those many employees and applicants possess



illiteracy is often the underlying problem



companies do not hire skills-deficient applicants offer in-house basic-skills training program partnerships with various educational institutions
2003 The McGraw-Hill Companies, Inc. All rights reserved.

employers are combating this basic-skills gap

 

McGraw-Hill

Remedial Programs In The Workplace

Total 100% 90 80 70 60 50 40 30 20 10 0 Small Large Exporter Non-exporter Union

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Non-union

Offered in the last 5 years

Plan to introduce in the next 5 years

McGraw-Hill

2003 The McGraw-Hill Companies, Inc. All rights reserved.

Managing Diversity Versus Affirmative Action



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Affirmative action (AA)

instituted to curb discrimination and correct the past exclusion of women and minorities from U.S. organizations  nonetheless, employment discrimination still persists



equal employment opportunity and AA have not adequately improved the upward mobility of women and minorities

reverse discrimination exists when qualified white males are passed over for employment opportunities

Managing diversity


means moving beyond legislated mandates to embrace a proactive business philosophy that values differences  eliminates barriers that hinder attainment of full potential McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights reserved.

Managing Diversity Versus Affirmative Action (cont.)



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Competitive advantage through diversity

original impetus to diversity workforces was social responsibility and legal necessity  today, many organizations are also approaching diversity from a more practical, business-oriented perspective



diversity viewed as a tool for building a competitive advantage companies with reputation for diversity have competitive advantage in the labor market companies will be sought out by most qualified employees employees who believe that their differences are valued may become more loyal, productive, and committed
2003 The McGraw-Hill Companies, Inc. All rights reserved.

ability to attract and retain motivated employees



 
McGraw-Hill

Managing Diversity Versus Affirmative Action (cont.)



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Competitive advantage through diversity (cont.)



better perspective of a differentiated market



as the composition of the American workforce changes, so does the customer base of these companies


diverse customers may prefer to patronize such organizations

a multicultural workforce can provide a company with greater knowledge of the preferences and consuming habits of this diversified marketplace

ability to leverage creativity and innovation in problem solving

 

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people from different backgrounds hold different perspectives diverse work groups are freer to deviate from traditional approaches 2003 The McGraw-Hill Companies, Inc. All rights reserved.

Managing Diversity Versus Affirmative Action (cont.)



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Competitive advantage through diversity (cont.)



enhancement of organizational flexibility



managing diversity requires a corporate culture that tolerates different styles and approaches less restrictive policies and procedures and less standardized operating methods enable organizations to become more flexible

McGraw-Hill

2003 The McGraw-Hill Companies, Inc. All rights reserved.

Managing Diversity Versus Affirmative Action (cont.)



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Challenges of a diverse workforce

lower cohesiveness - lack of similarity in culture causes diverse groups to be less cohesive than homogeneous groups  communication problems - most common negative effect



diversity increases errors and misunderstandings

mistrust and tension - mistrust and misunderstanding of those who are different due to a lack of contact and low familiarity  stereotyping - inappropriately stereotype their different colleagues rather than accurately perceiving and evaluating those individuals contributions, capabilities, aspirations, and motivations


McGraw-Hill

stereotypes affect how people are treated

2003 The McGraw-Hill Companies, Inc. All rights reserved.

Multicultural Organizations


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Monolithic organizations


an organization that has a low degree of cultural integration



employs few women, minorities, or other groups that differ from the majority
  

minority employees hold low status jobs minority employees must adopt the norms of the majority has a highly homogeneous employee population

Plural organizations


have a more diverse employee population  use an affirmative action approach to managing diversity  some acceptance of minorities into the informal network  much less discrimination and less prejudice McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights reserved.

Multicultural Organizations (cont.)



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Multicultural organization
values cultural diversity and seeks to utilize and encourage it  fully integrate gender, racial, and minority group members both formally and informally  absence of prejudice and discrimination  low levels of intergroup conflict  synergistic environment



all members contribute to their maximum potential and the advantages of diversity can be fully realized

McGraw-Hill

2003 The McGraw-Hill Companies, Inc. All rights reserved.

How Organizations Can Cultivate A Diverse Workforce



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Top management leadership and commitment

top management support for diversity programs is critical  incorporate the organizations attitudes toward diversity into the corporate mission statement, strategic plans, and objectives  establish corporate offices or committees to coordinate the companywide diversity effort that provides feedback to top management  minority advisory groups or task forces to monitor organizational policies, practices, and attitudes

 

assess program impact on diverse groups provide feedback and suggestions to top management
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How Organizations Can Cultivate A Diverse Workforce (cont.)



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Organizational assessment


establish an ongoing assessment of the organizations workforce, culture, policies, and practices
  

evaluate the demographics of the labor pool and customer base identify problem areas make recommendations where changes are needed

corporate values and norms should be identified and critically evaluated regarding their necessity and their impact on the diverse workforce

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2003 The McGraw-Hill Companies, Inc. All rights reserved.

How Organizations Can Cultivate A Diverse Workforce (cont.)



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Attracting employees


recruitment - a companys image can be a strong recruiting tool



a reputation for hiring and promoting all types of people can be a competitive advantage many minorities and economically disadvantaged people are physically isolated from job opportunities


companies can bring information about job opportunities to the source of labor companies can transport labor to the jobs

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2003 The McGraw-Hill Companies, Inc. All rights reserved.

Steps In Diversity Planning

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Set numerical standards Calculate percentages Identify qualified workers Match positions to U.S. census categories Set general qualifications

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How Organizations Can Cultivate A Diverse Workforce (cont.)



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Attracting employees (cont.)



accommodating work and family needs



corporate work and family policies are now one of the most important recruiting tools providing child care leads to:
 

decreased turnover and absenteeism improved morale

  

assist with care for elderly parents offer time off to care for sick family members concerns for dual-career couples expressed by:
 

limiting relocation requirements providing job search assistance to relocated spouses

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How Organizations Can Cultivate A Diverse Workforce (cont.)



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Attracting employees (cont.)



alternative work arrangements



offer flexible work schedules and arrangements

   

compressed workweeks job sharing - two part-time workers share one full-time job teleworking - working from home telecommuting - working from home via computer hookup to the main worksite

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2003 The McGraw-Hill Companies, Inc. All rights reserved.

How Organizations Can Cultivate A Diverse Workforce (cont.)



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Diversity training
attempt to identify and reduce hidden biases and develop skills needed to effectively manage a diversified workforce  awareness building - designed to increase awareness of the meaning and importance of valuing diversity

  

sensitize employees to assumptions they make about others become familiar with myths, stereotypes, and cultural differences become familiar with organizational barriers that inhibit the full contributions of all employees teach the unwritten rules or cultural values to those who need to know them
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How Organizations Can Cultivate A Diverse Workforce (cont.)



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Diversity training (cont.)



skill building - designed to allow all employees and managers to develop the skills they need to deal effectively with one another and customers in a diverse environment
  

most of the skills taught are interpersonal develop personal action plans before they leave the program experiential exercises and videotapes often are used

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2003 The McGraw-Hill Companies, Inc. All rights reserved.

Guidelines For Diversity Training

Position training in diversity strategy

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Do needs analysis

Incorporate diversity programs into training

Diversity training

Distinguish between education and training

Thoroughly test training

McGraw-Hill

Use participative design process

2003 The McGraw-Hill Companies, Inc. All rights reserved.

How Organizations Can Cultivate A Diverse Workforce (cont.)



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Retaining employees


support groups - form minority networks to promote information exchange and social support
 

provide emotional and career support help diverse employees understand work norms and cultures

mentoring - higher-level managers help ensure that highpotential people are introduced to top management and socialized into the norms and values of the organization


help diverse employees enter the informal network

career development and promotion - establish teams to evaluate the career progress of diverse employees


devise ways to move them up through the ranks

2003 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill

How Organizations Can Cultivate A Diverse Workforce (cont.)



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Retaining employees (cont.)



systems accommodation - recognize:

   

cultural and religious holidays differing modes of dress dietary restrictions needs of individuals with disabilities

accountability - managers held accountable for workforce development



performance appraisal and reward systems reinforce the importance of effective diversity management

McGraw-Hill

2003 The McGraw-Hill Companies, Inc. All rights reserved.