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Management, 14e

Chapter 13: Managing Diversity and Inclusion

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Icebreaker

Sit in a circle and on a notecard, write one personal fact about yourself (background or interests) that most people don't know about you.

When the instructor reads the fact from a card, write down which person you believe the fact belongs to.

When the instructor indicates, reveal your guess.

Discuss reasons why you guessed as you did and what “facts” most surprised you.

Option for individual reflection: Recall a time when your first impressions of someone turned out to be incorrect. What prompted that first impression, and how did you discover it was inaccurate?

First Impressions

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Instructor facilitation note: for online courses, create virtual break out groups and ask students to work through this icebreaker as a team. Instruct them to identify a moderator to act as the instructor.

Pass out one notecard to each student. Have them write a fact on the card and then fold it and place it in the middle of the circle.

Open and read the cards one at a time, and invite students to write down who they believe wrote the fact.

Either after each card or at the end, survey the group and have them name the “owner” of the fact and then have the “owner” reveal themselves.

Reflect with the students why they associated the various facts with a specific person and what those reasons say about first impressions and perhaps biases.

Learning Objectives (1 of 2)

By the end of this chapter you should be able to:

Describe some of the diversity challenges that managers face in the United States and globally.

Explain the dividends of a diverse workforce and how the definition of diversity has grown to recognize a broad spectrum of differences among employees.

Describe how unconscious bias can contribute to an environment that limits the advancement of women, people of color, and other underrepresented employees.

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Review objectives.

Learning Objectives (2 of 2)

By the end of this chapter you should be able to:

Summarize the factors that affect women’s opportunities, including the first rung of the management ladder and the female advantage.

Describe how diversity initiatives such as sponsor relationships, employee resource groups, and coaching programs help create an inclusive climate that values diversity.

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Review objectives.

13.1 Some Corporate Leaders in Diversity (LO 1)

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NOTE: Rankings are based on employee surveys as well as diversity of the company’s workforce and leadership.

SOURCE: Hadley Hitson, “The Best Workplaces for Diversity,” Fortune (January 2020): 1

Diversity in the Workplace (LO 1)

The differences people bring to the workplace are valuable

Two issues that show how the environment and the workplace are changing

Increased diversity

More women workers

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13.2 Diversity Milestones Since 2000 (LO 1)

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SOURCES: “Spotlight on Diversity,” special advertising section, MBA Jungle (March–April 2003): 58–61; Xerox corporate Web site, www.news.xerox.com; Michael Rapoport and Julie Steinberg, “Deloitte Taps Woman, a First, for CEO Post,” The Wall Street Journal (February 9, 2015), http://www.wsj.com/articles/deloitte-tapscathy-engelbert-as-chief-executive-1423492486(accessed April 19, 2016); and Yoko Kubota, “Toyota Opts to Diversity Senior Posts,” The Wall Street Journal, http://www.wsj.com/articles/toyota-taps-first-foreign-vicepresident-1425451312 (accessed April 20, 2016).

13.3 Projected Changes in U.S. Civilian Labor Force, 2004–2024 (LO 1)

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SOURCE: U.S. Bureau of Labor Statistics, Labor Force Projections to 2024: The Labor Force Is Growing, But Slowly, Table 1, Civilian Labor Force by Age, Gender, Race, and Ethnicity, 1994, 2004, 2014, and Projected 2024, www.bls.gov/opub/mlr/2015/article/labor-force-projections-to-2024.htm (accessed June 29, 2020).

Knowledge Check 1

Which of the following statements regarding projected changes in the U.S. labor force is most accurate?

Hispanics are projected to be the ethnic group with the greatest increase as a percentage of the U.S labor force

The only ethnic group that will be a lower percentage of the U.S. labor force in 2024 than it was in 2004 is Asians

Diversity in corporate America has been a key topic since the 1950s

The shifting demographic of the U.S. workforce is due to women employees rather than to foreign-born employees

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Knowledge Check 1: Answer

Which of the following statements regarding projected changes in the U.S. labor force is most accurate?

Hispanics are projected to be the ethnic group with the greatest increase as a percentage of the U.S labor force

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The correct answer is a: Hispanics are projected to be the ethnic group with the greatest increase as a percentage of the U.S labor force

Diversity Challenges on a Global Scale (LO 1)

Common challenge is the progression of women into upper management

Companies in Japan are hiring more women

Lifetime employment and age-based promotion mean that most managers are male

Some countries have laws to increase the representation of women on corporate boards

Germany, Norway, France, and Spain

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Diversity and Inclusion (LO 2)

Diversity: all the ways in which people differ

Today, companies embrace a more inclusive definition of diversity

Inclusion: the degree to which an employee feels like an esteemed member of a group in which his or her uniqueness is highly appreciated

Managing diversity and inclusion: creating climate in which potential advantages of diversity for organizational or group performance are maximized while potential disadvantages are minimized

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13.4 Traditional vs. Inclusive Models of Diversity (LO 2)

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SOURCE: Based on Anthony Oshiotse and Richard O’Leary, “Corning Creates an Inclusive Culture to Drive Technology Innovation and Performance,” Global Business and Organizational Excellence 26, no. 3 (March/April 2007): 7–21.

Diversity of Thought (LO 2)

Cognitive diversity, or diversity of thought: achieved when a manager creates a heterogeneous team made up of individuals with diverse characteristics who bring different ideas, viewpoints, and ways of thinking and reasoning

Increases the chance of creating a hard-to-replicate competitive advantage

Pushes people to work harder cognitively to bridge differences and understand one another’s ideas and viewpoints

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13.5 Dividends of Workplace Diversity (LO 2)

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SOURCE: Based on Gail Robinson and Kathleen Dechant, “Building a Business Case for Diversity,” Academy of Management Executive 11, no. 3 (1997): 21–31.

Polling Activity 1

Studies reveal numerous benefits of diversity in organizations. Indicate which of the following you believe is most beneficial to an organization.

Better use of employee talent

Increased understanding of the marketplace

Enhanced breadth of understanding among managers

Better team problem solving

Lower costs related to turnover, absenteeism, and lawsuits

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Answers will vary.

Factors Shaping Personal Bias (LO 3)

Unconscious bias

Prejudice

Discrimination

Stereotypes

Ethnocentrism

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Unconscious Bias (LO 3)

Unconscious bias: attitudes or stereotypes that affect our understandings and actions without our conscious knowledge

Influences favorable and unfavorable assessments, actions, and decisions toward members of specific groups

Research documents that bias occurs outside of our awareness and despite good intentions

Companies are beginning provide unconscious bias training to all employees to increase awareness of hidden biases that may affect decisions

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Polling Activity 2

As the HR manager, you want to make sure other managers who are responsible for job evaluations and promotion recommendations of employees are aware of the effects of unconscious bias. Which of the following approaches would you use initially in conveying your message?

Create a written guide that prompts managers to review their decisions with a critical eye toward potential biases

Invite a professional to lead training sessions on uncovering and removing unconscious biases

Establish a review board to provide feedback on evaluation and promotion decisions

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Answers will vary.

Workplace Prejudice, Discrimination, and Stereotypes (LO 3)

Prejudice: the tendency to view people who are different as being deficient

Discrimination: acting out prejudicial attitudes toward other people who are targets of an individual’s prejudice

Stereotype: a rigid, exaggerated, irrational belief associated with a particular group of people

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13.6 Stereotyping versus Valuing Cultural Differences (LO 3)

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SOURCE: Adapted from Taylor Cox, Jr., and Ruby L. Beale, Developing Competency to Manage Diversity: Readings, Cases and Activities (San Francisco: Berrett-Koehler Publishers, 1997).

Challenges Underrepresented Minorities Face (LO 3)

Ethnocentrism: the belief that one’s own group and culture are inherently superior to other groups and cultures

Monoculture: a culture that accepts only one way of doing things and one set of values and beliefs

Ethnorelativism: the belief that groups and subcultures are inherently equal

Pluralism: an environment in which the organization accommodates several subcultures

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Discussion Activity 1

What is the difference between ethnocentrism and unconscious bias? Might the two concepts also appear to be the same within some people?

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Discussion Activity 1 Debrief

What is the difference between ethnocentrism and unconscious bias? Might the two concepts also appear to be the same within some people?

Ethnocentrism is the belief that one’s own group and culture are inherently superior to other groups and cultures, thus making it difficult to value diversity. The business world tends to reflect values, behaviors, and assumptions based on the experiences of a homogeneous, white, middle class, male workforce. Unconscious bias occurs when a person is not aware of the bias in their favorable and unfavorable assessments, actions, and decisions toward members of specific groups.

Yes, both concepts can appear in the same person. In fact, if you feel that your own culture is superior, you could be biased against a person from a different culture without recognizing that the bias exists or realizing that your impression of being superior is causing the bias.

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Factors Affecting Women’s Careers (LO 4)

Glass ceiling: an invisible barrier that exists for women that limits their upward mobility in organizations

First rung: the first promotion onto the management career ladder

Ways for companies to facilitate reaching the first rung

Start women in business-line positions

Offer development programs

Women might be better managers because of a more collaborative, less hierarchical, relationship-oriented approach in tune with today’s global and multicultural environment

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Diversity Initiatives and Programs (1 of 4) (LO 5)

Companies believe that diversity initiatives have many benefits

Maintain competitive advantage

Improve employee morale

Decrease interpersonal conflict

Facilitate progress in new markets

Increase creativity

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13.7 The Most Common Diversity Initiatives (LO 5)

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SOURCE: Adapted from data in “Impact of Diversity Initiatives on the Bottom Line: A SHRM Survey of the Fortune 1000,” pp. S12–S14, in Fortune, special advertising section, “Keeping Your Edge: Managing a Diverse Corporate Culture,” produced in association with the Society for Human Resource Management, www.fortune.com/sections.

Diversity Initiatives and Programs (2 of 4) (LO 5)

Enhancing structures and policies to facilitate and support diversity

Expanding recruitment efforts to target a more diverse pool of applicants

Establishing sponsor relationships

Sponsor: a higher-ranking organizational member who is committed to providing upward mobility and support to a protégé’s professional career

Coaching: engaging in regular conversations with an employee that facilitate learning and development by supporting strengths and overcoming obstacles to improve behavior and performance

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Knowledge Check 2

The vice president of communications for an organization is committed to supporting several of the department’s lower-level managers in advancing their professional career. In this relationship, the vice president is known as a

pluralist

recruiter

first rung manager

sponsor

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Knowledge Check 2: Answer

sponsor

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Diversity Initiatives and Programs (3 of 4) (LO 5)

Increasing awareness of sexual harassment

Generalized

Inappropriate/offensive

Solicitation with promise of reward

Coercion with threat of punishment

Sexual crimes and misdemeanors

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Diversity Initiatives and Programs (4 of 4) (LO 5)

Employee resource group: based on social identity, such as gender or race, and organized within a company to focus on concerns of employees from that group

Resource groups pursue a variety of activities and opportunities for interaction

Meetings to educate top managers

Mentoring programs

Networking events

Training sessions and skills seminars

Minority intern programs

Community volunteer activities

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Discussion Activity 2

How might employee resource groups contribute to the advancement of women and people of color to higher-level positions in an organization?

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Discussion Activity 2 Debrief

How might employee resource groups contribute to the advancement of women and people of color to higher-level positions in an organization?

Resource groups pursue a variety of activities, such as meetings to educate top managers, mentoring programs, networking events, training sessions and skills seminars, minority intern programs, and community volunteer activities.

Resource groups give people a chance to meet, interact with, and develop social and professional ties to others throughout the organization, which may include key decision makers.

Resource groups are a powerful way to reduce social isolation for women and underrepresented employees, help these employees be more effective, and enable members to achieve greater career advancement.

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Summary (1 of 2)

Now that the lesson has ended, you should have learned how to: