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4e_-_chapter_2_1.pptSOCIAL RESPONSIBILITY AND HUMAN RESOURCE MANAGEMENT
Societal Factors Affecting HRM
Strategic
HRM
Sustainability
Demographics
and Diversity
Ethics
Diversity
Demographic changes in society have greatly impacted the composition of the workforce. In addition, numerous laws protect diverse groups in our society from discrimination in employment Most organizations have developed some kind of diversity management program in response to one of both of these factors.
Diversity initiatives can be designed to ensure legal compliance or to truly promote and encourage respect for others and differences. There is a marked difference between these motivations, as illustrated in Exhibit 2.1.
Diversity is a strategic business issue for an overwhelming majority of organizations/employers.
Generational Diversity
Generational diversity is becoming increasingly prevalent as individuals live and remain in the workplace longer than in previous years.
Different generations need to be able to work alongside each other in contemporary organizations. Exhibit 2.2 illustrates some of the characteristics of different generations found in the workplace.
Workforce Demographic Changes:
“Graying” of Workforce
- Negative aspects of older workers
- Perceived resistance to change by older workers.
- Increased health-care costs for senior workers
- Blocking advancement opportunities for younger workers
- Higher wage & salary costs for senior workers
- Positive aspects of older workers
- As productive or more productive than younger workers
- Have more organizational loyalty than younger workers
- Possess broader industry knowledge & professional networks
Workforce Demographic Changes
- Baby Boomers (1945–1962)
- In excess supply in middle management ranks
- HR challenge is to manage “plateaued” workers
- Baby Busters (1963–mid-1970s)
- Are career bottlenecked by Boomers
- Who have skills in high demand are doing & will do well
Workforce Demographic Changes
- Generation “X”ers (late 1970s–early 1980s)
- Have life-long exposure to technology & constant change
- Seek self-control, independence, personal growth, creativity
- Not focused on job security or long-term employment
- Generation “Y”: “Baby Boom Echo” (after 1979)
- High comfort level with technology
- Global & tolerant outlook on life
- Highly entrepreneurial
- Shorter attention span
- Opting for more transient & variable project work
Workforce Demographic Changes
- Sexual orientation
- More than 200 Fortune 500 employers offer full benefits for domestic partners
- Sexual orientation issues can impact bottom line
- -Same-sex marriage is created complications for employers.
- Disabilities
- 54 million Americans with disabilities
- Often not included in diversity initiatives
- Many supervisors do not understand needs of employees with disabilities
- Stereotypes
New Employee/Workplace Dynamics
- Emphasis on management of professionals
- Establishment of separate career tracks
- Technical/Professional, Managerial /Administrative
- Use of project teams
- Less employee loyalty, more loyal to self
- Staying with employers for shorter periods; demanding more meaningful work & involvement in organizational decisions
New Employee/Workplace Dynamics
- Increased personal & family dynamic effects
- More single-parent families, dual-career couples, & domestic partners
- Increased nontraditional work relationships
- Part-time, consulting, & temporary employment flexibility
- Outsourcing & entrepreneurial opportunities
Ethnicity
- 2010
- Ethnic minority share of workforce exceeds 30%
- Up from 22% in 1990 & 18% in 1980
- By 2050
- Close to 50% of US population will be non-Caucasian
- By 2025
- African-Americans will represent 14% of population
- Up from 12% in 1994
- Hispanics will represent 17% of population
- Up from 10% in 1994
- Asians & Pacific Islanders will represent 8% of population
- More than double from 1994
Managing Workplace Diversity
- Understanding & appreciating diversity
- Critical to effectively marketing to ethnic & minority groups
- Promoted by having diverse workforce at all levels
- Helps ensure hiring & promotion decisions are unbiased by person differences
- Diversity management programs or initiatives
- Must be integrated with organization’s mission & objectives
- Help key decision makers identify diversity’s benefits to organization
- Make critical decisions about implementing optimal program/initiative contingent on organization & its people, mission & culture.
Strategic Management of Diversity
- Determine why diversity is important
- Articulate how diversity relates to mission & strategic objectives
- Define diversity & determine how inclusive its efforts will be
- Make a decision as to whether special efforts should be extended to attract diverse workforce
- Assess how existing employees, customers, & other constituencies feel about diversity
- Determine specific types of diversity initiatives that will be undertaken
Ethical Behavior
- Many employers are now considering ethics and ethical behavior in light of major bankruptcies, scandals and business meltdowns. However, ethics are subject to personal values and convictions.
- Common ethical concerns for HR include
- off-duty behavior
- ownership of work
- non-compete clauses
Sarbanes-Oxley Act of 2002
provides sweeping measures to control deception in accounting and management practices by
increasing government oversight of financial reporting
holding senior executives more responsible that previously
protecting whistle blowers
Codes of Ethics
Many organizations and some industries have developed their own code of ethics. The Society of Human Resource Management (SHRM) has developed such a code for HR professionals. This code presents core principles, intent and guidelines in a number of areas, including: Professional Responsibility; Professional Development; Ethical Leadership; Fairness and Justice; Conflicts of Interest; and Use of Information.
Exhibit 2.6 provides some guides for developing a code of ethics or code of conduct.
Sustainability
Sustainability (and social responsibility in general) take a more macro approach to managing an organization’s relationship with its external environment.
Organizations are being increasingly expected to consider the effects of their operations, decision and business on the social and natural environment.
General Electric has developed a model program related to sustainability and Gap, Inc. has set standards for offshoring of its manufacturing operations.
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Reading 2.1
Stereotype Threat at Work
Stereotype threat is defined as the fear of being judged according to a negative stereotype. Even if an employer were successful in hiring only non-prejudiced managers, stereotypes still exist in the broader society and hence, the workplace. Stereotype threat has been documented across a wide range of diversity dimensions and performance domains. It extends beyond those in traditionally disadvantaged groups to those who are members of high-status groups. Stereotype threat affects everyone as every individual is a member of at least one group about which stereotypes exist.
Reading 2.1
Stereotype Threat at Work
Based on the conditions of
- task difficulty
- personal task investment
Stereotype threat is more likely to influence performance on difficult, challenging tasks which are at the limits of a person’s abilities. It is also more likely to influence performance when an individual in more personally involved with a task and hence, cares about performance.
Reading 2.1
Stereotype Threat at Work
- Can be reduced by teaching affected employees behavioral strategies for improving performance and counteracting negative stereotypes
- Can also be eliminated by refuting or diminishing the stereotype relevance of a given task
- Employees can also re reminded about external factors which might constrain performance such as a difficult client, limited resources or a tight deadline
- Can also be minimized by presenting a role model who contradicts the stereotype
Mangers can actually use stereotype threat to create more diversity-friendly work environments. Stereotypes should be acknowledged and addressed directly and managed by focusing on a larger context or environment.
Reading 2.2
The Ethics of Human Resource Management
Human resource managers typically face three kind of ethical problems
need for discernment or determining the right thing to do in a given situation
conflict between what the HR managers feels is right and what the employer asks be done
conflicts of interest where the HR manager’s personal beliefs differ from the responsibility of acting as an agent for the employer
Reading 2.2
The Ethics of Human Resource Management
Ethical dilemmas in recruitment can involve special requests for hiring criteria from managers, setting or recommending entry salary, how extensively to recruit, internal versus external recruiting, privacy protection due to applicants and follow-up with rejected applicants/candidates
Reading 2.2
The Ethics of Human Resource Management
Ethical dilemmas in training and development can involve training employees who make take their skills to a competitor, ensuring employee safety, particularly given an employee’s language, minimizing abuses of power in mentoring relationships and fully and truthfully informing employees about their future prospects with the employer
Reading 2.2
The Ethics of Human Resource Management
Ethical dilemmas in compensation can involve compressed compensation systems, ensuring that employers are not exploited by managers relative to compensated hours of work, comparable worth, differences in pay between levels of responsibility and equity in pay relative to the marketplace
Reading 2.2
The Ethics of Human Resource Management
Ethical dilemmas may also be present relative to employee monitoring, progressive discipline and termination, balancing costs of benefits with employees’ needs and choice and measures used to retain employees
Reading 2.3
How do Corporations Embed Sustainability Across the Organization?
Recommendations
- Learning about sustainability is a companywide necessity that should not be restricted to the discourse of leaders and senior managers
- Awareness initiatives need to be cross-functional and spread across the full range of business functions
- Embedding sustainability should include both technical and action learning opportunities
- Learning cycles should include opportunities for social learning and expansion of company knowledge systems
Reading 2.3
How do Corporations Embed Sustainability Across the Organization?
Training and Development Tools
- Codes of Conduct - specify minimum acceptable standards in corporate processes and procedures
- Impact Measures - social and environmental accounting tools and environmental impact measures calculate social and environmental impact
- Company Structure and Policies – clear delineation of whom, where, and how responsibility will be managed and how sustainability will be integrated into corporate governance structures
- Purchasing and Supply Chain Initiatives - dialogue with suppliers on the importance of sustainability in the supply chain with targets and performance indicators set for affirmative action and procurement practices that proactively support social and environmental stewardship
- Communications and Dialogue - corporate publications and social media can be used to communicate the importance of sustainability as well as the organization’s position and practices on such to both internal and external stakeholders
- Employee Training and Workshops - deliver technical information as well as company expectations about sustainability to employees
- Company Visits - learn from other organizations that have successfully implemented sustainability initiatives
- Employee Volunteering Opportunities - opportunities to enable employees to contribute their knowledge and skills to social and environmental projects and learn first-hand about their impact
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