Management

Fourteenth Edition

Chapter 5
Managing Diversity

5-1
Learning Objectives
5.1 Define workplace diversity and explain why managing it is so
important.
Develop your skill at valuing and working with diverse individuals
and teams.
5.2 Describe the changing workplaces in the United States and around
the world.
5.3 Explain the different types of diversity found in workplaces.
5.4 Discuss the challenges managers face in managing diversity.
5.5 Describe various workplace diversity management initiatives
Know how to find a great sponsor/mentor and be a great protégé

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What is Workplace Diversity?
Workforce diversity: the ways in which
people in an organization are different from
and similar to one another

5-3
Exhibit 5-1
Timeline of the Evolution of Workforce Diversity
Timeframe Events

1960s to 1970s Focus on complying with laws and regulations: Title VII of Civil Rights
Act; Equal Employment Opportunity Commission; affirmative action
policies and programs
Early 1980s Focus on assimilating minorities and women into corporate setting:
Corporate programs developed to help improve self-confidence and
qualifications of diverse individuals so they can “fit in”
Late 1980s Concept of workforce diversity expanded from compliance to an
issue of business survival: Publication of Workforce 2000 opened
business leaders’ eyes about the future composition of workforce—that
is, more diverse; first use of term workforce diversity
Late 1980s to Late 1990s Focus on fostering sensitivity: Shift from compliance and focusing only
on women and minorities to include everyone; making employees more
aware and sensitive to the needs and differences of others
New Millennium Focus on diversity and inclusion for business success: Workforce
diversity seen as core business issue; important to achieve business
success, profitability, and growth
Exhibit 5-1 illustrates a historical overview of how the concept and meaning of workforce diversity
has evolved.

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Types of Diversity
• Surface-level diversity: Easily perceived
differences that may trigger certain stereotypes,
but that do not necessarily reflect the ways people
think or feel
• Deep-level diversity: Differences in values,
personality, and work preferences

5-5
Why is Managing Workplace Diversity So
Important?
• People management
• Organizational performance
• Strategic

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Exhibit 5-2
Benefits of Workforce Diversity
People Management
•Better use of employee talent
•Increased quality of team problem-solving efforts
•Ability to attract and retain employees of diverse backgrounds

Organizational Performance
•Reduced costs associated with high turnover, absenteeism, and lawsuits
•Enhanced problem-solving ability
•Improved system flexibility

Strategic
•Increased understanding of the marketplace, which improves ability to better market to diverse consumers
•Potential to improve sales growth and increase market share
•Potential source of competitive advantage because of improved innovation efforts
•Viewed as moral and ethical; the "right " thing to do

Exhibit 5-2 shows the three main categories of workforce diversity benefits: people
management, organizational performance, and strategic.

5-7
The Changing Workplace: Characteristics
of the U.S. Population
• Total population of the United States
• Racial/ethnic groups
• Aging population

5-8
Exhibit 5-3
Changing Population Makeup of the United States

Group 2015 2050

Foreign-born 14% 19%
Racial/ethnic groups blank blank
White* 72% 47%
Hispanic 12% 29%
Black* 12% 13%
Asian* 4% 9%
* = Non-Hispanic blank blank
American Indian/Alaska Native not included. blank blank

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What About Global Workforce Changes?
• Total world population
• Aging population

5 - 10
Exhibit 5-4
Global Aging: How Much Do You Know?
1. True or False: At age 65, life expectancy is expected to be an additional 20 years.
2. The world’s older population (60 and older) is expected to change from 841 million in 2013 to ______
people in 2050?
a. decrease to 500 million
b. decrease to 750 million
c. increase to 1.5 billion
d. increase to 2 billion
3. Which of the world’s continents has the highest percentage of older people (age 60 or older)?
a. North America
b. Latin America
c. Europe
d. Asia
4. True or False: The worldwide median age was 27 in 2015.
5. Which country had the world’s highest percentage of older people in 2013?
a. Sweden
b. Japan
c. China
d. Italy

Exhibit 5-2 shows the three main categories of workforce diversity benefits: people
management, organizational performance, and strategic.

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Exhibit 5-4
Global Aging: Answers
Answers to quiz:
1. True. At age 60, people worldwide can expect to live an additional 20 years. That
number is smaller in least developed countries (17 years) and higher in more developed
countries (23 years). According to the United Nations, African countries and Asian countries
(excluding Japan) are examples of least developed countries. The United States and
Sweden are examples of more developed countries.
2. d. The number of older people is expected to be approximately 2 billion people in 2050.
3. c. Four of the top five countries with the greatest percentage of older people (age 60 or
older) are located on the European continent: Italy (26.9%), Germany (26.8%), and
Bulgaria and Finland (26.1%).
4. False. The worldwide median age was estimated to be about 30 in 2015. That age was
24 in 1950, and it is expected to reach 36 by 2050.
5. b. Japan, with 32 percent of its population aged 60 or over, has supplanted Italy as the
world’s oldest major country.

Exhibit 5-2 shows the three main categories of workforce diversity benefits: people
management, organizational performance, and strategic.

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Exhibit 5-5
Types of Diversity Found in Workplaces

Exhibit 5-5 shows several types of workplace diversity.

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Workforce Diversity: Age and Gender
• Age: Both Title VII of the Civil Rights Act of 1964
and the Age Discrimination in Employment Act of
1967 prohibit age discrimination
• Gender: Women (49.8%) and men (50.2%) now
each make up almost half of the workforce

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Workforce Diversity: Race and Ethnicity
• Race: the biological heritage (including skin color
and associated traits) that people use to identify
themselves
• Ethnicity: social traits (such as cultural
background or allegiance) that are shared by a
human population

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Workforce Diversity: Disability/Abilities
and Religion
• Disability/abilities: the Americans With
Disabilities Act of 1990 prohibits discrimination
against persons with disabilities.
• Religion: Title VII of the Civil Rights Act prohibits
discrimination on the basis of religion

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Exhibit 5-6
Employers’ Fears About Disabled Workers

Exhibit 5-6 describes some of employers’ unfounded fears about hiring disabled workers.

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Workforce Diversity: LGBT and Other
Types of Diversity
• LGBT: in two separate U.S. Supreme Court
cases, the justices held that transgendered
(gender identity) and lesbian, bisexual, and gay
(sexual orientation) individuals were protected
under Title VII’s prohibition against sexual
discrimination
• Other types of diversity: diversity refers to any
dissimilarities or differences that might be present
in a workplace

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Challenges in Managing Diversity: Personal
Bias
• Bias: a tendency or preference toward a particular
perspective or ideology
• Prejudice: a preconceived belief, opinion, or
judgment toward a person or a group of people

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Challenges in Managing Diversity:
Stereotyping and Discrimination
• Stereotyping: judging a person based on a
perception of a group to which that person
belongs
• Discrimination: when someone acts out their
prejudicial attitudes toward people who are the
targets of their prejudice

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 Exhibit 5-7
Forms of Discrimination
Types of Definition Examples from Organizations
Discrimination
Discriminatory policies Actions taken by representatives of the Older workers may be targeted for layoffs
or practices organization that deny equal opportunity to because they are highly paid and have
perform or unequal rewards for performance lucrative benefits. a
Sexual harassment Unwanted sexual advances and other verbal Salespeople at one company went on
or physical conduct of a sexual nature that company-paid visits to strip clubs, brought
create a hostile or offensive work environment strippers into the office to celebrate
promotions, and fostered pervasive sexual
rumors. b
Intimidation Overt threats or bullying directed at members African American employees at some
of specific groups of employees companies have found nooses hanging over
their work stations. c
Mockery and insults Jokes or negative stereotypes; sometimes the Arab Americans have been asked at work
result of jokes taken too far whether they were carrying bombs or were
members of terrorist organizations. d
Exclusion Exclusion of certain people from job Many women in finance claim they are
opportunities, social events, discussions, or assigned to marginal job roles or are given
informal mentoring; can occur unintentionally light workloads that don’t lead to promotion. e

Incivility Disrespectful treatment, including behaving in Female lawyers note that male attorneys
an aggressive manner, interrupting the frequently cut them off or do not adequately
person, or ignoring his or her opinions address their comments. f

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Glass Ceiling
• Glass ceiling: the invisible barrier that separates
women and minorities from top management
positions

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The Legal Aspect of Workplace Diversity
• Workplace diversity needs to be more than
understanding and complying with federal laws

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 Exhibit 5-8
Major Equal Employment Opportunity Laws
Year Law or Ruling Description

1963 Equal Pay Act Prohibits pay differences for equal work based on gender
1974 (amended Civil Rights Act, Title VII Prohibits discrimination based on race, color, religion, national origin, or gender
in 1972)
1967 (amended Age Discrimination in Prohibits discrimination against employees 40 years and older
in 1978) Employment Act
1973 Rehabilitation Act Prohibits discrimination against a qualified person with a disability in the federal
government as well as retaliation against a person who complained about
discrimination
1978 Pregnancy Prohibits discrimination against women in employment decisions on the basis
Discrimination Act of pregnancy, childbirth, and related medical decisions
1990 Americans with Prohibits discrimination against individuals who have disabilities or chronic
Disabilities Act illnesses; also requires reasonable accommodations for these individuals
1991 Civil Rights Act of 1991 Reaffirms and tightens prohibition of discrimination and gives individuals right
to sue for punitive damages
1993 Family and Medical Gives employees in organizations with 50 or more employees up to 12 weeks
Leave Act of unpaid leave each year for family or medical reasons
2008 Genetic Information Prohibits discrimination against employees or applicants because of genetic
Nondiscrimination Act information (one’s own or family members’ genetic tests)

2009 Lilly Ledbetter Fair Pay Changes the statue of limitations on pay discrimination to 180 days from each
Act paycheck

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Mentoring
• Mentoring: a process whereby an experienced
organizational member (a mentor) provides advice
and guidance to a less experienced member (a
protégé)

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Exhibit 5-9
What a Good Mentor Does

Exhibit 5-9 looks at what a good mentor does.

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Diversity Skills Training
• Diversity skills training: specialized training to
educate employees about the importance of
diversity and to teach them skills for working in a
diverse workplace

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Employee Resource Groups
• Employee resource groups: groups made up of
employees connected by some common
dimension of diversity

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Review Learning Objective 5.1
• Define workplace diversity and explain why
managing it is so important.
– Workplace diversity is the ways in which people in an
organization are different from and similar to one
another
– Why it’s important:
 People management benefits
 Organizational performance benefits
 Strategic benefits

5 - 29
Review Learning Objective 5.2
• Describe the changing workplaces in the
United States and around the world.
– United States
 Total increase in population
 Changing components of racial/ethnic groups
 An aging population
– The world:
 Total world population
 Aging of that population

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Review Learning Objective 5.3
• Explain the different types of diversity found in
workplaces.
– Age (older workers and younger workers)
– Gender (male and female)
– Race and ethnicity (racial and ethnic classifications)
– Disability/abilities (people with a disability that limits major
life activities)
– Religion (religious beliefs and religious practices)
– Sexual orientation and gender identity (gay, lesbian,
bisexual, and transgender)
– Other (e.g., socioeconomic background, physical
attractiveness, obesity, job seniority, etc.)

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Review Learning Objective 5.4
• Discuss the challenges managers face in
managing diversity.
– Bias is a tendency or preference toward a particular
perspective or ideology
– Prejudice, which is a preconceived belief, opinion, or
judgment toward a person or a group of people
– Glass ceiling refers to the invisible barrier that
separates women and minorities from top management
positions

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Review Learning Objective 5.5
• Describe various workplace diversity
management initiatives.
– Some of the federal laws on diversity include:
 Title VII of the Civil Rights Act
 The Americans with Disabilities Act
 Age Discrimination in Employment Act
– Workplace diversity initiatives to diversity include
mentoring, diversity skills training, and employee
resource groups

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 Terms to Know

• Workforce diversity • Stereotyping

• Surface-level diversity • Discrimination
• Deep-level diversity • Glass ceiling
• Race • Mentoring
• Ethnicity • Diversity Skills Training
• Bias • Employee resource
• Prejudice groups

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