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 Bateman M 4e: IM: Chapter 9 - Managing Diversity and Inclusion

Managing Diversity and Inclusion

chapter
9
CHAPTER CONTENTS

Learning Objectives 2

Key Student Questions 2

Class Roadmap 4

Key Terms Presented in This Chapter 8

Sustainability Box 9

Chapter Video 11

Lecturettes 13

Additional Discussion Questions 16

Examples 18

Expanded PowerPoint Slide Show 21

Supplemental Features 26

Young Manager Clips 26

Manager’s Hot Seat 26

Self-Assessment 26

Test Your Knowledge 26

(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

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 Bateman M 4e: IM: Chapter 9 - Managing Diversity and Inclusion

LEARNING OBJECTIVES

LO 1 Describe how changes in the U.S. workforce make diversity a critical

organizational and managerial issue
LO 2 Explain how diversity, if well managed, can give organizations a com-
petitive edge
LO 3 Identify challenges associated with managing a diverse workforce
LO 4 Define monolithic, pluralistic and multicultural organizations
LO 5 List steps managers and their organizations can take to cultivate diver-
sity
LO 6 Summarize the skills and knowledge about cultural differences needed
to manage globally

KEY STUDENT QUESTIONS

Students are very much interested in diversity, but they have little patience with the standard “diversity
is a good thing” lecture. Minority students are trying to come to grips with how they can succeed in an
environment that may be hostile to them, and non-minorities often feel left out of diversity efforts.
These feelings are reflected in the student questions below:


1. “Do I have an equal chance to get a job in the U.S. if my English isn’t
as good as a native speaker’s?”
2. “How can a woman succeed in a male-dominated industry?”
3. “People say that everyone is equal in the United States and anyone
can be anything. It is true because there are laws of discrimination
against minorities. But if there were no laws against discrimination
would the companies treat all the employees the same regardless of their
culture or skin color?”
4. “Do the materials we are learning in this class apply to another culture or
country?”

Answers to Student Questions

1. While there are no laws that prohibit discrimination based on whether or not a person speaks English,
many court decisions have ruled that language discrimination is the same as discrimination based on
race or national origin (for example, Hernandez v. New York.) Generally, “speak English only” poli-
cies are illegal under the Civil Rights Act unless justified by business necessity. While each case is
evaluated separately, courts typically find that “speak English only” policies are illegal when they are
applied to employees who can speak no English, or if they create a hostile work environment for em-
ployees of different national origins.1

The law aside, whether or not you can succeed without speaking English depends on your customer
base. If all of your customers speak English, and you do not, it will be difficult to create a successful

1
ACLU of Northern California, “Language Rights.” Online at http://www.aclunc.org/language/lang-report.html.

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Bateman M 4e: IM: Chapter 9 - Managing Diversity and Inclusion

business. On the other hand, the popularity of Chinese and Spanish telephone directories and televi-
sion stations in the United States attests to the fact that many businesses get ahead by seeking out and
servicing niche markets. Customers in these markets may not speak English at all, and being able to
work with them in their native tongue is a huge advantage.

2. Women succeed in male-dominated industries by attending to their business. A glance at Forbes

“100 Most Powerful Women” shows that women at the top do the same things that men at the top do.
For example, Meg Whitman, CEO of eBay has “swiftly fixed any problems, has faithfully tried to
week out the fakes on her site, and has posted a consistent flow of profits.”2

3. This is a difficult question to answer, simply because we don’t have a “control group” to use in com-
paring our current, legislated, practices to an unlegislated environment. While affirmative action has
its advocates as well as its detractors, the simple fact of the matter is that whenever affirmative action
practices have been removed (such as by the passage of Proposition 209 in California) other actions
are put in place to maintain diversity in organizations and education. The research described in the
text - that applicants with “black names” are less likely to be selected for interviews than students
with “white names” suggests that discrimination occurs despite any laws banning it, and is likely to
continue to occur in the absence of those laws.

4. Many of the theories and practices taught in this management class apply in other countries and cul-
tures - for example, behavior that is rewarded is more likely to reoccur, regardless of the culture.
However, other practices do not transfer as readily. For example, the textbook discusses assertive
communication as a preferred method for conducting business. In many Asian countries, “assertive
communication” will be seen as rude, and can actually impede business transactions. In a recent arti-
cle in the International Journal of Manpower, Barbara Myloni and her colleagues found that the most
successful multinational corporations adopted the business practices of their host countries. 3

2
Mintz, Anne, “Meg Whitman” Forbes.com. Online at http://www.forbes.com/lists/2005/11/5AW7.html
3
Myloni, Barbara, Harzing, Anne-Wil K., Mirza, Hafiz. “Host country specific factors and the transfer of human resource management practices
in multinational companies.” International Journal of Manpower, 2004, Vol. 25, Issue 6, p 518-534.

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CLASS ROADMAP

LO1 - Diversity is dynamic and evolving

A. Diversity and inclusion initiatives involves managing a culturally diverse workforce by recog-
nizing the characteristics common to specific groups while also dealing with such employees
as individuals.
B. Affirmative action refers to special efforts to recruit and hire qualified members of groups that
have been discriminated against in the past. Legislation has not completely solved the problem
of discrimination - women and minorities still face challenges in upward mobility.

1.1 Diversity shaped America’s past

1. From 1800s to early 1900s, groups immigrated to the U.S. Members were considered out-
siders because they did not speak English and had different customs and work styles.
2. In the 1800s it was considered poor business practice for white-Protestant-dominated in-
surance companies to hire Irish, Italians, Catholics, or Jews.
3. By 1960s, the struggle for acceptance by various white ethnic and religious groups had
succeeded.
4. Women and non-white minorities faced particularly difficult challenges, which lasted
throughout the 1960s.
5. Today more than half of the U.S. workforce consists of people other than white, U.S. born
males. Two-thirds of all global migration is into the U.S.
6. Today’s immigrants are willing to be part of an integrated team, but they no longer are
willing to sacrifice cultural identities to get ahead.

1.2 Diversity is growing in today’s workforce

1. Today nearly half of the U.S. workforce is made up of women
2. Sixteen percent of workers identify as Hispanic or Latino, 11% are black, and 6% are
Asian.
3. Gender issues
a. Women make up 47 percent of the workforce
b. Women’s labor force participation rose through the 1990s and is holding steady as the
participation rate of men gradually declines
c. About 60% of all marriages are dual-earner marriages.
d. Glass ceiling is an invisible barrier that makes it difficult for certain groups, such as
minorities and women, to move beyond a certain level in the organizational hierarchy.
e. Sexual harassment is conduct of a sexual nature that has negative consequences for
employment.
i. “quid pro quo” occurs when submission to or rejection of sexual conduct is used as
a basis for employment decisions
ii. “hostile environment” occurs when unwelcome sexual conduct has the purpose or
effect of unreasonably interfering with job performance or creating an intimidat-
ing, hostile, or offensive working environment.
iii. Basic components of an effective sexual harassment policy
4. Minorities and immigrants
a. Hold one out of every four jobs in the U.S.
b. Asian and Hispanics workforces are growing fastest, followed by the African-

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American workforce.
c. Three in ten college enrollees are people of color.
d. Foreign-born workers make up 16% of the U.S. civilian labor force. Half of these
workers are Hispanic and 24% are Asian.
e. The younger Americans are, the more likely they are to be persons of color.
f. One in 66 people in the U.S. identifies as multiracial.
6. Mentally and physically disabled
a. Are the largest unemployed minority population.
b. 19% of the population report having a disability but only 1/3 of individuals with disa-
bilities are employeed.
c. Disableed employees earn $10,000 less than those who are not disabled.
d. More than half of those with a disability held jobs during the year they were surveyed.
Many of those who didn’t wanted to work.
e. Employers find that disabled employees are:
i. more dependable than typical employees
ii. miss fewer days of work
iii. exhibit lower turnover.
f. Tax credits are available to companies that hire disabled workers.
7. Education Levels
a. In today’s service and technology economy, more positions require a college educa-
tion.
8. The Age of the Workforce
a. By 2018, one out of four workers may be aged 55 or older.
b. As a result, entry-level workers for some positions are in short supply.
c. Some companies are offering special programs to attract and retain younger workers as
well.

1.3 Tomorrow’s workers will be more varied than ever

1. Today 68% of the U.S. workers are white, but by 2050, that percentage will decrease to
about 48.2%.
2. Between now and 2018, the growth rate of the labor force will slow down due to the baby
boom generation retiring.
3. Employers will need to strategize to retain and attract skilled and knowledgeable older
workers.
LO2 - Well-managed diversity and including: a competitive advantage

1. Ability to attract and retain motivated employees.

2. Better perspective of a differentiated market.
3. Ability to leverage creativity and innovation in problem solving.
4. Enhancement of organizational flexibility

LO3 - A diverse and inclusive workforce: challenging to manage

1. Unexamined assumptions
2. Lower cohesiveness
3. Communication problems
4. Mistrust and tension
5. Stereotyping
6. The challenge ahead

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a. Managers need to confront the biases, stereotypes, lack of experience, and tension that
make communication, teamwork, and leadership in a diverse workforce challenging.

LO4 - Multicultural organizations

A. Examining assumptions about people and culture can help managers capitalize on the benefits
and minimize the costs of diversity.

B. There are three basic types of organizations with regard to diversity:

1. Monolithic organization is an organization that has a low degree of structural integration –

employing few women, minorities, or other groups that differ from the majority – and thus
has a highly homogeneous employee population.
2. Pluralistic organization is an organization that has a relatively diverse employee popula-
tion and makes an effort to involve employees from different gender, racial, or cultural
backgrounds.
3. Multicultural organization is an organization that values cultural diversity and seeks to
utilize and encourage it.

LO5 - How organizations can cultivate a diverse workforce

5.1 Start by securing top managers’ commitment

1. Incorporate the organization’s attitude toward diversity into the corporate mission state-
ment and into strategic plans and objectives.
2. Allocate adequate funding to ensure the success of diversity efforts.
3. Set an example for organization members by participating in diversity programs and mak-
ing participation mandatory for all managers.

5.2 Conduct an organizational assessment

1. Improves diversity by evaluating workforce, culture, policies, and practices in areas such as
recruitment, promotions, benefits, and compensation.

5.3 Attract a diverse group of qualified employees

1. Companies can attract a diverse workforce through:
a. Recruitment
b. Accommodating work and family needs
c. Alternative work arrangements

5.4 Train employees to understand and work with diversity

1. Awareness building is designed to increase awareness of the meaning and importance of
valuing diversity.
2. Skill building is designed to allow all employees and managers to develop the skills they
need to deal effectively with one another and with customers in a diverse environment.
3. Guidelines for diversity training (Table 11.8)
a. Position training in your broad diversity strategy.
b. Do thorough needs analysis.
c. Distinguish between education and training.
d. Use a participative design process.

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e. Test the training thoroughly before rollout.

f. Incorporate diversity programs into the core-training curriculum.

5.5 Retain talented employees

1. Establish support groups
2. Provide mentors , higher level meanagers who help high-potential employees receive visi-
bility and learn the organizational norms and values.
3. Make sure that deserving minority employees have a chance at career development and
promotions
4. Provide accommodations within the system for different types of diversity
5. Hold managers accountable for workforce development.

LO6 - Managing across borders

A. When establishing operations overseas, headquarter executives have a choice between

sending:
1. Expatriates, parent country nationals who work at a foreign subsidiary
a. cost
b. personal security
c. stress
2. Host-country nationals are individuals from the country where an overseas subsid-
iary is located
a. availability
b. familiarity with language and culture
c. cost less
3. Third-country nationals are individuals from a country other than the host country
or overseas subsidiary
a. can soften political tensions
b. ‘compromise solution’ between expatriate and host country national

6.1 Global managers need cross-cultural skills

1. Many expatriates come home early. Failure can be prevented by:
a. structuring assignments clearly
b. creating clear job objectives
c. developing performance measurements based on objectives
d. using effective, validated selection and screening criteria
e. preparing expatriates and families for assignments
f. creating a vehicle for ongoing communication
g. using repatriation to facilitate reentry
h. developing a mentor program that will help in case of trouble (Table 8.2)
2. Skills and knowledge include:
a. multidimensional perspective
b. proficiency in line management and decision making
c. having resourcefulness
d. cultural adaptability
e. sensitivity
f. team-building skills

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g. mental maturity
3. Inpatriates are foreign nationals who are transferred to work at the parent company.
These employees may face the same types of problems as expatriates but may be over-
looked because it is assumed there is less need for adjustment.

6.2 National culture shapes values and business practices

1. Ethnocentrisism is the tendency to judge others by the standard of one’s group are
culture, which is seen as superior.
2. Culture shock is the disorientation and stress associated with being in a foreign en-
vironment.
3. Geert Hoftede’s dimensions of cultural differences: (Figure 6.6)
a. power distance
b. individualism/collectivism
c. uncertainty avoidance
d. masculinity/femininity
4. When working with foreign nationals, it is important to explain U.S. cultural norms
with regard to:
a. Holding meetings
b. Work schedules
c. E-mail
d. Fast-trackers
e. Feedback

6.3 International management introduces complex ethical challenges

1. General Dynamics and United Technologies have established codes of conduct for
international business.
2. Four steps for establishing and reinforcing these codes might include the following:
a. Vigorously oversee the corporate ethics and culture
b. Ensure that the company has articulated its values.
c. Let business partners know the standards
d. Include character, integrity, decision-making, and other values information in
performance reviews and succession-management processes.
3. Most people embrace five core values, regardless of religion or nationality:
a. compassion
b. fairness
c. honesty
d. responsibility
e. respect for others.

KEY TERMS PRESENTED IN THIS CHAPTER

Affirmative action Special efforts to recruit and hire qualified members of groups that have been dis-
criminated against in the past.
Culture shock the disorientation and stress associated with being in a foreign environment
Ethnocentrism the tendency to judge others by the standards of one’s group or culture, which are seen as
superior

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Expatriates parent- company nationals who are sent to work at a foreign subsidiary
Glass ceiling metaphor for an invisible barrier that makes it difficult for women and minorities to rise
above a certain level in the organization
Host-country nationals individuals from the country where an overseas subsidiary is located
Inpatriates foreign nationals transferred to work at the parent company
Managing diversity Managing a culturally diverse workforce by 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 organization’s advantage.
Mentors Higher-level managers who help ensure that high-potential people are introduced to top man-
agement and socialized into the norms and values of the organization.
Monolithic organization An organization that has a low degree of structural integration - employing few
women, minorities, or other groups that differ from the majority – and thus has a highly homogene-
ous employee population.
Multicultural organization An organization that values cultural diversity and seeks to utilize and en-
courage it.
Pluralistic organization An organization that has a relatively diverse employee population and makes an
effort to involve employees from different gender, racial, or cultural backgrounds.
Sexual harassment Conduct of a sexual nature that has negative consequences for employment.
Third-country nationals individuals from a country other than the home country or the host countr

SUSTAINABILITY BOX

Move Over Expatriates: Here Comes a New Breed of International Managers

For many decades, companies deployed expatriates (and their families) to a specific international location
like Tokyo, London, or Mexico City for a multiyear assignment. The firm would usually provide expatri-
ates with relocation assistance, cost of living adjustments, a foreign service premium, income tax assis-
tance, private schooling for children, in-country housing, training, and other perquisites. However, there
were some drawbacks associated with the use of long-term expatriates. The costs of sending an expatriate
to another country for a few years often exceeded a million dollars. Also, the lack of language and cross-
cultural skills, coupled with spouse or family adjustment issues, impeded some expatriates from perform-
ing to their full potential. Some even failed and returned early from their assignments. Once back, turno-
ver was often an issue. After completing their overseas assignments, approximately 20 percent of repatri-
ates left their employers within one year of their return. Not only was this an unacceptably low return on
investment, but the combination of all of these factors contributed to fewer managers within the firm be-
ing willing to take an expatriate assignment.

These drawbacks to long-term expatriate assignments, combined with today’s less expensive air travel
and new communication technologies, have paved the way for a new type of international manager.
Known by different names—flexpatriates, short-term assignees, extended business travelers, or virtual
expatriates—these international managers travel to one or more countries for short-term projects or to
meet with in- country stakeholders (such as customers, suppliers, government officials, managers of a
joint venture, and alliance partners). Also, these international travelers do not relocate overseas, and they
often have domestic job responsibilities in the home country.

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These new international assignments can be quite varied. While doing your regular marketing job in the
United States, you might be asked to staff your company’s booth at trade shows in China, Russia, and
Brazil for a week at a time at different points throughout the year. Or as a network analyst, you might be
sent to Bangalore, India, for three months to help install a network in your company’s new venture. Also,
these assignments offer you the opportunity to gain some basic foreign language and cross-cultural skills,
and develop your knowledge about how business is conducted in different countries. These skills and per-
spectives are valuable to employers as globalization and competition affect companies of all types and
sizes.

Here are some ideas for how to increase your chances of landing one of these new types of international
assignments:
1. Let them know. Discuss your interest in doing more international work with your supervisor
and the human resource department. If your organization has a skills or career interests database,
be sure to update it.
2. Study a foreign language. Find out into which countries your organization is planning to ex-
pand over the next few years. Choose the country with the largest market and then study its lan-
guage. You will not become fluent overnight, but you will send a strong message to upper man-
agement that you are serious about helping your firm succeed overseas.
3. Volunteer to be an “ambassador.” Whenever clients or suppliers from another country are
planning on visiting your company in the United States, volunteer to pick them up at the airport,
show them the local sights, and take them out to eat. While these activities probably fall out- side
your normal job duties, they will give you additional opportunities to develop your international
skills and network. This extra effort could help you get the nod when the next international as-
signment becomes available.

DISCUSSION QUESTIONS AND SUGGESTED ANSWERS

1. Why do you think shorter-term, traveling international assignments have become

popular alternatives to multiyear expatriate assignments?

The reality is, people like to travel, but they also like “home base”. Having a short-term
foreign assignment would be exciting to most people and allowing them to maintain their
current life is just an additional bonus. The ability to travel easily from country to coun-
try and be connected via the Internet has all but changed the way companies will manage
international assignments in the future. Remember the old saying, “there is no place like
home”.

2. To what degree will companies need employees with foreign language, cross- cultur-
al experience, and other international skills in the next 5–10 years? How will these
employees help firms compete globally?

The new global marketplace has set new parameters on the desired skill-sets of future
employees. Companies will be looking for employees with all of these skills. In the fu-
ture, it will no longer be nice skills to have, but it will be required skills in order to be
competitive. The U.S. is behind in training our younger generation these skills and need
to start focusing on how to fill the void we have in this area.

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Companies who do not have employees with these skills will be at a huge competitive
disadvantage. Companies who have globally competent employees will be able to inter-
act, collaborate, negotiate, and facilitate with organizations and stakeholders that will be
imperative to their future success. As Thomas Friedman book has suggested, “The
World is Flat” and is only becoming flatter.

PREP CARDS

DISCUSSION QUESTIONS

1. Does electronic communication in the workplace (e-mail, text messaging, Skype, etc.) help or
hinder communication in a multicultural organization? In what ways?

Student opinions may vary. Some may note problems related to understanding contextual cues in
emails and texts, regardless of cultural background. Others may note that electronic forms of
communication are essential in a global multicultural organization.

3. What does your organization (either your workplace or your college/university) do to create a
more welcoming environment for newcomers, especially those from other cultures?

Answers will vary depending on the organization or institution.

4. How is workforce diversity affected by an organization’s recruitment, selection, orientation,

and training?

Diversity is impacted through all of the organization’s HR practices. Recruitment programs

should be targeted to reach a wide range of applicants. Selection tools should be unbiased. Orien-
tation and training programs should be used to socialize and prepare employees from all back-
grounds for the expectations of the organization.

5. Many organizations require diversity training for all employees. Do you think diversity train-
ing reshapes the attitudes of employees? In what ways?

Student opinions may vary based on prior experience with diversity training. Some may note that
this depends on the depth of coverage of the training as well as organizational culture and atti-
tudes toward training.

6. One hotly debated issue is requiring employees to speak only English in the workplace. Some
people feel that requiring that all employees speak English will lead to better communica-
tion and workplace harmony. Others believe that English-only rules constitute discrimina-
tion based upon national origin. What do you think?

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Answer.

Student opinions will vary widely here, as well. Some may feel that limiting communication to
English only will improve understanding, whereas others will note concerns about discrimination
and may note that this would limit an employees potential pool of applicants given the changing
demographic makeup of the United States..

GROUP CHALLENGE

“Multicultural Stereotypes”—Divide the class into groups of 3 to 5 students. Have each group develop a
list of stereotypes that they have heard (or hold) about Americans, and have them answer the following
questions:

1. How do you think these stereotypes developed?

2. How do these stereotypes influence communication between employees in the United States
and their counterparts in other countries?

Have each group appoint a spokesperson and report their findings to the class. Students may be reluctant
to begin listing stereotypes at first, so it may help for the instructor to begin with an example or two. After
generating lists, students will begin noting differences between employees from different countries in
some areas that impede communication.

ACTIVITIES

Select a company that is listed on the Fortune 100 Best Companies to Work For (http://fortune.com/best-
companies/). Go to the company’s website and research its diversity initiatives and environment. Then
prepare a 1–2 page report that answers the following questions:

1. What diversity initiatives does the company have in place?

2. How easy was it to find this information on the company’s website?
3. What suggestions would you make to improve the company’s diversity initiatives?

Answers will vary depending on the companies selected.

VIDEO

Managing Religious Diversity at Work -- Run time: 7:06

Ford has a company-sponsored program called FIN -- Ford Interfaith Network -- that encourages employ-
ees to express their spiritual beliefs and learn about others' faiths. The program's aim is to raise awareness
that everyone is united at a spiritual level, and the company provides a Meditation Room that is open for
use by any faith group. Proponents of faith-friendly programs like the FIN program claim that companies
that recognize employees' spiritual side experience greater loyalty, lower absenteeism, and higher creativ-
ity. However, critics suggest that increased receptivity toward religion in the workplace may spawn in-
creased discrimination suits because an expression of faith may be interpreted as harassment or may make
the workplace uncomfortable for other people.
Follow-Up Questions:

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1. Do atheists and/or agnostics have a right to a "religion-free" workplace? Why or why not?

Federal legislation mandates freedom from discrimination based on religious practices but not a
workplace free of religion.

2. You are a manager of a diverse group of employees. One of your employees objects to the fact
that her Muslim coworker must pray several times daily for 5-10 minutes. She claims that, if
this employee is allowed to take "prayer breaks", she should be allowed to take the same num-
ber of breaks, whether she chooses to pray during these breaks or not. How will you respond?

Federal legislation mandates accommodations for religious practices. The employee is entitled to
the same breaks only if they are related to her religious practices.

3. An employee asks to use the company conference room during the lunch hour on Fridays to
host a bible study group. Another employee claims that, if that request is granted, she should be
allowed to book the conference room for a weekly gay/lesbian support group. As the manager,
how will you respond?

Employers are required to comply with employees’ religious obligations, although a bible study
group during work hours may not be considered a religious requirement. Sexual orientation is not a
protected category of federal legislation. However, most Fortune 500 companies have policies
against harassment based on sexual orientation. Further, companies may offer a variety of inclusive
policies and practices to encourage diversity and inclusion in the workplace. Therefore, depending
on the circumstances, managers may decide that both could be beneficial social interest groups for
employees. Alternatively, managers might also decide that these activities are best pursued on em-
ployees’ free time outside the workplace.

LECTURETTES

LECTURETTE 9.1: Sexual Harassment

WHAT IS SEXUAL HARASSMENT?

1. Sexual harassment is to some people like pornography—they can’t define it, but they know it when
they see it.
2. To a great extent, sexual harassment is when job discrimination was in the 1960s—a vague concept
that is slow to illuminate the American consciousness.
3. The Equal Employment Opportunity Commission (EEOC) has issued the following guidelines for the
purpose of describing sexual harassment:

Unwelcome advances, requests for sexual favors, and other verbal or physical conduct of a sexual na-
ture constitute sexual harassment when:
 Submission to such conduct is made explicitly or implicitly a term or condition of an individual's
employment.

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 Submission to or rejection of such conduct by an individual is used as the basis for employment
decisions affecting such individuals.
 Such conduct has the purpose or effect of unreasonably interfering with an individual's work per-
formance or creating an intimidating, hostile, or offensive working environment.

SEXUAL HARASSMENT AND LEGAL LIABILITY

1. U.S. courts have imposed liability on employers and coworkers for participating in or allowing sexu-
al harassment at work under two distinct theories that are similar to the EEOC guidelines. Those two
theories are: (1) quid pro quo liability and (2) hostile environment liability.

A. Quid Pro Quo Liability

 Quid pro quo liability results from a sexual act that is the prerequisite condition to employ-
ment, promotion, or other benefit of employment.
 Conversely, quid pro quo liability results when the refusal to engage in a sexual act causes
one to be fired, denied promotion, or having a job or benefit withheld.

B. Hostile Environment Liability

 Hostile environment liability is established when an individual must work in an atmosphere

made abusive or hostile by the unequal treatment of the sexes.

2. Under EEOC guidelines, employer liability in sexual harassment cases is established as follows:

 When a member of management engages in quid pro quo sexual harassment, demanding sex
in exchange for some sort of job benefit.
 When management personnel engage in sexual harassment that creates a hostile environment.
 When the sexually hostile environment is created by co-workers, and management knew
about it or reasonably should have known about it and taken corrective action.

ASSESSING SEXUAL HARASSMENT COMPLAINTS

When determining the extent to which sexual harassment exists, management should consider the
following:
 The severity of the sexual harassment behavior.
 The number and frequency of the harassment behaviors.
 The perceived intent of the sexual harasser.
 The past relationships between the parties
 Any perceived provocation on the part of the victim.
 The response of the victim.
 The effects of the harassment on the victim.
 The working environment and its possible influence on the situation.

HARASSMENT PREVENTION

The following managerial actions can effectively reduce or prevent sexual harassment:
 Within the organizational context, determine the nature and extent of sexual harassment.
 Establish a policy declaring opposition to the very nature of sexual harassment.
 Make employees responsible for carrying out the policy and for reporting any evidence of sexual
harassment.

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 Make managerial personnel accountable for any sexual harassment that might occur within their
area of responsibility.
 Establish an appeal procedure for handling all sexual harassment complaints.
 Provide a sexual harassment awareness and prevention training program for all employees.4

LECTURETTE 9.2: Women in Management

WOMEN WORKERS – THE UNDERUTILIZED WORKFORCE

1. Not more than a decade ago, women in the United States constituted an underutilized resource; now
that situation is improving rapidly.
2. Not only are more women working, but also they are holding more meaningful positions. Moreover,
more and more women are going to college to prepare themselves for productive careers. Today,
there are slightly more women in college than men.
3. Nowhere is this trend more evident than in the once male-dominated business schools, where male
and female students are equally represented.
4. However, despite these gains for women in the workplace, too few women are achieving professional
and managerial positions in business.

WOMEN MANAGERS – ARE THEY DIFFERENT?

1. In field studies, no differences have been found between men and women concerning task-oriented
and people-oriented management styles.
2. In field studies, women are found to be more likely to:
 Lack management skills and, as a result, were promoted less often and rated less-favorably.
However, on the positive side, they were also found to be more likely to:
 Encourage participation on the part of subordinates in making meaningful work-related deci-
sions.
 Share information that is needed to be effective on the job.
 Share power that is inherent in organizational roles and positions.
 Enhance the self-worth feelings of others, making subordinates feel more important.
 Energize others and stimulate self-starting behavior on the part of subordinates.
 Have a high need for self-actualization and fulfillment.
These studies have also shown that women:
 Receive fewer overseas assignments (because attitudes toward expatriate women concluded
that they are ineffective in, unqualified for, and less interested in such opportunities.
 Perceive less value in overseas assignments.
3. By contrast, men are found to be more apt to:
 Be viewed as effective managers.
 Have uniquely different responses to poor performance.
 Use a wider range of influence strategies.

THE MOMMY TRACK

4
Adapted from Arnold v. City of Seminole, 614 F. Supp. 853 (E.D. Oklahoma 1985); J. Carbonell, J. Higginbotham, and J. Sample, 'Sexual
Harassment of Women in the Workplace: Managerial Strategies for Understanding, Preventing, and Limiting Liability," in J. Pfeiffer, ed., The
1990 Annual: Developing Human Resources (San Diego: University Associates, 1990), 225-227; Equal Employment Opportunity Commission
Guidelines on Discrimination Because of Sex, 29 CFR1604.11 (1987); Katz v. Dole, 709 F.2d 251 (4th Cir. 1983); Mentor Savings Bank v.
Vinson, 106 S.Ct. 2399 (1986).

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1. When an employer creates a Mommy Track, it divides its female employees into two groups:
Career Primary women are those who have placed their management career ahead of family.
 Career and Family women are those who want both to have a management career and to raise a
family.
2. Career Primary women are treated the same as male executives, meaning there are severe demands
made of their time and energies.
3. Career and Family women are treated with flexibility during critical child-rearing years.
 Career and Family flexibility includes maternity leave, job sharing, and so on.
 This “Mommy Track” option is usually limited to only top performers.5

ADDITIONAL DISCUSSION QUESTIONS

1. What opportunities do you see as a result of changes in our nation's work force?
This is a very open-ended question, and may lead to another question, namely: Opportunities for
what? One way of approaching it is to consider the business opportunities resulting- from the changes
in the nation's workforce and look at the change by segment.

Gender issues. The text points out that, by the year 2000, 65 percent of all labor force entrants will be
women, 61 percent of all U.S. women are expected to be employed, and those women with children
under six make up the fastest-growing segment of the workforce. These women, in addition to their
jobs, still perform the bulk of family responsibilities, and thus represent a tremendous market for
businesses that can make their lives easier. Providing day care is a major opportunity as are home de-
livery services, buying services, etc.
Minorities and immigrants. Nonwhites compose a great portion of the total work population. Many of
these will be immigrants whose language skills are limited, and thus there will be a growing oppor-
tunity for language training. Many African-Americans, although born and raised in the United States,
are not sufficiently proficient in the English language to move immediately into managerial roles.
They will, therefore, also represent a substantial market opportunity for training.
Mentally and physically disabled. This is another group that will enter the workforce in growing
numbers, and they will represent business opportunities ranging from the modification of buildings to
provide access to the redesign of jobs to enable them to work. In many cases, the development of
computer-based systems will enable them to join the workforce from their home or wheelchair.

2. Is prejudice declining in our society? In your organization? Why or why not?

This question should generate a wide variety of responses. Some students (especially white males)
will argue that prejudice in society is declining dramatically. They will point to the growing integra-
tion of U.S. society following the elimination of discriminatory laws, policies, and regulations. They
will probably point to the acceptance of African-Americans in sports, women in business and politics,
etc., and may note the growing acceptance of multiracial couples. Some may even suggest that socie-
ty has gone too far in its efforts to eliminate prejudice.
Female students may see the situation as far less positive while African-Americans and other ethnic
minorities may be even less convinced that the situation has improved. Women may observe that
many men are still highly prejudiced when it comes to evaluating their skills and abilities. They will

5
Adapted from N. Adler, 'Women Do Not Want International Careers: And Other Myths about International Management," Organizational Dy-
namics, Autumn 1984, 66-79; E. Ehrlich, "The Mommy Track," Business Week, March 20, 1989, 126; J. Fierman, 'Do Women Manage Different-
ly?" Fortune, December 17,1990, 115-117; G. Powell, 'One More Time: Do Female and Male Managers Differ?" Academy of Management Exec-
utive, May-June 1990, 68-73; F. Schwartz, "Management Women and the New Facts of Life," Harvard Business Review, January- February
1989, 65--76.

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point to the "glass ceiling" that has prevented many women from rising to their deserved level in the
organization.
African-Americans and other minorities (especially those who currently live or grew up in minority
areas of major cities) may still feel that the bulk of society is still highly prejudiced against them ...
and that the media (by focusing on the violence and drug addiction prevalent in many of these com-
munities) has, in fact, reinforced stereotypes and misconceptions and has increased the level of preju-
dice. They may also observe that, on campus, minorities tend to stick together as a means of protect-
ing themselves against this prejudice.

3. What distinctions can you make between affirmative action and managing diversity?

The primary goal of affirmative action was to correct past injustices. Women and minorities had not
benefited from the growth and expansion of U.S. corporations. They had been systematically ignored
for entry-level positions, and had been discriminated against in terms of promotion opportunities. Af-
firmative action legislation was designed to ensure that all applicants received equal opportunity
when it came to employment, and that all employees were treated equally during employment, with-
out regard to race, creed, color, or national origin.

4. How can managers overcome obstacles to diversion such as mistrust and tension, stereotyping,
and communication problems?

Mistrust and tension usually result from lack of contact and lack of familiarity. These can be over-
come, to a large degree, by bringing individuals together in both formal and informal settings so that
they learn to better understand and appreciate members of other groups. Formal training, designed to
identify the causes of mistrust and tension, can also help in this process.
Stereotyping is the perception of others based our own interests, values, and cultures that distort and
block what we see and hear. Formal training (through the use of descriptive examples) can be effec-
tive in helping individuals identify the root causes of their stereotyping. In order to be able to change,
people must first understand what it is that distorts their perspectives.

Communication problems. Even among white males of the same age and background there are oppor-
tunities for misunderstandings and confusion. The potential for errors and inefficiencies increases
when the communications are between people with very different backgrounds, attitudes, expecta-
tions, etc., and the situation is potentially disastrous when one or more parties is not fluent in an-
other's language.

Language training (in whatever language is used in the workplace) is obviously one way of handling
this problem. However, sensitivity training can also help make people aware of cultural and attitudi-
nal differences and thus more understanding of the difficulties faced by others when it comes to
communication. Listening skills can also be enhanced. Most people (even those who speak well) are
not good listeners, and a program designed to help them listen carefully will improve the level of
communications.

5. How can organizations meet the special needs of different groups (e.g, work and family issues)
without appearing to show favoritism to those particular sets of employees?

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An organization can take a couple of steps to ensure that it treats different groups with a degree of
equity. It can make sure that it

 Listens carefully to the concerns and needs of all groups.

A. Applies all rules and regulations equally to the different groups.

For example, maternity leave for women can be matched by paternity leave for men on the same
terms, so they are treated equally. Likewise, a group wishing to take a particular day as a religious
holiday can be offered the choice between that date or one of the regular holidays, so both groups re-
ceive the same benefits.

6. How can diversity give a company a competitive edge? Can diversity really make a difference in
the bottom line? How?

Diversity can give a company a competitive edge because the various diverse groups that make up the
company can:

B. Provide it with insights and perspectives on previously underemphasized market segments.

C. Sell more effectively sell into these specific market segments.
D. Improve the company's overall image in the marketplace - as a good corporate citizen
E. Attract other quality individuals to the company's workforce.
F. Change the general thinking and attitudes of the organization - making them more flexible and crea-
tive.

Each of these factors can help the company be more competitive ... and the more competitive it is
the more likely it is to have a strong bottom line

EXAMPLES

Example 9.1 – Diversity today: Diversity isn’t just a U.S. issue. A recent article in the “Toronto
Star” predicts that by 2011, immigrants will make up 100% of Canada’s labor force growth, with
70% of those people being visible minorities.6

Example 9.2 - Diversity: On her way up the management ranks at Jordan Marsh, Liz Harris, a
black woman, was often disheartened by the dearth of people of color in management. As she
says, “I was usually the only black person in the room or at the seminar.”7 But as the general
manager of a Sears store in Florida, Harris found a whole different world. Harris encountered “a
sea of color and gender in management meetings at Sears headquarters outside Chicago,” finding
that Sears was a truly diverse company, all the way up to its top management ranks.

Example 9.3 – Competitive advantage of diversity: In-house lawyers at 70 firms like Sara Lee
and TIAA-CREF recently signed an agreement to only use law firms that can show that they hire
diverse lawyers, and use those lawyers on major cases. This has changed hiring practices at ma-
jor New York law firms. For example, over a three-year period, Weil Gotshal & Manges, a firm

6
The Toronto Star. “Firms doomed if they fail to tap diverse talent pool.”, July 26, 2007, Pg. AA08.
7
Jerome, Paul. “Major corporations make major efforts.” St. Petersburg Times (Florida), March 18, 2007. Interweave, Pg. 5

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with 1200 lawyers, increased the number of women lawyers by 11%, women partners by 19%,
and minority lawyers by 14%.8

Example 9.4 – Multicultural organizations: One size does not fit all, says Anita Zanchettin, Di-
rector of Diversity at Aperian Global. It’s a very different reality in every country … the business
environment, the languages, the needs of the marketplace and consumers. Companies must adapt
more quickly than ever before to foreign cultures and regions. For example, Weyerhaeuser, a
large timber company, with operations in 18 countries hires and works with people in Canada,
Uruguay, and New Zealand. Faced with lawsuits from various Canadian “First Nations” peoples,
the company hired aboriginal people at its wood products plant, signed on aboriginal suppliers,
and went on joint logging ventures with tribesmen. The goal in the long run is to improve rela-
tionships to the extent that the two parties can work together in harmony.9

Example 9.5 – Attracting and retaining workers with disabilities: earnworks.com is a website
devoted to helping to find jobs for qualified workers with disabilities. Their “success stories” in-
clude companies such as Cingular, Embassy Suites, the Houston Community College System,
IBM, and the International House of Pancakes (IHOP.) Some of the techniques these companies
use to attract and retain workers with disabilities include: job restructuring (IHOP); establishing a
company fund to cover any disability accommodation costs above a certain level (IBM); asking
people with disabilities for help in determining accommodations (HCCS), and taking advantage
of the Job Accommodation Network (JAN), a government agency that provides free job accom-
modation expertise to anyone who requests it (Embassy Suites.)10

Example 9.6 – Cultural differences: High costs and difficulties associated with expatriation, to-
gether with the impact of cultural differences are leading some companies to develop local man-
agers in the countries in which they operate. To accomplish this, Enrique Tarelli, Outplace-
ment/Career Management Director for Sociologia de Empresa in Argentina, uses an immersion
process aimed at acquiring a wide range of competencies, such as, knowledge, developing rela-
tionships with people all over the world, the ability to operate at the highest standards, and inter-
acting with culturally different environments.11

Example 9.7 – Multidimensional perspective: When Texas Pacific Group, a private-equity firm
was looking for a new manager to help oversee venture deals, they went global - to Vivek Paul,
the vice chairman of Wipro Ltd., an Indian information-technology and outsourcing company.
Mr. Paul demonstrated multidimensional perspective by leading companies from different busi-
nesses and cultural adaptability by working with countries that are based in different countries.12

Example 9.8 – Working with foreign nationals: Straddlers. Navigators. Learners. These are
the terms the employees at Grupo Gallegos, an advertising agency in Long Beach, CA, use to de-
scribe different sorts of Hispanics in the U.S. Who are they? The Learners are foreign born, and
they speak Spanish primarily. On average, they have 3 children, and 65% of them rent their
homes. The Straddlers immigrated to the U.S. at a young age. Most of them are in blue collar or
semi-professional jobs, and while they are bilingual, they still speak mostly Spanish. Navigators
speak primarily English, although they know some Spanish. 78% of them have at least some col-
lege, 60% of them own their own homes, and their average household income is $76,000 a year.
8
Fernandez, Tommy. “Firms told “No lip service”: Clients tell lawyers to hire more women and minorities or risk losing business.” Crain’s New
York Business. Sept. 19, 2005. News, Pg. 2.
9
Iwata, Edward. “Companies find gold inside melting pot; Diverse staff helps business run smoothly across borders.” USA Today, July 9, 2007.
Money, Pg. 1B.
10
Online at http://www.earnworks.com/Press_Room/success_stories.htm
11
Tarelli, Enrique. “How to transfer responsibilities from expatriates to local nationals.” SHRM Information Center. January 2003.
12
Sender, H. “Texas Pacific brings in Paul of Wipro, Ltd.” Wall Street Journal, June 30, 2005.

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What is interesting is how different the cultures of all of these groups can be, even though most
people would simply lump them together under the title of “Hispanic.”. With Learners, most ad-
vertising agencies use what Gallegos refers to as “abuelita advertising” - commercials showing a
mother and grandmother in the kitchen, both talking about how great a particular product is. But
Gallegos recently reached out to Straddlers in a unique way. In an ad for Tecates Beer, a young
man named Basilio puts up with people mispronouncing his name all day, but when he walks into
a bar full of Latinos, they all say his name correctly as they raise their Tecates beers.13

13
Gorney, Cynthia. “How Do You Say ‘Got Milk” en Español?” The New York Times, Sept. 23, 2007,

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EXPANDED POWERPOINT SLIDE SHOW

These expanded PowerPoint slides can be used to supplement the lecture material.

EXPANDED POWERPOINT EXPANDED POWERPOINT

EXPANDED POWERPOINT
SLIDE 1 SLIDE 3
SLIDE 2
Chapter Title Learning Objectives: LO1 – LO6
Chapter Overview

EXPANDED POWERPOINT EXPANDED POWERPOINT

EXPANDED POWERPOINT
SLIDE 4 SLIDE 6
SLIDE 5
Diversity & Inclusion Initiatives Affirmative Action vs. Diversity
Affirmative Action
Management

EXPANDED POWERPOINT EXPANDED POWERPOINT EXPANDED POWERPOINT

SLIDE 7 SLIDE 8 SLIDE 9
Diversity Shaped America’s Past Diversity Shaped America’s Past Diversity Shaped America’s Past
(cont.) (cont.)

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EXPANDED POWERPOINT EXPANDED POWERPOINT

EXPANDED POWERPOINT
SLIDE 10 SLIDE 12
SLIDE 11
Components of Workforce Diver- Glass Ceiling
Question
sity

EXPANDED POWERPOINT EXPANDED POWERPOINT

EXPANDED POWERPOINT
SLIDE 13 SLIDE 15
SLIDE 14
Sexual Harasment Top 10 Companies…
Quid Pro Quo & Hostile Environ-
ment

EXPANDED POWERPOINT EXPANDED POWERPOINT

EXPANDED POWERPOINT
SLIDE 16 SLIDE 18
SLIDE 17
Components of Sexual Harass- Minorities and Immigrants
Components of Harassment Policy
ment Policy

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EXPANDED POWERPOINT EXPANDED POWERPOINT

EXPANDED POWERPOINT
SLIDE 19 SLIDE 21
SLIDE 20
Minorities and Immigrants Disabilities
Successful Immigrant Entrepre-
neurs

EXPANDED POWERPOINT EXPANDED POWERPOINT

EXPANDED POWERPOINT
SLIDE 22 SLIDE 24
SLIDE 23
Tomorrow’s Workers Advantages of Diversity & Inclu-
Race and Hispanic Origin
sion

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EXPANDED POWERPOINT
SLIDE 25 SLIDE 27
SLIDE 26
Challenges of Diversity & Inclu- Monolithic organization
Assumptions about Diversity
sion

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EXPANDED POWERPOINT EXPANDED POWERPOINT

EXPANDED POWERPOINT
SLIDE 28 SLIDE 30
SLIDE 29
Pluralistic Organization Multicultural Organization
Question

EXPANDED POWERPOINT EXPANDED POWERPOINT

EXPANDED POWERPOINT
SLIDE 31 SLIDE 33
SLIDE 32
Cultivating a Diverse Workforce Retain Talented Employees
Attracting a Diverse Workforce

EXPANDED POWERPOINT EXPANDED POWERPOINT

EXPANDED POWERPOINT
SLIDE 34 SLIDE 36
SLIDE 35
Question Expatriates
Mentors

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EXPANDED POWERPOINT EXPANDED POWERPOINT

EXPANDED POWERPOINT
SLIDE 37 SLIDE 39
SLIDE 38
Host- and Third-Country Nation- Inpatriates and Ethnocentricism
Preventing Failed Global Assign-
als ments

EXPANDED POWERPOINT EXPANDED POWERPOINT

EXPANDED POWERPOINT
SLIDE 40 SLIDE 42
SLIDE 41
Culture Shock Power Distance & Individualism
Views of Cultural Differences

EXPANDED POWERPOINT
EXPANDED POWERPOINT
SLIDE 44
SLIDE 43
Chapter Takeaways
Chapter Video

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SUPPLEMENTAL FEATURES
Go to Connect ® for M Management to access additional Resources.

YOUNG MANAGER CLIPS

 Stephanie Neubauer, Hair Salon Owner/Manger

MANAGER’S HOT SEAT (MHS)

 Diversity in Hiring: Candidate Conundrum
 Diversity: Mediating Morality

SELF-ASSESSMENT
 Appreciating and Valuing Diversity
 Sexual Harassment Training

TEST YOUR KNOWLEDGE

 Comparing Affirmative Action, Valuing Diversity, and Managing Diversity

 International Cultural Diversity

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