Chapter 9 business psychology
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Chapter 9 business psychology
- 3. Learning Objective Understand why diversity in the workplace matters Know the different types of diversity Understand the challenges raised by workplace diversity Know how organizations manage diversity
- 4. Understanding Diversity Diversity is used to describe the multitude of individual differences and similarities that exist among people. Diversity pertains to everybody. Diversity means: Differences in demographic characteristics, values, abilities, interests, & experiences What does diversity mean? Differences in demographic characteristics, values, abilities, interests, & experiences
- 5. Why does diversity in the workplace matter? The service economy interactions between people are key customer base is more diverse similarities between people ease process Globalization of business doing business with people from around world The changing labor market Company mergers and buy-outs
- 6. Personality Functional Level/ Classification Geographic Location Age Work Location Seniority Division/ Dept./ Unit/ Group Work Content/ Field Union Affiliation Mgmt. Status Marital Status Parental Status Appearance Educational Background Work Experience Race Income Personal Habits Religion Recreational Habits Ethnicity Physical Ability Sexual Orientation Source: L Gardenswartz and A Rowe, Diverse Teams at Work: Capitalizing on the Power of Diversity (New York: McGraw-Hill, 1994), p. 33 The Four Layers of Diversity
- 7. 2-7 Test Your Knowledge Sam is a 55 year-old, male Sales Manager for XYZ corporation. He likes to drive fast cars and is Native American. Which layer of diversity has not been mentioned about Sam? A. Personality B. Internal C. External D. Organizational
- 8. Affirmative Action Affirmative action focuses on achieving equality of opportunity in an organization. The goal is to prevent discrimination that occurs when employment decisions are based on factors that are not job related.
- 9. Managing Diversity Enables all people to perform up to their maximum potential. A Managing Diversity approach is more proactive than affirmative action and employee differences are viewed as a valuable resource and a contributing factor to organizational success
- 10. Managing Diversity How can managing diversity be a competitive advantage?
- 11. How can managing diversity be a competitive advantage? 1. Can reduce the chance of discrimination lawsuits and lead to lower turnover 2. Attract qualified women and minorities 3. Workforce diversity is the mirror image of consumer diversity 4. Workforce diversity promotes creativity and innovation through the sharing of diverse ideas and perspectives 5. Group diversity can potentially improve problem solving and productivity.
- 12. Types of Diversity Gender diversity more women in workforce today than ever better educated than ever stereotypes still remain glass ceiling, etc. Age diversity as population ages, more older workers are available re-entry of middle-aged women to work retirees returning to supplement pension internships bring in more younger employees
- 13. Other Types of Diversity (You May Not Have Thought Of) Family situations single employees (mothers and others) Physical and psychological disabilities Filipinos’ with Disabilities Sexual orientation Political views Personal idiosyncrasies
- 14. Increased Workforce Diversity - Women Glass Ceiling Invisible barrier blocking women and minorities from top management positions Women CEO’s (as of 2/2007): 10 of Fortune 500 23 of Fortune 1000 What helps break the ceiling?
- 15. Your Experience (Discussion) For school group projects, it has been easier to work with groups we could choose rather than one’s the professor chose. 1= Strongly Disagree 2 = Disagree 3 = Neutral 4 = Agree 5 = Strongly Agree
- 16. Aging Workforce: Challenges Career Plateauing: when the probability of being promoted is very small Elder care helping older workers care for aging parents Keeping older workers engaged and current • Providing challenging work assignments • Giving employees autonomy and latitude in their jobs • Providing equal access to learning and development opportunities • Recognizing skills, knowledge and wisdom • Providing ways to mentor younger, less experienced employees
- 17. Pros and Cons of Diversity Social categorization theory Similarity leads to liking and attraction Information/Decision-Making Theory Diversity leads to better task-relevant processes and decision-making
- 18. A Process Model of Diversity
- 19. What barriers exist for organizations trying to manage diversity? In responding to this question, we can identify ten barriers that exist for organizations trying to manage diversity. 1. Inaccurate stereotypes and prejudice. 2. Ethnocentrism. 3. Poor career planning. 4. Unsupportive and hostile working environment for diverse employees. 5. Lack of political savvy on the part of diverse employees. 6. Difficulty in balancing career and family issues. 7. Fears of reverse discrimination. 8. Diversity is not seen as an organizational priority. 9. Need to revamp the organization’s performance appraisal and reward system. And, finally, 10.Resistance to change.
- 20. Challenges of Diversity Availability challenge in past employers could control diversity more people than jobs qualified employees have become scarce employers must become more flexible realize “Different does not mean deficient” Fairness challenge in past, typically viewed as equal treatment Equal Employment Opportunity now employers must embrace new diversity essentially focus on “differences”
- 21. Challenges of Diversity Synergy challenge More and more group-based work Diversity can create positive and negative conflict can facilitate creative problem-solving can close down communication can derail group processes Group leaders must minimize destructive conflict and maximize diversity of input
Hinweis der Redaktion
- The concept of diversity encompasses acceptance and respect. It means understanding that each individual is unique, and recognizing our individual differences. These can be along the dimensions of race, ethnicity, gender, sexual orientation, socio-economic status, age, physical abilities, religious beliefs, political beliefs, or other ideologies.
- For example, some people are introverts, others extroverts. Some are “morning persons,” some are not. Age differences, personality differences, racial differences—the diversity list goes on and on.
- The Bureau of Labor Statistics estimated that in 1996, 71% of the workforce was employed in the service industry and that by 2006 that was expected to rise to 74%. The interpersonal nature of service transactions makes similarities between employee and customer more important. As the population in general becomes more diverse, employees who can communicate most efficiently with those clients become a business advantage. Globalization has increased the contact with clients and co-workers from other countries. An understanding of cultural differences can not only facilitate communication, but can also avoid potentially embarrassing or even insulting situations. To deal with the changing labor market, employers are developing new recruiting strategies to target older employers, minorities, and immigrants. They are developing more flexible benefits packages (more flexible hours, working from home, leaves of absence) to accommodate the new diversity they must manage. When we think of cultural differences, we don’t often think of the differences in corporate cultures, too. As large companies buy out smaller companies, employees with potentially very different expectations (and sometimes from competing companies) are thrown together in the expectation of working together happily and productively. EXAMPLES OF MERGERS: AIRASIA TO ACQUIRE 40% OF ZEST AIR BPI INCHES CLOSER TO SEALING DEAL WITH PNB SAN MIGUEL AND PAL Merged companies can offer a greater range of products and services. Because these may be complimentary, the merged company may be able to capture more consumers than they would as individual entities. For example, the result of merging two travel companies allows a greater range of options to be presented to the consumer at the point of sale.
- Personality refers to individual differences in characteristic patterns of thinking, feeling and behaving. The study of personality focuses on two broad areas: One is understanding individual differences in particular personality characteristics, such as sociability or irritability. The other is understanding how the various parts of a person come together as a whole. This model helps us think about diversity in layers, some of which we control and others we do not. At the center of what makes us different from others is the fiber of our personalities. Although two people can have similar personality characteristics, it would be tough, if not impossible, to find two with the exact same personality. Next we have internal dimensions of diversity that we are not able to change. These include our age, race, gender, and so forth. The next layer, external or secondary dimensions of diversity, includes personal characteristics that contain an element of control or choice, and they can be changed. For example, under the category of personal habits, an individual can be characterized as a night owl but can still choose to get up early; and under the religion category, Jews can choose to convert to Christianity; and Christians can choose to convert to Judaism. The outside layer, organizational dimensions, includes areas that change over the course of one’s career. Some are defined by the organization, and some have an element of choice. Our ability to understand, value, and manage diversity at all four levels helps us to recognize the unique contributory potential of every employee. Finally, let’s examine the distinction between managing diversity and affirmative action. Affirmative action is a legal mandate that focuses on correcting imbalance, injustice, mistakes, or outright discrimination in staffing; while managing diversity is about understanding and appreciating human differences. Let’s look more closely at the topic of affirmative action.
- Sam is a 55 year-old, male Sales Manager for XYZ corporation. He likes to drive fast cars and is Native American. Which layer of diversity has not been mentioned about Sam? Personality Internal External Organizational Answer “A” Personality
- Initially, affirmative action was a policy primarily aimed at correcting institutional discrimination where decisions, policies and procedures that are not necessarily explicitly discriminatory have had a negative impact on people of color. Affirmative action policies address and redress systematic economic and political discrimination against any group of people that are underrepresented or have a history of being discriminated against in particular institutions.
- The main reason we care about managing diversity is that managing diversity can be a competitive advantage
- Excerpt
- By the year 2000, the workforce is expected to be half male and half female. In 1990, women received approximately 31% of MBAs, 39% of law degrees, 13% of engineering degrees, and half of all undergraduate degrees. Although organizations are making strides to advance women, many organizations admit that stereotypes and preconceptions are still barriers. A focus on being “family-friendly” has developed to better utilize the talents of employees. Although both men and women benefit from such policies, women tend to benefit more. For instance, companies have instituted on-site daycare facilities, allowed more flexible hours, and have made it easier for all employees to work from home. Age diversity has created new problems for organizations that have typically moved employees through the organization with the expectation of retirement at a certain age. Not only are employees not retiring, but they are returning from retirement. This sometimes creates odd age inversions in which an older employer is managed by a much younger employee. This creates an uncomfortable role reversal akin to “telling your grandma to clean the table.”
- The effects of strict workplace policies on single mothers have been well-documented (e.g., needing to care for a sick child and missing work, being overlooked for travel opportunities because of family demands, etc.). However, single employees have become the subject of a certain “reverse discrimination.” Single employees (without children or spouses to “worry about”) often shoulder a disproportionate share of the travel, overtime, and other special requests. Rep. Act No 7277 “Magna Carta for Disabled persons – An act providing for the rehabilitation, self-development and self-reliance of disabled persons and their integration into the mainstream of society and for other purposes. Sexual orientation and political views can also create tensions in the workplace if not handled appropriately, particularly among employees who work on teams and disagree on these beliefs. Other personal idiosyncrasies (habit) such as personality (the “difficult” employee), behavior quirks (personal space issues come to the fore in cubicles), and others also create new situations that fall under the umbrella of diversity management. Although they may not be new phenomena, they can interact with other factors to create new problems
- We’ll now turn our attention to understanding about workforce diversity as it relates to three specific demographic areas: gender, race, and age. Let’s talk about gender first. The glass ceiling as it relates to women in the workforce is defined as an invisible barrier blocking women and minorities from top management positions. Despite the increase in the number of women in the workforce, women still are not treated the same as their male counterparts in the workplace in terms of salary, stock options, promotional opportunities, networking opportunities. Consider, for example, this March 2004 statistic that indicates women receive only 76% of men’s earnings Research has found that there are certain factors that women can control to minimize the effects of the glass ceiling. These are: Consistently exceeding performance expectations Developing a style with which male managers are comfortable, Seeking out difficult or challenging assignments, and Having influential mentors.
- Call a student. What response would you choose to this question related to the kind of groups you prefer to work with for school projects? [Pause.] Your response to this question might get you thinking about the pros and cons of working in diverse groups. Instead of choosing diversity, we often tend to pick people who are similar to us. For example, if you’re a management major, you may choose others with your same major to join your group because of the major you share. In doing so, you would overlook the possibility that having accounting and finance majors in your group could provide valuable viewpoints in completing the project successfully. Let’s look now at the pros and cons of diversity from a theoretical perspective.
- There are three major challenges for employers managing an aging workforce. First, because so many baby-boomers are in the highest ranks of organizations it causes the potential for younger workers to have limited upward mobility. This can cause…. Career Plateauing: when the probability of being promoted is very small Second, older workers are often needing to take time off to care for their aging parents. Employers can ease this burden by providing benefits related to elder care Elder care – helping older workers care for aging parents Finally, strategies for keeping older workers engaged and current include:
- Two theories shed light on the pros and cons of diversity. The social categorization theory tells us that similarity leads to liking and attraction. Thus, you would expect fewer interpersonal conflicts and greater cooperation in this type of homogenous group. The Information/Decision-Making Theory tells us that diversity leads to better task-relevant processes and decision-making. This theory suggests that people with different backgrounds, experiences, knowledge, and networks will have more total knowledge to bring to a problem or task, and therefore, their decisions will ultimately be better than those of homogenous groups. Heterogeneous groups have been found to have higher productivity, make better quality decisions, and be more innovative.
- This model synthesizes the findings of both theories and suggests that diversity is likely to cause more strained interpersonal dynamics, but task-relevant processes and improved decision-making are also attributed to diverse groups. Therefore the challenge for organizations is to encourage, reward, and train employees on how to effectively interact with diverse others to minimize the conflict and feelings of alienation in order to realize the tremendous advantages of diverse teams and groups.
- - Stereotype (label) The process of categorizing or labeling people on the basis of a single attribute Prejudice – discrimination ethnocentric – evaluating other cultures according to preconceptions (presumption) originating in ones own culture
- The last ten years has seen an increase in jobs, but a decrease in qualified applicants. As a result, employers must be more creative and flexible to get the people they want/need. Social psychology tells us that we will view people who are different in potentially negative ways. Employers assuming that “different” applicants are not capable because they don’t fit a preconceived picture of current employees will overlook qualified applicants from other groups. Note: This might also be a nice opportunity to make the connection to the representativeness heuristic/bias. For the past thirty years, employers have been trained to treat employees and applicants from certain protected groups fairly. Along the way, this became an incentive to treat employees equally. Essentially, employers were to act as if they were blind to the differences among their employees. The fairness challenge posed by diversity is to recognize, accept, and perhaps reward the differences of employees while still maintaining fair treatment of them. Needless to say, this is not an easy challenge.
- The ultimate challenge posed by changes in diversity is to maximize the potential benefits to the company that the diversity of contributions offers. Again, social psychology provides much in the way of research on group processes and the behavior of ingroups and outgroups. For instance, group problem solving can be enhanced significantly during the brainstorming phase if a greater variety of approaches and ideas are generated. Group diversity can facilitate the generation of multiple ideas and approaches. However, greater diversity can generate conflict during the idea evaluation stage that inhibits communication and sharing of ideas. As a result, group cohesiveness can be destroyed by counterproductive conflict. The role of the leader of a diverse group is to improve problem solving by channeling conflict in such a way as to maximize group input but keep counterproductive conflict at a minimum.