Management Ch4-Ch6 PDF

Chapter 3 Global Management 143 91. J. Hirschkorn, “Business Etiquette: The Importance of Globalism,” U.S. News and World Report, February 11, 2002, Cultural Sensitivity,” The Telegraph online, www.telegraph.co. pp. 38–41; and...

Chapter 3 Global Management 143 91. J. Hirschkorn, “Business Etiquette: The Importance of Globalism,” U.S. News and World Report, February 11, 2002, Cultural Sensitivity,” The Telegraph online, www.telegraph.co. pp. 38–41; and J. Guyon, “The American Way,” Fortune, uk, January 30, 2014. November 26, 2001, pp. 114–120. 92. See G. Hofstede, Culture’s Consequences: International 98. Guyon, “The American Way,” p. 114. Differences in Work-Related Values, 2d ed. (Thousand Oaks, 99. Based on H. Seligson, “For American Workers in China, a CA: Sage Publications, 2001), pp. 9–15. Culture Clash,” New York Times online, www.nytimes.com, 93. S. Bhaskaran and N. Sukumaran, “National Culture, December 23, 2009. Business Culture and Management Practices: Consequential 100. G. N. Powell, A. M. Francesco, and Y. Ling, “Toward Relationships?,” Cross Cultural Management: An International Culture-Sensitive Theories of the Work-Family Interface,” Journal, vol. 14, no. 7, 2007, pp. 54–67; G. Hofstede, Culture’s Journal of Organizational Behavior, July 2009, pp. 597–616. Consequences; and G. Hofstede, “The Cultural Relativity 101. “Why You Need Cultural Intelligence (And How to Develop of Organizational Practices and Theories,” Journal of It),” Forbes online, www.forbes.com, March 24, 2015; J. S. International Business Studies, Fall 1983, pp. 75–89. Lublin, “Cultural Flexibility in Demand,” Wall Street Journal, 94. M. Minkov and G. Hofstede, “The Evolution of Hofstede’s April 11, 2011, pp. B1+; S. Russwurm, L. Hernández, Doctrine,” Cross Cultural Management, February 2011, S. Chambers, and K. Chung, “Developing Your Global pp. 10–20. Know-How,” Harvard Business Review, March 2011, 95. R. R. McCrae, A. Terracciano, A. Realo, and J. Allik, pp. 70–75; “Are You Cued in to Cultural Intelligence?” “Interpreting GLOBE Societal Practices Scale,” Journal of Industry Week, November 2009, p. 24; M. Blasco, “Cultural Cross-Cultural Psychology, November 2008, pp. 805–810; Pragmatists? Student Perspectives on Learning Culture at J. S. Chhokar, F. C. Brodbeck, and R. J. House, Culture and a Business School,” Academy of Management Learning & Leadership Across the World: The GLOBE Book of In-Depth Education, June 2009, pp. 174–187; and D. C. Thomas and Studies of 25 Societies (Philadelphia: Lawrence Erlbaum K. Inkson, “Cultural Intelligence: People Skills for a Global Associates, 2007); and R. J. House, P. J. Hanges, M. Javidan, Workplace,” Consulting to Management, vol. 16, no. 1, P. W. Dorfman, and V. Gupta, Culture, Leadership, and pp. 5–9. Organizations: The GLOBE Study of 62 Societies (Thousand 102. M. Javidan, M. Teagarden, and D. Bowen, “Making It Oaks, CA: Sage Publications, 2004). Overseas,” Harvard Business Review, April 2010, pp. 109–113. 96. For instance, see D. A. Waldman, M. S. de Luque, and D. 103. Jason Burke, “Rana Plaza: One Year on from the Bangladesh Wang, “What Can We Really Learn About Management Factory Disaster,” The Guardian, April 19, 2014. Practices across Firms and Countries?,” Academy of 104. OECD Web site, www.oecd.org/greece, November 2012. Management Perspectives, February 2012, pp. 34–40; A. E. 105. T. Soper, “Tableau Software Set to Hire Another 1,000 Munley, “Culture Differences in Leadership,” IUP Journal Employees in 2016; CEO Says Business ‘Flourishing,’” of Soft Skills, March 2011, pp. 16–30; and R. J. House, N. R. www.geekwire.com, December 14, 2015; N. Ungerleider, “What Quigley, and M. S. de Luque, “Insights from Project GLOBE: Tinder Did for Dating, Tableau Wants to Do for Spreadsheets.” Extending Advertising Research Through a Contemporary Fast Company online, www.fastcompany.com, February 24, Framework,” International Journal of Advertising, 29, no. 1 2015; “Tableau’s Q3 Earnings: International Expansion & New (2010), pp. 111–139. Products Drive Top-Line Growth,” Forbes online, www.forbes 97. D. Yergin, “Globalization Opens Door to New Dangers,”.com, November 11, 2015; “Tableau’s Entry into China a Good USA Today, May 28, 2003, p. 11A; K. Lowrey Miller, “Is It Move as Company Targets International Growth,” Forbes Globaloney?,” Newsweek, December 16, 2002, pp. E4–E8; online, www.forbes.com, August 21, 2015; T. Soper, “ How L. Gomes, “Globalization Is Now a Two-Way Street—Good to Lead a Global Company: What Tableau’s CEO Learned News for the U.S.,” Wall Street Journal, December 9, 2002, During His Year in London,” www.geekwire.com, December p. B1; J. Kurlantzick and J. T. Allen, “The Trouble With 25, 2015. M03_ROBB5839_14_GE_C03.indd 143 10/07/17 4:52 PM  Chapter 4 Valuing a Diverse Workforce It’s Your Career Find a Great Sponsor/ Mentor—Be a Great Protégé What do you want from your career? If your goal is to “move up the organizational ladder” to higher and more challenging positions of responsibility, then consider finding influential people who believe in you and will work with you to help you get ahead. These individuals—called sponsors or mentors—can be a wonderful source of career support. How? By advocating for your career path/ promotion; assisting you in dealing with problems/ conflicts; expanding your perception of what you can do; helping you “connect” with senior executives and other influential people; and advising you on “how” to be promotable. Now that you know Source: MNSKumar/Shutterstock what they’re called... what are you called? The term for the other person in this relationship is protégé, which comes from a French A key to success in word meaning to protect. As someone with a lot of knowledge and experience, management and in your the sponsor/mentor “protects” the protégé by helping prepare (groom) that career is knowing how person for more challenging job responsibilities. Here’s what you need to know to find a great sponsor/ to have active and effective sponsor/protégé relationships: mentor and how to be a 1. Absolutely, positively, always DO GREAT WORK. Be sure that your great protégé. work performance is stellar. Demonstrate that you can and will deliver outstanding performance. Realize that doesn’t mean that you won’t ever make mistakes. But if you do make mistakes, learn quickly from those mistakes. Seek out new challenges and be enthusiastic when you get them. And remember, doing great work is absolutely essential! 2. TRUSTWORTHINESS and LOYALTY and DEPENDABILITY are absolutely critical. Sponsors/mentors want to know that you can be trusted in all ways and in all things. Be loyal. Keep your sponsor “in the know.” Your sponsor wants to know that you can be depended on totally to do the right thing. Make your sponsor look good and look smart for taking you on as a protégé. Ideally, you and your sponsor(s) should work together to M04_ROBB5839_14_GE_C04.indd 144 26/07/17 11:12 AM  Pearson MyLab Management® Improve Your Grade! When you see this icon, visit www.mymanagementlab.com for activities that are applied, personalized, and offer immediate feedback. Learning Objectives SKILL OUTCOMES 4.1 Define workplace diversity and explain why managing it is so important. Develop your skill at valuing and working with diverse individuals and teams. 4.2 Describe the changing workplaces in the United States and around the world. 4.3 Explain the different types of diversity found in workplaces. 4.4 Discuss the challenges managers face in managing diversity. 4.5 Describe various workplace diversity management initiatives. Know how to find a great sponsor/mentor and be a great protégé. accomplish results that can help each of you fast “board of advisors” who are helping you develop track your careers. A mentor/protégé relationship your skills and abilities. can—and should—be mutually beneficial. 4. NURTURE the relationship. Have regular 3. BE SELECTIVE in seeking out your meetings—face-to-face, by phone, or by e-mail. sponsor(s)/mentor(s). Look for individuals who Prove that you were worth the investment by are compatible and complement your work style/ meeting deadlines, exceeding targets, and approach and who can help you reach your goals. advancing the organization’s mission. Look for Although you may start off with just one, don’t ways to support your sponsors and help them be content with that. Target leaders (inside and build their careers. Also, remember at some point outside your organization) whose expertise and to become a sponsor/mentor yourself. When you networks you think you learn from. It’s helpful to harness and help develop other talent, that’s a think of these individuals as your own personal great demonstration of leadership! Although many companies have a goal of cultivating a diverse workforce, there’s still a lot of work to be done by organizations around the globe. For instance, only seven women are CEOs of the United Kingdom’s FTSE 100 companies, leading major firms like GlaxoSmithKline, Whitbread, and easyJet. Few corporations in South Korea and Japan have female CEOs. In Australia, only about 18 percent of CEOs are women. This is why some nations, including Germany, Norway, and Malaysia, now set minimum standards for the number of women on corporate boards. Other minorities are also underrepresented in top management. Tidjane Thiam of Credit Suisse Group is the first black CEO of a leading European bank. Antonio Simões of HSBC Bank is among the relatively few openly gay chief executives.1 Clearly, the issue of moving beyond a homogeneous workforce remains important. This chapter will look at managing diversity in the workplace. 145 M04_ROBB5839_14_GE_C04.indd 145 10/07/17 11:29 AM  146 Part 2 Basics of Managing in Today’s Workplace DIVERSITY 101 LO4.1 It’s amazing all the different languages you can hear in the lobby of one of MGM Mirage’s hotels. Because guests come from all over the world, the company is committed to reflecting that diversity in its workforce. MGM Mirage has implemented a program that is devoted to making sure that everyone in the orga- nization feels included. There are payoffs for promoting diversity. For instance, com- panies in the hospitality business that boast gender-diverse workforces have shown a 19 percent higher average quarterly profit than hospitality businesses with less diversity.2 Such diversity—and inclusion—can be found in many organizational workplaces domestically and globally.3 Sodexo, provider of quality of life services, is an example. The company offers “Spirit of Inclusion” training sessions for employees who work throughout Europe, including their locations in Finland, Germany, and Luxembourg.4 Managers in those workplaces are looking for ways to value and develop that diversity, as you’ll see through the various examples throughout this chapter. However, before we look at what it takes to manage diversity, we first have to know what workplace diversity is and why it’s important. What Is Workplace Diversity? Look around your classroom (or your workplace). You’re likely to see young/old, male/female, tall/short, blonde hair, blue-eyed/dark hair, brown-eyed, any number of races, and any variety of dress styles. You’ll see people who speak up in class and oth- ers who are content to keep their attention on taking notes or daydreaming. Have you ever noticed your own little world of diversity where you are right now? Many of you may have grown up in an environment around diverse individuals, while others may not have had that experience. We want to focus on workplace diversity, so let’s look at what it is. By looking at various ways that diversity has been defined, you’ll gain a better understanding of it. Diversity has been “one of the most popular business topics over the last two decades. It ranks with modern business disciplines such as quality, leadership, and eth- ics. Despite this popularity, it’s also one of the most controversial and least understood topics.”5 With its basis in civil rights legislation and social justice, the word diversity often invokes a variety of attitudes and emotional responses in people. Diversity has traditionally been considered a term used by human resources departments, associ- ated with fair hiring practices, discrimination, and inequality. But diversity today is considered to be so much more. Exhibit 4-1 illustrates a historical overview of how the concept and meaning of workforce diversity has evolved. workforce diversity We’re defining workforce diversity as the ways in which people in an organiza- The ways in which people in an tion are different from and similar to one another. Notice that our definition not only organization are different from and similar to one another focuses on the differences, but also the similarities of employees. This reinforces our belief that managers and organizations should view employees as having qualities in common as well as differences that separate them. It doesn’t mean that those differ- ences are any less important, but that our focus as managers is in finding ways to develop strong relationships with and engage our entire workforce. We want to point out one final thing about our description of “what” work- force diversity is:6 The demographic characteristics that we tend to think of when we think of diversity—age, race, gender, ethnicity, and so on—are just the tip of surface-level diversity the iceberg. These demographic differences reflect surface-level diversity, which Easily perceived differences that may includes easily perceived differences that may trigger certain stereotypes but don’t trigger certain stereotypes, but that do necessarily reflect the ways people think or feel. Such surface-level differences in not necessarily reflect the ways people think or feel characteristics can affect the way people perceive others, especially when it comes to assumptions or stereotyping. The Time Warner Corporation works diligently to turn surface-level diversity into an advantage. According to Chief Diversity Officer Lisa Garcia Quiroz, “our success as a business is directly correlated to our ongoing efforts to attract talent and maintain a progressive and inclusive environment where employees can thrive regardless of gender, race, ethnicity or sexual orientation.”7 M04_ROBB5839_14_GE_C04.indd 146 10/07/17 11:29 AM  Chapter 4 Valuing a Diverse Workforce 147 1960s to 1970s Focus on complying with laws and regulations: Exhibit 4-1 Title VII of Civil Rights Act; Equal Employment Timeline of the Evolution of Opportunity Commission; affirmative action Workforce Diversity 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, profitabil- ity, and growth Source: Based on “The New Global Mindset: Driving Innovation Through Diversity” by Ernst & Young, January 27, 2010. As people get to know one another, these surface-level differences become less impor- tant and deep-level diversity—differences in values, personality, and work prefer- deep-level diversity ences—becomes more important. At Nielsen, Angela Talton, Senior Vice President Differences in values, personality, and work preferences of Global Diversity & Inclusion, endorses this idea: “By diversity, we mean far more than the diversity you can see; we value diversity of thought, experiences, skills and backgrounds. It is our ability to create a culture of inclusion—whereby we value, encourage and promote the various thoughts, opinions and insights of our diverse workforce—that enables us to grow and continuously provide clients with innovative solutions.”8 These deep-level differences can affect the way people view organiza- tional work rewards, communicate, react to leaders, negotiate, and generally behave at work. Why Is Managing Workforce Diversity So Important? Ranked on Diversity Inc.’s list of top 50 companies for diversity, financial services company Wells Fargo recognizes the powerful benefits of diversity. The company’s chief diversity officer says, “With more than 264,000 team members, we know there is power in mobilizing our global organization around common diversity and inclusion goals and priorities. By doing so, we will create a sustainable culture that is accepting of differences, open to new ideas, and able to create a competitive advantage in the marketplace.”9 Another example is KeyBank, which is “committed to supplier diver- sity through business strategy and community access. We support diverse business enterprises and our Supplier Diversity team in our Corporate Responsibility group provides accountability.”10 Many companies besides Wells Fargo and KeyBank are experiencing the benefits that diversity can bring. In this section, we want to look at why workforce diversity is so important to organizations. The benefits fall into three main categories: people management, organizational performance, and strategic. (See Exhibit 4-2.) M04_ROBB5839_14_GE_C04.indd 147 10/07/17 11:29 AM  148 Part 2 Basics of Managing in Today’s Workplace Exhibit 4-2 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 P  otential source of competitive advantage because of improved innovation efforts Viewed as moral and ethical; the “right” thing to do Sources: Based on Ernst & Young, “The New Global Mindset: Driving Innovation Through Diversity,” EYGM Limited, 2010; M. P. Bell, M. L. Connerley, and F. K. Cocchiara, “The Case for Mandatory Diversity Education,” Academy of Management Learning & Education, December 2009, pp. 597–609; E. Kearney, D. Gebert, and S. C. Voelpel, “When and How Diversity Benefits Teams: The Importance of Team Members’ Need for Cognition,” Academy of Management Journal, June 2009, pp. 581–598; J. A. Gonzalez and A. S. DeNisi, “Cross-Level Effects of Demography and Diversity Climate on Organizational Attachment and Firm Effectiveness,” Journal of Organizational Behavior, January 2009, pp. 21–40; O. C. Richard, “Racial Diversity, Business Strategy, and Firm Performance: A Resource-Based View,” Academy of Management Journal, April 2000, pp. 164–177; and G. Robinson and K. Dechant, “Building a Business Case for Diversity,” Academy of Management Executive, August 1997, pp. 21–31. PEOPLE MANAGEMENT When all is said and done, diversity is, after all, about FYI people, both inside and outside the organization. The people management benefits that organizations get because of their workforce diversity efforts revolve around attracting and retaining a talented workforce. Organizations want a talented work- force because it’s the people—their skills, abilities, and experiences—who make an Racial and ethnic diversity are organization successful. Positive and explicit workforce diversity efforts can help 35 percent more likely to have organizations attract and keep talented diverse people and make the best of the financial returns above national talents those individuals bring to the workplace. In addition, another important industry medians. people management benefit is that as companies rely more on employee teams in Currently 97 percent of U.S. the workplace, those work teams with diverse backgrounds often bring different companies fail to have senior and unique perspectives to discussions, which can result in more creative ideas and leadership teams that reflect the solutions. However, recent research has indicated that such benefits might be hard country’s ethnic labor force.11 to come by in teams performing more interdependent tasks over a long period of time. Such situations also present more opportunities for conflicts and resentments to build.12 But, as the researchers pointed out, that simply means that those teams may need stronger team training and coaching to facilitate group decision making and conflict resolution. If your professor has assigned this, go to www.mymanagementlab.com to watch a Watch It 1! video titled: Verizon: Diversity and to respond to questions. ORGANIZATIONAL PERFORMANCE The performance benefits that organizations get from workforce diversity include cost savings and improvements in organization- al functioning. The cost savings can be significant when organizations that cultivate a diverse workforce reduce employee turnover, absenteeism, and the chance of lawsuits. M04_ROBB5839_14_GE_C04.indd 148 10/07/17 11:29 AM  Chapter 4 Valuing a Diverse Workforce 149 let’s get REAL The Scenario As the district manager for a region of retail discount clothing stores, Henry Banks is preparing for a quarterly meeting with all of the store Source: Leya Gaynor managers in his district. As part of a presentation about company hiring practices, he plans to stress the importance of diversity. He knows the company needs a diverse workforce to meet the needs of the company’s diverse customer base; however, he is not sure how to convey this to the Leya Gaynor group of store managers. HR Business Partner What do you think Henry should say in his presentation? Henry should take this opportunity to review the company’s values and to consider how diversity is a critical aspect of a dynamic culture. He could provide data that indicate that diverse companies perform better than less diverse companies, overall. With a diverse customer base, Henry should provide real-life examples of situations in which diversity helped with a customer’s shopping experience or increased a sale, as well as examples in which lack of diversity had a negative impact on the business. Lastly, Henry should explain how the store managers’ incentives are tied to the overall performance of the store; the better the store performs, the greater incentive opportunity they have. For instance, the Royal Canadian Mounted Police recently agreed to a very costly settle- ment in cases of sexual discrimination and harassment brought by hundreds of female Mounties.13 Women in China are increasingly speaking out against sexual discrimina- tion, not just to attain management positions but also for the right to work in jobs that traditionally have been held by men.14 In the United Kingdom, employees file more than 3,000 complaints about racial discrimination every year. One organization was ordered to pay more than £162,000 for racial discrimination, an amount that can seriously affect the bottom line. According to a U.K. study, job applicants from ethnic minorities tend to receive fewer employer responses than non-minority applicants.15 In addition to gender and race, discrimination on the basis of age, disability, or sexual orientation also causes employees to file complaints (and, often, to find work elsewhere).16 In Hong Kong, for example, one in three employees surveyed by the Equal Opportunities Commission said they had faced age discrimination, and one in four had been denied promotions due to age.17 However, from the positive side, organizational performance can be enhanced through workforce diversity because of improved problem-solving abilities and system flexibility. An organization with a diverse workforce can tap into the variety of skills and abilities represented, and just the fact that its workforce is diverse requires that processes and procedures be more accommodative and inclusive. The benefits of promoting diver- sity are worthwhile. According to Professor Christine Riordan, “inclusion also has the promise of many positive individual and organizational outcomes such as reduced turn- over, greater altruism, and team engagement. When employees are truly being included within a work environment, they’re more likely to share information, and participate in decision-making.”18 STRATEGIC Organizations also benefit strategically from a diverse workforce. You have to look at managing workforce diversity as the key to extracting the best talent, per- formance, market share, and suppliers from a diverse country and world. One important M04_ROBB5839_14_GE_C04.indd 149 10/07/17 11:29 AM  150 Part 2 Basics of Managing in Today’s Workplace strategic benefit is that with a diverse workforce, organizations can better anticipate and respond to changing consumer needs. Diverse employees bring a variety of points of view and approaches to opportunities, which can improve how the organization markets to diverse consumers. For instance, as the Hispanic population has grown, so have orga- nizational efforts to market products and services to that demographic group. Organiza- tions have found their Hispanic employees to be a fertile source of insights that would otherwise not have been available. Food service companies, retailers, financial services companies, and automobile manufacturers are just a few of the industries that have seen sales and market share increases because they paid attention to the needs of diverse consumers using information from employees. It is important to remember that a diverse workforce is not a magic pill: “Diversity does not produce better results automatically, through a sort of multicultural magic. It does so only if it is managed well.”19 A diverse workforce also can be a powerful source of competitive advantage, pri- marily because innovation thrives in such an environment. A report by Ernst & Young stated that “cultural diversity offers the flexibility and creativity we need to re-create the global economy for the twenty-first century.”21 Innovation is never easy, but in a global- FYI ized world, it’s even more challenging. Tapping into differing voices and viewpoints can be powerful factors in steering innovation. Companies that want to lead their industries have to find ways to “stir the pot”—to generate the lively debate that can create those new ideas. And research shows that diverse viewpoints can do that. “Diversity powers innovation, helping businesses generate new products and services.”22 Companies with diverse leader- Finally, from an ethical perspective, workforce diversity and effectively managing ship are:20 diversity is the right thing to do. Although many societies have laws that say it’s illegal 45 percent more likely to report to treat diverse people unfairly, many cultures also exhibit a strong ethical belief that a growth in market share over diverse people should have access to equal opportunities and be treated fairly and the previous year justly. Businesses do have an ethical imperative to build relationships that value and 70 percent more likely to have enable all employees to be successful. Managers need to view workforce diversity as a captured a new market way to bring different voices to the table and to build an environment based on trust- ing relationships. If they can do that, good things can happen, as we’ve noted. If your professor has assigned this, go to www.mymanagementlab.com to watch a Watch It 2! video titled: Rudi’s Bakery: Diversity and to respond to questions. THE CHANGING workplace An African American serving as the chief executive of the United States. LO4.2 A woman heading up the Federal Reserve. A Latina sitting on the nation’s highest court. Even at the highest levels of the political arena, we see a diverse work- place. In the business world, the once predominantly white male managerial workforce has given way to a more gender-balanced, multiethnic workforce. But it’s a workforce still in transition as the overall population changes. In this section, we want to look at some of those changes, focusing on demographic trends by looking first at the charac- teristics of the U.S. population and then at global diversity trends. These trends will be reflected in a changing workplace, thus making this information important for manag- ers to recognize and understand. Characteristics of the U.S. Population Of all the babies born in the United States recently, less than half are whites of Euro- pean ancestry—a significant demographic milestone that will affect the country’s polit- ical, economic, and labor force characteristics.23 Statistics from the latest U.S. Census reports are reinforcing what we’ve already seen happening—America is changing.24 We are an increasingly diverse society with some major readjustments occurring that will dramatically change the face of America by the year 2050. Let’s look at some of the most dramatic of these changes.25 M04_ROBB5839_14_GE_C04.indd 150 10/07/17 11:29 AM  Chapter 4 Valuing a Diverse Workforce 151 WORKPLACE CONFIDENTIAL Dealing with Diversity This chapter looks at diversity from the standpoint of man- as gender, sexual orientation, socioeconomic status, or geo- agement: Specifically, what can management do to create a graphic background might also be applied to expand diversity. workplace that welcomes and appreciates differences—such When these other factors can be visibly assessed by the way as gender, age, race, religion, sexual orientation, disabilities, or someone looks, dresses, or talks, then they are also surface- social class? But this chapter doesn’t offer you direct guidance level variables. But here’s the interesting observation: While on how to deal with coworker diversity. While management college administrators try to increase diversity through admis- and the organization are largely responsible for fostering an sion selection, students themselves tend to undermine surface inclusive culture that values diversity, you play a vital part. diversity by gravitating to others like themselves. Fraternities Let’s begin with the realization that many individuals and sororities choose members who are like themselves. And have difficulty accepting others who are different from them- friends tend to be those with similar majors, or living in the same selves. Human nature is such that we tend to be attracted to dorm wing, or belonging to a common on-campus affinity group. and feel more comfortable with people who are like us. It’s So what we find is that campuses do a very good job at pro- not by chance, for example, that new immigrants gravitate to moting surface-level diversity through admission decisions, but communities where there is a sizeable population of people this breaks down once students are on campus. Natural student from their country of origin. But “embracing differences” has groupings tend to be defined more by deep-level characteristics. become an unquestioned goal in most advanced economies So what can you do to more effectively deal with coworker and a mantra within organizations. It’s increasingly difficult to diversity? At the surface level, start by confronting your biases survive in today’s workplace if you can’t accept differences and assumptions about others. You can’t deal with your preju- and function effectively with a diverse workforce. dices unless you recognize them. Then consider the positives As described in this chapter, a strong argument can be of diversity. As we noted in the chapter, a diverse workforce made for a diverse workforce. From your standpoint, that argu- has numerous pluses. You need to recognize, accept, and value ment would include being part of more effective work groups the unique contributions of those who are different from you in through a broader perspective in decision making; gaining a terms of appearance, culture, skills, experiences, and abilities. better understanding of diverse markets and customer prefer- At the deep level, the good news is that as we get to know ences; improved ability to work comfortably with others in your people, most of us look beyond the surface to find common workplace; and promoting fairness for individuals from under- bonds. Specifically, the evidence shows that the longer indi- represented groups. Furthermore, we would be naïve to ignore viduals work together, the less the effects of surface diversity. that supporting diversity is, for lack of a better term, “politically So your first reaction might be to assume you have nothing in correct.” Today’s workplace is sensitive to appearances of prej- common with a colleague who is 30 years older, or raised in udice or unfairness. If you expect to be a valued and accepted a different country, or whose first language is different from member of today’s labor force, you need to recognize that sup- yours. But start with the basics. You’re both working for the porting diversity is the ethical and morally right thing to do. same employer. That alone suggests a common bond. Both of Research tells us that we all have biases. Demographics you saw something in your employing organization that drew mostly reflect surface-level diversity and can lead you to per- you to it. Then, if you’re having trouble dealing with someone’s ceive others through stereotypes and assumptions. In contrast, differences, look beyond the surface and try to get to know the when you get to know others, you become less concerned individual’s personality, interests, and beliefs. You’re likely to be about demographic differences if you can see yourself sharing pleasantly surprised. You might initially think someone isn’t like more important, deeper-level characteristics. Let’s elaborate on you or won’t understand you, but as you dig deeper and spend the difference between surface- and deep-level diversity. more time with the person, you’ll often find common bonds. Most of us typically define diversity in terms of surface- In addition to working one-on-one with a diverse set level characteristics. Surface-level diversity relates to those of coworkers, you’ll likely have to deal with diversity within characteristics that are easily noticeable; the things we ini- work teams. Occasionally, diversity within teams can create tially see in people. This includes gender, age, skin color, lan- problems known as “faultlines.” Faultlines are subgroups that guage, and the presence or absence of a physical disability. develop naturally within teams, typically along various demo- So when a 20-year-old sees someone who’s 70 and quickly graphic lines. The behavior of the team leader and way in which classifies him as “old,” that person is operating at a surface she structures the leadership role is essential for promoting level. In contrast, deep-level diversity refers to characteristics communication and cohesiveness across the subgroups and that are not easily noticeable. They’re communicated through for rallying the membership to meet a common cause. verbal and nonverbal behaviors. Examples of deep-level dif- ferences would include personality, moods, attitudes, values, Source: Based on D. A. Harrison, K. H. Price, and M. P. Bell, “Beyond Rela- and beliefs. As you get to know a person, especially someone tional Demography: Time and the Effects of Surface- and Deep-Level Diversity you like and bond with, you tend to forget surface differences on Work Group Cohesion,” Academy of Management Journal, February 1998, pp. 96–107; D. C. Lau and J. K. Murnighan, “Demographic Diversity and Fault- and focus on your deeper commonalities. lines: The Compositional Dynamics of Organizational Groups,” Academy of An interesting illustration of the difference between these Management Review, April 1998, pp. 325–340; L. F. Pendry, D. M. Driscoll, and two types of diversity is the typical college campus. For more S. C. T. Field, “Diversity Training: Putting Theory into Practice,” Journal of Occu- pational Psychology, March 2007, pp. 27–50; and M-E. Roberge, E. Petrov, and than 40 years, most college admissions’ personnel have actively W-R. Huang, “Students’ Perceptions of Their Attitudes and Behaviors Toward sought to expand surface diversity by considering race or eth- Different Cultures/Ethnicities Before and After a Diversity Training Program,” nicity in their decision criteria. In addition, other factors such Journal of Business Diversity, August 2014, pp. 80–90. M04_ROBB5839_14_GE_C04.indd 151 10/07/17 11:29 AM  152 Part 2 Basics of Managing in Today’s Workplace Exhibit 4-3 2015 2050 Changing Population Makeup of Foreign-born 14% 19% the United States Racial/Ethnic Groups White* 72% 47% Hispanic 12% 29% Black* 12% 13% Asian* 4% 9% *= Non-Hispanic American Indian/Alaska Native not included. Sources: Based on “Population Density by County,” U.S. Census Bureau, www. census.gov, accessed February 24, 2016; H. El Nasser, “U.S. Hispanic Population to Triple by 2050,” USA Today, February 12, 2008; and J. Passel and D. Cohn, “U.S. Population Projections: 2005–2050,” Pew Research Center, February 11, 2008. The total population of the United States is projected to increase to 438 million by the year 2050, up from 322 million in 2015; 82 percent of that increase will be due to immigrants and their U.S.-born descendants. Nearly one in five Americans will be an immigrant in 2050, compared with one in eight in 2015. In addition to total population changes, the components of that population are projected to change as well. Exhibit 4-3 provides the projected population breakdown. As the projections show, the main changes will be in the percentages of the Hispanic and white population. But the data also indicate that the Asian population will be more than double. Also, as a nation, the pop- ulation of the United States is aging. According to the CIA World Factbook, the median age stands at 37.8 years, up from 36.2 years in 2001.26 By 2050, one in every five persons will be age 65 or over. The most populous group would be those age 80 and over.27 Such population trends are likely to have a major impact on U.S. workplaces. The reality of these trends for businesses is that they’ll have to accommodate and embrace such workforce changes. Although America historically has been known as a “melt- ing pot,” where people of different nationalities, religions, races, and ethnicities have blended together to become one, that perspective is no longer relevant.28 Organizations must recognize that they can’t expect employees to assimilate into the organization by adopting similar attitudes and values. Instead, there’s value in the differences that peo- ple bring to the workplace. It’s not been easy. The ability of managers and organiza- tions to effectively manage diversity has not kept pace with these population changes, creating challenges for minorities, women, and older employees. But many businesses are excelling at managing diversity, and we’ll discuss some of their workplace diversity initiatives in a later section of this chapter. Global Population Trends and the Changing Global Workforce Right now, we share our planet with more than 7.4 billion people, a number projected to increase to nearly 10 billion by 2050.29 That’s a worldwide population increase of more than one-third, with much of this future growth occurring in Africa and Asia. What are some of the key population trends and what do they mean for the global workplace? Age Trends. First, as life spans increase, some areas will have a higher proportion of older people. Europe currently has a higher percentage of people over 60 than any other region, followed by North America. At the country level, Japan’s population is the oldest, with a median age over 46 and a low birth rate. Germany, Italy, and Por- tugal have a median age over 44. By 2050, China’s median age is projected to be 56, and Singapore’s will be 53.30 Management challenges will increase as large numbers of workers retire and businesses will need to fill many open positions to maintain opera- tions. On the other hand, this trend creates business opportunities for entrepreneurs and companies that can fill the needs of an aging population. M04_ROBB5839_14_GE_C04.indd 152 10/07/17 11:29 AM  Chapter 4 Valuing a Diverse Workforce 153 In comparison, some countries have particularly young populations with high birth rates. Niger is the world’s youngest country, with a median age just below 15. Although that median age is expected to increase to nearly 18 by 2050, analysts proj- ect that Niger will remain the youngest country for decades to come. In fact, Africa is currently the continent with the largest percentage of the population younger than 15. One benefit of a younger population is having a youthful workforce that contributes to productivity as well as economic growth. The challenge here is to provide education, employment opportunities, and welfare services to these young workers.31 Gender, Gender Identity, and Sexual Orientation. In today’s global population, there are slightly more males than females overall. Individual countries, however, can have vastly different proportions of males and females in the population. Russia, for example, has fewer than 90 men for every 100 women. In contrast, India has 107 men for every 100 women. Looking ahead to 2050, when there will be slightly more females than males in the overall world population, how will traditional gender roles and cultural norms affect the ability of companies to attract and retain a motivated workforce? Also while some countries are legalizing equal rights for the LGBTQ community, preventing dis- crimination and harassment on the basis of gender identity or sexual orientation will remain an important issue for organizations. Migration and Movement. Strife and violence in certain regions are increasing pressures on migration, which leads to changes in national and regional policies on immigration that affect the ability of businesses to hire people from other countries. Migration also affects the ethnic (and sometimes the religious) composition of the local population, which global businesses must bear in mind. Managers must also consider where jobs and workers are located. In Europe, for instance, much of the working-age population is concentrated in urban areas, which is a consideration for companies deciding where to open new facilities. With managers recognizing that many jobs can only be performed in person, should work- places be moved to areas with an abundance of skilled labor and other valued resources, or should workers be expected to move to take advantage of career opportunities? These trends indicate the real urgency for improving diversity in the workplace. Businesses are increasingly concerned about being able to attract more workers, from the domestic or international population, regardless of gender, ethnicity, religion, or age. Organizations that actively recruit across national borders, seeking to fill special- ized jobs or address competitive issues, are paying close attention to how government policies regarding migration and work permits are changing. To prepare for the future, managers must understand the current realities of the global workforce and the many dimensions of workplace diversity.32 How much do you know about global aging? (Our guess is... probably not much!) Take the quiz in Exhibit 4-4—no peeking at the answers beforehand—and see how well you scored. Were you surprised by some of the answers? TYPES of workplace diversity As we’ve seen so far, diversity is a big issue, and LO4.3 an important issue, in today’s workplaces. What types of dissimilarities—that is, diversity—do we find in those workplaces? Exhibit 4-5 shows several types of workplace diversity. Let’s work our way through the different types. At 90, Bill Dudley, Europe’s oldest McDonald’s Age employee, works as a part-time member of The Marriott hotel group, headquartered in Bethesda, Maryland, employs more than the customer care team at a restaurant in 100,000 employees in the United States. What’s interesting is that 43 percent of those Wales. McDonald’s values its older employees for their strong work ethic, reliability, loyalty, employees are age 45 and older, and 18 percent are 55 and older.33 To make it easier for mentoring skills that help younger co-workers, older workers, company managers are redesigning tasks that require bending, stretch- and friendly and helpful service that results in ing, lifting, pushing, and pulling. For instance, an older employee may be paired with high customer satisfaction. a younger one, and tasks such as bending to clean under beds are shared. Source: Peter Byrne/PA Wire/AP Images M04_ROBB5839_14_GE_C04.indd 153 10/07/17 11:29 AM  154 Part 2 Basics of Managing in Today’s Workplace Exhibit 4-4 1. True or False: At age 65, life expectancy is expected to be an additional 20 years. Global Aging: How Much Do You 2. The world’s older population (60 and older) is expected to change from 841 Know? 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 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. Sources: Based on CIA World Factbook, www.cia.gov/library/publications/the-world-factbook/, 2016; “World Population Ageing,” by Department of Economic and Social Affairs Population Division, from United Nations, 2013. Exhibit 4-5 Types of Diversity Found in Workplaces Age Other Gender Race and LGBT Ethnicity Disability/ Religion Abilities M04_ROBB5839_14_GE_C04.indd 154 10/07/17 11:29 AM  Chapter 4 Valuing a Diverse Workforce 155 As we saw in the last section, the aging population is a major critical shift taking place in the workforce. Many people over 50 are enthusiastic and productive work- ers, contrary to the sometimes negative stereotypes. To accommodate the aging work- force, more organizations are changing their approach to mandatory retirement, and government policies are also being adjusted. In South Korea, where more than 20 percent of the population will be 65 or older by 2026, the country has increased the official retirement age from 55 to 60. Yet age discrimination remains a major concern for employees and employers, as well as a legal and regulatory challenge. Australia is one of many nations strengthening plans to encourage older workers to remain in the workforce while vigorously enforcing laws against discrimination.34 One issue with older workers is the perception that people have of those workers. Perceptions such as they’re sick more often and they can’t work as hard or as fast as younger employees—perceptions that are inaccurate. Employers have mixed feelings about older workers.35 On the positive side, they believe that older workers bring a number of good qualities to the job, including experience, judgment, a strong work ethic, and a commitment to doing quality work. Also, some companies recognize the value of these attributes. For instance, global bank Barclays launched an internship program for persons age 50 or older. The bank’s management believes that the real life experience of older workers will benefit their business.36 Although the Barclays example shows promise for utilizing the knowledge, skills, and experience of older workers, there remain many employers who also view older workers as not being flexible or adaptable and being more resistant to new technology. The challenge for managers is overcoming those misperceptions of older workers and the widespread belief that work performance and work quality decline with age. Another issue that also supports the need for effectively managing workplace age diversity is that when Baby Boomers do retire, experts point out that some industries will face severe shortages of qualified employees. “Many of today’s growth industries require a higher level of technical competence in quantitative reasoning, problem solv- ing, and communication skills... and the United States simply does not have enough students who are getting solid math and science education.”37 Organizations that do not plan for such a future may find themselves struggling to find a competent work- force, diverse or not. Finally, the aging population is not the only age-related issue facing organiza- tions. Some 50 million Generation Xers juggle work and family responsibilities. And now some 76 million members of Generation Y (often referred to as Millennials) are either already in or poised to enter the workforce.38 These Gen Yers will make up about 75 percent of the global workforce by 2025.39 Having grown up in a world where they’ve had the opportunity to experience many different things, Gen Y workers bring their own ideas and approaches to the workplace. For instance, one study revealed that Millennials are 71 percent more likely to focus on teamwork, 28 percent more likely to focus on business impact, and 22 percent more likely to focus on a culture of connection. In contrast, non-Millennials are 31 percent more likely to focus on equity; 28 percent more likely to focus on acceptance, tolerance and fairness of opportunity; and 26 percent more likely to focus on integration.40 Given these differences, manag- ers face the challenges of creating and maintaining a culture of inclusivity. According to this study, “unfortunately, millennials are currently less engaged than members of older generations because organizations are falling short in these areas.”41 Manag- ers need to ensure that they take into account differing norms between generations. Effectively managing an organization’s diverse age groups can lead to their working well with each other, learning from each other, and taking advantage of the different perspectives and experiences that each has to offer. It can be a win-win situation for all. Gender Women (49.5%) and men (50.5%) now each make up almost half of the work- force.42 Yet gender diversity issues are still quite prevalent in organizations. Take the gender pay gap. The latest information shows that women’s median earnings were M04_ROBB5839_14_GE_C04.indd 155 10/07/17 11:29 AM  156 Part 2 Basics of Managing in Today’s Workplace 83 percent of male full-time wage and salary workers.43 The Wall Street Journal cites a recent study which determined that about 8 percent of the wage gap cannot be explained by job-related factors, concluding that discrimination may be the reason.44 Other issues involve career start and progress. Research by Pew Research Center shows that young women now place more importance on having a high-paying career or profession than do young men.45 Yet, although 57 per- cent of today’s college students are women, and women now collect nearly 60 percent of four-year degrees and are just as likely to have completed college and hold an advanced degree, inequities persist.46 Research by Catalyst found that men start their careers at higher levels than women. And after starting out behind, women don’t ever catch up. Men IBM India staged a leadership conference move up the career ladder further and faster as well.47 A to encourage its female employees in the study by Mercer revealed that women make up only 35 percent of the average com- workplace and to enhance their leadership pany’s workforce at the professional level and above.48 A study by the Pew Research and networking skills. IBM’s key diversity Center found that more women are not in executive positions because they are held efforts in the advancement of women focuses on mentoring and coaching programs that help to higher standards.49 However, leaving women behind may be to companies’ detri- them develop their careers and on creating an ment. One study found some support that having more women in executive positions environment that balances their professional improves firm performance.50 Finally, misconceptions, mistaken beliefs, and unsup- and personal needs. ported opinions still exist about whether women perform their jobs as well as men Source: Aijaz Rahi/AP Images do. You can see why gender diversity issues are important to attend to. So what do we know about differences between men and women in the workplace? FYI First of all, few, if any, important differences between men and women affect job performance.51 No consistent male-female differences exist in problem-solving ability, analytical skills, competitive drive, motivation, sociability, or learning ability. Psycho- logical research has found minor differences: Women tend to be more agreeable and willing to conform to authority, while men are more aggressive and more likely to have Most regions of the world expectations of success. continue to face challenges in increasing women’s Another area where we also see differences between genders is in preference for representation at all levels: Asia work schedules, especially when the employee has preschool-age children. To accom- is expected to have the lowest modate their family responsibilities, working mothers are more likely to prefer part- representation of women in time work, flexible work schedules, and telecommuting. They also prefer jobs that 2025.52 encourage work-life balance. One question of much interest as it relates to gender is whether men and women are equally competent as managers. Research evidence indicates that a “good” man- ager is still perceived as predominantly masculine.53 But the reality is that women tend to use a broader, more effective range of leadership styles to motivate and engage people. They usually blend traditional masculine styles—being directive, authorita- tive, and leading by example—with more feminine ones that include being nurturing, inclusive, and collaborative. Men tend to rely primarily on masculine styles.54 Another study showed that women managers were significantly more likely than their male counterparts to coach and develop others and to create more committed, collabora- tive, inclusive, and, ultimately, more effective teams. This study also found that women were more likely to foster genuine collaboration while males were far more likely to view negotiations and other business transactions as zero-sum games.55 A recent Gal- lup survey concluded, “Organizations should hire and promote more female manag- ers. Female managers in the U.S. exceed male managers at meeting employees’ essential workplace requirements. And female managers themselves are more engaged at work than their male counterparts.”56 Despite this, according to another Gallup survey, Americans—male and female—still prefer a male boss, although 41 percent of the respondents said they had no preference.57 What should you take away from this discussion? Not that either women or men are the superior employees, but rather a better appreciation for why it’s important for organizations to explore the strengths that both women and men bring to an M04_ROBB5839_14_GE_C04.indd 156 10/07/17 11:29 AM  Chapter 4 Valuing a Diverse Workforce 157 organization and the barriers they face in contributing fully to organizational efforts. And it’s important to note that many companies are “grooming more women for the corner office.” The pool of highly qualified women continues to grow as those who have received advanced degrees and worked in the corporate world are moving up through the ranks. In fact, research by McKinsey & Co. found that 24 percent of senior vice presidents at 58 big companies are women.58 If your professor has assigned this, go to www.mymanagementlab.com to complete the Simulation: HR & Diversity and get a better understanding of the challenges of Try It 1! diversity in organizations. Race and Ethnicity Roll the calendar back to the year 2000. The Coca-Cola Company has just agreed to an enormous settlement of $192.5 million for a class-action racial discrimination lawsuit.59 Court documents describe a company atmosphere in which black employ- ees “formed informal networks to provide ’sanity checks’ and diversity efforts were not considered a high priority by senior management.” Also, as the number of African American hires declined, a “number of highly educated and trained African- Americans at the company noted receiving unfavorable treatment, thus creating the impression that Coke was a high-risk environment for high-potential and aggressive African-Americans.” Now, fast-forward to 2013. The Coca-Cola Company is named by Diversity Inc. magazine as number 2 on the list of Top 10 Companies for blacks and number 10 on the Top 10 Companies for Latinos. How did the company make such a drastic turnaround? Since being sued for racial discrimination, Coca-Cola has made considerable strides in its diversity efforts at all levels and in all areas. Commitment from top execu- tives became and remains a cornerstone for managing diversity at the company. CEO Muhtar Kent (who was not CEO at the time of the discrimination problems) says, “Building a diverse and inclusive workforce is central to our 2020 Vision, which calls for us to ‘achieve true diversity’ throughout our business.” Kent also personally signs off on executive compensation tied to diversity goals and actions. Coca-Cola’s chief diversity officer, Steve Bucherati, has managed the company’s diversity programs for years. He has been described as a strong and devoted advocate for inclusion and rou- tinely provides Coke’s board of directors with reports about diversity initiatives and outcomes. Coca-Cola has recognized that diversity can greatly benefit the company in many ways. CEO Kent says, “The real power of diversity is the synergies that are cre- ated when different people and cultures come together united behind a common goal of winning and creating shared value. Extraordinary things truly happen.” Many other companies have had similar racial issues. There’s a long and contro- versial history in the United States and in other parts of the world over race and how people react to and treat others of a different race.60 Race and ethnicity are important types of diversity in organizations. We’re going to define race as the biological heri- race tage (including physical characteristics such as one’s skin color and associated traits) The biological heritage (including skin color and associated traits) that people that people use to identify themselves. Most people identify themselves as part of a use to identify themselves racial group. Such racial classifications are an integral part of a country’s cultural, social, and legal environments. The racial and ethnicity choices in the most recent U.K. Census included 16 classifications: white (with choices such as British or Irish), mixed/multiple ethnic group (choices such as white and black Caribbean or white and Asian), Asian/Asian British (such as Indian, Pakistani, Bangladeshi, Chinese, and other Asian), Black/African/Caribbean/Black British (African, Caribbean, other black), and choices in an “other ethnic group” category. However, these categories may change in the next U.K. Census as the government tests ways to allow people to ethnicity more accurately describe their racial and ethnic backgrounds.61 Ethnicity is related to Social traits (such as cultural background race, but it refers to social traits—such as one’s cultural background or allegiance— or allegiance) that are shared by a that are shared by a human population. human population M04_ROBB5839_14_GE_C04.indd 157 10/07/17 11:29 AM  158 Part 2 Basics of Managing in Today’s Workplace As we saw earlier in Exhibit 4-3, the racial and ethnic diversity of the U.S. popula- tion is increasing at an exponential rate. We’re also seeing this same effect in the com- position of the workforce. Most of the research on race and ethnicity as they relate to the workplace has looked at hiring decisions, performance evaluations, pay, and work- place discrimination.62 However, much of that research has focused on the differences in attitudes and outcomes between whites and African Americans. Minimal study has been done on issues relevant to Asian, Hispanic, and Native American populations. Let’s look at a few key findings. One finding is that individuals in workplaces tend to favor colleagues of their own race in performance evaluations, promotion decisions, and pay raises. Although such effects are small, they are consistent. Next, research shows substantial racial differences in attitudes toward affirmative action, with African Americans favoring such programs to a greater degree than whites. Other research shows that African Americans generally do worse than whites in decisions related to the workplace. For instance, in employment interviews, African Americans receive lower ratings. In the job setting, they receive lower job performance ratings, are paid less, and are promoted less frequently. However, no statistically significant differences between the two races are observed in absenteeism rates, applied social skills at work, or accident rates. As you can see, race and ethnicity issues are a key focus for managers in effectively managing workforce diversity. Disability/Abilities According to the U.S. Census Bureau, people with disabilities are the largest minority in the United States. Estimates vary, but it’s believed that there are some 19.8 million working-age Americans with disabilities. And that number continues to increase as military troops return from Iraq and Afghanistan.63 The year 1990 was a watershed year for persons with disabilities. That was the year the Americans with Disabilities Act (ADA) became law. The ADA prohibits let’s get REAL The Scenario Katie Harris is a manager in a branch office of a large insurance claims company. She manages a diverse team of 15 people. One of her team members stopped in to tell her that “several of them were upset that other team members were talking in their native language throughout the day.” Their complaint? They felt it was “rude” for coworkers to speak another language at work, and it made the other team members feel excluded and uncomfortable. What should Katie do to resolve this issue? Katie should have a conversation with the team members who were speaking in their native language to understand why they were speaking in their native language throughout the day. She should provide them with feedback that there are some coworkers who feel uncomfortable with this situation. Katie should definitely ask them for a solution on how to avoid this in the future. She should express that, as long as the conversation is work related, all coworkers need to be involved as Source: Claudia Gutierrez communication is key in a work environment. Any other type of conversations can be spoken in their native language offstage; for example, at lunch or breaks. Claudia Gutierrez Service Manager M04_ROBB5839_14_GE_C04.indd 158 10/07/17 11:29 AM  Chapter 4 Valuing a Diverse Workforce 159 discrimination against an individual who is “regarded as” having a disability and requires employers to make reasonable accommodations so their workplaces are accessible to people with physical or mental disabilities and enable them to effectively perform their jobs. With the law’s enactment, individuals with disabilities became a more representative and integral part of the U.S. workforce. One issue facing managers and organizations is that the definition of disability is quite broad. The U.S. Equal Employment Opportunity Commission classifies a per- son as disabled if he or she has any physical or mental impairment that substantially limits one or more major life activities. For instance, deafness, chronic back pain, AIDS, missing limbs, seizure disorder, schizophrenia, diabetes, and alcoholism would all qualify. However, since these conditions have almost no common features, it’s been difficult to study how each condition affects employment. It’s obvious that some jobs cannot be accommodated to a disability. For instance, the law recognizes that a visu- ally impaired person could not be an airline pilot, a person with severe cerebral palsy could not be a surgeon, and a person with profound mobility constraints could not be a firefighter. However, computer technology and other adaptive devices have shattered many employment barriers for other employees with disabilities. A survey by the Society for Human Resource Management found that 61 percent of the HR professionals responding said that their organizations now include disabilities in their diversity and inclusion plans. However, only 47 percent said that their organiza- tions actively recruit individuals with disabilities. And 40 percent said that their senior managers demonstrate a strong commitment to do so.64 Even after 20-plus years of the ADA, organizations and managers still have fears about employing disabled workers. A survey by the U.S. Department of Labor looked at these