Diversity in Organizations Chapter 2 PDF

2 Source: Design Pics/Alamy Stock Photo Diversity in Organizations LEARNING OBJECTIVES...

2 Source: Design Pics/Alamy Stock Photo Diversity in Organizations LEARNING OBJECTIVES After studying this chapter, you should be able to: 2-1    escribe the two major forms of D 2-4    xplain how other differentiating E ­workplace diversity. ­characteristics factor into OB. 2-2  emonstrate how workplace discrimi- D 2-5    emonstrate the relevance of D nation undermines organizational intellectual and physical abilities effectiveness. to OB. 2-3    escribe how the key biographical D 2-6    escribe how organizations manage D characteristics are relevant to diversity effectively. ­Organizational Behavior (OB). 74 M02_ROBB3069_18_GE_C02.indd 74 28/04/21 11:17 AM  Diversity in Organizations    CHAPTER 2 75 This matrix identifies which features and end-of-chapter material will help you develop specific skills employers are looking for in job candidates. Employability Skills Matrix (ESM) Myth or Career An Ethical Point/ Experiential Ethical Case Case Science? OBjectives Choice Counterpoint Exercise Dilemma Incident 1 Incident 2 Critical Thinking ✓ ✓ ✓ ✓ ✓ ✓ ✓ Communication ✓ ✓ ✓ ✓ Collaboration ✓ ✓ Knowledge Application and Analysis ✓ ✓ ✓ ✓ ✓ ✓ Social Responsibility ✓ ✓ ✓ ✓ ✓ ✓ ✓ MyLab Management Chapter Warm Up If your instructor has assigned this activity, go to www.pearson.com/ mylab/management to complete the chapter warm up. A LACK OF DIVERSITY IN THE TECH INDUSTRY T he tech industry has been notorious for failing on the diversity and inclusion front. Apple, Facebook, Google, and Microsoft may be the big- gest technology companies across the world, yet the diversity reports they have posted for the past five years consistently present the same picture, an industry dominated by white and Asian men. There has been some progress since 2014. Facebook, for instance, says the percentage of its female employees globally has increased from 15 to 23 percent. However, ethnic diversity remains low. Over the same time period, the proportion of U.S. technical employees at Google and Microsoft who are African American or Latinx (of Latin American descent) rose by only about 1 percent. The share of African American technical workers at Apple is 6 percent, less than half the 13 percent proportion of African Americans in the U.S. population. Ageism also continues to be a challenge; when tech workers hit 45, their job offers drop and salaries start to fall. In the United Kingdom too, data on diversity in the tech industry is disappointing, lagging far behind the Financial Times Stock Exchange M02_ROBB3069_18_GE_C02.indd 75 28/04/21 11:17 AM  76 PART 2    The Individual 100 Index (FTSE 100). About 8.5 percent of senior executives in tech- nology are from a minority background, while women make up just 12.6 percent of board members in the sector, compared with the 30 percent female representation achieved by FTSE 100 businesses. The picture is similar across Europe. According to the 2019 State of European Tech Report, there was a record investment of about €30 billion in the indus- try across the continent, yet 92 percent of the investment went to all- male founding teams, and funding to all-female teams actually dropped. Of the hundreds of founders that responded to the survey, 84 percent self-identify as white, and just 0.9 percent are of African descent. And 82 percent of founders are university educated, as compared to the 35 percent of people across Europe. The status quo is particularly troubling because of how technology now affects every sector, from transport, to finance, to government, to health- care. If only today’s tech-literate workers can access these growing employ- ment opportunities, swaths of the general population will be left behind. The products and services they make will be skewed too. The lack of inclusion affects the design of the goods and services that the industry creates. For instance, voice recognition initially did not respond to women because the designers who tested the products were male. Facial recognition is notori- ously poor at recognizing darker and female faces, again partly because of biased training data. A more diverse workforce will lead to better products that can address a wider range of customers, who may include people from different ethnic and socio economic backgrounds as well as the elderly and the disabled. Sources: M. Murgia, “How to Increase Diversity in the Tech Sector,” Financial Times, Novem- ber 13, 2019; and C. Warner, “Why Is European Tech Still Failing on Diversity and Inclu- sion,” Forbes, November 25, 2019, www.forbes.com/sites/checkwarner/2019/11/25/ why-is-european-tech-still-failing-on-diversity-and-inclusion/?sh=681dac4c17cb. M02_ROBB3069_18_GE_C02.indd 76 28/04/21 11:17 AM  Diversity in Organizations    CHAPTER 2 77 T he barriers and hardships facing women such as those in the tech indus- try are substantial, and they are examples of why diversity is so important for organizations. In this chapter, we look at how organizations should work to maximize the potential contributions of a diverse workforce. Because each of us is different from others in myriad ways, we consider diversity in many differ- ent forms. We also show how individual differences in abilities affect employee behavior and effectiveness in organizations. Diversity 2-1 Describe the two major forms of workplace diversity. We are, each of us, unique. This is obvious enough, but managers some- times forget they need to recognize the individual differences in their employees in order to capitalize on their unique strengths. In this chap- ter, we’ll learn how individual characteristics like age, gender, race, ethnic- ity, and abilities can influence employee performance. We’ll also see how managers can develop awareness about these characteristics and manage their diverse workforces effectively. But first, let’s consider an overview of the changing workforce. Demographic Characteristics The predominantly white, male managerial workforce of the past has given way to a gender-balanced, multiethnic workforce. For instance, in 1950, only 29.6 percent of the U.S. workforce was female,1 but by 2016, women comprised 46.8 percent.2 Both in the United States and internationally, women today are much more likely than before to be employed full time, have an advanced edu- cation, and earn wages comparable to those of men (see the OB Poll).3 In addi- tion, the earnings gap between whites and other racial and ethnic groups in OB POLL Gender Pay Gap: Narrowing but Still There Human resource $1,274 managers $1,495 Financial $1,130 managers $1,732 Computer and information $1,563 systems managers $1,817 Marketing and $1,258 Women sales managers $1,603 Men $1,836 Chief executives $2,251 $0 $500 $1,000 $1,500 $2,000 $2,500 Approximate median weekly pay per occupation Source: US Bureau of Labor Statistics, Highlights of Women’s Earnings in 2015 (Report No. 1604, November 2016): https://www.bls.gov/opub/reports/ womens-earnings/2015/pdf/home.pdf. M02_ROBB3069_18_GE_C02.indd 77 28/04/21 11:17 AM  78 PART 2    The Individual the United States has decreased significantly, partially due to the rising num- ber of minorities in the workforce. Hispanics will increase from 13 percent of the workforce in 2014 to 25.1 percent in 2044, blacks will increase from 12 to 12.7 percent, and Asians from 5 to 7.9 percent.4 Workers over the age of 55 are an increasingly large portion of the workforce as well, both in the United States and globally. In the United States, the 55-and-older age group will increase from 19.5 percent of the labor force in 2010 to 25.2 percent by 2020.5 In some other parts of the world (like Europe), the discussion has shifted to the wage gap between women and men rather than race or other contextual issues. For example, in the United Kingdom, the Office of National Statistics has indicated that the pay gap between women and men could be because of lower female representation at senior levels and the types of jobs that have traditionally been dominated by either gender. It is also argued that a gender pay gap is not the same as an equal pay gap. Different pay for people performing the same job has been illegal in the United Kingdom since 1970. It appears that the gender pay difference demonstrates a demographic pay gap, and the solutions to the two issues seem to be rather different.6 Levels of Diversity Although much has been said about diversity in age, race, gender, ethnicity, reli- gion, and disability status, experts now recognize that these demographic char- acteristics are just the tip of the iceberg.7 These characteristics mostly reflect surface-level diversity Differences in easily surface-level diversity, not thoughts and feelings, and can lead employees to perceived characteristics, such as gender, make stereotypes and assumptions about others from certain demographic race, ethnicity, age, or disability, that do not backgrounds. However, evidence has shown that people are less concerned necessarily reflect the ways people think or feel but that may activate certain stereotypes. about demographic differences if they see themselves as sharing more impor- tant characteristics, such as personality and values, that represent deep-level deep-level diversity Differences in values, diversity.8 personality, and work preferences that Managing diversity involves everyone and benefits everyone. Consider the become progressively more important for ­following example. Philip and Sharon are managers who do not seem to have determining similarity as people get to know one another better. much in common. Philip is a recently hired young man with a marketing degree from an Eastern European–dominant neighborhood in London. Sharon is an older woman from rural Manchester who started as a secretary after college and worked her way up the hierarchy. At first, these coworkers may notice their surface-­level differences in education, ethnicity, regional background, and gen- der. However, as they get to understand one another, they may find they are both deeply committed to their families, share a common way of thinking about work problems, like to work collaboratively, and are interested in international assignments. These deep-level similarities can overshadow the more superfi- cial ­differences between them, and research suggests they will work together. ­Additionally, increasing support for equal opportunities and diversity should be viewed as mutually supportive and the combination as important. Diversification with culturally related countries might lead to greater homogeneity of percep- tion, particularly if it concentrates on individuals rather than groups and includes improvement of opportunities for all individuals. In effect, managing diversity involves everyone and benefits everyone as separate groups are not singled out. Throughout this text, we will encounter differences between deep- and discrimination Noting of a difference ­surface-level diversity in various contexts. Diversity is an important concept in between things; often we refer to unfair dis- crimination, which means making judgments OB because individual differences shape preferences for rewards, communi- about individuals based on stereotypes cation styles, reactions to leaders, negotiation styles, and many other aspects regarding their demographic group. of behavior in organizations. Unfortunately, increased diversity may also mean increases in discriminatory practices, which we will discuss next. M02_ROBB3069_18_GE_C02.indd 78 28/04/21 11:17 AM  Diversity in Organizations    CHAPTER 2 79 An Ethical Choice Global Diversity: Affirmative Action A cross the globe, support for Section 158 of the Equality Act 2010 so many jobs to go around. CEOs and affirmative action is aimed at builds on existing legislation or positive HR managers must balance the ethics bridging inequalities in sev- action and extends it to include other of affirmative action against the need eral facets of life, including bridging protected statuses, such as age and to strengthen their workforce for the inequalities in employment pay, promot- disability. In Australia, the Affirmative good of their organization and society ing diversity, favoring members of a dis- Action (Equal Employment Opportunity at large. advantaged group who suffer or have for Women) Act 1986 requires all pri- suffered from discrimination within a vate sector employers in Australia with Sources: Based on “100,000 Jobs M ­ ission Hires over 200,000 Veterans,” ­Veteran Jobs culture—it varies from region to region. more than 100 employees to report Mission press release (February 9, 2015), In a historic move in the United States, annually on programs they have devel- https://www.veteranjobsmission.com/press- Wal-Mart (a retailing giant) vowed to oped to improve women’s employment releases/750; D. C. Baldridge and M. L. Swift, “Withholding Requests for Disability hire any returning U.S. veteran who opportunities. In South Africa, the Accommodation: The Role of Individual Dif- applied for work. As a result, the com- Employment Equity Act seeks to elimi- ferences and Disability Attributes,” Journal pany hired more than 42,000 veterans nate unfair discrimination in employ- of Management (March 2013): 743–62; “Walmart Celebrates More Than 40,000 by mid-2014 with an expectation that ment and thereby achieve a diverse Hires in First Year of Veterans Commit- the total number will climb to 100,000 workforce where no one feels disadvan- ment,” Walmart Foundation press release by 2018. Other businesses have taged. Also in place is the broad-based (May 21, 2014), http://news.walmart.com/news-archive/2014/05/21/walmart- launched similar initiatives. A coalition Black Economic Empowerment, a leg- celebrates-more-than-40-000-hires-in-first- of these companies, which originally islative framework to help reverse the year-of-veterans-commitment; B. Yerbak included 11 members, now consists legacy of apartheid. and C. V. Jackson, “Battling to Get More Vets in the Work Force,” Chicago T­ ribune of 230 companies from several busi- Ordinarily, affirmative action is (October 28, 2012), http://articles.chica­ nesses. Sometimes, affirmative action needed to give an unfairly disadvan- gotribune.com/2012-10-28/business/ct- is required to give an unfairly disadvan- taged workforce segment or group an biz-1028-vets-20121028_1_train-veterans- unemployment-rate-war-zone; “Veterans taged workforce segment an opportu- opportunity to succeed, but success Unemployment Drops but Remains High,” nity to succeed, whether it is achieved will depend on the sincerity and con- HR Magazine, February 2013, 16; J. Sheri- through percentages or by hiring pro- sistency of purpose of governments dan Alison “Affirmative Action in Australia— Employment Statistics Can’t Tell the Whole spective employees from the desired and business organizations as well Story,” Women in Management Review 10, group. as the attitude of the individual or no. 2 (1995): 26–34; T. Jarrett, The Equality In the United Kingdom, the Equality group concerned. However, it is evi- Act 2010 and Positive Action, Library House of Commons, Business and Transport Sec- Act 2010 promotes positive action with dent that resources are scarce and tion, last updated, 24 October 2013. respect to employment. As an example, will continue to be so—there are only Discrimination 2-2 Demonstrate how workplace discrimination undermines Although diversity presents many opportunities for organizations, diversity management includes working to eliminate unfair discrimination. To discrimi- organizational effectiveness. nate is to note a difference between things, which in itself isn’t necessarily bad. Noticing one employee is more qualified is necessary for making hiring deci- sions; noticing another is taking on leadership responsibilities exceptionally well is necessary for making promotion decisions. Usually when we talk about stereotyping Judging someone on the basis discrimination, though, we mean allowing our behavior to be influenced by of our perception of the group to which that stereotypes about groups of people. Stereotyping is judging someone on the person belongs. basis of our perception of the group to which that person belongs. To use a M02_ROBB3069_18_GE_C02.indd 79 28/04/21 11:17 AM  80 PART 2    The Individual machine metaphor, you might think of stereotypes as the fuel that powers the discrimination engine. Stereotypes can be insidious not only because they may affect the perpetrators of discrimination but also because they can affect how potential targets of discrimination see themselves. Stereotype Threat Let’s say that you are sitting in a restaurant, waiting for the blind date your coworker arranged to find you in the crowded room. How do you think your coworker described you to this person? Now consider how you would describe yourself to this new person if you’d talked on the phone before the date. What identifiable groups would you mention as a shorthand way for your date to know a bit about you so he or she could recognize you in the restaurant? Chances are good that you’d mention your race, something about how you express your gender (such as the way you dress), how old you are, and maybe what you do for a living. You might also mention how tall you are if you are remarkably tall or short, and—if you’re candid—you might mention something about your build (heavyset, petite, in between). Overall, you’d give cues to your blind date about characteristics that are distinctive, or that stand out, about you. What you tell someone about yourself says a lot about what you think about yourself. Just as we stereotype others, we also stereotype ourselves. stereotype threat The degree to which we Stereotype threat describes the degree to which we agree internally with are concerned with being judged by or treated the generally negative stereotyped perceptions of our groups. Along with that negatively based on a certain stereotype. comes a fear of being judged when we are identified with the negative connota- tions of that group. This can happen when we are a minority in a situation. For instance, an older worker applying for a job in a predominately millennial-age workforce may assume the interviewer thinks he is out of touch with current trends. What creates a stereotype threat is not whether the worker is or is not up to date with trends, but whether he agrees internally that older workers (the group he identifies with) are out of date (the stereotype). In Europe, there appears to be an aging workforce. The negative stereotypes about the older worker, extending to such beliefs among outgroups that they have lower dex- terity and physical ability, may increase their apprehension and thus lead older employees to take on more demanding jobs. In essence, they put in extra effort and time that would otherwise have been superfluous just to avoid a stereotype threat. People become their own worst enemies when they feel stereotype threat. Ironically, they may unconsciously exaggerate the stereotype, like an older job applicant who talks about aging, rambles during the conversation, and discloses too much.9 Second, employees may engage in self-handicapping, in which they avoid effort so that they can attribute their potential failure to other sources, such as stress or “having a bad day.”10 Third, people may overcompensate for the stereotype threat they feel or work to avoid confirming the stereotype. A Hispanic who tries to be as busy as possible at work and rushes conspicu- ously around the office may be attempting to overcome a stereotype threat of Hispanics as slower workers. This may happen even if the workplace has many ethnic minority employees because minorities perceive stereotypes about each other.11 Stereotype threat can serve as a “brain drain” for employees, causing them to deplete their working memories so that they do not perform as well on employment tests or training.12 Stereotype threat has serious implications for the workplace. Stereotype threat can occur during preemployment tests and assessments, performance evaluations, and everyday workplace exchanges. It can lead to underperfor- mance on tests, performance evaluations, training exercises, negotiations, and everyday interactions with others as well as to disengagement, poor job attitudes, M02_ROBB3069_18_GE_C02.indd 80 28/04/21 11:17 AM  Diversity in Organizations    CHAPTER 2 81 a reluctance to seek feedback, and poor performance in the employees expe- riencing the threat.13 Although the occurrence of stereotype threat is not inev- itable and occurs infrequently in testing environments, we should still put in efforts to combat it in the workplace by treating employees as individuals and not highlighting group differences. The following organizational changes can be successful in reducing stereotype threat: increasing awareness of how stereo- types may be perpetuated (especially when developing policies and practices), reducing differential and preferential treatment through objective assessments, MyLab Management Personal Inventory Assessments Go to www.pearson.com/mylab/management to complete the Personal Inventory Assessment related to this chapter. confronting microaggressions against minority groups, and adopting transpar- ent practices that signal the value of all employees.14 Discrimination in the Workplace To review, unfair discrimination assumes that everyone in a group is the same rather than looking at the characteristics of individuals within the group. This discrimination is often very harmful for employees, as we’ve just discussed, as well as for organizations. Exhibit 2-1 Forms of Discrimination Type of Discrimination Definition Examples from Organizations Discriminatory policies Actions taken by representatives of the Older workers may be targeted for layoffs or practices organization that deny equal opportunity because they are highly paid and have lucrative to perform or unequal rewards for benefits. performance. Sexual harassment Unwanted sexual advances and other Salespeople at one company went on company-paid verbal or physical conduct of a sexual visits to strip clubs, brought strippers into the office to nature that create a hostile or offensive celebrate promotions, and fostered pervasive sexual work environment. rumors. Intimidation Overt threats or bullying directed at African-American employees at some companies have members of specific groups of employees. found nooses hanging over their work stations. Mockery and insults Jokes or negative stereotypes; sometimes Arab-Americans have been asked at work whether the result of jokes taken too far. they were carrying bombs or were members of terrorist organizations. Exclusion Exclusion of certain people from job Many women in finance claim they are assigned to opportunities, social events, discussions, marginal job roles or are given light workloads that or informal mentoring; can occur don’t lead to promotion. unintentionally. Incivility Disrespectful treatment, including Female lawyers note that male attorneys frequently behaving in an aggressive manner, cut them off or do not adequately address their interrupting the person, or ignoring comments. his or her opinions. Sources: Based on J. Levitz and P. Shishkin, “More Workers Cite Age Bias after Layoffs,” The Wall Street Journal, March 11, 2009, D1–D2; W. M. Bulkeley, “A Data-Storage Titan Confronts Bias Claims,” The Wall Street Journal, September 12, 2007, A1, A16; D. Walker, “Incident with Noose Stirs Old Memories,” McClatchy-Tribune Business News, June 29, 2008; D. Solis, “Racial Horror Stories Keep EEOC Busy,” Knight-Ridder Tribune Business News, July 30, 2005, 1; H. Ibish and A. Stewart, Report on Hate Crimes and Discrimination against Arab Americans: The Post-September 11 Backlash, Sep- tember 11, 2001–October 11, 2001 (Washington, DC: American-Arab Anti-Discrimination Committee, 2003); A. Raghavan, “Wall Street’s Disappearing Women,” Forbes, March 16, 2009, 72–78; and L. M. Cortina, “Unseen Injustice: Incivility as Modern Discrimination in Organizations,” Academy of Management Review 33, no. 1 (2008): 55–75. M02_ROBB3069_18_GE_C02.indd 81 28/04/21 11:17 AM  82 PART 2    The Individual Exhibit 2-1 provides definitions and examples of some forms of discrimi- nation in organizations. Although many are prohibited by law and therefore are not part of organizations’ official policies, the practices persist. Tens of thousands of cases of employment discrimination are documented every year, and many more go unreported. Because discrimination has increasingly come under both legal scrutiny and social disapproval, most overt forms have faded, which may have resulted in an increase in more covert forms like incivility or exclusion, especially when leaders look the other way.15 As you can see, discrimination can occur in many ways, and its effects can vary depending on organizational context and the personal biases of employees. Some forms of discrimination, exclusion and incivility, for example, are especially hard to root out because they may occur simply because the actor isn’t aware of the effects of his or her actions. Like stereotype threat, actual discrimination can lead to increased negative consequences for employers, including reduced productiv- ity and organizational citizenship behavior (OCB), more conflict, increased turn- over, and even increased risk-taking behavior.16 Unfair discrimination also leaves qualified job candidates out of initial hiring and promotions. Thus, even if an employment discrimination lawsuit is never filed, a strong business case can be made for aggressively working to eliminate unfair discrimination. Whether it is overt or covert, intentional or unintentional, discrimination is one of the primary factors that prevent diversity. On the other hand, recogniz- ing diversity opportunities can lead to an effective diversity management pro- gram and ultimately to a better organization. Diversity is a broad term, and the phrase workplace diversity can refer to any characteristic that makes people dif- ferent from one another. The following section covers some important surface- level characteristics that differentiate members of the workforce. Biographical Characteristics 2-3 Describe how the key ­biographical characteristics Biographical characteristics such as age, gender, race, and disability are some of the most obvious ways employees differ. Let’s begin by looking at factors are relevant to Organiza- that are easily definable and readily available—data that can be obtained, for tional Behavior (OB). the most part, from an employee’s human resources (HR) file. Variations in surface-level characteristics may be the basis for discrimination against classes biographical characteristics Personal of employees, so it is worth knowing how related they actually are to work out- c­ haracteristics—such as age, gender, race, comes. As a general rule, many biographical differences are not important to and length of tenure—that are objective actual work outcomes, and far more variation occurs within groups sharing bio- and easily obtained from personnel records. graphical characteristics than between them. These characteristics are representative of surface-level diversity. Age Age in the workforce is likely to be an issue of increasing importance during the next decade for many reasons. For one, the workforce is aging worldwide in most developed countries;17 by 2014–2024 projections, the average annual growth rate of workers over age 54 in the labor force is expected to be 1.8 percent, which is over three times greater than that of the overall labor force.18 In the United States, the proportion of the workforce age 55 and older is 22 percent and increasing,19 and legislation has, for all intents and purposes, outlawed manda- tory retirement. The United States and Australia, among other countries, have laws directed against age discrimination.20 Most workers today no longer have to retire at age 70, and 62 percent of workers age 45 to 60 plan to delay retirement.21 The stereotypes of older workers as being behind the times, grumpy, and inflexible are changing. Managers often see a number of positive qualities that older workers bring to their jobs, such as experience, judgment, a strong work M02_ROBB3069_18_GE_C02.indd 82 28/04/21 11:17 AM  Diversity in Organizations    CHAPTER 2 83 Myth or Science? Bald Is Better S urprisingly, it appears true that heads—military heroes, winning ath- of telling the rest of the world you are a bald is better for men in the work- letes, and action heroes. No wonder survivor.” Men with shaved heads con- place. A recent study showed that study participants declared that the vey aggressiveness, competitiveness, observers believe a male’s shaved men with shaved heads were an inch and independence, he adds. Will you head indicates greater masculinity, taller and 13 percent stronger than the join the 13 percent of men who shave dominance, and leadership potential same men with hair. their heads? Though we don’t wish to than longer or thinning hair. Thinning A bald head has become the hall- advocate head shaving for this rea- hair was perceived as the least power- mark of some important business son, it does demonstrate how biased ful look, and other studies have agreed leaders, notably Jeff Bezos of Amazon, we continue to be in judging people by that male-pattern baldness (when Lloyd Blankfein of Goldman Sachs, superficial characteristics. Time will tell some hair remains) is not considered Marc Andreessen of Netscape, and if this situation ever improves. advantageous. Why is this? “Shark Tank” investor Daymond John. In some respects, the reported Men who shave their heads report it Sources: Based on D. Baer, “People Are Psychologically Biased to See Bald Men youthful advantage of a shaved head can give them a business advantage, as ­ Dominant Leaders,” Business Insider is counterintuitive. Because we have whether or not it makes them look (February 13, 2015), http://www.business more hair when we are young, and younger (which is debatable). According insider.com/bald-men-signals-dominance- 2015-2; J. Misener, “Men with Shaved contemporary culture considers youth- to psychologist Caroline Keating, just Heads Appear More Dominant, Study Finds,” fulness a desirable characteristic in as older silver-back gorillas are “typi- The Huffington Post (October 1, 2012), the workplace (if you doubt this, see cally the powerful actors in their social www.huffingtonpost.com/2012/10/01/ bald-men-dominant-shaved-heads-study_ the discussions on aging in this chap- groups,” so it is in the office, where n_1930489.html; A. E. Mannes, “Shorn ter), it would make more sense for a baldness may “signal who is in charge Scalps and Perceptions of Male Dominance,” hairless head to be a distinct disad- and potentially dangerous.” Research Social Psychological and Personality Science, (2012), doi: 10.1177/1948550612449490; vantage. Yet the media is loaded with professor Michael Cunningham agrees, and R. E. Silverman, “Bald Is Powerful,” The images of powerful men with shaved adding that baldness “is nature’s way Wall Street Journal (October 3, 2012), B1, B6. ethic, and commitment to quality. The Public Utilities Board, the water agency of Singapore, reports that 27 percent of its workforce is over age 55 because older workers bring workforce stability.22 And industries like health care, education, government, and nonprofits often welcome older workers.23 But older workers are still perceived as less adaptable and less motivated to learn new technology.24 When organizations seek individuals who are open to change and training, the perceived negatives associated with age clearly hinder the initial hiring of older workers and increase the likelihood they will be let go during cutbacks. Now let’s look at the evidence. What effect does age actually have on turnover, absenteeism, productivity, and satisfaction? Regarding turnover, the older you are, the less likely you are to quit your job.25 As workers get older, they have fewer alter- nate job opportunities because their skills have become more specialized. Within organizations, older workers’ longer tenure tends to provide them with higher wages, longer paid vacations, and benefits that may bind them to their employers. It may seem likely that age is positively correlated to absenteeism, but this isn’t true. Most studies show that older employees have lower rates of avoidable absence versus younger employees.26 Furthermore, older workers do not have more psycho- logical problems or day-to-day physical health problems than younger workers.27 The majority of studies have shown “virtually no relationship between age and job performance,” according to Director Harvey Sterns of the Institute for Life-Span Development and Gerontology.28 Indeed, some studies indicate that older adults perform better. In Munich, a 4-year study of 3,800 Mercedes-Benz workers found that “the older workers seemed to know better how to avoid severe M02_ROBB3069_18_GE_C02.indd 83 28/04/21 11:17 AM  84 PART 2    The Individual At Tofutti, maker of dairy-free products, older employees are an integral part of the workforce. Tofutti’s CEO David Mintz values the experience, work ethic, maturity, enthusiasm, knowl- edge, and skills that older workers bring to their jobs. He says older employees have fewer absences, make fewer mistakes, are better at solving problems, and are willing to work more hours. Source: Julio Cortez/AP images errors,” said Matthias Weiss, the academic coordinator of the study.29 Related to performance, there is a conception that creativity lessens as people age. Researcher David Galenson, who studied the ages of peak creativity, found that people who create through experimentation do “their greatest work in their 40s, 50s, and 60s. These artists rely on wisdom, which increases with age.” There is evidence that age-diverse teams and organizations perform better than those with similar ages, primarily because both older and younger workers bring a complementary, diverse set of knowledge, skills, and abilities to their teams.30 What about age and satisfaction? Regarding life satisfaction, which we will discuss further in later chapters, there is a cultural assumption that older peo- ple are more prone to depression and loneliness. Actually, a study of adults ages 18 to 94 found that positive moods increased with age. “Contrary to the popular view that youth is the best time of life, the peak of emotional life may not occur until well into the seventh decade,” researcher Laura Carstensen said.31 Regarding job satisfaction, an important topic in Chapter 3, a review of more than 800 studies found that older workers tend to be more satisfied with their work, report better relationships with coworkers, and are more commit- ted to their organizations.32 Other studies, however, have found that job satis- faction increases up to middle age, at which point it begins to drop off. When we separate the results by job type, though, we find that satisfaction tends to increase continually among professionals as they age, whereas among nonpro- fessionals, it falls during middle age and then rises again in the later years. In sum, we can see that the surface-level characteristic of an employee’s age is an unfounded basis for discrimination and that an age-diverse workforce is a benefit to an organization. Sex Few issues initiate more debates, misconceptions, and unsupported opinions than whether women perform as well on jobs as men. The best place to begin to consider this topic is with the recognition that few, if any, differences between men and women affect job performance.33 Though men may have slightly higher math ability and women slightly higher verbal ability, the differences are fairly small, and there are no consistent male–female differences in problem-solving ability, analytical skills, or learning ability.34 One M02_ROBB3069_18_GE_C02.indd 84 28/04/21 11:17 AM  Diversity in Organizations    CHAPTER 2 85 meta-analysis of job performance studies found that women scored slightly higher than men on performance measures.35 A separate meta-analysis of 95 leadership studies indicated that women and men are rated equally effective as leaders.36 Yet biases and stereotypes persist. In the hiring realm, managers are influenced by gender bias when selecting candidates for certain positions.37 For instance, men are preferred in hiring decisions for male-dominated occupations, particu- larly when men are doing the hiring.38 Once on the job, men and women may be offered a similar number of developmental experiences, but females are less likely to be assigned challenging positions by men, assignments that could help them achieve higher organizational positions.39 Men are more likely to be chosen for leadership roles even though men and women are equally effective leaders, a phenomenon which has been referred to as the “glass ceiling” (and applies to any underrepresented group that faces obstacles to advancement).40 In fact, as of April 2020, women hold only 6 percent of CEO positions in S&P 500 companies.41 ­ Furthermore, a study of 20 organizations in Spain, for example, suggested that women are generally selected for leadership roles that require handling organi- zational crises, positions in which they are usually set up to fail, a phenomenon commonly referred to as the glass cliff.42 According to Naomi Sutherland, senior partner in diversity at recruiter Korn Ferry, “Consciously or subconsciously, com- panies are still hesitant to take the risk on someone who looks different from their standard leadership profile.”43 These stereotypes counter the evidence which suggests that females are effec- tive leaders in organizations: not only does research from hundreds of studies suggest that women are rated as effective leaders in organizations, but that wom- en’s representation in leadership positions is actually predictive of financial per- formance in hundreds of thousands of organizations.44 Sex discrimination has a pervasive negative impact. Notably, women still earn less money than men for the same positions,45 even in traditionally female roles.46 Furthermore, the sex differences in promotions, bonuses, and salaries (across 97 different studies and nearly 400,000 people) are 14 times larger than their differences on performance evaluations.47 Working mothers also face “maternal wall bias,” meaning they are often not considered for new positions after they have children, and both men and women experience discrimination for their family caregiving roles.48 Women who receive fewer challenging assignments and development opportunities from biased managers tend to curtail their management aspirations.49 Women who are assertive in the workplace tend to be liked less and perceived as less hirable.50 We’ve seen that there are many misconceptions and contradictions about male and female workers. Thankfully, many countries, including Australia, the United Kingdom, and the United States, have laws against sex discrimination. Other countries, such as Belgium, France, Norway, and Spain, are seeking gen- der diversity through laws to increase the percentage of women on boards of directors.51 Gender biases and gender discrimination are still serious issues, but there are indications that the situation is improving. Race and Ethnicity Race is a controversial issue in society and in organizations. We define race as the heritage people use to identify themselves; ethnicity is the additional set of cultural characteristics that often overlaps with race. Typically, we associate race with biol- ogy, and ethnicity with culture, but there is a history of self-identifying for both classifications. Laws against race and ethnic discrimination are in effect in many countries, including Australia, the United Kingdom, and the United States.52 Race and ethnicity have been studied as they relate to employment outcomes such as hiring decisions, performance evaluations, pay, and workplace discrimi- nation. Individuals may slightly favor colleagues of their own race in performance evaluations, promotion decisions, and pay raises, although such differences are not found consistently, especially when highly structured methods of decision M02_ROBB3069_18_GE_C02.indd 85 28/04/21 11:17 AM  86 PART 2    The Individual making are employed.53 Also, some industries have remained less racially diverse than others. For instance, U.S. advertising and media organizations suffer from a lack of racial diversity in their management ranks even though their client base is increasingly ethnically diverse.54 In the United K ­ ingdom, there have been demands that the Government stop auditing and start acting against racial dis- crimination. Research suggests that many BAME (Black, Asian, and Minority Ethnic) professionals in UK organizations, including universities, are among the most qualified and experienced in their teams and functions, but they struggle to achieve the career progression they are qualified for. In the education sector, where the numbers of ethnic minority students are rising, figures published by the Higher Education Statistics Agency in 2017 showed there were no Black aca- demics in the manager, director, and senior official categories in 2015–16.55 Members of racial and ethnic minorities report higher levels of discrimina- tion in the workplace.56 Black people generally fare worse than white people in employment decisions (a finding that may not apply outside the United States). They receive lower ratings in employment interviews, lower job perfor- mance ratings, less pay, and fewer promotions.57 While this does not necessarily prove overt racial discrimination, black people are often discriminated against even in controlled experiments. For example, one study of low-wage jobs found that black applicants with no criminal history received fewer job offers than did white applicants with criminal records.58 Even applicants with black-­sounding names were 50 percent less likely than those with white-sounding names to receive interview callbacks in one large randomized experiment.59 As we discussed before, discrimination—for any reason—leads to increased turn- over, which is detrimental to organizational performance. While better representa- tion of all racial groups in organizations remains a goal, an individual of minority status is much less likely to leave the organization if there is a feeling of inclusiveness, positive diversity climate In an organiza- known as a positive diversity climate.60 A positive climate for diversity can also lead tion, an environment of inclusiveness and an to increased sales, commitment, and retention, suggesting there are organizational acceptance of diversity. performance gains associated with reducing racial and ethnic discrimination.61 How do we move beyond the destructiveness of discrimination? The answer is in understanding one another’s viewpoint. Evidence suggests that some people find interacting with other racial groups uncomfortable unless there are clear behav- ioral scripts to guide their behavior,62 so creating diverse work groups focused on mutual goals could be helpful, along with developing a positive diversity climate. Disabilities Workplace policies, both official and circumstantial, regarding individuals with physical or mental disabilities vary from country to country. Countries such as Australia, the United States, the United Kingdom, and Japan have specific laws to protect individuals with disabilities.63 These laws have resulted in greater acceptance and accommodation of people with physical or mental impair- ments. In the United States, for instance, the representation of individuals with disabilities in the workforce rapidly increased with the passage of the Ameri- cans with Disabilities Act (ADA, 1990).64 According to the ADA, employers are required to make reasonable accommodations so their workplaces will be accessible to individuals with physical or mental disabilities. The U.S. Equal Employment Opportunity Commission (EEOC), the federal agency responsible for enforcing employment discrimination laws, classifies a person as disabled who has any physical or mental impairment that substantially limits one or more major life activities. One of the most controversial aspects of the ADA is the provision that requires employers to make reasonable accommo- dations (e.g., comfort and assistance animals) for people with psychiatric disabili- ties.65 Examples of recognized disabilities include missing limbs, seizure disorder, Down syndrome, deafness, schizophrenia, alcoholism, diabetes, depression, and M02_ROBB3069_18_GE_C02.indd 86 28/04/21 11:17 AM  Diversity in Organizations    CHAPTER 2 87 chronic back pain. These conditions share almost no common features, so there’s no specific definition about how each condition is related to employment. Since it was first introduced in the United Kingdom some 20 years ago, ­discrimination law has defined disability using the following formulation: “A disabled person is someone who suffers from a physical or mental impairment which has a substantial and long-term adverse effect on his ability to carry our normal day to day activities.” The final clause (“normal day-to-day activities”) has always been the subject of controversy, and the courts have always interpreted it as referring to ordi- nary, everyday tasks that the average man or woman in the street performs. An individual is not disabled for the purposes of the Equity Act (formerly the Disability Discrimination Act) because you cannot play football or because you cannot climb a mountain. The impairment must stop you from basic, common daily activities like getting dressed, making breakfast, and getting to work. The controversy arises because this often means that someone is not classi- fied as disabled and hence has no case in law when their impairment prevents them from carrying out an aspect of their work that does not fall under the definition of normal day-to-day activities. In the United Kingdom, a number of cases involve dismissal because of an inability to lift heavy weights, which is not a “normal day-to-day activity” and hence is not the basis for successful disability discrimination claims. It is interesting to see how the case law further develops in this area from the perspective of the United States and the United Kingdom. The impact of disabilities on employment outcomes has been explored from a variety of perspectives. On one hand, when disability status is randomly manip- ulated among hypothetical candidates, disabled individuals are rated as having superior personal qualities like dependability.66 Another review suggested that workers with disabilities receive higher performance evaluations. However, indi- viduals with disabilities tend to encounter lower performance expectations and are less likely to be hired.67 Mental disabilities may impair performance more than physical disabilities: Individuals with common mental health issues such as depression and anxiety are significantly more likely to be absent from work.68 The elimination of discrimination against the disabled workforce has long been problematic. In Europe, for instance, policies to motivate employers have failed to boost the workforce participation rate for workers with disabilities, and outright quota systems in Germany, France, and Poland have backfired.69 ­However, the recognition of the talents and abilities of individuals with disabilities has made a positive impact. In addition, technology and workplace advancements have greatly increased the scope of available jobs for those with all types of disabilities. Manag- ers need to be attuned to the true requirements of each job and match the skills of the individual to them, providing accommodations when needed. But what hap- pens when employees do not disclose their disabilities? Let’s discuss this next. Hidden Disabilities As we mentioned earlier, disabilities include observable characteristics like miss- ing limbs, illnesses that require a person to use a wheelchair, and blindness. Other disabilities may not be obvious, at least at first. Unless an individual decides to disclose a disability that isn’t easily observable, it can remain hidden at the discre- tion of the employee. These are called hidden disabilities (or invisible disabilities). Hidden, or invisible, disabilities generally fall under the categories of sensory dis- abilities (for example, impaired hearing), autoimmune disorders (like rheuma- toid arthritis), chronic illness or pain (like carpal tunnel syndrome), cognitive or learning impairments (like attention deficit hyperactivity disorder [ADHD]), sleep disorders (like insomnia), and psychological challenges (like PTSD).70 As a result of recent changes to the Americans with Disabilities Act Amend- ments Act (ADAAA) of 2008, U.S. organizations must accommodate employ- ees with a very broad range of impairments. However, employees must disclose M02_ROBB3069_18_GE_C02.indd 87 28/04/21 11:17 AM  88 PART 2    The Individual their conditions to their employers in order to be eligible for workplace accom- modations and employment protection. Many employees do not want to disclose their invisible disabilities, so they are prevented from getting the work- place accommodations they need in order to thrive in their jobs. Research indi- cates that individuals with hidden disabilities are afraid of being stigmatized or ostracized if they disclose their disabilities to others in the workplace, and they believe that their managers will think they are less capable of strong job per- formance.71 Add this to the challenge of receiving a diagnosis for a condition that one did not previously have and these fears are compounded even more so than if the diagnosis was made for employees when they were younger.72 In some ways, a hidden disability is not truly invisible. For example, a person with undisclosed autism will still exhibit the behaviors characteristic of the con- dition, such as difficulty with verbal communication and lack of adaptability.73 You may observe behaviors that lead you to suspect an individual has a hidden disability. Unfortunately, you may attribute the behavior to other causes—for instance, you may incorrectly ascribe the slow, slurred speech of a coworker to an alcohol problem rather than to the long-term effects of a stroke. As for the employee, research suggests that disclosure helps all—the individ- ual, others, and organizations. Disclosure may increase the job satisfaction and well-being of the individual, help others understand and assist the individual to succeed in the workplace, and allow the organization to accommodate the situ- ation so that the employee and the organization achieve top performance.74 Other Differentiating Characteristics 2-4 Explain how other differen- tiating characteristics factor The last set of characteristics we’ll look at includes tenure, religion, sexual ori- entation and gender identity, and cultural identity. These characteristics illus- into OB. trate deep-level differences that provide opportunities for workplace diversity as long as discrimination can be overcome. Tenure Except for gender and racial differences, few issues are more subject to mis- conceptions and speculations than the impact of seniority and tenure, meaning time spent in a job, organization, or field. Extensive reviews have been conducted of the seniority–productivity relation- ship.75 The evidence demonstrates a positive relationship between organizational tenure (i.e., how long an employee has been in his or her organization) and job performance. As such, organizational tenure appears to be a good predictor of employee performance, although there is some evidence that the relationship is not linear: Differences in organizational tenure are more important to job performance for relatively new or inexperienced employees than among those who have been on the job longer. To use a National Football League (NFL) analogy, a second-year quar- terback has more of an edge over a rookie than a tenth-year quarterback has over one in his ninth year. Job tenure, on the other hand (i.e., how long an employee has been in his or her job), demonstrates a weak, inconsistent effect on employee out- comes, indicating that employees may lose desire for further career advancement. Religion Religious and nonreligious people question each other’s belief systems, and peo- ple of different religious faiths often conflict. There are few—if any—countries in which religion is a nonissue in the workplace. For this reason, employers are pro- hibited by law from discriminating against employees based on religion in many countries, including Australia, the United Kingdom, and the United States.76 M02_ROBB3069_18_GE_C02.indd 88 28/04/21 11:17 AM  Diversity in Organizations    CHAPTER 2 89 Islam is one of the most popular religions in the world, and it is the majority religion in many countries. However, in the United States, Muslims are a minority group that is growing. There are nearly 3 million Muslims in the United States, and the number is predicted to double by 2030, when they will represent 1.7 per- cent of the population, according to the Pew Research Center. At that point, there will be as many Muslims in the United States as there are Jews and Episcopalians.77 Despite these numbers, there is evidence that people are discriminated against for their Islamic faith even in the workplace. For instance, U.S. job applicants in ­Muslim-identified religious attire who applied for hypothetical retail jobs had shorter, more interpersonally negative interviews than applicants who did not wear Muslim-identified attire.78 One’s own religious commitment predicts whether or not an employee will intervene when observing religious discrimination.79 Faith can be an employment issue wherever religious beliefs prohibit or encourage certain behaviors. The behavioral expectations can be informal, such as employees leaving work early on Christmas Eve. Or they may be systemic, such as the Monday to Friday workweek, which accommodates a Christian tradition of not working on Sundays and a Jewish tradition of not working on Saturdays. Religious discrimination has been a growing source of discrimination claims in the United States, partially because the issues are complex. Recently, Samantha Elauf, who was turned down for employment because she wears a hijab (a head scarf), sued for religious discrimination. “I learned I was not hired by Abercrombie because I wear a head scarf, which is a symbol of modesty in my Muslim faith,” she said. She was not aware of the organization’s rule against head coverings and did not mention her reason for the scarf. Should employers be required to deduce why applicants dress as they do and then protect them? Even the Supreme Court is not certain.80 Sexual Orientation and Gender Identity While much has changed, the full acceptance and accommodation of lesbian, gay, bisexual, transgender, and questioning (LGBTQ) employees remains a work in prog- ress. In the United States, a Harvard University study sent fictitious but realistic résu- més to 1,700 actual entry-level job openings. The applications were identical with one exception: Half mentioned involvement in gay organizations during college, and the other half did not. The applications without the mention received 60 per- cent more callbacks than the ones with it.81 Another study suggests that the hirability perceptions of lesbian and gay candidates made by women are actually higher than those for heterosexuals, suggesting that the bias is complicated and nuanced.82 Perhaps as a result of perceived discrimination, many LGBTQ employees do not disclose their status. For example, John Browne, former CEO of British Petroleum (BP), hid his sexual orientation until he was 59, when the press threat- ened to disclose that he was gay. Fearing the story would result in turmoil for the company, he resigned. Browne wrote recently, “Since my outing in 2007, many societies around the world have done more to embrace people who are lesbian, gay, bisexual, or transgender. But the business world has a long way to go.”83 U.S. federal law does not prohibit discrimination against employees based on sexual orientation, although 29 states and more than 160 municipalities do. For states and municipalities that protect against discrimination based on sexual ori- entation, roughly as many claims are filed for sexual orientation discrimination as for sex and race discrimination.84 Some other countries are more progressive: For instance, Australia has laws against discriminating on the basis of sexual preference, and the United Kingdom has similar laws regarding sexual orientation.85 However, the distinctions in these laws may not be broad enough—researchers have acknowl- edged a new acronym, QUILTBAG, to describe individuals who are queer/ques- tioning, undecided, intersex, lesbian, transgender, bisexual, asexual, or gay.86 The rights and freedoms of LGBT citizens are significantly influenced by the prevailing cultural traditions and religions of people living in some regions M02_ROBB3069_18_GE_C02.indd 89 28/04/21 11:17 AM  90 PART 2    The Individual of the world, such as the Middle East and some Asian countries. Several Middle Eastern countries have received strong international criticism for discriminat- ing against this group. The Human Rights Watch believes the main argument can be made by framing the situation of people in terms of their rights vio- lation and protection. Southern and East Africa, the Middle East, and South Asia remain very conservative in this regard while Western Europe tends to be permissive and has prohibited discrimination at the workplace based on sexual orientation.87 As a first step in the United States, the federal government has prohibited discrimination against government employees based on sexual ori- entation. The EEOC recently held that sex-stereotyping against lesbian, gay, and bisexual individuals represents gender discrimination enforceable under the Civil Rights Act of 1964.88 Even in the absence of federal legislation, many organizations have implemented policies and procedures that cover sexual ori- entation. IBM, once famous for requiring all employees to wear white shirts and ties, has changed its ultraconservative environment. Former vice president Ted Childs said, “IBM ensures that people who are gay, lesbian, bisexual or Career OBjectives Should I come out at work? I’m gay, but no one at my workplace urged to be open with peers and what you think are your ethical respon- knows it. How much should I be will- employees. As Ernst & Young global sibilities but also on your context— ing to tell? I want to be sure to have vice chairperson Beth Brooke said where you work, the culture of your a shot at the big positions in the firm. abo