DiversityDiversity

BUSA 220BUSA 220

Organizational BehaviorOrganizational Behavior

Professor WallaceProfessor Wallace

What does Diversity mean to you?

• Diversity: The

differences and

similarities that exist

among all human beings.

• Stand up, then sit down

if what I suggest doesn’t

apply to you.

• Once sitting, if

something new applies,

stand back up.

The 4 Layers of Diversity

Source: L Gardenswartz and A Rowe, Diverse

Teams at Work: Capitalizing on the Power of

Diversity (New York: McGraw-Hill, 1994), p.

33

Evaluate

• Sam is a 55 year-old, male

Sales Manager for XYZ

corporation. He likes to

drive fast cars and is

Native American. Which

layer of diversity has not

been mentioned about

Sam?

A. Personality

B. Internal

C. External

D. Organizational

Affirmative Action

• Goal: Prevent

discrimination (Never

required to hire

unqualified people)

• Have affirmative action

programs been good for

society?

– A=Yes, B=No

• Are affirmative action

programs still necessary?

– A=Yes, B=No

Competitive Advantage

• How can managing

diversity be a

competitive advantage?

• Workforce diversity

mirrors consumer and

B2B diversity.

• Diversity is required for

innovation and

competitive advantage.

• Lower turnover, and less

chance of lawsuits.

Gender – Race – Age – Sex

• Women – The glass ceiling is an

invisible barrier blocking

women and minorities from

top management positions.

Break it by: • Consistently exceeding

performance expectations

• Developing a style with

which male managers are

comfortable,

• Seeking out difficult or

challenging assignments, and

• Having influential mentors.

Year % Year % Year %

1951 63.9 1970 59.4 1992 70.8

1953 61.3 1972 57.9 1994 72.0

1956 63.3 1974 58.8 1996 73.8

1957 63.8 1976 60.2 1998 73.2

1958 63.0 1978 59.4 2000 73.3

1959 61.3 1980 60.2 2002 76.6

1960 60.7 1982 61.7 2003 75.5

1961 59.2 1984 63.7 2005 77.0

1963 58.9 1986 64.3 2006 76.9

1964 59.1 1988 66.0 2007 77.8

1966 57.6 1990 71.6 2008 77.1

1968 58.2 1991 69.9 2009 77.0

Source: Nat'l Committee on Pay Equity

Gender – Race – Age – Sex

Race/Gender $ Ratio

White Men $47,814 100.0 %

White Women 35,151 73.5

Black Men 34,480 72.1

Black Women 30,398 63.6

Hispanic Men 27,490 57.5

Hispanic Women

24,738 51.7

All Men $42,210 88.2

All Women $32,649 68.3

Wage Gap 77.4%

Source: Pew Research Source: 2007 U.S. Census

PepsiCo Chairman & CEO

Indra K. Nooyi –

• President and CEO (2006).

Chairman (2007).

• Directed global strategy and

led its restructuring:

– Divested restaurants into YUM!

Brands, Inc.,

– Acquired Tropicana and merged

with Quaker Oats that brought

the vital Quaker and Gatorade

businesses to PepsiCo.

– Merger with PepsiCo's anchor

bottlers, and the acquisition of

Wimm-Bill-Dann.

PepsiCo under Nooyi’s Leadership

PepsiCo under Nooyi’s Leadership

Annual Category 2007 2008 2009 2010

Revenue

and

Income

Net Revenues 39.5B 43.3B 43.2B 57.8B

Cost of Goods Sold 16.7B 18.8B 18.5B 24.4B

Depreciation And Amortization 1.4B 1.5B 1.6B 2.3B

Operating

Expenses

Gross Income 21.4B 22.9B 23.1B 31.1B

General Expenses 14.1B 15.4B 15.0B 22.8B

Research And Development 364.0M 388.0M 414.0M 488.0M

Total Operating Expenses 32.2B 35.8B 35.2B 49.5B

Age & the Workforce

Hiring Older

Workers Punctuality

Lower Turnover

Less Workplace

Politics Role

Models

Better Customer

Service

Gender – Race – Age – Sex

Retirees to Workers Percentages (%)

Generational Differences

Gender – Race – Age – Sex

Is someone’s personal sexual or

relationship choices anyone else’s

business? What’s the impact?

Global Competition

Source: OECD PISA 2009

Survey Says: Degree to Work?

1. Graduates may be technically

competent, lack teamwork,

critical thinking, and analysis

skills

2. Less graduates in technical

fields such as science, math,

and engineering.

3. High school graduates

working in entry-level

positions do not possess

necessary basic skills

(national high-school

graduation rate is 75%)

Source: U.S. Census Bureau Statistical Abstract 2012

Self Development is Crucial

• Gender, race or age:

– Be exceptionally competent &

seek out mentors

– Build social capital

– Assist work/life balance by

delegating housework

– Improve negotiating skills

– Take credit for accomplishments

– Create a partnership with spouse to

be mutually supportive

– Balance need to be assertive and

communal

Organizational Diversity

Two Theories:

• Social categorization

theory

– Similarity leads to

liking and attraction

• Information/Decision-

Making Theory

– Diversity leads to

better task-relevant

processes and

decision-making

Diversity Process Model

Diversity Conflict

• Gender

• Race

• Age

Diversity

• Individual

• Team

• Organizational

Conflict • Satisfaction?

• Turnover?

• Productivity?

Outcomes?

Workplace Diversity – A Choice

• Demographic Faultline

– Hypothetical dividing lines

that may split a group into

subgroups based on one or

more attributes

• Positive Diversity

– If members were open-

minded, discussed and

shared information, and

displayed integrative

behavior, individual, team

and organizational

outcomes improve

The Absence of Diversity

• Whether in work, school,

church or family, what

types of discrimination

have you seen or

participated in (even

unwillingly?

Encouraging Diversity

•What can our organizations do?

•What can you do to improve yourself?

Thomas’s Action Options

• Include/Exclude Emphasis on including more

diverse employees, using

minority-owned companies

as vendors

• Deny - That race, color, or

gender have any impact on

decisions

• Assimilate - All diverse

people will learn to fit in..

• Suppress - Squelching or

discouraging differences or

new ideas

• Isolate – Removing

individuals from authority.

• Tolerate – Acknowledge

but don’t value or accept.

• Build Relationships - Good relationships can

overcome differences

• Foster Mutual

Adaptation - Creating

positive relationships with

others. This means being

willing to accept differences

and accepting change.

Thomas’s Action Options

• Include/Exclude Emphasis on including more

diverse employees, using

minority-owned companies

as vendors

• Deny - That race, color, or

gender have any impact on

decisions

• Assimilate - All diverse

people will learn to fit in.

• Suppress - Squelching or

discouraging differences or

new ideas

• Isolate – Removing

individuals from authority.

• Tolerate – Acknowledge

but don’t value or accept.

• Build Relationships - Good relationships can

overcome differences

• Foster Mutual

Adaptation - Creating

positive relationships with

others. This means being

willing to accept differences

and accepting change.

Diversity – Your Choice