Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Chapter 12 Diversity Management 12 0 DIVERSITY MANAGEMENT CHAPTER OBJECTIVES After studying this chapter, you should be able to: Define diversity management. Discuss the strategic importance of diversity management today. Discuss the various steps in managing diversity. List current industry practices in this field. Discuss the special challenges facing global firms in the context of diversity management. POWERPOINT® SLIDES Canadian Human Resource Management includes a complete set of Microsoft PowerPoint® files for each chapter. (Please contact your McGraw-Hill Ryerson representative to find out how instructors can receive these files.) In the lecture outline that follows, a reference to the relevant PowerPoint slide for this chapter is placed beside the corresponding lecture material. The slide number helps you to see your location in the slide show sequence and to skip slides that you don’t want to show to the class. (To jump ahead or back to a particular slide, just type the slide number and hit the Enter or Return key.) 12-1 Part 6 Maintaining High Performance ® LECTURE OUTLINE (with PowerPoint slides) DIVERSITY MANAGEMENT Diversity Management Slide 1 Management of Diversity Slide 2 Organizational Barriers Slide 3 Workplace Diversity Slide 4 Dimensions of Diversity Slide 5 A diverse workforce requires managers with new leadership styles who understand employees’ varying needs and creatively respond by offering flexible management policies and practices • A combination of factors including government policies, demographic and labour forces changes, increasing global operations, technological revolution have fundamentally changed the way Canadian organizations work and who they employ A variety of organizational barriers exist: -- Old boy’s network is the set of informal relationships that develop among male mangers and executives that provide increased opportunities for men -- Glass ceiling is the invisible but real obstructions to career advancement of women and visible minorities, resulting in frustration, career dissatisfaction, and increased turnover -- Stereotyping is the process of using a few observable characteristics to assign someone to a pre-conceived social category MEANING OF DIVERSITY MANAGEMENT Workplace diversity includes important characteristics that influence values, perceptions of self and others, behaviours, and interpretations of events Dimensions of Diversity Include: • Core dimensions of diversity -- Exert considerable impact on our early socialization and have a sustained life-long impact -- Includes age, ethnicity and culture, gender, race, religion, sexual orientation, and capabilities -- Example: An individual’s age impacts how (s)he is perceived by others, the individual’s ability to learn, perform tasks; also impacts the individual’s perceptions and behaviours Secondary dimensions of diversity -- Are less visible and more variable in their impact on individual behaviour -- Includes education, status, language, income levels, etc. 12-2 Chapter 12 Diversity Management Strategic Importance Slide 6 Traditional versus New Paradigms Slide 7 STRATEGIC IMPORTANCE OF DIVERSITY MANAGEMENT Several factors make diversity management strategically important Changing Workforce -- Canadian labour market is undergoing a transformation -- Today’s workforce is considerably more diverse than in the past Importance of Human Capital -- Knowledge workers may be the key to success or failure -- Most valuable parts of the organization’s operation may be reflected by the human tasks performed e.g. sensing, decisionmaking Diversity as a Competitive Advantage -- Proactive organizations recognize that competitive strength often depends on focusing on employees and their clients -- A firm’s customers are no longer a homogeneous group due to globalization and changing domestic markets -- Effective managers recognize the value of tapping people’s differences and pooling their insights and experience Paradigm Shift -- Paradigm is a shared mindset that reflects a fundamental way of thinking and understanding the world around us -- Paradigm shifts require organizations to make fundamental changes in thinking, operating and managing people -- See next slide “Traditional versus New Paradigms” Increasing Role of Work Teams -- Teams play a dominant role in modern organizations -- Effective handling of diversity can lead to added creativity, problem-solving, and intra-organizational communication Traditional versus New Paradigms Traditional -- Organizational success is linked to standardization -- Diversity is a cost -- Rules and policies are to be shaped by senior executives -- Emphasis on “masculine” values of competitiveness, aggressiveness, and individuality -- Change employee behaviours and attitudes to suit the organization’s culture New -- Success is linked to individual’s contribution -- Diversity is a competitive advantage -- Rules and policies are to best shaped to satisfy the customer and the employee -- Recognition that “feminine” values of openness, flexibility, and relationship orientation are important to organizational success -- Modify organizational culture to suit the needs of employees 12-3 Part 6 Maintaining High Performance Steps in Managing Diversity Slide 8 STEPS IN DIVERSITY MANAGEMENT Diversity management efforts require four key steps: 1. Identify Ideal Future State • Begins with identification of current workforce composition i.e. age, gender, ethnicity, education, and disability (may also include language, race, parental status, marital status, etc.) Surveys, focus groups, and employee interviews are then conducted to identify present and ideal future states at work e.g. may reveal employees are experiencing difficulties in balancing work and family responsibilities 2. Analyze Present Systems and Procedures • Examine current policies, systems, practices, rules and procedures to determine their validity and fairness for a diverse workforce e.g. work assignments, recruitment and hiring, orientation, etc. 3. Change Systems, Procedures, and Practices Senior Management Commitment -- One of the most important elements of ensuring the success of diversity efforts -- Must be viewed as integral part of the firm’s business philosophy -- Link diversity initiatives to business goals and performance criteria to create manager accountability Establishment of a Diversity Committee -- To oversee diversity efforts, implement process, and serve as a communication link -- Should represent all employee groups i.e. occupational groups, geographic locations, age etc. Education and Retraining -- Training in the importance of diversity needs to be provided to all employees at all levels in the organization -- Variety of training and employee development techniques may need to be used to sensitize workers to varying cultural values and norms Wide Communication of Changes -- Information, changes in internal systems and procedures must be communicated to all employees 4. Evaluate Results and Follow-up Monitor progress on a systematic basis and communicate quantitative (e.g. number of hires, promotions, absenteeism, turnover, grievances, etc.) and qualitative (e.g. work climate feedback) indices 12-4 Chapter 12 Diversity Management Current Industry Practices Slide 9 CURRENT INDUSTRY PRACTICES The choice of specific mechanisms should be made after consideration of the organization’s unique challenges and constraints Current Industry Practices (cont’d) Slide 10 Key Focus Areas – Global Firms Slide 11 Diversity Training Programs -- Managers and supervisors need new skills to manage and motivate a diverse workforce -- Awareness training focuses on creating an understanding of the need for managing and valuing diversity and to increase selfawareness of diversity related issues e.g. stereotyping, crosscultural sensitivity -- Skill building training educates employees on specific cultural differences and how to respond to these differences in the workplace -- Content training relates to providing specific information about a culture -- Process training involves understanding how to utilize behaviours for effectiveness in diverse workplaces e.g. management style, interpersonal communications, etc. Mentoring Programs -- Programs encouraging members of disadvantaged groups (e.g. women) to work with a senior manger who acts like a friend and guide in achieving career success -- May be formal or informal Alternate Work Arrangements -- Non-traditional work arrangements e.g. flex-time, telecommuting -- Provides more flexibility to employees while meeting organizational goals e.g. balancing work and family issues Apprenticeships -- A form of on-the-job training in which young people learn a trade from an experienced person Support Groups -- Provide emotional support to a new employee who shares a common attribute with the group Communication Standards -- Formal protocols for internal messages and communication to avoid offending members of ethnic, age, or other groups e.g. chairperson vs. chairman DIVERSITY CHALLENGE FOR GLOBAL FIRMS International human resource management requires the addition, deletion, and modification of traditional human resource functions. Key focus areas include recruitment and selection; orientation, training, and development; performance appraisal; compensation decisions, and employee sensitization to differences 12-5 Part 6 Maintaining High Performance Key Focus Areas – Global Firms (Recruitment & Selection) Slide 12 Key Focus Areas – Global Firms (Orientation, Training, and Development) Slide 13 Key Focus Areas – Global Firms (Performance Appraisal) Slide 14 Key Focus Areas – Global Firms (Compensation Decisions) Slide 15 Key Focus Areas – Global Firms (Sensitizing to Cultural Differences) Slide 16 Recruitment and Selection of Personnel -- Expatriates are home country nationals sent to foreign locations on temporary or extended stay -- Host country nationals are local citizens employed by a foreignowned firm (in the host country) -- Third country nationals are natives of a country other than the home or host country of the firm that has hired them -- More than just technical or managerial ability must be considered—ability to manage a diverse workforce and to adapt to the company and country culture are also critical -- Other core competencies of an expatriate manager include multidimensional perspective, decision-making ability, teambuilding, leadership, resourcefulness, negotiation and change agent skills Orientation, Training, and Development -- Cross-cultural Orientation Themes include language i.e. being familiar with other languages; cultural norms i.e. the values and norms that determine behaviours of individuals and groups in different cultures; and managing personal and family life to avoid culture shock i.e. cultural disorientation -- Cross-cultural Training Methods include the use of sensitivity training; culture assimilators i.e. episodes dealing with interpersonal issues in a cross-cultural setting; critical incidents i.e. of effective and ineffective behaviour; case studies; role plays; and simulations Performance Appraisal -- Home country evaluations are carried out by an expatriate’s home office--may be difficult because the evaluator may be a great distance away and not fully understand the challenges faced by the employee -- Host country evaluations are carried out by an expatriate’s local (or host) office—the evaluator may have a better understanding of any constraints faced, however, local cultural values may bias perceptions of effectiveness and the evaluator may only be familiar with local vs. organizational priorities Compensation Decisions -- International compensation goes beyond pay and benefits—may include incentives e.g. return trips home, education for children, etc. -- Relocation assistance may be provided i.e. financial or other assistance to help expatriates move to the new work location Sensitizing Employees to Cultural Differences -- Challenges to workforce diversity are amplified in international HR management i.e. diversity increases 12-6 Chapter 12 Diversity Management ANSWERS TO REVIEW AND DISCUSSION QUESTIONS 6. What are the key training approaches to prepare expatriates for foreign assignments? 1. Why is management of diversity important for an organization today? Training for overseas assignments should focus on policies, place, procedures, and people that expatriates will encounter in the near future. Training should cover details of culture, language, local customs, social attitudes toward time and punctuality, power, teamwork, use of titles, social taboos, and degree of formality in interaction with the local population. The specific training approaches include sensitivity training, cultural assimilators, critical incidents, cases, role play and simulation exercises (see pp. 536-537). Changing demographics, labour force changes, changing values, technological revolution, globalization of business, immigration policies, all have fundamentally changed the way Canadian organizations work and whom they employ (see discussion on pp. 510-511). 2. What are the steps in implementing a diversity management program? Figure 12-3, p. 519, describes the four steps in managing diversity (see also discussion on pp. 518524). 3. What are some unique challenges in international human resource management? See discussion on pp. 528-539. 4. Some persons believe the best way to manage employees is to treat them equally irrespective of their sex, race, age, or other characteristics. Do you agree? Why? Disagree. Treating everybody equally may result in embarrassments, frustrations, and disappointments. Asking an Asian employee to explain why he deserves a promotion is an embarrassment for him, because he will not be used to the North American approach of "selfsell," i.e, listing one's accomplishments which, in his culture, is perceived as boasting. Expecting a member of a culture used to consensus decision making to make individual decisions may result in frustrations, because it is unlikely to be forthcoming. See also Figure 12-5, p. 523, for a comparison of different values. Employees should be treated fairly, but not equally. 12-7 Part 6 Maintaining High Performance ANSWERS TO CRITICAL THINKING QUESTIONS 4. If 40 percent of your employees are women, but if women account for only 2 percent of the executive cadre and 6 percent of the managerial cadre, what steps will you take to improve the status of women in your organization? 1. If you are a manager in a software manufacturing firm who is about to be transferred to China to work with a joint venture partner firm there for the next 18 months, what factors will you be concerned about? What actions will you take? It would require a diversity management approach as discussed on pp. 518-524. In addition, the employment equity opportunity discussion in Chapter 4. It will be essential to learn more about the Chinese culture, values, customs, and rules of social interaction. Also important will be some knowledge of how a Chinese company is managed. If a spouse and/or children are to accompany the manager, this should be taken into account in the preparation. The manager, and perhaps his/her spouse should receive cross-cultural orientation. See also discussion on pp. 534-537. 5. You manage a work team of fourteen persons, about eight of whom are above the age of 40 years. Three of theses persons have elderly relatives to look after and are frequently absent from work to take care of their relatives' family or medical needs. What possible actions can you take to ensure that the needs of the employees are met, while at the same time maintaining high productivity at the workplace? 2. You are a senior executive in a consulting firm with its head office in Toronto. As a part of your global expansion strategy, your firm recently started two new offices abroad: one in Jakarta and another in Mexico City. You have been placed in charge of the new project. You decide to hire consultants in Canada and send them to these offices on one- or two-year assignments initially. You feel that this strategy will help you to start operations immediately and give global experience to your newly hired consultants. What will be your considerations when you hire the consultants? What actions will you take to ensure their success abroad? The discussion on p. 527, on alternate work arrangements, applies. See also the discussion on work options in Chapter 3. Hiring people for jobs abroad should follow the guidelines discussed in "Recruitment and Selection of Personnel", pp. 531-534. Figure 12-9, p. 533, lists the core competencies of an expatriate manager. The major action taken would be providing cross-cultural orientation, discussed on pp. 534-537. 3. Choose an organization that you are familiar with. Are any of its rules, practices, or policies likely to be found undesirable by its female, minority, or older employees? Why? Answers will vary. Students will reflect on their personal experiences. 12-8 Chapter 12 Diversity Management ETHICS QUESTION Comments to Instructors There is no right or wrong answer to this question. It is for class discussion purposes. WEB RESEARCH Comments to Instructors These exercises have been designed for students to demonstrate their computer and Internet skills to research the required information. Answers will vary. 12-9 Part 6 Maintaining High Performance INCIDENT 12.1: PRECISION SOFTWARE LTD. 1. Are Keith, Mark, and Karen justified in feeling the way they do? No; however, it should be emphasized that their feelings are entirely understandable given the current values in society and the organization. In other words, while the promotion of an employee should not be based on his/her appearance, it is understandable that people feel uncomfortable with those who do not follow common dress codes. The situation is made more difficult due to the comparability of the two candidates on several criteria. Critical points to emphasize here are: some of Doug's actions which have caused others discomfort are understandable given Doug's background and his increased interest in his roots. except Doug's pony tail, the other differences are probably ones that other employees may exhibit. For example, several employees may live outside the city and commute for an hour or more; other employees may also have outside interests or commitments that take up most of their free time; fasting is not uncommon for certain religious groups; several employees may have strong spiritual needs and values (which may be expressed in ways that Keith, Mark, and Karen are familiar with). In other words, several of the differences in Doug's behaviour/lifestyle have become more important to the group and are, perhaps, seen as "problems" mainly because of their discomfort with his appearance. the points in Bill's favour — "steady, stable character"... "family man" etc., show a built-in bias against people who are different. they are assuming that clients and/or financial institutions may be uncomfortable in dealing with Doug. This may or may not be the case. Even if it is, would a company be justified in not hiring/promoting someone based on outsiders' prejudices? What if clients do not like to deal with a woman? Or an overweight person? points in Doug's favour (his ability to get along with and motivate his subordinates) seem to be undervalued by the three members. the company would be setting a dangerous precedent if it denies Doug the promotion for the "discomfort" with his appearance. 2. Should Dave speak with Doug about his appearance? No. Doug's personal appearance -- except for his pony tail -- seems to be within societal norms. In other words, he does not appear at work looking unclean or in other ways unacceptable. However, Dave may want to speak to Doug and find out why Doug does not attend any social get-togethers. Perhaps he feels uncomfortable being the only Native Canadian in the company. Or, perhaps, it is just a timing conflict. If it is the former, Dave may need to find out how/what would make Doug feel more comfortable. 3. If you were in Dave's position, who would you promote? Why? Of course, the "politically correct" and easy answer would be to say he should promote Doug. However, it is important to note the following: the company has to comply with the Employment Equity Act of 1986. It has a very low percentage of women and other protected class workers in supervisory positions now. when you have two equally good candidates, promoting the minority group person makes sense given the legal issues and the need to be seen as an equal employment opportunity employer. It would also send a strong signal to other employees and outsiders that there is top management commitment to diversity in the company. if there are other ways of evaluating the two candidates, these should be examined. if Doug is promoted, Dave has to recognize that the "discomfort" the others feel may result in serious problems later on. In other words, regardless of who gets the promotion, the company needs to examine its diversity management initiatives (or lack thereof) and develop a program to manage diversity (refer to Figure 12-3). The 12-10 Chapter 12 Diversity Management low percentage of protected class members at the supervisory level is a cause for concern. The company needs to examine its current state in terms of diversity in the workforce and develop ideal states. It has to re-evaluate its systems and practices to ensure that its workforce represents society at large and is a place where all employees — regardless of their origins — can grow and become effective team members. This is all the more important in industries at the cutting edge of technology, where good employees are difficult to find and human capital becomes critical. At a minimum, Dave has to (1) offer diversity training programs, (2) put together support groups for minority group members, (3) provide orientation sessions, and (4) develop better counselling practices. 12-11 Part 6 Maintaining High Performance CASE STUDY: MAPLE LEAF SHOES LTD., MANAGING A DIVERSE TEAM Answers to Discussion Questions 1. What cultural differences or other differences possibly account for the present situation? Chinese and Koreans prefer indirect ways of communicating disagreement (Wang's "mumbling" and suggestion that they have to "look at all alternatives" were his ways of saying no). The fact that Wang or Alfred did not express their displeasure at Jeff's jokes does not mean they liked or even tolerated them. Public disagreements or loss of temper are considered inappropriate by both communities. Chinese and Koreans are different ethnic groups, though they belong to the same race. They do not like being lumped together. Jeff's open disagreement with Wang — especially in front of another employee — would have been seen as a loss of face, which would be offensive to someone like Wang. Often, a first "no" does not mean the person does not want to interact with you. Quite often, first offers are rejected politely and you are expected to repeat the offer a couple of times before it would be accepted. Not looking someone in the eye does not indicate anything negative in a lot of Asian cultures. In fact, looking at a superior or older person in the eye is considered disrespectful. The fact that Jeff cracks jokes about other races/groups does not make his behaviour acceptable. Some may not mind his behaviour, but others may take offence. been encouraged to express their opinions freely or to use an intermediary to communicate their disagreements, perhaps through support groups). Providing settings for employees to interact with each other socially within the company (e.g., workplace get-togethers). Monitoring the progress of mixed/diverse groups more carefully. 3. What should Jane do now? Why? Jane should meet with Wang and Alfred individually or together and reiterate that the company needs them and would appreciate their continuing in the team. She should emphasize the importance of their contributions and the need to provide continuity in their dealings with their Indonesian partner. Wang should be given a way to "save face" by offering to listen to his ideas about which shoe line to produce abroad and to take them to Jeff and Rod. If it is too late to make a change, they should be asked for other suggestions. The need to understand differences in cross cultural communications must be emphasized and their help in making the team work is needed. They should be told politely that in the future, if they disagree with Jeff and Rod, it might be a good idea to let their feelings be known (either directly or through her). It should be made clear that the issue of racial jokes has been raised with Jeff and it will be communicated to him and others that it is not acceptable behaviour. Jane should meet with Jeff and Rod and convey Wang & Alfred's ideas about the Indonesian project, and ask them to think about the ideas carefully and let her know their comments the next day. The need to understand cultural differences in communication must be emphasized and they should be asked for their help in making the team work. A joint meeting with everybody in which ground rules for future communications are covered should be arranged. Areas of agreement should be emphasized as well as areas in which common solutions have to be found and work toward it. Jane should attend a couple of meetings and keep track of the progress. 2. Could such a situation have been avoided? Explain. Implementing a diversity management program, as in Figure 12-3 may have prevented the situation. Some minimum steps would have been: Training in cross cultural communications to all employees (diversity training programs). Setting ground rules for what is acceptable and unacceptable behaviour in a work setting (communication standards e.g., racial jokes should not be encouraged). Making sure team members understand what is required of them and how it should be communicated. (e.g., Wang and Alfred should have The student should be encouraged to relate text material in analyzing this case. Some of the key points from the 12-12 Chapter 12 Diversity Management chapter that should be included in the student's analysis are: 1. The strategic importance of diversity can be seen: Wang and Alfred reflect the changing workforce. the importance of human capital is reflected in the difficulty faced in replacing Wang and Alfred. the competitive advantage of diversity is seen in the importance it places on foreign markets and having people with familiarity in international business. They can "leverage diversity" through these employees. impact of diversity on work team effectiveness (or lack of it due to improper diversity management initiatives!) can be seen in the tension and conflict faced by the team members. individual and organizational effectiveness has been affected by poor diversity (absent?) management practices. 2. In the long term, the company has to implement a diversity management program as discussed in the text (see Figure 12-3). Specifically, it has to: examine the present composition of its workforce and identify ideal future states. understand the current attitudes and values of its workforce through surveys, etc. analyze present systems and procedures. Figure 12-4 provides a basis for analyzing the present systems and practices. develop appropriate systems, practices and policies. It is important to note that top management commitment has to be there. Again, as a minimum, the company needs to at least hold some diversity training programs and support groups for minority group members. 12-13 Part 6 Maintaining High Performance CASE STUDY: CANADIAN PACIFIC AND INTERNATIONAL BANK: PLANNING FOR DIVERSITY AT HBI Answers to Discussion Questions ratings and higher percentages with university education than their male counterparts. This suggests that the female middle managers are able to do the jobs at least as well, if not better than the male managers, even in the operations division where females have fewer years of experience. 1. Based on the data provided, what conclusions can you form about the status of male and female employees (managerial and other) at HBI? Table 1 shows that the higher the position level, the smaller the percentages of female workers. There is no female at the top management level at HBI. For both females and males, the percentages with university education increases with level. Within each level, the female workers have a higher percentage with 5 or more years of experience than their male counterparts. 2. What suggestions do you have for Dickoff to diversify the workforce (managerial and other) at HBI? HBI should adopt the 4 step process in diversity management (p. 519), especially in increasing the percentages of females in middle and top managerial positions. Resistance to the diversity program should be managed through diversity training that would emphasize the benefits to HBI of having more female managers. Table 2 shows that females have more experience than males in the administration and marketing division; however, females have significantly less experience than their male counterparts in the operations division. Across all 3 divisions, females have higher leadership 12-14