Diversity




                 BUSA 220
    Organizational Behavior
          Professor 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                            Year   %    Year    %     Year    %
                                   1951   63.9 1970   59.4   1992   70.8
 – The glass ceiling is an
                                   1953   61.3 1972   57.9   1994   72.0
   invisible barrier blocking
                                   1956 63.3   1974   58.8   1996   73.8
   women and minorities from
                                   1957 63.8   1976   60.2   1998   73.2
   top management positions.
                                   1958 63.0   1978   59.4   2000   73.3
   Break it by:
  • Consistently exceeding         1959 61.3   1980   60.2   2002   76.6
    performance expectations       1960   60.7 1982   61.7   2003   75.5
  • Developing a style with        1961   59.2 1984   63.7   2005   77.0
    which male managers are        1963   58.9 1986   64.3   2006   76.9
    comfortable,                   1964 59.1   1988   66.0   2007   77.8
  • Seeking out difficult or       1966   57.6 1990   71.6 2008     77.1
    challenging assignments, and   1968   58.2 1991   69.9 2009     77.0
  • Having influential mentors.
                                   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
                  24,738        51.7
  Women
  All Men        $42,210        88.2
 All Women       $32,649        68.3

 Wage Gap                      77.4%

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

                    Net Revenues            39.5B   43.3B   43.2B   57.8B
Revenue
  and            Cost of Goods Sold         16.7B   18.8B   18.5B   24.4B
Income
            Depreciation And Amortization    1.4B   1.5B    1.6B    2.3B

                    Gross Income            21.4B   22.9B   23.1B   31.1B

                  General Expenses          14.1B   15.4B   15.0B   22.8B
Operating
Expenses     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
                   Less
                 Workplace
                  Politics
       Lower                  Role
      Turnover               Models


                  Hiring         Better
Punctuality       Older         Customer
                 Workers         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


                     Conflict
• Gender                           • Satisfaction?
• Race          • Individual       • Turnover?
• Age           • Team             • Productivity?
                • Organizational
    Diversity                          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                 • Isolate – Removing
  Emphasis on including more        individuals from authority.
  diverse employees, using        • Tolerate – Acknowledge
  minority-owned companies          but don’t value or accept.
  as vendors                      • Build Relationships -
• Deny - That race, color, or      Good relationships can
  gender have any impact on        overcome differences
  decisions                       • Foster Mutual
• Assimilate - All diverse          Adaptation - Creating
  people will learn to fit in..    positive relationships with
• Suppress - Squelching or         others. This means being
  discouraging differences or      willing to accept differences
  new ideas                        and accepting change.
Thomas’s Action Options
• Include/Exclude                • Isolate – Removing
  Emphasis on including more       individuals from authority.
  diverse employees, using       • Tolerate – Acknowledge
  minority-owned companies         but don’t value or accept.
  as vendors                     • Build Relationships -
• Deny - That race, color, or     Good relationships can
  gender have any impact on       overcome differences
  decisions                      • Foster Mutual
• Assimilate - All diverse         Adaptation - Creating
  people will learn to fit in.    positive relationships with
• Suppress - Squelching or        others. This means being
  discouraging differences or     willing to accept differences
  new ideas                       and accepting change.
Diversity – Your Choice

OB - Diversity

  • 1.
    Diversity BUSA 220 Organizational Behavior Professor Wallace
  • 2.
    What does Diversitymean 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.
  • 3.
    The 4 Layersof Diversity Source: L Gardenswartz and A Rowe, Diverse Teams at Work: Capitalizing on the Power of Diversity (New York: McGraw-Hill, 1994), p. 33
  • 4.
    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
  • 5.
    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
  • 6.
    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.
  • 7.
    Gender – Race– Age – Sex • Women Year % Year % Year % 1951 63.9 1970 59.4 1992 70.8 – The glass ceiling is an 1953 61.3 1972 57.9 1994 72.0 invisible barrier blocking 1956 63.3 1974 58.8 1996 73.8 women and minorities from 1957 63.8 1976 60.2 1998 73.2 top management positions. 1958 63.0 1978 59.4 2000 73.3 Break it by: • Consistently exceeding 1959 61.3 1980 60.2 2002 76.6 performance expectations 1960 60.7 1982 61.7 2003 75.5 • Developing a style with 1961 59.2 1984 63.7 2005 77.0 which male managers are 1963 58.9 1986 64.3 2006 76.9 comfortable, 1964 59.1 1988 66.0 2007 77.8 • Seeking out difficult or 1966 57.6 1990 71.6 2008 77.1 challenging assignments, and 1968 58.2 1991 69.9 2009 77.0 • Having influential mentors. Source: Nat'l Committee on Pay Equity
  • 8.
    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 24,738 51.7 Women All Men $42,210 88.2 All Women $32,649 68.3 Wage Gap 77.4% Source: 2007 U.S. Census Source: Pew Research
  • 9.
    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.
  • 10.
  • 11.
    PepsiCo under Nooyi’sLeadership Annual Category 2007 2008 2009 2010 Net Revenues 39.5B 43.3B 43.2B 57.8B Revenue and Cost of Goods Sold 16.7B 18.8B 18.5B 24.4B Income Depreciation And Amortization 1.4B 1.5B 1.6B 2.3B Gross Income 21.4B 22.9B 23.1B 31.1B General Expenses 14.1B 15.4B 15.0B 22.8B Operating Expenses Research And Development 364.0M 388.0M 414.0M 488.0M Total Operating Expenses 32.2B 35.8B 35.2B 49.5B
  • 12.
    Age & theWorkforce Less Workplace Politics Lower Role Turnover Models Hiring Better Punctuality Older Customer Workers Service
  • 13.
    Gender – Race– Age – Sex Retirees to Workers Percentages (%)
  • 14.
  • 15.
    Gender – Race– Age – Sex Is someone’s personal sexual or relationship choices anyone else’s business? What’s the impact?
  • 16.
    Global Competition Source: OECD PISA 2009
  • 17.
    Survey Says: Degreeto 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
  • 18.
    Self Development isCrucial • 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
  • 19.
    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
  • 20.
  • 21.
    Diversity Conflict Conflict • Gender • Satisfaction? • Race • Individual • Turnover? • Age • Team • Productivity? • Organizational Diversity Outcomes?
  • 22.
    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
  • 23.
    The Absence ofDiversity • Whether in work, school, church or family, what types of discrimination have you seen or participated in (even unwillingly?
  • 24.
    Encouraging Diversity •What canour organizations do? •What can you do to improve yourself?
  • 25.
    Thomas’s Action Options •Include/Exclude • Isolate – Removing Emphasis on including more individuals from authority. diverse employees, using • Tolerate – Acknowledge minority-owned companies but don’t value or accept. as vendors • Build Relationships - • Deny - That race, color, or Good relationships can gender have any impact on overcome differences decisions • Foster Mutual • Assimilate - All diverse Adaptation - Creating people will learn to fit in.. positive relationships with • Suppress - Squelching or others. This means being discouraging differences or willing to accept differences new ideas and accepting change.
  • 26.
    Thomas’s Action Options •Include/Exclude • Isolate – Removing Emphasis on including more individuals from authority. diverse employees, using • Tolerate – Acknowledge minority-owned companies but don’t value or accept. as vendors • Build Relationships - • Deny - That race, color, or Good relationships can gender have any impact on overcome differences decisions • Foster Mutual • Assimilate - All diverse Adaptation - Creating people will learn to fit in. positive relationships with • Suppress - Squelching or others. This means being discouraging differences or willing to accept differences new ideas and accepting change.
  • 27.