455 Ch 11

Retaining Employees

As replacing qualified and experienced workers becomes more difficult and costly, retaining good people becomes vitally important. Most executives know that a "lack of attention to diversity and inclusion contributes to employee turnover."58 Strategies such as the following can improve employee retention

Sexual harassment falls into two categories. The first, quid pro quo harassment, occurs when submission to or rejection of sexual conduct is used as a basis for employment decisions.

As women have gained more presence and power in the workforce, more are drawing attention publicly to the serious problem of sexual harassment: unwelcome sexual conduct Page 317 that is a term or condition of employment. Sexual harassment falls into two categories. The first, quid pro quo harassment, occurs when submission to or rejection of sexual conduct is used as a basis for employment decisions. The second type, hostile environment, occurs when unwelcome sexual conduct "has the purpose or effect of unreasonably interfering with job performance or creating an intimidating, hostile, or offensive working environment." Behaviors that can cause a hostile work environment include persistent or pervasive displays of pornography, lewd or suggestive remarks, or demeaning taunts or jokes. Both categories of harassment violate Title VII of the Civil Rights Act of 1964. Regardless of the sex of the harasser and the victim—in a recent year, more than 15 percent of complaints filed with the federal government came from males—if an employee files a complaint of sexual harassment with the Equal Employment Opportunity Commission (EEOC), the commission may investigate. If it finds evidence for the complaint, it may request mediation, seek a settlement, or file a lawsuit. Companies fear these lawsuits, with stiff potential fines and negative publicity that can damage the company's reputation and ability to recruit the best employees. Harassment via a hostile work environment is now more common than quid pro quo harassment. The former may involve more subjective standards, but managers must maintain an appropriate work environment by ensuring everyone knows what conduct is and is not appropriate and that misconduct has serious consequences. Even when managers do not themselves engage in harassment, they and their employers can be held liable if a lawsuit is filed and they have failed to prevent harassment or to take appropriate action after receiving legitimate complaints. Also important to know is that the "hostile work environment" standard applies to same-sex harassment as well as to non-gender-related cases, such as a pattern of racial or ethnic slurs. Teenage employees are particularly vulnerable because they are inexperienced, hold lower-status jobs, and often feel hesitant or embarrassed to speak up. A teenager who spoke up recently about being sexually harassed by a manager of a Houston-based Chipotle Mexican was awarded $7.7 million.15 The federal EEOC has made this concern a priority and launched a teen-focused page called "Youth at Work" on its website (http://www.youth.eeoc.gov). The National Restaurant Association and National Retail Federation also have stepped up efforts to protect teens from harassment.

17. Even in today's changing society, women still carry the bulk of which of the following family responsibilities (Check all):

Child Care, Homemaking, and Elderly Parent Care

Attracting Employees

Companies can attract a diverse, qualified workforce by using effective recruiting practices, accommodating employees' work and family needs, and offering alternative work arrangements.

5. Which of the following statements regarding gender issues in the U.S. workforce is false:

Only 10% of married couples are dual-income households.

Advantage through Diversity and Inclusion

Diversity in an organization's upper ranks relates to superior financial performance, as shown by a number of studies. Investors' preferences for organizations with a policy of inclusion may play a stronger role than does superior diversity management. Whether and Page 322 how women on boards of directors relate to firm financial performance is complex and difficult to discern, but the findings sometimes are positive.34 One recent study shows that female board members can help to deter securities fraud.35 Diversity can provide an organizational strength, especially if managers know how to leverage it.

A strong commitment to valuing diversity leads to fewer problems with sexual harassment

One way managers can help their companies prevent harassment, or avoid punitive damages if an unfounded lawsuit is filed, is to make sure their organizations have an effective and comprehensive policy on harassment. Exhibit 11.5 shows the basic components of such a policy. Companies such as Kaiser Permanente, AT&T, and MasterCard know that a strong commitment to valuing diversity leads to fewer problems with sexual harassment

16. Factors that have influenced the increase of women in the labor market include ___ (Check All):

financial necessity, & Social Changes during the 1960s and 1970s

Lower Cohesiveness

Diversity can create a lack of cohesiveness. Cohesiveness refers to how tightly knit the group is and the degree to which group members perceive things and behave in similar or mutually agreed-upon ways. Because of differences, diverse groups typically are less cohesive than homogeneous groups. Mistrust, miscommunication, stress, and attitudinal differences reduce cohesiveness, which in turn can diminish productivity. This may be one explanation for the results of a study that showed greater turnover among store employees who feel they are greatly outnumbered by co-workers from other racial or ethnic groups.43 In a diverse group, managers should take the lead in building cohesiveness by establishing common goals and values. Group cohesiveness will be discussed in greater detail in Chapter 14

35. The Largest and fastest growing minority group in the United States is:

Hispanics

2. Managing diversity means being cognizant of traits common to a group of employees while also guiding and meeting the needs of these employees as:

Individuals

25. Which of the following are reasons teenage workers are a particularly vulnerable population with regard to sexual harassment (Check all):

They tend to hold lower status jobs, they are inexperienced, they feel hesitant to speak up

36. Which of the following statements regarding gender issues in the U.S. workforce is false:

Only 10% of married couples are dual-income households

33. Young workers look for jobs that:

Providing Positive Feedback

11. Which of the following are the two categories of sexual harassment:

Quid Pro Quo Harassment, & Hosti

20. The ___ is an invisible barrier that makes it difficult for women and minorities to move beyond a certain level in the corporate hierarchy:

glass ceiling

Components of Effective Sexual Harassment Policies

1. Develop a comprehensive organizationwide policy on sexual harassment and present it to all current and new employees. Stress that sexual harassment will not be tolerated under any circumstances. Emphasize how strongly top management believes in the policy. 2. Develop a comprehensive organization wide policy on sexual harassment and present it to all current and new employees. Stress that sexual harassment will not be tolerated under any circumstances. Emphasize how strongly top management believes in the policy. 3. Establish a formal complaint procedure in which employees can discuss problems without fear of retaliation. Spell out how charges will be investigated and resolved. 4. Investigate immediately when employees complain of sexual harassment. Convey clearly that investigations will be conducted objectively and with appreciation for the sensitivity of the issue. 5. When an investigation supports the charges, discipline the offender at once. For serious offenses, discipline should include penalties up to and including discharge. Discipline should be applied consistently across similar cases and among managers and hourly employees alike. 6. When an investigation supports the charges, discipline the offender at once. For serious offenses, discipline should include penalties up to and including discharge. Discipline should be applied consistently across similar cases and among managers and hourly employees alike.

32. The U.S. workforce is aging. Which of the following are implications for today's managers and organizations as a result of this trend (Check All):

Retirees are being asked to return to the workforce, Entry-level workers will be in short supply as the growth in the number of young workers increases only slightly, & Industries such as manufacturing and nursing are facing critical skilled-labor shortages.

Challenges of Diversity and Inclusion

Every year, thousands of lawsuits are filed over issues of discrimination and unfair treatment, some involving the largest and most respected firms.39 Recently settled governmental EEOC lawsuits include Walgreens for firing a longtime diabetic employee for eating a bag of chips during a diabetes-related episode; Qualcomm paying $19.5 million to settle claims that it did not provide equal pay and job opportunities to its female employees; and DSW for unfairly firing employees over 40 years old in a workforce reduction effort.40 Even when there is no overt discrimination in hiring, pay, and firing, managing diversity can be challenging. Minorities and women often find themselves in an environment that does not give them the opportunity to do their best work. And managers with all the goodwill in the world find it harder than they expected to get people from different backgrounds to work together for a common goal.41 Managers of the diverse organization need to identify and overcome difficulties including unexamined assumptions, lower cohesiveness, miscommunications, mistrust and tension, and stereotyping.

Top Management's Leadership and Commitment

If top management is not visibly committed to diversity programs, others in the organization will not take the effort seriously. One way to communicate this commitment to all employees—as well as to the external environment—is to incorporate diversity values into the corporate mission statement and into strategic plans and objectives. Managerial compensation can be linked directly to accomplishing diversity goals. Adequate funding must be allocated to the diversity effort to ensure its success. Also, top management can set an example by participating personally in diversity programs and making participation mandatory for all managers. The "Social Enterprise" box discusses how Change.org manages diversity.

31. Which of the following statements relating to U.S. education and the workplace are true (check all):

The share of workers with a bachelor's degree has more than doubled since 1970, 25% of foreign-born workers have not completed high school, & 5% of native-born workers have not completed high school

14. Which of the following statements about white, American-born male workers in the United States is true:

They constitute as the largest percentage of workers

The Age of the Workforce

Approximately 10,000 Boomers (those born between 1946 and 1964) are retiring each day in the United States.28 Industries most at risk of losing this talent include health care (hospitals and nursing facilities), transportation, social assistance, and mining and construction.29 At the same time, the Bureau of Labor Statistics projects that entry-level workers will be in short supply. On the plus side, almost 70 percent of workers between the ages of 45 and 74 say that they intend to work in retirement. Retirees often return to the workforce at the behest of their employers, who don't want to lose the knowledge accumulated by longtime employees, their willingness to work nontraditional shifts, and their reliable work habits, which have a positive effect on the entire work group. To prevent an exodus of talent, employers need strategies to help retain, attract, and motivate skilled and knowledgeable older workers.30 Phased retirement plans allow older employees to work fewer hours per week. Other strategies include workplace adaptations to Page 321 help older workers cope with physical problems such as poor vision, hearing, and mobility. This is quite different from previous practice when companies gave older workers incentives to leave in order to reduce overhead and perhaps hire less expensive replacements. Now, a strong majority of employers view their older workers as valuable resources for training, mentoring, and sharing knowledge.31 At the same time, companies need to compete hard for the smaller pool of young talent, who know the job market and expect the working conditions they value. Bruce Tulgan, founder of Rainmaker Thinking, which specializes in researching generational differences, says that today's young workers tend to be "high-maintenance" but also "high-performing," having learned information technologies so thoroughly.32 Therefore, top employers scramble to design work arrangements that are stimulating, involve teamwork, keep work hours reasonable, and provide plenty of positive feedback. Employers also are updating their recruiting tactics to reach young workers where they are—through social media. Most recruiters post job opportunities on Facebook, Instagram, LinkedIn, and Twitter

30. For most businesses, mentally and physically disabled people represent an unexplored but fruitful labor market. Frequently, employers have found that disabled employees __ (Check All):

Exhibit lower turnover, Miss fewer days of work, & Are more dependable that other employees

19. True or false: Differences in pay can be attributed to the fact that women are rated more poorly on performance evaluations than their male counterparts

FALSE

Diversity: A Brief History

Managing diversity is not a new management issue. From the late 1800s to the early 1900s, most of the groups immigrating to the United States were from Italy, Poland, Ireland, and Russia. Many considered them outsiders because most did not speak English and had different customs and work styles. They struggled to gain acceptance in industries such as steel, coal, automobile manufacturing, insurance, and finance. In the 1800s, it was considered poor business practice for white Protestant-dominated insurance companies to hire Irish, Italians, Catholics, or Jews. As late as the 1940s, and in some cases later yet, colleges routinely discriminated against immigrants, Catholics, blacks, and Jews, and established strict quotas if admitting any at all. Discrimination severely diminished the employment prospects of many groups, and it wasn't until the 1960s that the struggle for acceptance by successful white ethnic and religious groups made notable progress. Women's struggle for acceptance in the workplace was in some ways even more difficult. When the women's rights movement was launched in Seneca Falls in 1848, most occupations were off-limits to women, and colleges and professional schools were totally closed to them. Women could not vote and lost all property rights once they were married. In the first part of the 20th century, a widespread, persistent assumption held that certain jobs were done only by men, and other jobs only by women. When women began entering professional schools, they were subject to severe quotas. As recently as the 1970s, classified ad sections in newspapers listed different jobs by sex, with sections headed "Help Wanted—Males" and "Help Wanted—Females." Women who wanted a bank loan needed a male cosigner, and married women could not get credit cards in their own name.2 Only when the Civil Rights Act of 1964 and other legislation arrived was this kind of sex discrimination gradually Page 313 eliminated. Women still are underrepresented at the most senior levels of corporate life, and major disparities still exist in other areas such as pay. But now increasing numbers of women occupy most jobs once considered the exclusive province of men, including frontline military units as well as the executive suite. The most difficult and wrenching struggle for equality involved America's nonwhite minorities. Rigid racial segregation remained a fact of American life for 100 years after the end of the Civil War. Black voting rights, particularly in the South, often were viciously suppressed, and racial discrimination in education, employment. Years of difficult, courageous protest and struggle gradually began to eat away at both legal and social barriers to equality. Organizations such as the NAACP, formed by a group of blacks and whites, began to use America's court system and the Constitution to bring equality to African Americans and other people of color. The unanimous Brown v. Board of Education Supreme Court decision in 1954 declared segregation unconstitutional, setting the stage for other legislation including the Civil Rights Act of 1964. Consequences of America's bitter racial legacy are still with us; the struggle for equality is far from complete. But many of the rights most of us take for granted today—equal opportunity, fair treatment in housing, the illegality of religious, racial, and sex discrimination—received their greatest impetus from the civil rights movement. Today nearly half of the U.S. workforce consists of women, 17 percent of U.S. workers identify themselves as Hispanic or Latino, and 12 percent African American. Women own one-third of all businesses in the United States, employing about 20 percent of America's workers

10. Which form of sexual harassment exists when unwelcome sexual conduct "has the purpose or effect of unreasonably interfering with job performance"?

Hostile Environment.

21. Which form of sexual harassment exists when unwelcome sexual conduct "has the purpose or effect of unreasonably interfering with job performance":

Hostile Work Environment

Minorities and Immigrants

Organizations that do not take full advantage of the skills and capabilities of minorities and immigrants are severely limiting their potential talent pools and their ability to understand and capture diverse markets. As minority shares of the population grow, so do these groups' purchasing power. And if you sell to businesses, you probably deal with minority-owned companies because the number of businesses started by Asian American, African American, and Hispanic entrepreneurs is growing much faster than the overall growth in new companies. Immigrants founded more than half of the companies that started in California's high-tech Silicon Valley; in a recent year, half of patent applications in the United States identified an immigrant as the inventor or a co-inventor.19 In many urban areas with large Asian, Hispanic, or African American populations, banks have deliberately increased the diversity of their managers and tellers to reflect the population mix in the community and attract additional business. If they did not, customers would notice and switch to other banks where they would feel more welcome and comfortable. Such diversity—and effective collaboration among diverse employees—creates better customer service that helps banks compete successfully. For example, tellers approached by new immigrants who do not yet speak English immediately call on their bilingual colleagues for help. The bilingual colleagues also are better able to assist bank customers with special problems such as income transfers from abroad. Exhibit 11.6 gives signs of progress in the top ranks. Even so, evidence shows some troubling racial disparities in employment and earnings. Unemployment rates are higher for black and Hispanic workers than for whites—twice as high in the case of black men. Earnings of black Page 319 and Hispanic workers consistently trail those of white and Asian workers, and African Americans and Hispanic Americans are underrepresented in management and professional occupations.20 This underrepresentation perpetuates the problem because it leaves aspiring young minorities with fewer role models or mentors that are so important to people's careers. Discrimination accounts for at least some of the disparities in employment and earnings. In one recent study—and there are other such findings—fictitious résumés were used to respond to help-wanted ads in Boston and Chicago newspapers. Résumés with white-sounding names were 50 percent more likely to get a callback for an interview than the same résumés with African American names. Despite equivalence in credentials, the often-unconscious assumptions about different racial groups are very difficult to overcome. Virtually every large organization has policies and programs dedicated to increasing minority representation, including compensation systems that reward managers for increasing diversity. Major companies such as FedEx, Xerox, Shell, PNC Financial, and Sun Microsystems have corporate diversity officers who help managers to attract, retain, and promote minority and women executives. Many organizations support minority internships and MBA programs. Microsoft sponsors summer internship programs for minority undergraduate students pursuing computer science or software engineering degrees. Lockheed Martin partners with the American Management Association's Operation Enterprise on two-week paid summer internship programs for high school and college students. Ideally these internships turn into full-time employment.

22. Unwelcome sexual conduct that is a term or condition of employment is defined as ___ and is a violation of Title VII of the Civil Rights Act of 1964:

Sexual Harassment

3. Which group constitutes the largest percentages of workers in the U.S.: White Male Workers

White Male Workers

38. Research suggest that the largest unemployment minority population in the U.S. is:

people with disabilities

Organizational Flexibility

Managing diversity well requires a corporate culture that tolerates many styles and approaches. Less restrictive policies and less standardized operating methods enable greater flexibility and thus quicker response to environmental changes. Procter & Gamble values diversity as key to fulfilling its strategy: "Everyone valued, everyone included, everyone performing at their peak.

27. Despite gains for minorities and immigrants in the workforce, disparities in employment and earnings continue to exist, including (Check all):

Discrimination in hiring when non-white-sounding names apply for jobs, higher unemployment rates for black and Hispanic workers, & Median earnings for African American employees is 78% that of whites

8. True or False: Differences in pay can be attributed to the fact that women are rated more poorly on performance evaluations than their male counterparts:

FALSE

7. Maintaining work-life balance and parenting can be particularly challenging for women. To help attract and retain women, companies are offering "Family-Friendly" Fringe benefits such as (Check ALL):

Flexible work schedules, onsite child care, in-home care for elderly family members.

23. Which form of sexual harassment involves more subjective standards of behavior and puts an extra burden on managers to maintain an appropriate work environment:

Hostile work environment

26. Organizations can leverage diversity in minority markets and gain a competitive advantage by __ (Check all):

Recognizing minority purchasing power, establishing purchasing contracts with minority-owned businesses, & Reflecting the community population mix in the organization workforce

15. Which of the following statements describe population trends impacting the U.S. workforce (Check all that apply):

About one in three residents in the United States is a racial or ethic minority, & The Number of Asian American, black, and Hispanic American workers is expected to grow faster than that of American white males.

Understanding Differentiated Markets

Companies such as Ford, General Mills, IBM, Target, and Kroger are committed to diversity because as the workforce changes, so does their customer base. Just as diverse groups prefer to work for employers that value diversity, they may prefer to patronize such organizations. A diverse workforce can provide a company with greater knowledge of the preferences and consuming habits of a diversified marketplace. This knowledge helps in designing products and developing marketing campaigns to meet consumers' needs. In addition, for at least some goods and services, a multicultural sales force can help sell to diverse groups. A diverse workforce also can give a company an edge in a global economy by helping to understand other customs, cultures, and market needs.

Attracting, Motivating, and Retaining Employees

Companies with a reputation for providing opportunities for diverse employees will have an advantage in the labor market, and will be sought out by the most qualified employees. When employees believe their differences are not merely tolerated but valued, they may become more loyal, productive, and committed

Guidelines for Diversity Training

1. Position training in your broad diversity strategy. Training is one important element of managing diversity, but on its own it will probably fail. Culture change means altering underlying assumptions and systems that guide organizational behavior. Training programs must be internally consistent with, and complement, other initiatives focused on culture change. 2. Do a thorough needs analysis. Do not start training prematurely. As with any training program, eagerness to "do something" may backfire unless you assess what specific aspects of diversity need attention first. Focus groups help identify what employees view as priority issues. 3. Distinguish between education and training. Education helps build awareness and understanding but does not teach usable skills. Training involves activities that enhance skills in areas such as coaching, conducting performance appraisals, and adapting communication styles. Education and training are both important, but they're not the same. 4. Distinguish between education and training. Education helps build awareness and understanding but does not teach usable skills. Training involves activities that enhance skills in areas such as coaching, conducting performance appraisals, and adapting communication styles. Education and training are both important, but they're not the same. 5. Test the training before rollout. Given the sensitivity, even volatility, of diversity issues, use diversity councils and advocacy groups to pilot the programs. Build in ample feedback time to allow these groups to address sensitive concerns and refine the training. 6. Incorporate diversity programs into the core training curriculum. One-time programs do not have a lasting impact. Blend the program's content into other training programs.

40. Which of the following statements relating to U.S. education and the workplace are true (check all):

5% of native-born workers have not completed high school, the share of workers with bachelor's degree has more than doubled since 1970, & 25% of foreign-born workers have not completed high school

Career Development and Promotions

Because they hit a glass ceiling, many talented people leave their employers for better opportunities elsewhere. Firms such as Deloitte & Touche and Honeywell use teams to evaluate the career progress of women, minorities, and employees with disabilities and to find promotion opportunities. One important step is to make sure deserving employees can work in line positions. Women in particular often work in staff positions, such as human resources, with less bottom-line opportunity to show they can earn money for their employers. Career development programs that give exposure and experience in line jobs can make senior management positions more attainable

6. Which of the following are expectations of many organizations that put some women at a disadvantage in the workplace (Check all):

Companies expect employees to sacrifice their personal lives for the sake of the company, & Companies require long hours, especially at the managerial levels.

Recruiting

Developing a reputation for hiring and promoting all types of people can be a strong recruiting tool. Xerox gives prospective employees an article that rates the company as one of the best places for African Americans to work. Hewlett-Packard ensures that its female candidates are familiar with its high rating by Working Woman magazine. Some employers work hard to attract female applicants, ensure that their talents are used to full advantage, and to keep (avoid losing) their most capable employees. With over 80 percent of its customers female, Etsy's solution was to position itself as a company that values women. It offered female engineers $5,000 scholarships to a programming course, bringing a flood of Etsy-appreciating women to learn the skills Etsy needs. Etsy also shifted its focus from hiring senior engineers to hiring junior engineers and training them to lead. The focus on diversity not only increased the share of female engineers at Etsy, but also has attracted male engineers who value the company's culture and work well in teams. In less than two years, the number of women in engineering positions grew from 4 to 20.53 Many minority group members, people with disabilities, and those who are economically disadvantaged are physically isolated from job opportunities. Companies can bring information about job opportunities to the source of labor, or they can transport the labor to the jobs. Polycast Technology in Stamford, Connecticut, contracts with a private van company to transport workers from the Bronx in New York City to jobs in Stamford. Days Inn recruits homeless workers in Atlanta and houses them in a motel within walking distance of their jobs. Burger King has done a lot to recruit and hire immigrants in its fast-food restaurants.

The digital world

Diversity in the workplace is achieved successfully when people believe in it and support it, and managers hold them accountable when they don't. One development of managing in a digital world is the transparency. If people are disrespectful it is much easier these days to document behavior on video or on audio with smartphones. Public discussions of "toxic cultures" force organizations that have not embraced diversity workforce to publicly deal with their shortcomings. Hearsay about sexism in Silicon Valley is very different from detailed corroboration, as when in 2017 a former engineer from Uber publicly posted details of systemic sexual harassment and HR complicity. Posting online not only sheds light on an issue, but in many cases it provides impetus for others to come forward and corroborate allegations. Many employees with diverse backgrounds also find support from within their companies and industries with online special interest groups, and digital mentoring helps retain and attract wide cross-sections of many groups.

Diversity Today

Diversity refers to far more than skin color and gender. It is a broad term used to refer to all kinds of differences, as summarized in Exhibit 11.1. These differences include education, political belief, religion, and income in addition to gender, race, ethnicity, and nationality.4 Members of a demographic group or people who have been through similar important experiences share some common values, attitudes, and perspectives. At the same time, much diversity exists within each category. Every group is made up of individuals, each unique in personality, education, and opinions. There may be more differences among, say, three Asian Americans from Thailand, Hong Kong, and Korea than among a white, an African American, and an Asian American all born in Chicago. And not all white males behave alike, nor do people from the same hometown share the same personal or professional goals and values. Therefore, managing diversity requires awareness of aspects common to a group of employees while also working with each employee as an individual. Managing diversity means not just tolerating or accommodating all sorts of differences, but supporting, nurturing, integrating, and using these differences to the organization's advantage. Knowing that U.S. companies must learn to manage a diverse workforce better than their competitors, Ernst & Young has a program called "EY Unplugged" that connects ethnically diverse new hires from all around the U.S. with executive mentors.5 Although many companies initially instituted diversity programs to prevent discrimination, more now see these programs as a crucial way to expand their pool of talent and customer bases worldwide. These potential benefits are making diversity initiatives standard Page 314 practice among industry-leading companies. A huge majority of large multinational companies have at least one diversity initiative. Exhibit 11.2 shows some additional data. *Refers to corporate structures that govern inclusion strategies across all operations, including board oversight of diversity programs, an established diversity council, CEO and/or chair involvement in inclusion initiatives, and compensation plans tied to diversity objectives. SOURCE: Based on data in DeGroot, Christine et al., "Examining the Cracks in the Ceiling: A Survey of Corporate Diversity Practices of the S&P 100," Calvert Investments, March 2015 Supplement, http://www.calvert.com. Access the text alternative for Exhibit 11.2.

Awareness Building

Diversity training must increase awareness of the meaning and importance of valuing diversity.57 The aim is to sensitize employees to the assumptions they make about others and the way those assumptions affect their behaviors, decisions, and judgments. For example, a male employee who has never reported to a female manager may feel awkward the first time he is required to do so. Awareness building can reveal this concern in advance and help people address it. To build awareness, trainers teach people about myths, stereotypes, and cultural differences as well as the organizational barriers that inhibit the full contributions of all employees. They offer a better understanding of corporate culture, requirements for success, and important behaviors that affect opportunities for advancement. In most companies, the rules for success are ambiguous, unwritten, and perhaps inconsistent with written policy. A common problem for women, minorities, immigrants, and young employees is that they are unaware of unofficial rules that are obvious to people in the mainstream. For example, organizations often have informal networks and power structures that may not be apparent or readily available to all. As a result, some are less likely than others to know where to go when they need approvals, support, and allies.

Leveraging Differences

For all these reasons, and more, managing diversity is not easy. Managers are not immune to the biases, stereotypes, inexperience, and tensions that make communication, teamwork, and leadership in a diverse workforce challenging. But they do need to confront these issues and develop the necessary strategies and skills if they and their organizations are to succeed in our multicultural environment. One constructive way to begin is with what Professor Martin Davidson calls "leveraging difference." This approach sees diversity not as a problem to be tolerated or solved but as a resource the organization can capitalize on, even though doing so can be difficult. Leveraging difference starts with recognizing that we all bring something different, contributing different strengths, values, and ways of thinking and problem solving. To capitalize on these differences, Exhibit 11.7 offers suggestions applicable to the whole spectrum of organizational activities such as innovating, learning, working as a team, and interacting with customers

Unexamined Assumptions

For most of us, seeing the world from someone else's perspective is difficult because our own assumptions and viewpoints seem so normal and familiar. For example, heterosexuals may not even think about whether to put a photo of their loved ones on their desks; it is a routine, even automatic decision, repeated in a million workplaces across the country. But for many gay employees in some environments, displaying (or even considering) such photos can cause considerable anxiety. Other unexamined assumptions involve the roles of women and men. For example, many people assume that women will shoulder the burden of caring for children, even if it conflicts with the demands of work. In a recent experiment, employers were less likely to invite the fictional candidate for an interview when the résumé implied the candidate was a parent—but only if the name was female.42 Because the résumés were otherwise identical, the results suggest that people make assumptions about mothers that do not apply to fathers or to childless women. In organizations that are oblivious to such assumptions and do not actively help people feel welcome and valued, managers will find it more difficult to develop an enthusiastically shared sense of purpose.

Flexibility and Work-Life Balance

In addition to offering family-friendly benefits, many companies provide flexible working arrangements to recruit and retain Millennial employees. A recent survey indicates that these early career employees value work flexibility and work-life balance more than compensation growth or skill development. Additional factors driving the trend toward flexible work arrangements include technology and Millennial employees' affinity for using it. Mobile technology, cloud computing services, and high-speed Internet enable employees to collaborate in teams and with clients from non-office locations. As the first generation to come of age as "digital natives," Millennials are comfortable working in this virtual, flexible environment. The traditional Monday-Friday, 9-5 p.m. work schedule can be perceived as too restrictive for this generation that is used to integrating work and leisure during "off hours."

9. Companies such as Accenture are helping women break through the proverbial glass ceiling by (Check all):

Making arrangements for part-time assignments, sponsoring monthly networking events for its female employees.

Mentoring

Many people are puzzled by the apparent inability of women and minorities to move up beyond a certain point on the corporate ladder (the glass ceiling). To help these groups enter the informal network that provides exposure to top management and access to information, many companies use formal mentoring programs. Mentors are higher-level managers who coach, advise, and help people meet top managers and learn the norms and values of the organization. In Canada, EY (formerly Ernst & Young) established several mentoring programs for women, minorities, and immigrants. Mentors work with employees to help them gain relevant experience, new skills, and connections with senior leaders. EY sees these mentorships as ways not only to strengthen employees' contributions but also to fill its talent pipeline with future leaders. In a related but distinct effort, EY identifies high-potential employees and then company leaders sponsor them. Sponsorship is similar to mentorship except that the sponsor is more actively involved in the employee's development. In an unusual twist on mentorship, EY also has a reverse mentoring program in which women and minority employees discuss with leaders issues related to diversity at the company.

Accountability

Performance appraisal and reward systems should reinforce effective diversity management. At PepsiCo, each executive reporting to the CEO is responsible for employee development of a particular group. The executive must identify leadership talent, learn group members' concerns, identify areas where support is needed, and create plans for addressing these issues.62 Now (at this writing), 36 percent of senior executives at the company are people of color and 27 percent are women.63 PepsiCo has earned several recent awards for its diversity management efforts.64 For decades, U.S. corporations strove to integrate their workforces because of regulatory and social responsibility pressures. Today globalization, changing demographics, and the expansion of ethnic markets at home have made managing a diverse workforce a bottom-line issue. Managers at organizations such as Apple realize that to be competitive, they will have to make managing diversity a strategic priority so as to attract, develop, keep, and apply the knowledge of the best talent.

29. The American with Disabilities Act (ADA) defines a disability as a physical or mental impairment that substantially limits one or more major life activities. Examples of such physical or mental impairments include which of the following (Check all):

Psychological Illness, Alcoholism, Learning Disabilities, HIV infection

34. Which of the following are communication issues that can arise due to diversity (Check all):

Slowness, inaccuracies, & misunderstandings

Gender Issues

Social changes during the 1960s and 1970s, coupled with financial necessity, greatly increased the number of women entering the workforce. Consider: • Women make up about 47 percent of the workforce. • Approximately 53 percent of marriages are dual-earner marriages. • Nearly one of every three married women in two-income households earns more than her husband does. • The percentage of women in the labor force earning college degrees has nearly quadrupled over the past 45 years.9 For anyone holding dual responsibilities, balancing work and family presents an enormous challenge. Although men's roles in our society have been changing, women still adopt the bulk of family responsibilities, including household responsibilities, child care, and care of elderly parents. Yet some companies still expect their employees, particularly at the managerial level or in certain professions, to put in long hours and sacrifice their personal lives for the sake of their work. Not only can these expectations put many women at a career disadvantage, but they also cause companies to lose valuable talent. Companies that offer their employees the opportunity to balance work and family are better able to recruit and retain women and sometimes men. These companies offer family-friendly benefits such as onsite child care, in-home care for elderly family members, increased maternity leave, job sharing, and flexible work schedules, and they permit more work from home. The nearby "Multiple Generations at Work" box discusses such work arrangements.

Mental and Physical Disabilities

The largest unemployed minority population in the United States is people with disabilities. It includes people of all ethnic backgrounds, cultures, and ages. The share of the population with a disability is growing as the average worker gets older and heavier.22 According to U.S. government statistics, about 17 percent of people with Page 320 disabilities are employed compared to 65 percent of people without.23 One-third are employed on a part-time basis.24 People with a disability are more likely to have jobs if they have higher education levels, and more likely than workers without disabilities to have a part-time job because they can't find full-time work.25 The Americans with Disabilities Act Amendments Act (ADAAA) defines a disability as a physical or mental impairment that substantially limits one or more major life activities. Examples of such physical or mental impairments include those resulting from orthopedic, visual, speech, and hearing impairments; cerebral palsy; epilepsy; multiple sclerosis; HIV infections; cancer; heart disease; diabetes; mental retardation; psychological illness; particular learning disabilities; drug addiction; and alcoholism.26 New assistive technologies are making it easier for companies to comply with the ADA and for those with disabilities to be productive on the job. In many cases, state governments pay for special equipment or other accommodations. Accommodations can result in unanticipated fringe benefits, too. The National Industries for the Blind (NIB), a Wisconsin company that markets products under the Skilcraft brand name, is a case in point. Seventy-five percent of NIB employees are visually impaired. Because the company's warehouse pickers have trouble reading instructions on paper, NIB installed a voice technology system that conveys instructions to workers through headsets. An added benefit is that the technology has raised the productivity of the entire operation. Accuracy has improved, and workers—both blind and sighted—are able to pick and ship orders faster using the headsets. For most businesses, people with disabilities represent an unexplored but productive labor market. Employers frequently find that employees with disabilities are more dependable than other employees, miss fewer days of work, and exhibit lower turnover. Companies receive tax credits for hiring workers with disabilities. And such practices send important signals to other employees and outside stakeholders of a strong desire for an inclusive organization.

Organizational Assessment

The next step in managing diversity is to establish an ongoing assessment of the organization's workforce, culture, policies, and practices in areas such as recruitment, Page 328 promotions, benefits, and compensation. Managers evaluate whether they are attracting their share of diverse candidates from the labor pool and whether the current workforce composition is meeting customer needs. The objective is to identify areas with problems or opportunities and to make recommendations. Etsy, the social commerce website for handcrafted and vintage items, determined that 80 percent of its customers were women but only about 3 percent of its engineers were women. Marc Hedlund, former senior vice president of engineering, determined—easily, with the data—that Etsy needed to bring in more female engineers and develop their customer skills.52 Women and Asian Americans can be at a disadvantage when an organization values aggressiveness. Such a culture might exclude—from hiring, or full inclusion—those who do not exhibit high levels of aggressiveness. Managers could then decide that the organization's "values" need to change so that other personal styles are equally acceptable. Managers can change their own behaviors to reflect such a change; for example, by asking everyone in meetings for their thoughts instead of letting more assertive participants dominate. Corporate norms should be identified and evaluated regarding their real value and their impact on people.

4. Which of the following statements describe population trends impacting the U.S. workforce (Check all):

The number of Asian American, black, and Hispanic American workers is expected to grow faster than that of American White Males, & About one in three residents in the United States is a racial or ethic minority

Education Levels

When the United States was an industrial economy, many jobs required physical strength, stamina, and skill in a trade, rather than college degrees. In today's service and technology economy, more positions require a college education and even a graduate or professional degree, and prospective employees have responded by applying to college in record numbers. One result is rising shares of African American, Hispanic, and female graduates. People with degrees in science and technology are in especially high demand. Employers often expand their search for scientists and computer professionals overseas, but visa requirements limit that supply. On the other side of the spectrum, in the current labor pool almost 25 percent of foreign-born workers have not completed high school, compared with just 5 percent of native-born workers.27 The share of workers with a bachelor's degree has more than doubled since 1970.

Apple's drive toward diversity

With the number of women and minorities lagging in the tech industry's workforce, many companies are thinking and talking about ways to remedy the situation. People within and outside the industry are concerned that results have been slow in coming; Facebook's global director of diversity recently drew widespread criticism for saying progress on diversity would take years because there are not enough qualified minority applicants coming through the nation's school system—a statement many deny. Apple, on the other hand, has moved out in front of many other tech companies, increasing and broadening its recruitment process (including at college campuses), fostering an inclusive workplace climate, cultivating a pool of diverse leaders, addressing current employees' unconscious biases, supporting veterans and people with disabilities, and advocating for the rights of the LGBTQ community. Its Diversity Network Associations are "groups where employees can make connections that create trust and a feeling of belonging," whether they want to identify as and associate with fellow Christians, Jews, Muslims, women, Asian Americans, African Americans, agnostics, or others. The company has improved some of the diversity statistics it releases in its annual diversity and inclusion report, even if only by a small amount. Change, while slow, is taking place. Apple says it takes a "holistic view" of diversity, "a view that includes the varied perspectives of our employees as well as app developers, suppliers, and anyone who aspires to a future in tech. Because we know new ideas come from diverse ways of seeing things." The company's efforts to be more diverse extend to pay equity as well as racial, ethnic, and gender diversity. According to the company's website, "We've achieved pay equity in the United States for similar roles and performance. Women earn one dollar for every dollar male employees earn. And underrepresented minorities earn one dollar for every dollar white employees earn." That's a remarkable achievement in a nation where women in general still do not earn what men earn for the same work.48 Do you agree that the achievement of diversity in the tech workforce will take a long time? Why or why not? What challenges to achieving diversity has Apple overcome? Which could it work harder to resolve?

Here are some tips for making your job more flexible:

• Identify which type of flexible work arrangement you desire. Is it telecommuting, job sharing, flexible work hours ... ? • Review your company's existing policies about flexible work arrangements. This information can help you shape your negotiation strategy. • Research whether your organization has the technology to support virtual workers. For example, does it have shared file folders and documents, videoconferencing software, cloud-based computing, and instant messaging? • Make a compelling case for why adding flexibility to your work is good for business and productivity. It could be that you have a long commute each day and that you could better spend your time working on projects. • Be prepared for pushback. Your manager may resist granting a flexible schedule for fear that you will use the time outside the office for non-work activities. A counterpoint may be that you'll likely put in longer hours (and be more productive) and that your online work and e-communication time stamps will provide consistent evidence of time worked. • The average full-time working woman earns about 83 percent as much as men in the same job.

The Changing Workforce

Although white, American-born males still constitute the largest percentage of workers—about 80 percent of U.S. workers are white, and more than half of them are male—their share of the labor force is declining. The number of white male workers will continue growing, but the numbers of Asian American, African American, and Hispanic American workers will grow faster.6 This parallels trends in the overall U.S. population. About one in three U.S. residents is a racial or ethnic minority. The largest and fastest-growing minority group is Hispanics, closely followed by Asian Americans. In several Page 315 states—California, Hawaii, New Mexico, and Texas—and the District of Columbia, these minority groups plus Native Americans and Pacific Islanders combine to make a population that is "majority minority."7 The United States Census Bureau projects that by 2044 these one-time minority groups will collectively represent a majority of the U.S. population.

Communication Problems

Communication difficulties include misunderstandings, inaccuracies, inefficiencies, and slowness. Speed is lost when not all group members are fluent in the same language or when additional time is required to explain things. Sometimes diversity decreases communication, as when white male managers feel less comfortable giving feedback to women or minorities for fear of how criticism may be received. If managers don't deliver helpful feedback, employees will not know how to improve their performance. Diversity also can lead to errors and misunderstandings. Group members may assume they interpret things similarly when in fact they do not, or they may disagree because of their different frames of reference.44 For example, if managers do not actively encourage and accept the expression of different points of view, some employees may be afraid to speak up at meetings, leaving the manager with a false impression that consensus has been reached. We discuss communication in depth in Chapter 15.

Skill Building

Diversity training that merely identifies problems without giving participants the tools they need to act is not good enough. Skill building helps people deal more effectively with one another and with diverse customers. Most of the skills taught are interpersonal, such as active listening, coaching, and giving feedback. Ideally, organizational assessment determines the skills taught; the training is tailored to needs. Tying the training to business goals increases its usefulness and allows managers to assess whether it is working. The best training relates to the actual challenges employees encounter in the workplace. For example, employees in a hospital diversity training program might practice how to handle a white patient who asks to be treated only by a white doctor and a male patient who wants to be treated only by a male doctor. Training ABC and American Training Resources are among the companies that offer such products. Exhibit 11.9 provides guidelines for designing effective diversity training

Managing Diversity and Affirmative Action

For many organizations, the original impetus to diversify their workforces was a combination of social responsibility and legal necessity. Companies introduced affirmative action—special efforts to recruit and hire qualified members of groups that were discriminated against in the past. The intent was not to prefer these group members to the exclusion of others, but to correct for the long history of discriminatory practices and exclusion. Viewed from this perspective, amending these wrongs is moral and ethical as well as a legal necessity. Nevertheless, the legislated approach created fragmented efforts that have not fully achieved the integrative goals of diversity. Employment discrimination persists; even after decades of government legislation, equal employment opportunity (EEO) and affirmative action laws have not adequately improved the upward mobility of women and minorities. To move beyond correcting past wrongs and create truly inclusive organizations requires a change in organization culture to one in which diversity contributes directly to the attainment of organization goals. Affirmative action and managing diversity are not the same thing. Managing diversity means moving beyond legislated mandates to embrace a proactive business philosophy that values differences positively. All employees are different, adding in many ways to the richness of talents and perspectives that organizations can draw upon. Thus managing diversity is not just about getting more minorities and women into the organization. Managing diversity requires managers to recognize and value the uniqueness of each employee and to see the variety of differences as a potential source of competitive advantage. It is about coming together to benefit the whole, leading many companies to refer now not just to diversity but also inclusion as their objectives. Affirmative action and managing diversity are not the same thing.

Gender issues do not apply only to women

Gender issues do not apply only to women. In some ways, the changing status of women has given men the opportunity to redefine their roles, expectations, and lifestyles. Some men are deciding that there is more to life than corporate success and choosing to scale back work hours to spend more time with their families. Men as well as women want to achieve a balance between career and family. Employees who are lesbian, gay, bisexual, or transgender (LGBT) are affected by the same issues. They want to avoid discrimination and harassment too, of course, to obtain benefits for a same-sex spouse or domestic partner, or to feel free not to be secretive about this aspect of who they are. Treatment of LGBT employees is an area of ongoing change, both in societal attitudes and in the law. For example, a few years ago, couples in a same-sex relationship would be categorized legally as single, but now some states have laws allowing them to marry or register as domestic partners and to adopt children together. Over 90 percent of Fortune 500 companies have policies protecting employees on the basis of sexual orientation, and former president Obama signed an executive order prohibiting federal contractors from discriminating against LGBT workers.18 In situations where laws, policies, and social norms are in a state of flux, employers must be especially attentive to what is required and how employees, customers, and other stakeholders are affected by company policies and practices.

The traditional American image of diversity has been one of assimilation.

The traditional American image of diversity has been one of assimilation. The United States has long been praised as the world's melting pot, a country in which ethnic and racial differences blended ideally into an American purée. In real life, many see not a melting pot but a mixing bowl. Progress, setbacks, and periods of strain appear, fade, and reappear; progress comes not naturally but only with concerted and sustained effort.

28. Which of the following statements about the disabled population in the United Sates is true:

It is increasing as the average worker gets older and heavier

37. Which of the following behaviors can cause a hostile work environment (check all):

Pervasive displays of pornography, demeaning jokes, & lewd or suggestive remarks

Systems Accommodation

Managers can support diversity by recognizing cultural and religious holidays, differing modes of dress, and dietary restrictions as well as accommodating the needs of people with disabilities. One important disabling condition is AIDS. Under the ADA Amendments Act (ADAAA), organizations must accommodate employees with AIDS as they would persons with any other disability, permitting and even encouraging them to continue working for as long as they are able and, if warranted, allowing flexible scheduling. Accommodations for disability likely will become increasingly important as the median age of the workforce continues to rise. In addition, the average weight of U.S. workers is increasing, and relates not only to health consequences such as heart disease, joint problems, and diabetes, but also to workplace injury claims and absences related to injuries.61 Managers should do what they can to maintain safe workplaces and offer benefits that encourage healthy lifestyles.

Accommodating Work and Family Needs

Many job seekers put family needs first. Corporate work and family policies have a big impact on recruiting success and failure. SAS, the business analytics software company in North Carolina, keeps turnover to less than 3 percent by providing free "work-life" counseling, helping employees effectively manage the stresses of everyday life. Employees burn stress by working out in a large gym, taking yoga classes, swimming laps in a heated pool, and taking advantage of deeply discounted child care. Employers offering onsite child care report lower turnover and absenteeism and higher morale. Many companies assist with care for elderly dependents, care for sick family members, parental leaves of absence, and benefits tailored to individual family needs. Some companies accommodate dual-career couples by limiting relocation requirements or providing job search assistance to relocated spouses.

13. Which of the following statements about differences within groups is true:

More difference may exist between Asians for Vietnam and Japan than between a white and an African American from Denver; Individuals within any ethnic group are unique in personality, education, and life experiences; & Not all African Americans share the same personal goals and values

24. Harassment puts an extra burden on managers to maintain an appropriate work environment by ensuring that all employees know what conduct is and is not appropriate and tat there are serious consequences for this behavior, such as __ (Check All):

Negative Publicity, Lawsuits, and Stiff Fines

39. Which of the following are methods designed to promote the hiring and success of mentally and physically disabled people in the workforce (check all):

Passage of ADA, Tax credits for hiring disabled workers, & New/Assistive technologies that make it easier to be productive

Mistrust and Tension

People prefer to associate with others who are like themselves. This is a normal, understandable tendency. Feeling excluded from joining colleagues at business lunches or after-hour gatherings is isolating and frustrating, and can lead to misunderstandings, mistrust, and ineffective work relationships. Tensions may develop between people of different ages; what one generation might see as a tasteless tattoo is for others a creative example of body art. Such disagreements can cause stress, tension, and resentment, making it more difficult to agree on work issues.

How to Cultivate a Diverse Workforce

Plans for becoming multicultural and making the most of a diverse workforce should include (1) securing top management's leadership and commitment, (2) assessing the organization's progress toward goals, (3) attracting employees, (4) training employees in diversity, and (5) retaining employees.

Diversity Assumptions and Implications

Some organizations are monolithic, having very little diversity or inclusiveness. For example, a firm might favor hiring alumni of the same school. In monolithic organizations, groups other than the norm (if represented) work primarily in low-status jobs. Minority group members must adopt the norms of the majority to survive. This fact, coupled with small numbers, keeps conflicts among groups low. Discrimination and prejudice can prevail, integration between groups is almost nonexistent, and minority group members do not identify strongly with the company. Most large U.S. companies made the transition from monolithic to pluralistic organizations in the 1960s and 1970s because of changing demographics and societal forces such as the civil rights and women's movements. Pluralistic organizations have a more diverse employee population and use an affirmative action approach to managing diversity: They actively try to hire and train a diverse workforce and to avoid discrimination. They integrate groups more fully than do monolithic organizations, but like monolithic organizations they often have minority group members clustered at certain levels or in particular functions within the organization. Because of training programs and greater cultural integration, the pluralistic organization shows less prejudice and some acceptance of minority group members into the informal network. Improved employment opportunities help group members identify more strongly with Page 326 the organization. Sometimes some majority group members' resentments toward women and minorities create more conflict than exists in the monolithic organization. The pluralistic organization does not adequately address the cultural aspects of integration. In contrast, multicultural organizations both are diverse and value differences. These organizations fully integrate gender, racial, and minority group members, both formally and informally. Rather, managers value and leverage the varieties of experiences and knowledge employees bring to help the company achieve agreed-upon strategies and goals.49 The truly multicultural organization is marked by an absence of prejudice and discrimination and by low levels of intergroup conflict. It forges a synergistic environment in which all members contribute to their maximum potential, and fully realizes diversity advantages

The average full-time working woman earns about 83 percent as much as men in the same job

The average full-time working woman earns about 83 percent as much as men in the same job. A long-standing, persistent gap exists between male and female workers' earnings, even after adjusting for age, marital status, geographic region, college major and GPA, type and selectivity of undergraduate school, type of occupation, economic sector, number of hours worked, and months between graduation and starting work. Importantly, differences in performance evaluations do not explain the pay differences While career interruptions to care for family reduce women's long-term earnings,12 another possible explanation for the wage gap is that women are not negotiating pay as effectively as men. This hurdle is complicated by evidence that some negotiation tactics that work for men can backfire when women use them, but women benefit by doing more research into pay scales and expressing their pay requirements in a pleasant tone, backed up with evidence of their worth.13 Another concern is the low representation of women in top jobs. As women and minorities move up the corporate ladder, they encounter a glass ceiling: an invisible barrier that makes it difficult for women and minorities to move beyond a certain hierarchical level. At this writing, just 29 women are chief executives of S&P 500 companies—that's 29 out of 500. Among all board members of those companies, about 20 percent are women.14 Still, one positive trend is that women's leadership is beginning to be seen at companies in a broader range of industries. Exhibit 11.3 lists top women executives and their companies. Irene Rosenfeld has broken through the glass ceiling as CEO of Mondelez International, overseeing the company with revenues of over $30 billion.

Multicultural Organizations

To capitalize on the benefits and minimize the costs of a diverse workforce, one of the first things managers need to do is examine prevailing assumptions about people and cultures. Exhibit 11.8 shows some assumptions that might exist. Based on these assumptions, we can classify organizations as one of three types and describe their implications for managers.

Top Ten Most Powerful Women Executives

To help break through the glass ceiling, Accenture sponsors monthly networking events and offers flexible schedules and part-time arrangements. Employers sometimes match employees with mentors to help them navigate the corporate environment. Whatever the source of career obstacles, empowerment programs can help. Exhibit 11.4lists eight companies where women are thriving as a result of proactive leadership, mentoring programs, and hiring initiatives.

Training Employees

Traditionally, most management training was based on the unstated assumption of a homogeneous, often white-male, full-time workforce. But diversity creates an additional layer of complexity.56 Diversity training programs attempt to identify and reduce hidden biases and develop the skills needed to manage effectively in a diversified workforce. Most U.S. organizations sponsor some sort of diversity training, typically having two components: awareness building and skill building.

Stereotyping

We learn to see the world in a certain way based on our backgrounds and experiences. Our interests, values, and cultures act as filters and distort, block, and select what we see and hear. We see and hear what we expect to see and hear. Group members often inappropriately stereotype colleagues rather than accurately perceiving their contributions, capabilities, aspirations, and motivations. Such stereotypes usually are negative or condescending. Women may be stereotyped as not dedicated to their careers, and older workers as incapable and unwilling to learn new skills. But even so-called positive stereotypes can be burdensome. The common stereotype that Asian Americans are good at math may leave unrecognized other positive attributes. Many people dislike being stereotyped at all, even positively, preferring to be understood and treated as individuals. Stereotypes may lead organizations to miss the opportunity to hire qualified candidates,45 and can cost the organization dearly by stifling employees' motivation so that they don't contribute fully. Managers want their employees to perform to their full ability, but stereotypes that dampen individual employees' ambition and performance detract from the organization's success. Managers unaware of stereotyping—by themselves or others—may not recognize its effects on how people are treated. Employees stereotyped negatively will be given work assignments that are less important than those given to co-workers. Those assignments will underuse people's skills, frustrate them, perhaps reduce their commitment, and cause higher turnover.

Creative Problem Solving

Work team diversity promotes creativity and innovation because people from different backgrounds bring different perspectives. Diverse groups have a broader base of experience from which to approach a problem; when effectively managed, they invent more options and create more solutions than homogeneous groups do. In addition, diverse groups are freer to deviate from traditional approaches and practices. Diversity also can help minimize groupthink (recall Chapter 3).37 Many law firms routinely have diverse legal teams working together on cases. Complex cases often require fresh "out of the box" ideas, and a group of lawyers from the same background who all think alike may not be as innovative as a more diverse team. In jury trials, the impression that a legal team makes on a jury can help or badly hurt the client, and a visibly diverse legal team is likely to impress a diverse jury.