MGMT 3820 Exam 2
Values
Basic convictions about what is right and wrong. Different from Stage of Moral Dev. • Values o Broad &cover a wide range of issues • Stage of Moral Development o Measure of independence from outside influences.
Population of Racial/Ethnic Groups
Main changes in the percentages of the Hispanic and white population - Asian pop. will almost double
Aging Population
Median age of 36.9 years up from 36.2 years in 2001 • Change from 1st half of 20th Cent.-> "Young" country o Lots of babies born o Infant/Childhood mortality o High Immigrations rates 2050: 1 in 5 will be 65 & over • 80 & over =Most populous o 8% of pop
An advisory firm that works with major corporations says,
"Companies would achieve more social good by simply focusing on the bottom line rather than social responsibility programs."
Green Approaches
(High to Low) -Activist Approach (Dark Green) -Stakeholder Approach -Market Approach -Legal Approach (Light Green)
Legal Approach
(Light Green)- Firms -> Simply do what's required legally -Obeying laws, rules, and regulations willingly and without legal challenge. -Little environmental sensitivity
Types of Workplace Diversity
-Age -Gender -Race -Ethnicity -Disability/Abilities -Religion -LGBT
Types of Discrimination
-Discriminatory policies or practices -Sexual Harassment -Intimidation -Mockery & Insults -Exclusion -Incivility
HOW ORGANIZATIONS GO GREEN • Different Approaches
-Legal -Market -Shareholder -Activist
Individual Characteristics that play a role in determining whether a person behaves ethically?
-Values -Personality (Ego Strength & Locus of Control)
In People Management, Diversity is about...
... People, both inside and outside the organization; Their o Skills -Abilities -Experiences
How many women have felt passed over for a work promotion or opportunity and why?
15%; Because of Gender
Equal Pay Act
1963; Prohibits pay differences for equal work based on gender
Civil Rights Act
1964 (amended in 1972); Title VII Prohibits discrimination based on race, color, religion, national origin, or gender
Age Discrimination
1967 (amended in 1978); In Employment Act Prohibits discrimination against employees 40 years and older
Pregnancy Discrimination Act
1978; Prohibits discrimination against women in employment decisions on the basis of pregnancy, childbirth, and related medical decisions
Mandatory Retirement Act
1978; Prohibits the forced retirement of most employees
Americans with Disabilities Act
1990; Prohibits discrimination against individuals who have disabilities or chronic illnesses; also requires reasonable accommodations for these individuals
Civil Rights Act of 1991
1991; Reaffirms and tightens prohibition of discrimination and gives individuals right to sue for punitive damages
Family and Medical Leave Act
1993; Gives employees in organizations with 50 or more employees up to 12 weeks of unpaid leave each year for family or medical reasons
Lilly Ledbetter Fair Pay Act
2009; Changes the statute of limitations on pay discrimination to 180 days from each paycheck
AT&T
3rd on Diversity Inc.'s list -> Top 50 companies for Diversity
How many workplaces have at least one green technology practice?
75 % of workplaces have at least one green technology practice
World's older population (65 & older) increased by approx. how many people each month in 2008?
870,000
• Prejudice
A pre-conceived belief, opinion, or judgment toward a person or a group of people.
• Bias
A tendency or preference toward a particular perspective or ideology.
-Discriminatory policies or practices
Actions taken by reps of the organization that deny equal opportunity to perform or unequal rewards for performance EX: Older workers may be targeted for layoffs b/c they are highly paid & have lucrative benefits.
Organizational Performance Studies & Examples
Another Study: 34% would've stayed at jobs if their abilities had been recognized • Workforce diversity efforts can reduce risk of lawsuits o Abercrombie & Fitch paid $50 million lawsuits Claims discriminated against minorities and women. o Bank of America was fined $2.2 million Discriminating against black job candidates over two decades. o Those are amounts of money that can seriously affect an organization's bottom line. 2013: Equal Employment Opportunity Commission reported 93,727 workplace discrimination claims were filed o 6,000 less than prev. year Startling decrease, But, monetary relief obtained for victims: $372 million • New record
Social Screening
Applying social criteria (screens) to investment decisions. • SRI funds usually will not invest in companies involved in liquor, gambling, tobacco, nuclear power weapons, price fixing, fraud, or in companies that have poor product safety, employee relations, and environmental track records.
Social Responsibility
Business's intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society • Obeys law, cares for stockholder, but w/ ethical imperative • Chooses to be socially responsible
Which of the world's developing regions has highest % of older people?
Caribbean
Organizational Performance
Cost savings include reducing employee turnover, absenteeism, and the chance of lawsuits.
Surface-Level Diversity
Demographic characteristics ppl tend to think of as diversity— -Age, -Race -Gender -Ethnicity, etc.
What a Good Mentor Does
Develops a high-quality, close, and supportive relationship with protégé Keeps lines of communication open Provides instruction Offers advice Gives constructive criticism Helps build appropriate skills Shares technical expertise Knows when to "let go" and let the protégé prove what he/she can do
Deep-Level Diversity
Differences in values, personality, and work preferences. Can affect how people view o Organizational work rewards -Communicate -Negotiate o React to leaders o General Work Behaviour
-Incivility
Disrespectful treatment, including behaving in an aggressive manner, interrupting the person, or ignoring his or her opinions EX: Female lawyers note that male attorneys frequently cut them off or do not adequately address their comments.
TYPES OF WORKPLACE DIVERSITY- Other Types of Diversity
Diversity refers to any dissimilarities or differences that might be present in a workplace
-Exclusion
Exclusion of certain people from job opportunities, social events, discussions, or informal mentoring; can occur unintentionally EX: Many women in finance claim they are assigned to marginal job roles or are given light workloads that don't lead to promotion.
True or False: More than half the world's older people live in industrialized
False Although industrialized nations have highers percentages of older people than most dev. nations, 62% people 65+ now live in dev. regions of Africa, Asia, Latin America, Caribbean, & Oceania
Activist Approach
Firms -> Protects Earth's Natural Resources -Highest degree of environmental sensitivity -Illustrates social responsibility
Market Approach
Firms respond to environmental preferences of customers -More sensitive to environmental choices
Stakeholder Approach
Firms work to meet the environmental demands of multiple stakeholders -Employees Work Operations -Suppliers -Supply Chian -Customers & Community -Work Operations
Early 1980's
Focus -> Assimilation of women & minorities into corporate setting Corporate programs dev. to help improve self confidence & qualifications of diverse individuals so they can "fit" in .
1960's to 1970's
Focus -> complying w/ laws & regulations Title VII of Civil Rights Act Equal Employment Opportunity Affirmative Action Policies & Programs
New Millennium
Focus on Diversity & inclusion for business success Workforce diversity seen as core business issue Important to achieve business success, profitability, & growth
Late 80's to Late 90's
Focus on fostering sensitivity: Shift from compliance & focusing on women & minorities to include everyone Make employees more ware & sensitive to needs & differences of others.
TYPES OF WORKPLACE DIVERSITY- Gender
Gender - Women (49.8%) and men (50.2%) now each make up almost half of the workforce. • Men start at higher careers in their level o Women never catch up as men move up • Women more able & willing to conform to authority o Mothers (w/ young kids) more likely to prefer part-time jobs • Men more aggressive & more likely to have levels of success • Women -> broader, more effective leadership style • Men -> "Masculine" Leadership
US Women
Graduating w/ advanced professional degrees -> record #'s o 2014: Only 24 female CEO's of major US Corp. 6 Black CEO's 9 Asian CEO's 8 Latino CEO's
Employee Resource Groups
Groups made up of employees connected by some common dimension of diversity. • Very popular o b/c diverse groups have the opportunity to see their existence acknowledged o Have the support of people w/in & outside the group.
Total population of the United States projected to...
Increase to 438 million by the year 2050
Which country had world's highest percentage of older people in 2008?
Japan W/ 22% of pop. 65+ has supplanted Italy as world's oldest major country
-Mockery & Insults
Jokes or negative stereotypes; sometimes the result of jokes taken too far EX: Arab Americans have been asked at work whether they were carrying bombs or were members of terrorist organizations.
Socioeconomic View
Management's social responsibility goes beyond making profits to include protecting and improving society's welfare. - Based on belief: Corporations are not independent entities responsible to stockholders o But still have obligation to society o Embraced around the world 84% Global executive say companies must balance obligations to shareholders with obligations to the public good.
Green Management
Managers consider the impact of their organization on the natural environment.
Diversity
Most popular business topic of last 2 years
Social Obligation
Obligation of a business to meet its economic and legal responsibilities and nothing more.
-Intimidation
Overt threats or bullying directed at members of specific groups of employees EX: African American employees at some companies have found nooses hanging over their work stations.
Ethics
Principles, values, and beliefs that define right and wrong behavior. o Ethical Decisions Managers required to consider both the process and who's affected by the result.
Stage of Moral Development
Research divides moral development into three levels, each having two stages. Each successive stage, an individual's moral judgment becomes less dependent on outside influences and more internalized. Level 1: Preconventional 1. Sticking to rules to avoid physical punishment. 2. Following rules only when doing so is in your immediate interest. Level 2: Conventional 3. Living up to what is expected by people close to you. 4. Maintaining conventional order by fulfilling obligations to which you have agreed. Level 3: Principled 5. Valuing rights of others and upholding absolute values and rights regardless of the majority's opinion. 6. Following self-chosen ethical principles even if they violate the law.
TYPES OF WORKPLACE DIVERSITY- Ethnicity
Social traits (such as cultural background or allegiance) that are shared by a human population. • PPl tend to favor colleagues of own race o Performance Evaluations -Pay Raises -Promotions o Blacks freq. receive low ratings Even w/o sig. differences betw. 2 races
SRI
Socially Responsible Investing (Funds)
TYPES OF WORKPLACE DIVERSITY- Disability/Abilities
The Americans With Disabilities Act of 1990 prohibits discrimination against persons with disabilities. • • • Largest minority in US • Very Broad Definition o Problem for managers & organizations o 61% HR professionals said their organizations now include disabilities in their diversity and inclusion plans. o Only 47 percent said that their organizations actively recruit individuals with disabilities.
TYPES OF WORKPLACE DIVERSITY- Race
The biological heritage (including skin color and associated traits) that people use to identify themselves.
Glass Ceiling
The invisible barrier that separates women and minorities from top management positions. • Used in an 80's Wall Street Journal article • Range from o Lack of mentoring -Sex Stereotyping o Leadership Ambition Gap According to Sheryl Sandburg (Google VP; Facebook) Claims women don't really want it Women should "lean in" & be as assertive as men
TYPES OF WORKPLACE DIVERSITY- Religion
Title VII of the Civil Rights Act prohibits discrimination on the basis of religion.
True or False: World's children under 5 outnumber people aged 65 & older
True. World is aging, but children still outnumber older people as of 2008
TYPES OF WORKPLACE DIVERSITY- GLBT: Sexual Orientation and Gender Identity
U.S. federal law does not prohibit discrimination against employees on the basis of sexual orientation • "Last acceptable bias" o Racial & ethnic stereotypes off-limits Not so w/ gays & lesbians o One Study: 40% of gay and lesbian employees indicated Unfair treatment -Promotion Denial -Pushed to quit b/c of orientation o Mixed Treatment Some don't hire at all 85% of the largest US corporations now prohibit employment discrimination based on sexual orientation, 35% prohibit bias based on gender identity
-Sexual Harassment
Unwanted sexual advances & other verbal or physical conduct of a sexual nature that create a hostile or offensive work envir. EX: Salespeople at one company went on company-paid visits to strip clubs, brought strippers into the office to celebrate promotions, & fostered pervasive sexual rumors
Classical view
View that management's only social responsibility is to maximize profits.
Workforce Diversity
Ways people in organization are different from and similar to one another.
Social Responsiveness
When a firm engages in social actions in response to some popular social need. • Managers are guided by social norms and values and make practical, market-oriented decisions about their actions • Can be forced by law or society o Parents, environmentalists, etc.
Late 1980's
Workforce diversity concept expanded from compliance to issue of business survival
• Stereotyping
judging a person based on a prejudicial perception of a group to which that person belongs.
People Management Conflicts
o Benefits hard to come by in interdependent tasks over long period of time o More opportunities -> Conflicts & resentments to build Research shows: • Simply better team training & coaching needed
Preconvention Level
o Ethical choices -> Based on personal consequences.
Conventional Level
o Ethical decisions -> Rely on living up to the expectations of others.
Relationship w/ social involvement & co's economic performance affected by various factors:
o Firm Size o Industry o Economic Conditions o Regulatory Environment
Causation
o If study showed Social Involvement & Economic Performance were positively related Correlation may not be connected • Social Issues not related to Primary shareholders -> Negatively assoc. w/ Shareholder value
Principled Level
o Individuals define moral values apart from the authority groups or society in general.
Organizational Performance Negatives
o Korn/Ferry International Report (recruiting firm): U.S. companies waste $64 billion annually Losing and replacing employees who leave their jobs "solely due to failed diversity management." o Another study: Organizational biases manifest themselves in incivility toward those who are different, o Organizational performance is hindered
Milton Friedman
o Most outspoken advocate of the Classical View o Economist/Nobel Laureate o Argued manager's primary responsibilities: Operate business in best interest of stockholders • Whose primary concerns are financial When they decide to spend the organization's resources for "social good," • Add to the costs of doing business • Passed on to consumers through higher prices or absorbed by stockholders through smaller dividends. o Interpretation of social responsibility: Maximize profits for stockholders— o a view still held today
ISO 14000 Standards
o Must develop a total management system for meeting environmental challenges. Must minimize the effects of its activities on environment Continually improve its environmental performance. o Achieved by organizations in over 155 countries.
Organizational Performance Positives
o Organizational performance enhanced through workforce diversity Improved problem-solving abilities & system flexibility. o Can tap into the variety of skills & abilities represented o Requires more accommodations and inclusiveness
FACTORS THAT DETERMINE ETHICAL AND UNETHICAL BEHAVIOR • Influenced by
o Person's moral development o Individual characteristics o Organization's structural design o Organization's culture o Intensity of the ethical issue
Socially Responsible Investing Funds
o Provide way for investors to support socially responsible companies o Use Social Screening • Conclusion o Company's social actions don't hurt its economic performance
ISO 9000 Standards
o Quality Management
"Last acceptable bias"
o Racial & ethnic stereotypes off-limits Not so w/ gays & lesbians
People Management Benefits
o Revolve around attracting and retaining a talented workforce. o Attracts & keeps talented, diverse people o Companies rely more on employee teams in workplace
• Discrimination
when someone acts out their prejudicial attitudes toward people who are the targets of their prejudice.
Companies with diverse leadership are:
• 45 percent more likely to report a growth in market share over the previous year • 70 percent more likely to have captured a new market
Mentoring
• A process whereby an experienced organizational member (a mentor) provides advice and guidance to a less experienced member (a protégé) • One consequences of having few women and minorities in top corporate leadership o Lack someone to turn to for support or advice.
TYPES OF WORKPLACE DIVERSITY- Age
• Age - Both Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967 prohibit age discrimination.
THE LEGAL ASPECT OF WORKPLACE DIVERSITY
• Federal laws have contributed to some of the social change we've seen over the last 50-plus years. • Workplace diversity needs to be more than understanding and complying with federal laws. • Organizations that are successful at managing diversity use additional diversity initiatives and programs.
Changing Workplace- Immigration
• Immigration: Surging in low-wage foreign labor-> Not reality o 14 of the 25 largest metropolitan areas-> More immigrants in white-collar occupations than in lower-wage jobs o Increasing immigrants -> affect workplaces. o New recruits entering the workforce are significantly: Younger More ethnically diverse And/or foreign-born. By 2016 -> 68 percent of US new entrants -> Women or People of Color
Global 100
• List of the most sustainable corporations in the world • Final way to evaluate a company's green actions • To appear in List o Company has displayed a superior ability to effectively manage environmental and social factors
International Organization for Standardization (ISO)
• Set standards for companies to follow to show their environmental commitment • Nongovernmental • Developed 18,000+ international standards, • Best known for its ISO 9000 (quality management) and ISO 14000 (environmental management) standards. • ISO 9000 Standards o Quality Management • ISO 14000 Standards o Environmental Management o Must develop a total management system for meeting environmental challenges. Must minimize the effects of its activities on environment Continually improve its environmental performance. o Achieved by organizations in over 155 countries.
Diversity Skills Training
• Specialized training to educate employees about the importance of diversity and teach them skills for working in a diverse workplace • Start with diversity awareness training. • Next diversity skills training o How to communicate & work effectively in work envir. • "The only thing in human DNA is to discriminate.
Global Workforce Changes
• Total world population - estimated at over almost 7.023 billion - • Aging population - aging at an unprecedented rate o By 2016: Avg. age of employee will be 42.1 • Aging population - aging at an unprecedented rate • Immigration Issue o Likely changing factor in workplace. o U.S. Census Bureau Analysis: Nearly 1 in 6 American workers -> foreign-born Highest since 1920s
Strategic
• Workforce diversity is a key to extracting the best talent performance, market share, and suppliers from a diverse country & world • Better anticipate & respond to changing consumer needs • Offers flexibility & creativity needed to recreate global econ. for 21st cent. • Bring a variety of points of view and approaches to opportunities, o Improve how the organization markets to diverse consumers.
