MGMT 104 Midterm 2

Male and female mean and median annual salaries by years since MBA Three proximate reasons for the gender gap in earnings

Differences in training prior to MBA graduation Differences in career interruptions Differences in weekly hours 2 and 3 are due to presence of children (women more likely also to be displaced from work if spouse relocates)

Title VII of Civil Rights Act of 1964

Discrimination on the basis of race, sex, religion, or national origin is prohibited

Determinants of wage gaps in gender and race

Education, experience, occupation and industry Discrimination, statistical discrimination, and implicit bias

Employer justifications for adverse impact: business necessity defense

Employer must show an overriding business purpose for the discriminatory practice, Mere inconvenience or fostering efficiency (because customers discriminate) is not enough Employers must show selection methods are valid ad predict job performance Tests: must predict job performance Physical characteristics must be required for the performance of the job

Remedies for discrimination

Employment at will in the US means that absent an express agreement otherwise (verbal or written): Title VII of the Civil Rights Act of 1964

Statistical discrimination

results from treating an individual on the basis on membership in a group and knowledge of that group's history 1. mean or variance productivity 2. reliability of screening devices (education quality) THIS IS ILLEGAL (NOT JUSTIFIABLE)

How might certain biases exacerbate wage and gender inequality

1. Allows for more subjective criteria to influence wage setting and promotion decisions When firms assign wages to jobs rather than people, the gap might be lower Performance-based pay is often based on subjective criteria 2. Forces workers to be on the job market more often, and biases affect hiring Less info available on job candidates than on employees; forces managers to rely on observable characteristics Candidates are less able to detect discrimination than

When does NRLA protect nonunion members

1. In concert (with co-workers, or in discussion with them) 2. Issue must be job relevant 3.Must be via appropriate means

What do you Unions do (4 things)

1. Replace individual with collective voice, in attempt address power imbalance between firms and individual employees Control labor supply, through selective use of strikes 2. Skill formation: train and/or certify workers Varies a lot from one country to the next (Us - important for building trades) 3. Institutionalize rules of access to employment based on social criteria (i.e. internal labor markets), in addition to ability to do a job 4. Limit the supply of labor through public policy Public policies that allow some people to remain outside the labor force, like tax breaks for stay-at-home parents, mandatory retirement age, public pensions, social safety nets that raise the reservation wage of low earners

double movement in collective baraining

1. between security and flexibility 2. between market mechanisms and uncertainty vs social contract and relative certainty transition from markets/uncertainty to contracts/relative certainty

Why is there a wage gap

1. educational disparities Decrease in wage gap between blacks and whites between 1940 and 1970 was largely attributed to narrowing of the education gap Today women have higher educational attainment than men do in US also helping narrow the overall wage gap 2. Occupational and industry distribution Whites and Asians men are concentrated more in professional and managerial occupations Male dominated industries such as construction, precision production and manufacturing, law, and finance Whites tend to have higher paying positions within these industries than Hispanic and black males 3. Labor force experience Time off from work disadvantages workers

2 justifications for tough work

1. structured as part of job (autonomy, illusion of choice) 2. blurring of work and leisure (fun work spaces)

Illegal avoidance tactics for firms (unions)

54% of employers threaten workers in such meetings 57% of employers threaten to close the worksite 47% of employers threaten to cut wages and benefits 34% of employers fire workers

Workers being impacted by wage increase at McD's

90,000 workers who are employed directly by McDonald's will receive a $1 an hour wage hike. Those employed by one of the company's 3,100 franchisees don't have such luck 750,000 not getting raise

Assumptions, before and after in marraige (work)

A majority of men expected to be in a traditional partnership, in which their career will take precedence over their partner's. The reality exceeded their expectations Women were more likely to have egalitarian expectations and to see those expectations dashed

Why some men pretend to work 80-hour weeks

A majority of men were dissatisfied. They complained to me of children crying when they missed their soccer games, of poor health, and substance addictions caused by how they worked, and of a general sense of feeling 'overworked and under-families"

union shop vs agency shop

A union shop is a place of work where employers may hire nonunion workers who must join a labor union within an agreed time. An agency shop is a form of union security agreement where the employer may hire union or non-union workers, and employees need not join the union in order to remain employed. However, the non-union worker must pay a fee to cover collective bargaining costs

Union strategies from firm perspective (2 choices)

Acceptance or Avoidance which leads to Subst. and Suppr.

union

An organization which exists for the purpose of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, and conditions of work."

Work/life balance and Chicago MBA earnings

Any >6 months period out of work associated with a 31% drop in earnings 30% of women have a spell without work by year 9 MBAs received 40% earnings penalty for taking any time off

Is raising the min wage good or bad

Bad for society Raising the minimum wage creates substantial job loss Basic supply and demand Good for society The dis-employment effects are either not present, or are relatively minor Raising the minimum wage affects other things (like disposable income; higher worker productivity) that may offset the negative effects Lots of these jobs are in service-related occupations that are hard to replace

Median hours by class and industry, Wharton MBA

Banking most at first, management and vc also a lot at first

Hours worked and productivity

Below 49 hours weekly, variations in output are proportional to variations in hours When people worked more than 50 hours, output rose at a decreasing rate Reducing hours from 55 to 50 would have only a small effect on output Output at 70 hours differed little from output at 56 hours - the extra 14 hours were a waste of time ONce u get past 50 then the productivity decreases rate

Gender wage gap: an issue is found all over the world (where is worst and best)

Best in Poland, worst in Korea

Companies that promote a culture that produces these satisfiers and eliminates the dissatisfies produce better results (diverse boards too)

Better customer satisfaction, productivity, and profitability

3 Types of Unions

Craft unions: carpenters, machinists, electricians Industrial unions: autoworkers, CWA Public sector unions: teachers, fire fighters, mail carriers

Employment at will

Employment at will in the US means that absent an express agreement otherwise (verbal or written): Employee can quit at any time or be fired at any time (for any reason or no reason at all) Exceptions: union contracts, exercise of FLSA/OSHA rights, public employees, implied contracts, whistleblowing, anti-discrimination laws

the blurring of work and leisure

Encouraging leisure at work Practices and policies that make it easier to stay at work

Examples of companies that accept unions

Ex. Huffington Post, Volkswagen

What doesn't seem to work:

Formal policies absent supervisory support Differentiated career tracks

1959: Landrum-Griffin Act

Gave accountability to members Bill of rights for union members Unions must have a constitution Union must file financial statements with the Department of Labor which are open to the public Elections are regulated by the government Fiduciary responsibility of union leaders

Is work/life balance a serious issue

Goldman Sachs analyst found dead hours after complaining to father of "100 hour weeks" Employee killed himself in SF

Employees who work long hours have

Greater risk of stroke Greater risk of on-the-job accidents More sleep problems, stomach aches, and irritability Long-term cognitive performance losses

What assumptions millenials are making about the work/life balance

Half of Millennial men expect their careers to take precedence over their partner's. Only a quarter of Millennial women expect their partner's career to take precedence Two-thirds of Millennial men expect their partners to take primary responsibility of raising children. Fewer than half of Millennial women expect that they will take primary responsibility A lot of heteronormative assumptions in this research design, but nonetheless interesting to think about expectations

what do unions do specifically for workers

Higher wages and benefits for members Greater premium for lower-skilled workers Unions constrain pay between groups; lower inequality Protect the interests of the "average" worker who is older with seniority Good is you've got seniority Is US, more likely to lay off newer workers than reduce wages/hours of senior workers Strong unions ALSO help set standards of pay in non-union firms (Faber, 2005) Safer healthier working conditions Often through legislation/regulation, which helps all workers (not just union members) Remove management's ability to make unilateral decisions about some aspects of job

Why have unions weakend

Rise of services, fissured workplaces, lax enforcement of unfair labor practices, and hostility toward labor make union drives tough for organizers

HARLEY Davidson cooperation with union

In May, Harley-Davidson upset the unions when it announced plans to operate a motorcycle assembly plant in Thailand. The company said the plant, scheduled to open in 2018, wouldn't result in any U.S. job losses and that it would assemble bikes from components produced at U.S. facilities. However, union officials argued it would take work from the United States and that it was one of multiple steps the company had taken to weaken its unionized workforce.

What other resources in Media and Churches

In Syracuse, over 100 people spilled into the street at a Fight for 15 sidewalk rally called by the Workers Center of Central New York and Service Employees 1199 Local 200 United. "Strike Poverty" was the cry as several low wage women workers spoke of their struggles. One said of her part-time fast food job: "I work as hard as any factory worker" Organizations in support included the Upstate Coalition to Ground the Drones and End the Wars, Syracuse Peace Council, Spanish Action League, Green party and local churches

Predictable time off does work

Increased attention to putting fully predictable time off into schedules Helps refresh workers Allows for planning around work Must be top down to ensure boundaries Regular dialogue explores challenges with taking predictable time off Creates greater focus on work process rather than content Substantially reduces intent to quit at BCG

What firm-level initiatives succeed while others fail

Initiatives based on "control" seem to create backlash Those based on engagement, exposure, and social accountability seem to foster commitment to addressing the underlying issue

what does NRLA say firms cannot do (unfair labor practices)

Interfering with the administration of a union Discriminating against union members Discriminating against an employee who has filed charges under the act Refusing to bargain with the union "in good faith" Punishing employees for "concerted activity"

"Employment practices that are facially neutral in their treatment of different groups, but in fact fall more harshly on one group than another and cannot be justified by business necessity": when they do not pertain to job skills or performance, screening tools are illegal

Lit

How unions promote lower wage equality

Low-income children rise higher in the income rankings when they grow up in areas with high-union membership 10% point increase in an area's union membership is associated with low-income children raking 1.3% points higher in national income distribution children earn 28% more in area if father was in union

Lowe's

Lowe's employee asked not to make delivery because he was black and the company agreed

Right to work laws do what? why are they bad for collective actions

Make union shops, agency shops, and maintenance of membership provisions illegal in the state Effectively, allow "free-riding" thereby making it less efficient to organize bargaining units, as well as negotiation/administer contracts in state

Remedies for discrimination at the firm level. What doesn't work?

Mandatory diversity training Testing job applicants because results are not interpreted consistently Grievance systems lead to retaliation

Framing Fight for 15

McDonald's advertisement

Grievances

Minimum Wage and Median Wage week

Motivated teams can do what

Motivated teams deliver better customer service and delivering better customer service in our restaurants is clearly going to be a vital part of our turnaround

Ineffectiveness of collective baraining statistic

Of 22,382 organizing drives that filed an election petition from 1999-2004, only a projected 3,180 (one seventh) reached a first contract within a year of certification

McDonald's min wage issue

On Monday, McDonald's rolled Pope's wages back to $7.70. He's one of more than 30,000 workers in St. Louis who could see their wages cut after a state law was adopted prohibiting cities from setting higher minimum wages than the state. The law went into effect Monday.

Cultural frames for business-led environmental initiatives (for McDonalds)

Operational efficiency Risk management Market demand Capital acquisition Strategic direction Human resource management

Standalone part-time policies do not seem to work example

Over 90% of major Boston law firms offered a part-time or reduced hours option (to all associates and partners) <5% of all associates and <2% of all partners used it >1/3 of those using it (and 1/3 of those not using it) said it hurt the careers of those using the option Seen by others as less committed to the firm on their profession than others Biggest barrier to use reported was the stigma attached to breaking the norms of the profession

Why networks affect wage gap

Perpetuate existing demographics at work

Polanyi perspective on double movement

Polanyi saw the fascist impulse as an attempt to protect society from hard liberal markets by sacrificing human freedom

Political Opportunity today (min wage and median wage)

Political opportunity? When discussing the chances of ordinary Americans rising to the top, politicians who agree about little else sound remarkably similar - Economist Fight for 15 and social movement theory: Political opportunity?

National Labor Relations Act aka the Wagner Act

Protects organizing, joining a union (whether employer recognized or note), going on strike to secure better working conditions Established the National Labor Relations Board (NLRB) Protects most private sector workers Not supervisors, independent contractors, agricultural workers, domestic workers, and public employees Set up rules for the union's organizing campaign Establishes "bargaining unit" based on community of interest If union wins a majority of the vote, it represents all workers in the unit

in 1978, OSHA regulated cotton dust

Pushed by the ACTWU In five years, cases of brown lung dropped by 97%

Racial discrimination in job offers

Racial discrimination among employers could account for at least a third of the raw wage gap between black and white workers (rest of the gap is driven by other factors, including the education gap) Black workers after controlling for experience, previous wages etc. were more offered significantly less compensation than whites by potential employers Black workers see greater returns to tenure on the job "Quality" is revealed over time Workers prove their value as individuals not stereotypes

Breakdown of Taft Hartley RIght to Work Laws

Required union officers to sign non-communist affidavits Required 60 day's notice for strikes Outlawed wildcat, political and solidarity strikes as well as secondary boycotts

What are the SEIU resources for the Fight for 15

SEIU VP explains strategy: build a progressive movement with labor at its core SEIU invests heavily in a nothing to lose strategy The SEIU's affiliate workers organizing committees fund the "Fight for 15" protests in various cities. But the money for these faux-grassroots campaign is spent on more than just t-shirts and picket signs. The union regularly uses paid protestors in its marches and will even set aside money to cover the bail and legal fees for protestors who volunteer to be arrest - Washington Times

Fight for 15

Seatac, Washington passed the first $15hour minimum wage law in November 2013 ome states increased minimum wage in 2017 Does not include spillover effects as employers adjust overall pay scales Some states already have future increases approved

WHo has raised wages during Fight for 15 movement

Seattle, NY, CA, DC Raised wages: Walmart, McDonald's, Target Walmart: pilot program to give workers more control over their schedule Firms that don't use or have promised to eliminate on call scheduling increase Gap, Old Navy, Victoria Secrets, Starbucks Target fired the first salvo of this year's holiday hiring wars on Monday, saying that it would raise its minimum hourly wage to 11 next month and then 15 by end of 2020 they

Positive union impacts on firms

Small differences in wages, employment, and output between unionized and otherwise comparable non unionized workplaces in close representation elections some in business saw the "contract" as providing greater predictability Not much large-scale evidence that unions hurt productivity, quality, or the rate of innovation (productivity, product devlopment, manufacturing good)

What shareholders will say about McDonalds situation

Stock analyst downgraded Chipotle for paying its workers too much Labor costs shouldn't have to rise, that people don't deserve raises in line with the rising cost of living, and that the labor market shouldn't function like all the other markets

Justification for work

Structured as part of the job; workers are socialized to accept them You can't conceive another way (can't fathom how else to get tasks done) Gets masked as autonomy (illusion of choice)

Substitution and Supression

Substitution - HR practices similar to or better than those at unionized firms Ex. Trader Joe's Suppression - Includes (threats of) relocation and outsourcing, dismissal, wage and benefits cuts and use of strikebreakers Happens a lot

Remedies for discrimination at the firm level. What does work

Successful programs promote: engagement, contact, social accountability Programs that get results: voluntary training, self-managed teams, cross-training, college recruiting targeting women and minorities, mentoring, diversity task forces, diversity managers

What does seem to work:

Supervisory support Emotional Instrumental Role modelling Strategic recognition Supportive culture Flexible working Clear boundaries

How well do legal remedies for discrimination work?

Susan Fowler tells her story and how she brought down Uber's CEO based on sexual harassment More than 50% of US workers now subject to mandatory arbitration for discrimination claims

why transition from markets/uncertainty to contracts/relative certainty

Tech, transportation, globalization, specialization and outsourcing changed the way business view their labor force Pressure from stockholders to shed non-core competencies Sub-contracting, temp agencies, labor brokers, franchising, licensing, and 3rd party management all lead to fissuring / new deal work agreements WHICH LEADS to tenuous employment relationships, compliance shifted away from lead firms, and a vulnerable workforce

Different Types of Work/Life Balance People

The Employee- Low Fulfilmment, High Control The Dream- High Fullfillment, High Control THe Grind- Low Control, Fullfillment THe Junkie- High Fulfillment, Low Control (don't know how long family can handle)

legal union avoidance tactics (urge loopholes)

The agency says that between 71 and 87% of employers hire consultants to help manager union avoidance campaigns yet the agency gets "very few reports" on that work because consultants long considered it exempt from reporting" hardball anti-union tactics (interrogate 1 on 1 with supervisors, punitive tactics: plant closing threats and actual plant closings, discharges, harassment, disciplinary actions, surveillance, and alteration of benefits and conditions)

Polanyi and the danger of raising wage (political)

The great danger Polanyi alerts us to however is that mobilizing politics to protect against markets run wild is just as likely to be reactionary and conservative as it is to be progressive and democratic. Whereas the American New Deal was Polanyi's example of a democratic counter movement, fascism was the classic instance of a reactionary counter-movement; it provided protection to some while utterly destroying democratic institutions -

Cooperation at Harley Davidson

The machinist union agreed to let Harley lay off 1,000 plant workers and implement a multiyear pay freeze. But every machinist I spoke with said that he understood that the alternative would be no jobs at all in York Costs have fallen by 100 million at the plant and quality has improved even more significantly. Harley's stock price is back near the peak it reached in 2006

bankers and stress

When severe stress kicks in, the young bankers are often able to perform at a high level only with the help of high caffeine drinks, prescription stimulants, and sleeping pills

Differences in quality of networks Network effects on wage gap

They are powerfully influenced by homophily (we like people like us) Because women and minorities have historically lacked access to high paying jobs, network based hiring permits inequality to persist (Mouw, 2002) Minorities have less difficulty getting hired in organizations where minorities are already present

Say vs Reality

They ay they work usually more than they do, actually work less (brag, receive benefits, make it seem like working a lot)

Labor force experience

Time off from work disadvantages workers

BFOQ bona fide occupational qualification

U.S. civil rights laws prohibit discrimination in employment based on the protected categories or characteristics, such as race, color, religion, sex, and national origin. However, the BFOQ doctrine allows an employer to discriminate on the basis of religion, sex, or national origin in certain instances where these dimensions of diversity are a bona fide occupational qualification, meaning that any of these traits are reasonably necessary to the normal operation of doing business. Age, religion, gender, national origin

Nissan Strategy for Unions

UAW accuses Nissan of Scare Tactics as workers reject union bid Perhaps recognizing they couldn't keep their workers from joining our union based on the facts, Nissan and its anti-worker allies ran a vicious campaign against its own work force that was comprised of intense scare tactics, misinformation and intimidation,"

Taft Hartley Act of 1947

Unions could not preclude firms from hiring non-union members (no closed shops) Gave states right to pass "Right-to-Work" laws

How unions promote mobility (3)

Unions lead to higher wages (for non-unionized workers too) Better education; more stable home life Unions lead to better benefits E.g. health insurance Unions advocate for opportunity-advancing public policies Higher minimum wage; expanded public services Among national lobbying/interest groups, unions are the most likely support "middle-class" initiative

Are Emily and Greg more employable than Lakisha and Jamal?

White names receive 50% more callbacks Callbacks are also more responsive to resume quality for presumed whites than for African Americans The radical gap in callbacks increased with skill level All found in study where resumes were the same but with different names

Why does discrimination have powerful feedback loops

Women and minorities sort themselves into occupations (perceived and real), lack of opportunity Don't make similar types of human capital investments Sparse networks

Mandatory arbitration

a controversial practice in which a business requires employees or consumers to agree to arbitrate legal disputes with the business rather than going to court.

James Zamore x Google

ames Damore has an "above decent" chance of winning his legal cases against Google (said diversity was fictitious at Google)

Unions density is one of the strongest predictors of

an area's mobility

Michigan Burger King

caught retailing against pro-union workers

what are role do unions serve

grievances, labor disputes, wages, rates of pay, hours of employment, and conditions of work."

INcreases in union strength on non union

increases in union strength cause increases in nonunion wages and decreases in nonunion employment. Union substituion is huge (Trader JOe's)

Is there more private sector or public sector unionized labor

more private, however a greater percentage of public is in a union

Effect of unions on firms summarized

positive- productiviyt, innovation, quality negative- profitability and shareholder value

Who does the NLRA not protect

supervisors, independent contractors, agricultural workers, domestic workers, and public employees

Griggs v Duke Power

the Supreme Court ruled that the company's employment requirements did not pertain to applicants' ability to perform the job, and so were discriminating against black employees. The judgment famously wrote that "Congress has now provided that tests or criteria for employment or promotion may not provide equality of opportunity merely in the sense of the fabled offer of milk to the stork and the fox."[1] blacks only allowed in labor department? discrimination

IS EXCLUDING women from occupations that require physical strength justified because men tend to be stronger than women

think of reasons why for both sides

Negative union impacts on firms

unions reduced cumulative returns to investors 10% over 2 years (Reduces growth in assets (PPE)) Have a significant negative effect on profits - and that this effect is larger in the US Ability to adapt to changing economic conditions can be more complex, particularly where labor management relationships are very combative (profitability and shareholder value hindered)

double movemnt theorists say that

when the system swings too far toward unfettered liberalism, with the flexibility for firms and uncertainty for workers that accompanies it, forces in society will resist and push the system back toward security

The next four years after graduating

year four: physical breakdowns occur, initially minor Chronic pain, insomnia, endocrine disorders set in. Weight gain, ahir loss, anxiety, depression, low energy