The changing face of the workforce

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The changing face of the workforce

• Diversity
• Refers to variation in the important human
  characteristics that distinguish people from one
  another.
• Workforce diversity trends
• More women are working than ever before.
• Immigration has profoundly reshaped the
  workplace.
• Ethnic and racial diversity is increasing.
• The workforce will continue to get older.

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Figure 19.2
The Gender and Race Pay Gap 1990-2004
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Figure 19.3
Extent of Diversity in Selected Management
Occupations
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Equal employment opportunity

• Discrimination based on race, color, religion,
  sex, national origin, physical or mental
  disability, or age is prohibited in all
  employment practices.
• Government contractors must have written
  affirmative action plans detailing how they are
  working positively to overcome past and present
  effects of discrimination in their workforce.
• Women and men must receive equal pay for
  performing equal work, and employers may not
  discriminate on the basis of pregnancy.

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Major federal laws and executive orders
prohibiting job discrimination
Figure 19.4a

• Equal Pay Act (1963)Mandates equal pay for
  substantially equal work by men and women.
• Civil Rights Act (1964 amended 1972,
  1991)Prohibits discrimination in employment
  based on race, color, religion, sex, or national
  origin.
• Executive Order 11246 (1965)Mandates affirmative
  action for all federal contractors and
  subcontractors.
• Age Discrimination in Employment Act
  (1967)Protects individuals who are 40 years of
  age or older.

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Major federal laws and executive orders
prohibiting job discrimination
Figure 19.4b

• Equal Employment Opportunity Act (1972)Increases
  power of the Equal Employment Opportunity
  Commission to combat discrimination.
• Pregnancy Discrimination Act (1978)Forbids
  employers to discharge, fail to hire, or
  otherwise discriminate against pregnant women.
• Americans with Disabilities Act (1990)Prohibits
  discrimination against individuals with
  disabilities
• Family and Medical Leave Act (1993)Requires
  companies with 50 or more employees to provide up
  to 12 weeks unpaid leave for illness, care of a
  sick family member, or the birth or adoption of a
  child.

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Affirmative action

• Since the mid-1960s, major government contractors
  have been required by presidential executive
  order to adopt written affirmative action plans
  specifying goals, actions, and timetables for
  promoting greater on-the-job equality.
• Their purpose is to reduce job discrimination by
  encouraging companies to take positive steps to
  overcome past employment practices and traditions
  that may have been discriminatory.
• Critics argue that affirmative action is
  inconsistent with the principles of fairness and
  equality.
• In 1995, the Supreme Court ruled that affirmative
  action laws were legal but only if they were
  temporary and flexible.

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Affirmative Action Plans

• Supreme Courts decision in the two cases
  involving the University of Michigan
• Many large Cos filed briefs supporting UM
• Polls show Americans overwhelmingly opposed to
  preferences, but also overwhelmingly in favor of
  diversity
• Court ruled undergraduate admission policy
  unconstitutional granting points to minority
  applicants too close to quota
• had also awarded points for athletic ability and
  legacy status, but not as many
• Court ruled law school admission policy
  constitutional, in that it involved individual
  consideration rather than mechanistic formula
• Racial diversity found to be a public interest
• Only highly selective universities (20) really
  impacted
• In 2001, 64 of whites, 55 of African-Americans,
  52 of Latinos went to college
• Some argue real problem is not access but low
  test scores, which impacts admission to highly
  selective universities absent affirmative action
• Source The Economist, 6/28/03

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Hostile Work Environment and the Assumption of
Risk

• You are a restaurant manager and patrons are
  making arguably offensive comments to female
  waitstaff. What do you do?
• Does it matter whether its Hacienda or Hooters?
• Hooters staff must sign Co SH policy, which
  includes acknowledgement that female sexual
  appeal is an essential ingredient of the Hooters
  concept
• Also must sign Ee handbook containing waiver
• Work environment is one in which joking and
  innuendo based on female sex appeal is
  commonplace.I do not find my job duties, uniform
  requirements, or work environment to be
  offensive.
• Uniform requirements include orange shorts,
  Hooters t-shirt, half-shirt, tank top, and
  prom-like appearance (hair, makeup, nails done
  neatly)
• In Washington D.C. area, mngr filed SH case based
  in part on boss taking her to lunch at Hooters
• Settled hiring discrimination lawsuit in 1997,
  after EEOC dropped action in 1996

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Diversity practices

• Actions taken by companies to manage diversity
  effectively
• They articulate a clear diversity mission, set
  objectives, and hold managers accountable.
• They spread a wide net in recruitment, to find
  the most diverse possible pool of qualified
  candidates.
• They identify promising women and persons of
  color, and provide them with mentors and other
  kinds of support.
• They set up diversity councils to monitor the
  companys goals and progress toward them.

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Power Do Women Really Want It?

• Between one-quarter and one-third of professional
  women are out of work force
• Number of children being cared for by
  stay-at-home moms has increased by nearly 13 in
  less than a decade
• Percentage of new mothers who go back to work
  fell to 55 in 2000, from 59 in 1998
• Two-thirds of mothers 25-44 work fewer than 40
  hrs/wk
• Only 5 work 50 hrs
• White male MBAs 95 working full-time white
  female MBAs 67 (African-American female MBAs
  more similar to white men than women)

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Power Do Women Really Want It?

• Significant organizational challenge in
  redesigning organizations to take advantage of
  mothers ready to re-enter work force
• Attract, retain, motivate, plus now re-integrate?
• Many professional women who quit their jobs to
  raise children now trying to go back and
  theyre finding it harder than they ever imagined
  
• Two-thirds of highly-educated women who left jobs
  mainly for family reasons want to return to work
• Deloitte Touche planning to launch Personal
  Pursuits program, which will allow ees to take
  unpaid leave for as long as five years
• Training sessions for those on leave, mentors to
  stay in touch
• Theres a part of every woman who has had what
  it takes to succeed on Wall Street that yearns
  for that type of overachieving applause that you
  got, and that motherhood does not allow you to
  have. Theres just no applause. And I miss
  that.
• Source Wall Street Journal, 5/6/04

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Power Do Women Really Want It?

• Some evidence of growing dissatisfaction on part
  of men w/ price required to advance in corporate
  America, desire for same flexibility and balance
  that women want
• Belkin suggests that instead of women being
  forced to act like men, men are being freed to
  act like women
• Number of married men who are full-time
  caregivers to their children has increased 18
  (to what and from when?)
• Working men born between 1965 and 1979 now spend
  3.5 hrs/day with their children same amount as
  working women
• Among all working men, 2.7 hrs, up from 1.8 hrs
  in 1977
• 70 of men report they would take a pay cut to
  spend more time at home w/ family, almost half
  would turn down promotion if it meant less family
  time
• Biggest change is new unwillingness to relocate
• (Business Week, 11/8/04)
• Family-friendly organization?
• Better opportunities to work flexible hours,
  share jobs, not relocate

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Get a Life!

• Men and women far more alike in desires than had
  been assumed
• 84 of senior Fortune 500 male execs say theyd
  like job options that let them realize
  professional aspirations while having more time
  for things outside work
• 55 say theyre willing to sacrifice income
• 80-hr week had become norm in consulting, law,
  investment banking
• Jeff Immelt, GE CEO, boasts of working 100 hrs/wk
  for 25 years
• Businesses need to be 24/7 individuals dont
  (Anne Mulcahy, CEO Xerox)
• Nearly half believe that for exec to bring this
  up w/ boss will hurt career
• The younger the exec is, the more likely to care
  about this
• Fortune, 11/28/05