Partially based on the Kreitner/Kinicki (2009, McGraw Hill/Irwin) textbook with updated data from the U.S. Census Bureau, Gallop and others.

1. Diversity
BUSA 220
Organizational Behavior
Professor Wallace

2. What does Diversity mean to you?
• Diversity: The
differences and
similarities that exist
among all human beings.
• Stand up, then sit down
if what I suggest doesn’t
apply to you.
• Once sitting, if
something new applies,
stand back up.

3. The 4 Layers of Diversity
Source: L Gardenswartz and A Rowe, Diverse
Teams at Work: Capitalizing on the Power of
Diversity (New York: McGraw-Hill, 1994), p.
33

4. Evaluate
• Sam is a 55 year-old, male
Sales Manager for XYZ
corporation. He likes to
drive fast cars and is
Native American. Which
layer of diversity has not
been mentioned about
Sam?
A. Personality
B. Internal
C. External
D. Organizational

5. Affirmative Action
• Goal: Prevent
discrimination (Never
required to hire
unqualified people)
• Have affirmative action
programs been good for
society?
– A=Yes, B=No
• Are affirmative action
programs still necessary?
– A=Yes, B=No

6. Competitive Advantage
• How can managing
diversity be a
competitive advantage?
• Workforce diversity
mirrors consumer and
B2B diversity.
• Diversity is required for
innovation and
competitive advantage.
• Lower turnover, and less
chance of lawsuits.

7. Gender – Race – Age – Sex
• Women Year % Year % Year %
1951 63.9 1970 59.4 1992 70.8
– The glass ceiling is an
1953 61.3 1972 57.9 1994 72.0
invisible barrier blocking
1956 63.3 1974 58.8 1996 73.8
women and minorities from
1957 63.8 1976 60.2 1998 73.2
top management positions.
1958 63.0 1978 59.4 2000 73.3
Break it by:
• Consistently exceeding 1959 61.3 1980 60.2 2002 76.6
performance expectations 1960 60.7 1982 61.7 2003 75.5
• Developing a style with 1961 59.2 1984 63.7 2005 77.0
which male managers are 1963 58.9 1986 64.3 2006 76.9
comfortable, 1964 59.1 1988 66.0 2007 77.8
• Seeking out difficult or 1966 57.6 1990 71.6 2008 77.1
challenging assignments, and 1968 58.2 1991 69.9 2009 77.0
• Having influential mentors.
Source: Nat'l Committee on Pay Equity

8. Gender – Race – Age – Sex
Race/Gender $ Ratio
White Men $47,814 100.0 %
White Women 35,151 73.5
Black Men 34,480 72.1
Black Women 30,398 63.6
Hispanic Men 27,490 57.5
Hispanic
24,738 51.7
Women
All Men $42,210 88.2
All Women $32,649 68.3
Wage Gap 77.4%
Source: 2007 U.S. Census Source: Pew Research

9. PepsiCo Chairman & CEO
Indra K. Nooyi –
• President and CEO (2006).
Chairman (2007).
• Directed global strategy and
led its restructuring:
– Divested restaurants into YUM!
Brands, Inc.,
– Acquired Tropicana and merged
with Quaker Oats that brought
the vital Quaker and Gatorade
businesses to PepsiCo.
– Merger with PepsiCo's anchor
bottlers, and the acquisition of
Wimm-Bill-Dann.

10. PepsiCo under Nooyi’s Leadership

11. PepsiCo under Nooyi’s Leadership
Annual Category 2007 2008 2009 2010
Net Revenues 39.5B 43.3B 43.2B 57.8B
Revenue
and Cost of Goods Sold 16.7B 18.8B 18.5B 24.4B
Income
Depreciation And Amortization 1.4B 1.5B 1.6B 2.3B
Gross Income 21.4B 22.9B 23.1B 31.1B
General Expenses 14.1B 15.4B 15.0B 22.8B
Operating
Expenses Research And Development 364.0M 388.0M 414.0M 488.0M
Total Operating Expenses 32.2B 35.8B 35.2B 49.5B

12. Age & the Workforce
Less
Workplace
Politics
Lower Role
Turnover Models
Hiring Better
Punctuality Older Customer
Workers Service

13. Gender – Race – Age – Sex
Retirees to Workers Percentages (%)

14. Generational Differences

15. Gender – Race – Age – Sex
Is someone’s personal sexual or
relationship choices anyone else’s
business? What’s the impact?

16. Global Competition
Source: OECD PISA 2009

17. Survey Says: Degree to Work?
1. Graduates may be technically
competent, lack teamwork,
critical thinking, and analysis
skills
2. Less graduates in technical
fields such as science, math,
and engineering.
3. High school graduates
working in entry-level
positions do not possess
necessary basic skills
(national high-school
graduation rate is 75%)
Source: U.S. Census Bureau Statistical Abstract 2012

18. Self Development is Crucial
• Gender, race or age:
– Be exceptionally competent &
seek out mentors
– Build social capital
– Assist work/life balance by
delegating housework
– Improve negotiating skills
– Take credit for accomplishments
– Create a partnership with spouse to
be mutually supportive
– Balance need to be assertive and
communal

19. Organizational Diversity
Two Theories:
• Social categorization
theory
– Similarity leads to
liking and attraction
• Information/Decision-
Making Theory
– Diversity leads to
better task-relevant
processes and
decision-making

20. Diversity Process Model

21. Diversity Conflict
Conflict
• Gender • Satisfaction?
• Race • Individual • Turnover?
• Age • Team • Productivity?
• Organizational
Diversity Outcomes?

22. Workplace Diversity – A Choice
• Demographic Faultline
– Hypothetical dividing lines
that may split a group into
subgroups based on one or
more attributes
• Positive Diversity
– If members were open-
minded, discussed and
shared information, and
displayed integrative
behavior, individual, team
and organizational
outcomes improve

23. The Absence of Diversity
• Whether in work, school,
church or family, what
types of discrimination
have you seen or
participated in (even
unwillingly?

24. Encouraging Diversity
•What can our organizations do?
•What can you do to improve yourself?

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

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

27. Diversity – Your Choice