The leadership must understand that the diverse workforce will embody different perspectives and approaches to work, and must truly value variety of opinion and insight.
The leadership must recognize both the learning opportunities and the challenges that the expression of different perspectives presents for an organization.
The organizational culture must create an expectation of high standards for performance from everyone.
The organizational culture must stimulate personal development.
The organizational culture must encourage openness.
The organizational culture must make workers feel valued .
The organization must have a well-articulated and widely understood mission.
And the organization must have a relatively egalitarian, non-bureaucratic structure. And finally, to put these in action:
Organizations need to make a mental connection.
2 They must encourage openness of discussions.
They must strive to go against actions that dominate and subordinate and that prevent employees from being active contributors.
Trust is kept alive and progressive for everyone. A high level of commitment is mandatory to develop and establish learning fields. The mental map and vision of a diverse workforce must be clear and concise and above all, recognized by everyone that prejudice will not be tolerated. As you will see in the following examples of present day actions and accusations, the discrimination issue is still at the forefront, and costing many companies a large sum of money. Are they all guilty? Or are some companies also becoming scapegoats for the money mongers? Diversification theory is constantly influencing contemporary management issues. A number of large corporations have suffered the consequences of discrimination in their management structure, and these companies make excellent examples of the impact of diversification theory. The Publix supermarket chain felt the influence of diversification theory in 1996. Over one hundred thousand past and present female employees of the company filed a sex discrimination suit which charged, ?that Publix hires women into dead-end, low-wage jobs and blocks them from the stock and clerk positions that would put them on a management track.?(Business Week 1996, 32). They substantiated their charge with some significant statistics about the management structure of the supermarket chain. It is important to keep in mind that deli positions rarely lead to management positions, and are viewed as dead-end jobs in the organization. The following chart illustrates the disparity of employment within the organization (Business Week 1996, 32): Managerial Position Percent Female Maximum Weekly Pay Store Manager 2% $820 Meat Department 1% $640 Produce Department 2% $590 Bakery 20% $630 Deli 90% $600 Employees charged that Publix?s overall management structure includes only 21% women, compared with the national supermarket average of 40%. In addition, male employee?s wages were 35% higher than comparable wages for females (Business Week 1996, 32). These statistics suggest that Publix?s management strategy ignored females, and created an environment that discouraged or blocked the advancement of women.
Although Publix acknowledged the statistics, they did make a strong argument that they are not completely responsible for the management structure in their stores. The argument was, ?that most female employees choose not to take career-track jobs in part because of the long hours.?(Business Week 1996, 32). They substantiated this argument with affidavits from over 6,000 female workers, stating that they had not experienced discrimination during their employment. It is also very interesting that Publix has an excellent reputation as an employer. In 1993, Publix was listed as one of the 100 best companies to work for in America.(New York Times 1997, 2) Ultimately, Publix agreed to pay $81.5 million to settle the lawsuit, mainly in order to reduce negative publicity caused by the suit. They admitted no wrongdoing, and reiterated that they are complying with all applicable employment laws.(New York Times 1997, 1). With the settlement, Publix agreed to allow all female employees to submit applications, stating their interest in becoming part of the management team. In addition, Publix agreed to promote women in equal proportions to men as long as they meet the qualifications for the subject jobs.(New York Times 1997, 3). Diversification theory also had a very large impact on the Texaco corporation. A class action suit, Roberts v. Texaco, was filed in June 1994 charging discrimination based on race (Newsweek 1996, 49). The suit charged that in 1994, only four of the top four hundred ninety eight executives in the company were black, and cited various instances of discrimination by management. The case began in a non-descript manner, and the publicity involved was very minimal. Initially, Texaco failed to react to the suit, preferring to allow its legal council to fight the court battle, with the belief that they would not be found to be at fault. This attitude changed drastically in 1996, when taped conversations of management revealed that Texaco was withholding incriminating evidence of discrimination. The taped conversations of management using racist language, and incriminating documents were the evidence necessary to bring the suit to the attention of the nation, and to Texaco?s ch! airman Peter Bijur. Bijur expressed what was viewed by many people as a very sincere apology for the actions of the company, and agreed to the largest ever settlement in a race discrimination case.(New York Times 1997, 14). The settlement included a lump-sum payment of $176 million, along with assurances that Texaco would improve its record on diversity. In response to the settlement, Texaco has set quotas for the hiring and promotion of minorities. Texaco managers who meet the quotas will be rewarded, and likewise, those who fail to meet the goals will be penalized. Over 1,000 black employees were given an 11% pay increase, and monitoring provisions were established to allow outsiders to monitor the company?s progress. (New York Times 1997, 14). Texaco has also established a board committee on diversity that is designed to help the organization improve its image and record on diversity (Business Week 1996, 39). The experiences of both Texaco and Publix are not unique. In September 1997, Home Depot, a large home improvement dealer, settled a discrimination suit with its female employees for over $87 million (New York Times 1997, 7). This is another case where a company known as a good employer was sued for not promoting females in the same proportion as males. This trend of employee groups suing employers is on the increase, with the number of such cases up by over 100% since 1995 (New York Times 1997, 3) The impact on management theory from this type of this type of litigation is significant. Statistics show that in the corporate business world, whites monopolize management and professional positions. The following chart published by the Equal Employment Opportunity Commission in 1994, illustrates the current disparity in employment:
Tools such as diversity training have shown very limited success historically, and the changes in corporate philosophy need support from the overall body of employees. Texaco had a diversity training program for over three years prior to the recent settlement (Business Week 1996, 39), and the effectiveness of the program is very questionable. The financial consequences of these suits have grabbed the attention of the management of large corporations, and diversity has become a top priority in many companies. A balance needs to be reached, where corporations can reach a point where the diversity issue no longer is a polarizing issue. This balance will only be reached with a gradual education process for all of society. It is very important that constructive results are achieved in the future, and progress will not be judged with additional quotas established by corporations that intend only to avoid the financial consequences of litigation.
CITED REFERENCES
Acker, Joan. ?Gendering Organizational Theory?. Gendering Organizational Analysis.
Sage Publications, Inc. 1992. Pp. 248-260.
Adams, John L. ?Business Supports Work-Family Programs.? from speech to National Council of Jewish Women, Juggling Job and Family September 1993. Pp254-261.
Barr, Edward E. ?Apprenticeships Would Increase Opportunities for Youths.? from speech to New York University School of Business, Ramping Up The American Economy 9 February 1993: 219-227.
Bresler, Robert J. ?Affirmative Action on the Rocks.? USA Today July. 1996: 7.
Byars, Lloyd L. and Leslie W. Rue. Human Resource Management. United States: Times Mirror Higher Education Group, Inc., 1997.
Campbell, Geoffrey A. The World Book Year Book. Chicago: World Book, Inc., 1996.
?Civil Rights Act of 1964.? Document #: PL 88-352. 2 July, 1964. Http://www.dot.gov/ost/docr/CR64LKS.HTM. (1 Nov, 1997)
Eck, Diana L. ?Challenge of Pluralism? Nieman Reports ?God in the Newsroom? Summer 1993: vol. XLVII, no. 2 1-11.
Eichenwald, Kurt. ?Report Says 3 Executives Misled Texaco? New York Times 15 July. 1997 Pp19
?Equal Opportunity Act of 1972?. Jan. 6, 1997. Http://rbp.eeomas.com/DOCS/Acts/eeo72.htm. (Oct. 14, 1997).
Fierman, Jaclyn. ?Business Does Not Adequately Support Work-Family Programs.? Are Companies Less Family-Friendly?, Fortune, 21 March 1994: 262-268.
FindLaw. ?Black Codes?
Http://www.findworld.com/data/constitution/amendment14/index.html (1Nov.1997).
Hair, Penda D. ?Color Blind ? Or Just Blind.? The Nation. October 14. 1996: 12.
Harris, Nichole. ?Revolt At The Deli Counter.? Business Week 1 April. 1996
Kantor, Harvey. ?Apprenticeships Would Reduce Opportunities for Youths.? The Hollow Promise of Youth Apprenticeship, Rethinking Schools, Autumn 1993, vol. 8, no.1 228-236.
Krauthammer, Charles. ?An Orwellian Assault on Democracy.? Time December 9. 1996: 94.
Lewin, Tamar. ?Women Losing Ground to Men In Widening Income Difference.? New York Times 15 September. 1997 Pp1
Mergenhagfen, Paula. ?Enabling the Disabled Employee?. American Demographics. July 1997.
Meyers, Gerald & Susan. ?Texaco?s Hasty Apology.? New York Times 12 January. 1997 Pp14-15
Mogelonsky, Marcia. ?Naturalized Americans?. American Demographics. March 1997.
Myerson, Allen R. ?Supermarket Chain To Pay $81 Million To Settle a Bias Suit? New York Times 25 January. 1997 Pp1
?Home Depot Pays $87.5 Million For Not Promoting More Women? New York Times 20 September. 1997 Pp7
N.O.W. (National Organization for Women). ?Equal Rights Amendment.? Http://now.org/issues/economic/eratext.html. (6 Nov., 1997).
Pagan, Jose A., and Davila Alberto. ?Obesity; Occupational Attainment, and Earnings?. Social Science Quarterly. University of Texas Press. Vol. 78. No. 3, Sept. 1997.
Pfeiffer & Company Consulting. 1996 Annual: Vol. 2, ?Consulting?. Diagram of the Fourteen Dimensions of Diversity? by Loden M., and J. Rosener. Workforce America! Managing Employee Diversity As a Vital Resource. Illinois: Irwin, Pp. 20. (1991).
Reese, Shelly. ?When Whites Aren?t a Mass Market?. American Demographics. March 1997.
Reich, Robert B. ?Training Programs Will Benefit U.S. Workers.? From speech to
Center for National Policy, Getting American to Work: What?s Working and What?s Not Working in Workforce Policy 27 January 1994: 41-47.
Robbins, Stephen P. ?Foundations of Individual Behavior?. Organizational Behavior. (1996). Pp83-86.
Rowe, Mary P. ? Fostering Diversity: Some Major Hurdles Remain.?//humanitas.ucsb.edu/projects/aa/docs/Change6.html 7 October 1997: 1-7.
S.A.D.P. (Students Against Discrimination and Preferences). ?Proposition 209 in Federal
Court.? Nov. 3, 1997. Http://www-acs.ucsd.edu/~sadp. (1 Nov., 1997).
Sandburg, Carl. Abraham Lincoln: The War Years. Vol. 2. New York: Harcourt, Brace
& Company. 1939
Solomon, Jolie. ?Texaco?s Troubles.? Newsweek 25 November. 1996
The Hall of Public Service. Interview with Rosa parks. June 2, 1995. Http://www.achievement.org/autodoc/page/parOint-1. (6 Nov. 1997).
Thomas, David A., and Robin J. Ely. ?Making Differences Matter: A New Paradigm for Managing Diversity?. Harvard Business Review. Sept/Oct 1996.
Yates, William T. ?Equity Management: Affirmative Action for the 21st Century.? //humanitas.ucsb.eu/projects/aa/docs/Change7.html 7 October 1997: 1-4.
Bibliography
CITED REFERENCES
Acker, Joan. ?Gendering Organizational Theory?. Gendering Organizational Analysis.
Sage Publications, Inc. 1992. Pp. 248-260.
Adams, John L. ?Business Supports Work-Family Programs.? from speech to National Council of Jewish Women, Juggling Job and Family September 1993. Pp254-261.
Barr, Edward E. ?Apprenticeships Would Increase Opportunities for Youths.? from speech to New York University School of Business, Ramping Up The American Economy 9 February 1993: 219-227.
Bresler, Robert J. ?Affirmative Action on the Rocks.? USA Today July. 1996: 7.
Byars, Lloyd L. and Leslie W. Rue. Human Resource Management. United States: Times Mirror Higher Education Group, Inc., 1997.
Campbell, Geoffrey A. The World Book Year Book. Chicago: World Book, Inc., 1996.
?Civil Rights Act of 1964.? Document #: PL 88-352. 2 July, 1964. Http://www.dot.gov/ost/docr/CR64LKS.HTM. (1 Nov, 1997)
Eck, Diana L. ?Challenge of Pluralism? Nieman Reports ?God in the Newsroom? Summer 1993: vol. XLVII, no. 2 1-11.
Eichenwald, Kurt. ?Report Says 3 Executives Misled Texaco? New York Times 15 July. 1997 Pp19
?Equal Opportunity Act of 1972?. Jan. 6, 1997. Http://rbp.eeomas.com/DOCS/Acts/eeo72.htm. (Oct. 14, 1997).
Fierman, Jaclyn. ?Business Does Not Adequately Support Work-Family Programs.? Are Companies Less Family-Friendly?, Fortune, 21 March 1994: 262-268.
FindLaw. ?Black Codes?
Http://www.findworld.com/data/constitution/amendment14/index.html (1Nov.1997).
Hair, Penda D. ?Color Blind ? Or Just Blind.? The Nation. October 14. 1996: 12.
Harris, Nichole. ?Revolt At The Deli Counter.? Business Week 1 April. 1996
Kantor, Harvey. ?Apprenticeships Would Reduce Opportunities for Youths.? The Hollow Promise of Youth Apprenticeship, Rethinking Schools, Autumn 1993, vol. 8, no.1 228-236.
Krauthammer, Charles. ?An Orwellian Assault on Democracy.? Time December 9. 1996: 94.
Lewin, Tamar. ?Women Losing Ground to Men In Widening Income Difference.? New York Times 15 September. 1997 Pp1
Mergenhagfen, Paula. ?Enabling the Disabled Employee?. American Demographics. July 1997.
Meyers, Gerald & Susan. ?Texaco?s Hasty Apology.? New York Times 12 January. 1997 Pp14-15
Mogelonsky, Marcia. ?Naturalized Americans?. American Demographics. March 1997.
Myerson, Allen R. ?Supermarket Chain To Pay $81 Million To Settle a Bias Suit? New York Times 25 January. 1997 Pp1
?Home Depot Pays $87.5 Million For Not Promoting More Women? New York Times 20 September. 1997 Pp7
N.O.W. (National Organization for Women). ?Equal Rights Amendment.? Http://now.org/issues/economic/eratext.html. (6 Nov., 1997).
Pagan, Jose A., and Davila Alberto. ?Obesity; Occupational Attainment, and Earnings?. Social Science Quarterly. University of Texas Press. Vol. 78. No. 3, Sept. 1997.
Pfeiffer & Company Consulting. 1996 Annual: Vol. 2, ?Consulting?. Diagram of the Fourteen Dimensions of Diversity? by Loden M., and J. Rosener. Workforce America! Managing Employee Diversity As a Vital Resource. Illinois: Irwin, Pp. 20. (1991).
Reese, Shelly. ?When Whites Aren?t a Mass Market?. American Demographics. March 1997.
Reich, Robert B. ?Training Programs Will Benefit U.S. Workers.? From speech to
Center for National Policy, Getting American to Work: What?s Working and What?s Not Working in Workforce Policy 27 January 1994: 41-47.
Robbins, Stephen P. ?Foundations of Individual Behavior?. Organizational Behavior. (1996). Pp83-86.
Rowe, Mary P. ? Fostering Diversity: Some Major Hurdles Remain.?//humanitas.ucsb.edu/projects/aa/docs/Change6.html 7 October 1997: 1-7.
S.A.D.P. (Students Against Discrimination and Preferences). ?Proposition 209 in Federal
Court.? Nov. 3, 1997. Http://www-acs.ucsd.edu/~sadp. (1 Nov., 1997).
Sandburg, Carl. Abraham Lincoln: The War Years. Vol. 2. New York: Harcourt, Brace
& Company. 1939
Solomon, Jolie. ?Texaco?s Troubles.? Newsweek 25 November. 1996
The Hall of Public Service. Interview with Rosa parks. June 2, 1995. Http://www.achievement.org/autodoc/page/parOint-1. (6 Nov. 1997).
Thomas, David A., and Robin J. Ely. ?Making Differences Matter: A New Paradigm for Managing Diversity?. Harvard Business Review. Sept/Oct 1996.
Yates, William T. ?Equity Management: Affirmative Action for the 21st Century.? //humanitas.ucsb.eu/projects/aa/docs/Change7.html 7 October 1997: 1-4.