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The Challenges of Diversity

Pressures Toward Lower Cohesiveness
Homogenization

Confusing Interpersonal Conflict
Diversity With and Tension
Affirmative Action

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The U.S. workforce is a mosaic of
diverse cultures and groups

Older Workers African
Americans

Asian
Americans

Women

Disabled
Americans

Homosexuals Hispanic
Americans
Foreign-Born
Americans

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Diversity Today

 African Americans

 11.3 percent of U.S. population
 11.8 percent of workforce

 Asian Americans

 3.6 percent of population
 Wide variety of races ethnic groups and nationalities including

Japanese, Chinese, Korean, Indian and Pakistani.

 Disabled Americans

 43 million Americans suffer from some form of disability
 15 million are employed
 Accommodating disabled employees is less expensive than people

think

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Diversity Today (Continued)

 Foreign-born Americans

 About 10 percent of U.S. population
 About 820,000 immigrants enter the U.S. legally every year
 At least 7 million undocumented immigrants

 Hispanic Americans

 About 28 million people (10 percent of U.S. population)
 Actual number is around 40 million people
 People with roots in Mexico, Puerto Rico, and Cuba

 Homosexuals

 Estimated to be between 1 to 10 percent of the population
 No federal laws to protect homosexuals

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Diversity Today (Continued)

 Older Workers

 The average age of the U.S. workforce is expected to reach 40 by
2006.

 Negative stereotypes: inflexible, resisting to learning new skills,
and coasting until retirement

 Religious Diversity

 Primarily Christian faith
 A growing non-Christian minority

 Women

 Half of the labor force is female
 Glass ceiling and sexual harassment issues at work

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Building on Diversity

 Top management commitment
 Linking diversity initiatives to business strategies and

objectives (Slide 14 & 15)
 Management responsibility and accountability
 Diversity audits
 Developmental activities (Slide 16)
 Encouraging diversity networks
 Accommodating family needs (Slide 17 & 18)

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Corporate Diversity Initiatives

Business Strategy Human Resource Strategy Diversity Link
Grow the business
Find more talent Attracting and retaining the
best possible employees

Reduce costs and Increase employee Maximizing the potential of all
improve productivity productivity and develop employees
broader skills
Globalize
Encourage all cultures to Increasing sensitivity to and
work effectively together understanding of multicultural
employees, customers,
vendors, and government

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Corporate Diversity Initiatives (continued)

Business Strategy Human Resource Strategy Diversity Link

Innovate Generate new ideas Accepting and building on
Focus on the customer diverse perspectives

Reduce management Develop employee teams Multifunctional teams operating
levels and controls close to the customer effectively and creating an
inclusive environment for all
participants

Create independent, skilled, Creating self-directed work
and motivated employees teams that leverage differences
and operate with a minimum of
barriers

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Developmental Activities

Diversity Training Senior Mentoring

Diversity Learning Apprenticeships
Labs

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Accommodating Family Needs

 Day-care assistance
 Flexible work schedules and arrangements
 Compressed work weeks
 Job sharing
 Telecommuting
 Care assistance for elderly dependents

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Accommodating Family Needs

(Continued)

Paid time off to care for family members who are
ill

Paid parental leave
Keeping relocations to a minimum
Giving a high priority to finding a position for

spouse within the firm
Job search assistance to relocated spouses

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Applications of Management
Perspectives—For the Manager

 Effective management of diversity can provide the
organization with a powerful competitive edge.

 Effective management of diversity can:

 Foster creativity
 Improve problem solving
 Provide greater flexibility
 Make a firm more attractive to a broad labor market

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Applications of Management
Perspectives—For Managing Teams

 Employee diversity may lead to interpersonal
problems within and between teams.

 Employee groups must learn to work effectively
with one another in a climate of mutual respect.

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Applications of Management
Perspectives—For Individuals

Employees who can relate effectively with members
of other groups are more likely to be noticed by
management and placed in positions of
responsibility.

Even those who are not interested in managerial
roles will benefit from relating well to people of
diverse backgrounds; support from peers will make
their work easier to accomplish.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Chapter

12

Motivation

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Learning Objectives

After reading this chapter, you should be able to:

 Understand the basic approaches to motivation.
 Use goal setting to increase employee effort.
 Improve performance and solve worker

performance problems by applying various
motivation models.
 Use reinforcement principles to achieve higher
performance.
 Differentiate between motivation and other
possible influences on performance.

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Motivation

 Categories of Theories:

 Content theories of motivation seek to understand what
underlies and drives motivation

 Process theories of motivation seek to understand what steps
can be taken to improve and maintain motivation

 Types of Motivation:

 Intrinsic motivation- comes from the personal satisfaction of
the work itself

 Extrinsic motivation – comes from the rewards that are linked
to job performance, such as a paycheck

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Content View of Motivation

Maslow’s Hierarchy
of Needs

Alderfer’s ERG
Theory

McClelland’s Need
Theory

Herzberg’s Two-
Factor Theory

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Maslow’s Self-actualization
Hierarchy Esteem Needs
of Needs Social Needs

McGraw-Hill Safety Needs
Physiological Needs

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McGraw-Hill Alderfer’s ERG Theory

Growth
Relationships

Existence

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Need for McClelland’s
Achievement Needs
Theory
(nAch)
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Need for
Power

(nPow)

Need for
Affiliation

(nAff)

McGraw-Hill

Herzberg’s Two-Factor Theory

Hygiene Factors Motivational Factors

• Quality of supervision • Career Advancement

• Rate of pay • Personal growth

• Company policies • Recognition
• Working conditions
• Relations with others • Responsibility

• Job security • Achievement

High Job Dissatisfaction 0 Job Satisfaction High

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Process View of Motivation

Goal-Setting Theory

McGraw-Hill Equity Theory
Reinforcement

Theory

Expectancy Theory

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Goal-Setting Theory

Effective Goals are:

 Accepted by employees
 Challenging and realistic
 Specific, quantifiable, and

measurable

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MBO: Cascading of Objectives

Organizational The XYZ Company
Objectives

Divisional Consumer Products Industrial Products
Objectives

Departmental Production Sales Customer Marketing Research Development
Objectives Service

Individual © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Objectives

McGraw-Hill

Equity Theory

Personal Outcomes versus Others’ Outcomes
Inputs Inputs

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Equity Theory (continued)

 Inequity occurs when the ratio is not
equivalent and creates cognitive
dissonance

 To restore equity, people may use one
of the following: :

 Reduce inputs by cutting back on the effort,
and if the imbalance becomes too great, to
leave the firm

 Influence the outcome, such as persuade the
boss for a raise

 Decrease others’ outcomes, such as spread
rumors about others

 Increase effort level if they think they are
getting more than they deserve

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Reinforcement Theory

Reinforcement
Rewards

Consequences No Rewards Behavior

McGraw-Hill Punishment

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Expectancy Theory of Motivation

Expectancies

• Effort performance

• Performance outcome

Motivation

Valences Performance

Ability

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Motivation by Design

 Job Enlargement
Job Rotation
Job Enrichment
Job Characteristics Model

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Applications of Management
Perspectives—For the Manager

 Effective managers understand the factors that
influence motivation and use them as levers to
energize employees toward organizational goals.

 Effective motivation requires much more
sophistication than kicking workers harder to get
more out of them.

 Long-term effectiveness requires managers to
considers the needs and perceptions of workers as
well as characteristics of the work environment.

 Managers should be able to apply the motivation
theories to analyze and solve motivation difficulties.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Applications of Management
Perspectives—For Managing Team

 A critical issue is how the teams are structured.
 If the team is given responsibility for a project or

area, they can move beyond their individual
concerns and be motivated to contribute to the
common goal.

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Applications of Management
Perspectives—For the Individual

 As individual performers, we should understand
our own needs.

 It is also helpful to clearly understand motivation
process in the work environment.

 It is important to clarify and manage your
personal instrumentalities and valences.

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McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Chapter

13

Leadership

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives

After reading this chapter, you should be able to:

 Distinguish between management and leadership.
 Recognize how leaders use different power bases

to exercise influence.

 Differentiate effective from ineffective leaders.

 Identify and apply the major theories of
leadership.

 Identify organizational characteristics that
determine the need for and importance of
leadership.

 Strengthen the values and ethics of an
organization through leadership.

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What Makes A Leader Effective?

 Ability to influence other people
 Has a vision – ideas or objectives that

clarify to others where they should be
headed
 ―Sells‖ the vision by articulating it in a
compelling and persuasive manner

 Encourages followers to establish
appropriate implementation activities
to support the accomplishment of the
vision

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Compare

Leadership Management

McGraw-Hill Contrast

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Practices Associated with
Leadership by Managers

 Planning and organizing  Supporting
 Problem solving  Managing conflict and
 Clarifying
 Informing team building
 Monitoring  Networking
 Motivating  Delegating
 Consulting  Developing and mentoring
 Recognizing  Rewarding

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Power

Coercive
Power

Reward Legitimate
Power Power

Expert Power Referent
Power

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Leadership: Traditional Explanations

McGraw-Hill Person-based Theories
Situational Theories
Dispersed Theories
Exchange Theories

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Trait Theory

“Can-Do” Desire
Attitude to Lead

Honesty Self-
and Integrity Confidence

Intelligence Ambition
and Energy
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Behavioral Theories

Ohio State Initiating Structure
Consideration
University of
Michigan Employee-Orientation
Production-Orientation
McGraw-Hill
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The Managerial Grid

1 (1,9) (9,9)
2
Concern for People 3 (5,5)
4
5 2 3456 7 (9,1)
6
7 Concern for Production 89
8
9 (1,1)

1

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Findings of the Fiedler ModelPerformance

Good

Relationship-Oriented
Task-Oriented

Poor Favorable Moderate Unfavorable

Category I II III IV V VI VII VIII
Good Good Good Good Poor Poor Poor Poor
• Leader-Member
Relations High High Low High High High Low Low
• Task Structure Strong Weak Strong Weak Strong Weak Strong Weak

• Position Power

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The Path-Goal Framework

Environmental
Contingencies

Leader Outcomes
Behavior
Subordinate
McGraw-Hill Contingencies

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Dispersed Theories

 Substitute Leadership:attempts to
identify workplace characteristics
that can substitute for leadership or
neutralize efforts made by a leader

 Self-Leadership: leadership that
stresses the individual responsibility
of employees to develop their own
work priorities aligned with
organizational goals

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Characteristics of Traditional and Self-Managing Behaviors:

Traditional Leader Behaviors Self-Managing Leader Behaviors
Organization – Structures own and subordinates Encourages self-reward

work Encourages self-observation

Domination – Restricts or limits the discretion of Encourages self-goal setting

individuals or groups

Production – Sets standards for task performance

Recognition – Expresses approval or disapproval Encourages self-criticism

of behavior Encourages self-rehearsal

Integration – Promotes group cohesion and Acts as a role model by exhibiting appropriate
behavior
reduces group conflict Fosters the development of a culture that
nourishes and supports self-leadership
Communication – Provides, seeks, and

exchanges information with group members

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Exchange Theories

 Transactional Leadership: leaders who use
legitimate, coercive, or reward powers to elicit
obedience and attempt to instill in followers the
ability to question standard modes of operation

 Transformational Leadership: leaders who
revitalize organizations by instilling in followers the
ability to question standard modes of operation

 Authentic leadership: An approach that emphasizes
the importance of a positive directive force,
particularly in an environment of increasing
complexity, change, and uncertainty

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