Workforce diversity is one of the most important and

Workforce diversity is one of the most important and broad-based
challenges currently facing organizations.
 While globalization focuses on differences between people from
different countries, workforce diversity addresses differences
among people within given countries.
 Workforce diversity means that organizations are becoming more
heterogeneous in terms of gender, race, and ethnicity (Exhibit 1–
4). It is an issue in Canada, Australia, South Africa, Japan, and
Europe as well as the United States.
2. Embracing Diversity
 A melting-pot approach assumed people who were different would
automatically assimilate.
 Employees do not set aside their cultural values and lifestyle
preferences when they come to work.
 The melting pot assumption is replaced by one that recognizes
and values differences.
3. Changing U. S. Demographics

 Members of diverse groups were a small percentage of the
workforce and were, for the most part, ignored by large
organizations. Today
o 47 percent of the U.S. labor force are women.
o Hispanics, Blacks, and Asians make up 28 percent but will
grow to 49 percent by 2050.
o the labor force is aging. By 2014, those 55 and older will
make up 20 percent of the labor force.
o workforce diversity has important implications for
management practice.
4. Implications
 organizations have shifted to recognizing differences and
responding to those differences.
 companies are providing diversity training and revamping benefit
programs to accommodate the different needs of employees.
D. Improving Quality and Productivity
 Almost every industry suffers from excess capacity. Excess capacity
translates into increased competition that forces managers to reduce
costs and improve productivity and quality at the same time.
 Implement quality management programs driven by the constant
attainment of customer satisfaction through continuous improvement.
 To improve productivity and quality, managers must include employees.
E. Responding to the Coming Labor Shortage
 If trends continue as expected, the United States will have a labor
shortage for the next 10-15 years (particularly in skilled positions).
 The labor shortage is a function of low birth rates and labor participation
rates (immigration does little to solve the problem).
 Wages and benefits are not enough to keep talented workers. Managers
must understand human behavior and treat employees properly.
F. Improving Customer Service
 Today the majority of employees in developed countries work in service
jobs.
 Eighty percent of the U.S. labor force is in the service industry.
 Examples include technical support reps, fast food counter workers,
waiters, nurses, financial planners, and flight attendants.
 Employee attitudes and behavior are associated with customer
satisfaction.
G. Improving People Skills
 People skills are essential to managerial effectiveness.
 OB provides the concepts and theories that allow managers to predict
employee behavior in given situations.
H. Empowering People
 Today managers are being called coaches, advisers, sponsors, or
facilitators, and in many organizations, employees are now called
associates.