OB Chapter 2

[Audio] Welcome to Caldwell University's BU633 Organizational Behavior for Managers. I'm a virtual Doctor Gary Lieberman and I will be presenting the lecture for this chapter. For the BU633 course we will use the 19th edition of the textbook, Organizational Behavior by Robbins and Judge. This is considered among the most widely used O B textbooks in the world. Robbins and Judge are recognized as definitive aggregators of O B concepts, applications, and practices. The course and this book will provide you with a resource that will benefit you throughout your degree program and your professional life. I hope you enjoy the presentation, let's get started..

[Audio] After studying this chapter, you should be able to: Describe the two major forms of workplace diversity. Demonstrate how workplace prejudice and discrimination undermines organizational effectiveness. Explain how four major theoretical perspectives contribute to our understanding of workplace diversity. Describe the role diversity plays in the interactions between people. Discuss the implications of cross-cultural matters for organizational behavior (O B). Describe how organizations manage diversity effectively..

[Audio] Everyone brings differences to the organizations where they work. These differences can create energy and excitement in the workplace, but they can also cause conflict. So, it is important that we have an understanding of how diversity works in organizations. When we look at the workplace, we recognize two levels of diversity. Surface-level diversity represents the characteristics that are easily observed such as race, gender, and age. Deep-level diversity represents the aspects that are more difficult to see at first glance such as values, personality, and work preferences..

[Audio] Biographical characteristics such as age, gender identity, race, and ethnicity are some of the most obvious ways employees differ. We define race as the heritage people use to identify themselves; ethnicity is the additional set of cultural characteristics that often overlaps with race. Stereotypes of older workers as being behind the times, grumpy, and inflexible are changing. In fact, industries like health care, education, government, and nonprofit service often welcome older workers. But older workers are still perceived as less adaptable and less motivated to learn new technology. Despite the stereotypes, the majority of studies have shown "virtually no relationship between age and job performance." Gender identity and sexual orientation also don't affect job performance or leadership. With regard to gender identity, we mean peoples' deeply held sense of or identification with their own gender. Bear in mind that gender identity does not necessarily match one's sex at birth, is not visible to others, and cannot be neatly categorized. By sexual orientation, we mean peoples' patterns of enduring physical, emotional, and/or romantic attraction toward others..

[Audio] This O B Poll shows that differences in pay, benefits, and rewards concerning gender are strong and substantial, with recent estimates that they are up to fourteen times the size of performance differences. The horizontal axis is labeled years and ranges from 1979 to 2019 in increments of 2. The vertical axis is marked with the percentage and ranges from 50 percent to 90 percent in increments of 5 percent. The approximate data from the graph is as follows. The line starts from 62.5 percent in 1979 and grows with an increasing and fluctuating trend till 81.5 percent in 2019. The small and wide peaks are at 77 percent in 1993, 80.5 percent in 2005, and 82.5 percent in 2011..

[Audio] Sexism, racism, and ageism are examples of prejudice toward gender identities, races and ethnicities, and age. Prejudice is an attitude representing broad, generalized feelings toward a group or its members that maintains the hierarchy between that group and other groups. When prejudice involves positive feelings, it is benevolent prejudice. Implicit bias refers to prejudice that may be hidden outside one's conscious awareness..

[Audio] Managing diversity effectively requires working to eliminate unfair discrimination, or actions and behaviors that create, maintain, or reinforce some groups' advantages over other groups and their members. Discrimination can take many forms as shown in the next slide in Exhibit 2.1. Discrimination can go beyond an individual and involve the organization. Disparate impact occurs when employment practices have a discriminatory effect on a legally protected group of people. Bear in mind that while disparate impact is unintentional (it focuses on the discriminatory "impact" of neutral employment practices), disparate treatment is intentional and represents employment practices intended to have a discriminatory effect on a legally protected group of people. In general, organizations go to great lengths to avoid disparate impact, which can present substantial legal challenges if it occurs..

[Audio] This Exhibit lists definitions and examples of different types of discrimination. Increasing legal scrutiny and social disapproval have reduced most overt forms of discrimination, but less obvious discrimination, like incivility or exclusion, continues to exist. This type of discrimination can be difficult to eliminate because it's less easily observed, and because it's not always intentional. Even so, it can have serious negative implications for an organization including reduced productivity, increased turnover, and increased conflict among employees..

[Audio] Microaggressions, or the automatic, subtle, stunning exchanges between people that negatively impact those with minority or marginalized backgrounds can be just as detrimental as more overt forms of discrimination..

[Audio] Social categorization can lead to the fragmentation of work groups and teams. As people associate with those more similar to themselves, form subgroups with those people, and judge others as belonging to outgroups, groups and teams can fracture, leading to lower team performance. Unfortunately, social categorization can also result in people making inferences about what others are like or are interested in that are not true, or they may even lead you to misclassify them as belonging to that group. These incorrect inferences are at the root of much of the prejudicial thinking that acts as a barrier to diverse and inclusive workplaces..

[Audio] Stereotype threat has serious implications for the workplace. Stereotype threat can occur during preemployment tests and assessments, performance evaluations, and everyday workplace exchanges. It can lead to underperformance on tests, performance evaluations, training exercises, negotiations, and everyday interactions with others as well as to disengagement, poor job attitudes, a reluctance to seek feedback, and poor performance in the employees experiencing the threat. Sometimes, people are concerned with being judged by or treated negatively based on attributes or characteristics that are not visible. These people are aware that there are negative connotations associated with these characteristics and so try to hide or conceal them. Stigma represents attributes that cannot be readily seen, are concealable, and convey an identity that is devalued in certain social contexts..

[Audio] System justification thrives when people believe that they have low personal control, that the situation is inescapable, and that they depend on or are grateful to the system (and do not want to jeopardize the relationship). Social dominance orientation (S D O) reflects whether people desire and support this hierarchy and whether they believe that some groups are inferior, and others are superior. Many researchers have suggested that an individual's SDO is one of the most important predictors of whether they hold prejudicial beliefs or discriminate against others..

[Audio] Intersectionality highlights the complexity in understanding diversity in organizations and recognizes that social categories themselves may not be enough to understand individuals' unique contributions to their organizations. Intersectionality can unfortunately lead to enhanced negative effects for people with multiple stigmatized characteristics, also referred to as double jeopardy. O B theorists have suggested the metaphor of a cultural mosaic: that people are made up of multiple characteristics, attributes, and identities that can be used to describe people. As shown in the next slide, the tiles of a person's mosaic can be biographical or demographic (e.g., age, race, ethnicity, gender identity), geographical (e.g., the climate, temperature, location), or associative (e.g., employer, religion, political affiliation, hobbies)..

[Audio] Exhibit 2.2 shows an illustration of cultural mosaic theory. Workers may also hold cultural mosaic beliefs (CMB) that influence their support for diversity, acceptance, and inclusion of people from different backgrounds. Furthermore, workers may choose to emphasize some of the tiles in their mosaics more so than the others, depending upon the setting (e.g., at home versus at work). Bellamy is linked to the following mosaics: 20 years old, black, transgender woman, restaurant employee and two empty mosaics. Hector is linked to the following mosaics: cisgender man, Latinx, 49 years old, restaurant employee and three empty mosaics. Restaurant employee mosaic which is connected to both Bellamy and Hector is highlighted. Bellamy and Hector are reversible which is shown by double headed arrow between them..

[Audio] A common dilemma that managers and team leaders is how to build a team to increase performance and cohesion and reduce conflict. Research shows only a modest link between actual diversity and perceived diversity. Other studies indicate that members seek to balance a need to belong and a need to be distinctive in groups. Despite the inconclusive nature of research on group composition, a number of findings have emerged about surface-level, deep-level, and functional diversity in groups and teams. Surface-level diversity appears to increase group conflict, especially in the early stages of a group's tenure, which often lowers group morale and raises group turnover. At a deeper level, groups in which members' values or opinions differ tend to experience more conflict, but leaders who can get the group to focus on the task at hand and encourage group learning are able to reduce these conflicts and enhance discussion of group issues. Functional diversity may improve team performance and innovation, but these effects are contingent on several factors. For example, functional diversity can influence team creativity by facilitating knowledge sharing. Further, new ventures led by functionally diverse teams of founders tend to be more successful in competitive environments..

[Audio] Research on fault lines has shown that they are generally detrimental to group functioning and performance. Subgroups may compete, which takes time away from core tasks and harms group performance, especially when the group is under threat. Are fault lines ever a good thing? One study suggested that fault lines regarding skill, knowledge, and expertise may be beneficial in a results-driven organizational culture. Why? A results-driven culture focuses people's attention on what is important to the company rather than on problems arising from subgroups. Studies show that problems stemming from strong fault lines may be overcome when the roles are crosscut, when the group is given a common goal to strive for, and when similar pairs are recruited within a diverse group..

[Audio] One of the most widely referenced approaches for analyzing variations among cultures was introduced in the late 1970s by Geert Hofstede. Hofstede's framework focuses on five dimensions of culture: power distance, individualism versus collectivism, masculinity versus femininity, uncertainty avoidance, and long-term versus short-term orientation. More recently, Hofstede has proposed an additional dimension: indulgence versus restraint..

[Audio] How do different countries score on Hofstede's dimensions? Exhibit 2.3 shows the ratings of the countries for which data are available. The table has 5 columns: power distance, individualism versus collectivism, masculinity versus femininity, uncertainty avoidance, and long- versus short-term orientation. Each of these columns are further divided into two columns: index and rank..

[Audio] The Global Leadership and Organizational Behavior Effectiveness (GLOBE) research program is an ongoing cross-cultural investigation of leadership and national culture. The GLOBE framework builds upon Hofstede's work identifying nine dimensions on which national culture differ. While sharing similar names, the different cultural dimensions identified in the GLOBE study are not identical to those identified in Hofstede's research..

[Audio] Exhibit 2.4 shows the linkages between dimensions from the GLOBE framework and Hofstede's Framework. Both studies have a lot in common and lead to similar conclusions. The findings of these studies are incredibly important to be aware of in this day and age..

[Audio] With the advent of globalization, companies often engage in multinational projects, work in multinational teams, and send their employees to work in different cultures that may be radically different than what they are used to. Understanding what is valued (and what is not valued) in each culture is very "valuable" information to have today..

[Audio] Culturally tight countries like Japan have historically experienced a great deal of threat, which has led to the emergence of clear, strong norms. On the other hand, loose countries like the United States tend to be more ambivalent toward restrictions to autonomy and liberty. Cultural tightness tends to influence whether high-performance HR systems are more or less effective. In tight cultures, there are strong norms in place, and so workers are motivated to follow them—as such, when rigorous hiring systems, training programs, reward systems, and participative decision-making practices are enacted by organizations, they tend to be successful because workers tend to implement the practices. Discrimination based on religion is prohibited in the United States; however, it continues to be an issue in the workplace. Muslims in particular may face discrimination, but bias against other religious beliefs exists as well. In fact, religious discrimination claims represent an increasing share of all discrimination claims in the United States..

[Audio] Several factors should be targeted to help the adjustment process for expatriates. Feelings of empowerment along with the motivation to interact with those of other cultures were found in to be related to adjustment, satisfaction, and reduced intentions to leave prematurely. Those with previous culture-specific work experience as well as higher self-esteem and self-efficacy tend to adjust and be promoted more quickly. Several other factors work in concert to affect different forms of adjustment, including language ability, relational skills, role clarity and autonomy, organizational support, and familial support. Finally, cultural tightness–looseness matters: Nearly all expatriates will have a difficult time adapting to tight countries because they have to adapt to strongly observed, heavily enforced norms. C Q has been found to be associated with expatriate career aspirations and adjustment, job performance, psychological health and well-being, cross-cultural leadership, negotiation performance, and O C B in organizations. C Q has motivational effects that influence worker performance. For instance, individuals with high C Q feel more comfortable voicing their ideas with culturally dissimilar peers and supervisors..

[Audio] The theory and research we have reviewed up to this point paint a bigger picture of prejudice, discrimination, and cultural misunderstanding that a mere understanding of diversity may fall short of addressing. Instead, organizations would do well to broaden their scope to focus on what can be done to ameliorate inequity, unfairness, and exclusion. This has led organizations to focus on diversity, equity, and inclusion (D E I) as three strategic and principled goals to strive toward. First, a focus on diversity involves celebrating rather than denigrating the differences between people and enhancing the representation of diverse, marginalized people in the workforce. Second, a focus on equity involves striving to provide access to the same opportunities for all workers, recognizing that some people are afforded privileges and advantages while others are confronted with barriers and obstacles. Third, a focus on inclusion involves creating an environment in which all people feel valued, welcomed, and included..

[Audio] Overall, the evidence on the common ingroup identity model has been promising. It has even been demonstrated to have an effect on implicit bias, with experiments showing a reduction in bias scores on the Implicit Association Test (I A T). However, although common ingroup identity is a powerful tool, it's important to avoid using it in a way that inadvertently overshadows people's diverse identities. Contact may be one of the most promising ways in which majority group members begin to think differently about diversity and become aware of and psychologically invested in the interests of minority groups. In addition, virtual and imagined contact have an impact on prejudice reduction, inclusion, and anxiety reduction and can even lead to future, direct contact..

[Audio] Primarily, leaders should assume four primary roles in diversity leadership: (1) advocate for diversity as a resource, (2) promote positive intergroup interactions, (3) stimulate discussions and conversations among those of different backgrounds to manage the organizations' knowledge, and (4) encourage continuous reflection on the organizations' diversity practices, processes, and goals..

[Audio] To promote inclusion, leaders need to first focus on themselves with a sense of humility, authenticity, and understanding of their own diverse characteristics. Then, leaders can facilitate belongingness and convey the value of uniqueness. Finally, managers can do much to promote equity in their organizations by clearly demonstrating expectations and communicating policies to employees so they can understand how and why certain practices are followed..

[Audio] The hiring process is one of the most important places to apply diversity management efforts. Hiring managers need to value fairness and objectivity in selecting employees and focus on the productive potential of new recruits. Most diversity training programs have three distinct components. First, they teach people about the legal framework for equal employment opportunity and encourage fair treatment of all people regardless of their demographic characteristics. Second, they teach people how a diverse workforce is better able to serve a diverse market of customers and clients. Third, they foster personal development practices that bring out the skills and abilities of all workers, acknowledging how differences in perspective can be a valuable way to improve performance for everyone..

[Audio] Management will not be as effective unless managers consider the organization's culture and climate for diversity. As with D E I initiatives in general, diversity cultures and climates simultaneously emphasize prejudice and discrimination reduction, enhancing representation, and advocating for inclusion..

[Audio] Managers can craft evidence-based practices, a D E I-friendly culture and climate in their organization, take strategic action toward D E I goals, and still fall flat. Managers would do well to consider and address these challenges in their own diversity management initiatives. First, authenticity plays a huge role. Second, many leaders and managers half-heartedly committed to D E I will engage in tokenism, or a perfunctory effort to enhance representation to make it seem like their company values diversity. Feeling tokenized can have detrimental effects for the worker or manager in that position and can be perceived by the public as inauthentic. Third, diversity management can lead to several paradoxical effects. Fourth, organizations do not exist in a vacuum..

[Audio] Strive to be aware of and sensitive to the complex implications of diversity in your organization. Assess and challenge your own beliefs, prejudices, and stereotypes to increase your awareness of bias. Take efforts to root out illegal, discriminatory practices, both overt and subtle, in your organization. Look beyond readily observable biographical characteristics and consider individuals' capabilities before making management decisions..

[Audio] Educate your colleagues, subordinates, and others about both the ethical and business case for diversity to increase buy-in for diversity management. Identify the potential impact of diversity dynamics in your groups and teams and be mindful of them when administering assessments, building teams, and resolving conflict. The more you understand and consider differences between cultural values, norms, and identities, the better you will be able to adapt to and manage cross-cultural dynamics in your organization..

[Audio] Implement evidence-based best practices when developing your organization's diversity management initiatives, focusing on diversity, equity, and inclusion. Strive to develop a diverse culture and climate where employees feel that diversity, equity, and inclusion are valued and put into practice and feel safe to contribute as their authentic selves. Be mindful of the fact that diversity management may not be successful right away. There are many barriers to its effectiveness, some avoidable (e.g., authenticity and tokenism) and some unavoidable (e.g., systemic bias, your organization's cultural context)..

[Audio] Thank you for taking the time to join me in this lecture. I sincerely hope you enjoyed the content and the virtual presentation. I hope to see you in the next chapter presentation. Goodbye..