Chapter 8 Managing a New and Diverse Workforce Closing Case: Social Entrepreneurship and HR Case Summary In the aftermath of the devastating earthquake that struck the island nation of Haiti a few years ago, Oregon-based Mercy Corps arrived with a team of emergency-response experts from around the world. Focusing on immediate humanitarian needs, the team delivered food to overwhelmed hospitals and set up services to provide clean water. Obviously, Mercy Corps isn’t a newcomer to the enterprise of providing humanitarian aid. Founded in 1979 as the Save the Refugees Fund, a task force to help victims of famine and genocide in Cambodia, it expanded in 1982, becoming Mercy Corps International to reflect its broader mission. Mercy Corps’s approach to on-the-ground assistance also involves more than immediate-response and emergency-relief services. Mercy Corps has learned that communities recovering from war or social upheaval must be the agents of their own transformation for change to endure. Mercy Corps thus works to foster “sustainable community development that integrates agriculture, health, housing and infrastructure, economic development, education, and environment and local management,” as well as launching “initiatives that promote citizen participation, accountability, conflict management, and the rule of law.” In addition to the devastating effects of war, social upheaval, and natural disaster, Mercy Corps is also concerned with the effects of climate change on developing communities. When drought in the African nation of Niger threatened nearly 8 million people with malnutrition and starvation, Mercy Corps not only mobilized efforts to provide food commodities but also helped local farmers deal with chronic debt arising from inefficient methods and prior crop failures. In addition to providing immediate relief, Mercy Corps trained local blacksmiths to make portable silos for storing rice and corn, the country’s main staples. Case Questions 1. In what ways is HR for Mercy Corps to be similar to HR at a global business like Starbucks or Dell? Human resources (HR) functions at organizations like Mercy Corps, Starbucks, and Dell share some commonalities due to their focus on managing people effectively, but they also have distinct differences based on their organizational missions, sizes, and industries. Here are some ways in which HR at these organizations might be similar and different: Similarities: 1. Recruitment and Selection: All three organizations need to attract, select, and retain talented individuals who fit their culture and meet their operational needs. 2. Training and Development: HR is responsible for ensuring that employees receive appropriate training and development opportunities to enhance their skills and capabilities. 3. Compensation and Benefits: HR manages compensation and benefits packages to attract and retain employees, taking into account market trends and organizational budgets. 4. Performance Management: HR oversees performance management processes, including setting goals, providing feedback, and conducting performance evaluations. 5. Employee Relations: HR handles employee relations issues, such as conflicts, grievances, and disciplinary actions, to maintain a positive work environment. Differences: 1. Organizational Mission and Culture: Mercy Corps, as a humanitarian organization, may have a mission-driven culture focused on social impact, while Starbucks and Dell may have more profit-driven cultures. 2. Size and Complexity: The size and complexity of HR operations may differ, with Dell and Starbucks likely having larger HR departments due to their global reach and scale compared to Mercy Corps. 3. Regulatory Environment: HR at Mercy Corps may need to navigate unique regulatory environments related to non-profit organizations, while Dell and Starbucks may have different regulatory challenges related to their industries. 4. Global vs. Local Focus: HR at Dell and Starbucks may need to balance global HR strategies with local regulations and cultural differences, while Mercy Corps may have a more globally focused HR approach. 5. Employee Diversity: Mercy Corps may have a more diverse workforce in terms of backgrounds and nationalities due to its international focus, which can present unique HR challenges compared to Dell and Starbucks. In summary, while HR functions at Mercy Corps, Starbucks, and Dell share core responsibilities, the differences in their organizational missions, sizes, industries, and global reach result in distinct approaches to HR management. 2. How is HR at Mercy Corps likely to be different from HR at a global business? HR at Mercy Corps, as a non-profit humanitarian organization, is likely to be different from HR at a global business like Dell or Starbucks in several key ways: 1. Mission and Culture: Mercy Corps' HR is centered around its humanitarian mission, focusing on social impact and helping communities in need. This mission-driven culture may differ significantly from the profit-driven culture often found in global businesses. 2. Workforce Diversity: Mercy Corps operates in diverse and often challenging environments worldwide, leading to a workforce that is likely more diverse in terms of backgrounds, nationalities, and skill sets compared to a typical global business. 3. Resource Constraints: As a non-profit organization, Mercy Corps may have more limited financial resources compared to global businesses, which can impact HR practices related to compensation, benefits, and training. 4. Regulatory Environment: HR at Mercy Corps may need to navigate unique regulatory environments related to non-profit organizations and humanitarian work, which can differ from the regulatory challenges faced by global businesses. 5. Focus on Employee Well-being: Given the nature of Mercy Corps' work in often challenging and high-stress environments, HR may place a stronger emphasis on employee well-being, mental health support, and safety compared to HR at a global business. 6. Recruitment and Retention: While global businesses may focus on recruiting and retaining talent for their specific industry needs, Mercy Corps may need to attract individuals who are passionate about humanitarian work and willing to work in challenging environments, which can require different recruitment and retention strategies. 7. Performance Management: Mercy Corps' performance management may be more focused on outcomes related to its humanitarian mission, such as community impact and program effectiveness, rather than purely financial or operational metrics. In summary, HR at Mercy Corps is likely to be shaped by its unique mission, focus on humanitarian work, diverse workforce, resource constraints, and regulatory environment, setting it apart from HR practices at global businesses. 3. In general, why do people choose to work for a non-for-profit organization? What unique advantages and disadvantages does this pose to managers? People choose to work for non-profit organizations for various reasons, including: 1. Mission and Values: Many are drawn to the organization's mission and the opportunity to make a positive impact on society or a particular cause. 2. Sense of Purpose: Working for a non-profit can provide a strong sense of purpose and fulfillment, knowing that their work directly contributes to helping others. 3. Work-Life Balance: Non-profits may offer more flexible work arrangements and a better work-life balance compared to for-profit organizations. 4. Professional Development: Non-profits often provide opportunities for professional growth and development, allowing employees to take on new challenges and expand their skills. 5. Community and Culture: Non-profits often have a strong sense of community and a supportive work culture, which can be appealing to employees. 6. Personal Connection: Some employees may have a personal connection to the cause or issue the non-profit addresses, motivating them to work for the organization. However, working for a non-profit also comes with unique advantages and disadvantages for managers: Advantages: 1. Mission Alignment: Non-profit managers can leverage the organization's mission to motivate and engage employees, leading to higher job satisfaction and commitment. 2. Impactful Work: Managers have the opportunity to lead projects and initiatives that directly contribute to positive social change, which can be personally rewarding. 3. Diverse Workforce: Non-profits often attract employees from diverse backgrounds who are passionate about the mission, leading to a creative and innovative work environment. 4. Community Support: Non-profits may receive support from volunteers, donors, and community partners, which can enhance the organization's reach and impact. Disadvantages: 1. Resource Constraints: Non-profits often have limited financial resources, which can pose challenges for managers in terms of budgeting, staffing, and implementing programs. 2. Funding Instability: Non-profits may be dependent on grants, donations, or government funding, which can be unpredictable and lead to uncertainty for managers in planning and decision-making. 3. Competitive Salaries: Non-profits may offer lower salaries and fewer benefits compared to for-profit organizations, making it challenging to attract and retain top talent. 4. Complex Stakeholder Relationships: Non-profit managers need to navigate relationships with diverse stakeholders, including donors, volunteers, board members, and community partners, which can be complex and demanding. Overall, while working for a non-profit can be fulfilling and meaningful, it also presents unique challenges for managers that require creativity, adaptability, and strong leadership skills. 4. Are there special issues of diversity that may be highly relevant to organizations like Mercy Corps? If so, what are they? Yes, there are several diversity-related issues that may be highly relevant to organizations like Mercy Corps, which operate in diverse cultural, social, and economic contexts. Some of these issues include: 1. Cultural Competence: Given the global nature of Mercy Corps' work, understanding and respecting diverse cultural norms, values, and practices is crucial for effective program implementation and community engagement. 2. Inclusive Programming: Ensuring that programs are designed and implemented in a way that is inclusive of all members of the community, including marginalized groups such as women, ethnic minorities, and persons with disabilities. 3. Gender Equality: Promoting gender equality and women's empowerment is a key focus for many organizations, including Mercy Corps, as women often face unique challenges and barriers in accessing resources and opportunities. 4. LGBTQ+ Inclusion: Recognizing and respecting the rights and dignity of LGBTQ+ individuals, especially in contexts where they may face discrimination or persecution. 5. Intersectionality: Recognizing that individuals may experience multiple forms of discrimination or disadvantage based on their intersecting identities (e.g., race, gender, class), and addressing these intersecting forms of oppression in program design and implementation. 6. Language Access: Ensuring that information and services are accessible to speakers of diverse languages, especially in multilingual communities. 7. Ethical Engagement: Being mindful of the power dynamics inherent in aid and development work, and ensuring that interventions are conducted ethically and with the meaningful participation of the communities being served. 8. Diverse Representation: Promoting diversity within the organization, including in leadership positions, to ensure that a variety of perspectives are represented in decision-making processes. By addressing these and other diversity-related issues, organizations like Mercy Corps can better fulfill their mission of alleviating suffering, poverty, and oppression worldwide. The following items appear on the in-text Instructor Prep Cards. These notes and suggested talking points should help instructors conduct these exercises with the students. Discussion Questions 1. Define diversity. Diversity exists in a group when its members differ from one another along one or more important dimensions. Diversity is not an absolute phenomenon wherein a group or organization is or is not diverse. Instead, diversity should be conceptualized as a continuum and thought of in terms of degree of level of diversity along relevant dimensions. 2. What are the basic trends in diversity in the United States today? What accounts for these trends? There are a number of reasons for this increase in diversity. •Changing demographics in the labor force is one such factor. •A related factor that has contributed to diversity has been increased awareness by organizations that they can improve the overall quality of their workforce by hiring and promoting the most talented people available regardless of gender, race, or any other characteristics. •Another reason for the increase in diversity has been legislation and legal actions that have forced organizations to hire more broadly. •A final contributing factor to increased diversity in organizations has been the globalization movement. Organizations that have opened offices and related facilities in other countries have had to learn to deal with different customs, social norms, and mores. 3. Distinguish between identical treatment and equitable treatment in an organizational setting. In an organizational setting, the concepts of identical treatment and equitable treatment refer to different approaches to managing employees and resources: 1. Identical Treatment: Identical treatment, also known as "equal treatment," involves treating all individuals in the same way, regardless of their individual circumstances or needs. This approach focuses on consistency and uniformity in policies and practices. For example, in terms of compensation, employees at the same level may receive the same salary, regardless of their performance or contributions. 2. Equitable Treatment: Equitable treatment, on the other hand, involves treating individuals fairly and justly based on their individual circumstances and needs. This approach recognizes that different individuals may require different treatment to achieve fairness. For example, in terms of promotions, equitable treatment may involve considering factors such as performance, skills, and experience to determine the most suitable candidate, rather than relying solely on seniority. In summary, while identical treatment focuses on treating everyone the same, equitable treatment focuses on treating everyone fairly based on their unique circumstances. Organizations often strive for equitable treatment to ensure that all employees have equal opportunities to succeed and contribute based on their abilities and needs. 4. What are the four most common bases of diversity that are relevant to managers and their organizations? The most common bases of diversity are age, gender, ethnicity, and disability; but other characteristics such as marital status, parental status, and national origin are also relatively common. 1. Demographic Diversity: This includes differences in age, gender, race, ethnicity, sexual orientation, and physical abilities. Managing demographic diversity involves understanding and valuing the unique perspectives and experiences that individuals from different demographic backgrounds bring to the organization. 2. Cultural Diversity: This refers to differences in values, beliefs, norms, customs, and traditions among people from different cultural backgrounds. Managing cultural diversity involves creating an inclusive environment where individuals from diverse cultures feel respected and valued. 3. Cognitive Diversity: This relates to differences in how people think, process information, and solve problems. Cognitive diversity can lead to innovative thinking and better decision-making, but it requires managers to be open to different perspectives and ideas. 4. Functional Diversity: This refers to differences in education, skills, expertise, and job functions among employees. Managing functional diversity involves leveraging the unique abilities of individuals to achieve organizational goals effectively. By understanding and managing these bases of diversity, managers can create inclusive and supportive work environments that benefit both employees and the organization as a whole. 5. What trends are apparent regarding age, gender, and ethnicity in the workplace? The average age of U.S. workers is gradually increasing and will continue to do so for the next several years. Another factor that contributes to workforce aging is improved health and medical care: As a result, people can remain productive and active for longer periods of time. Combined with higher legal limits for mandatory retirement, more and more people are working beyond the age at which they might have retired just a few years ago. Census data indicate that in 2010 women constituted 47.9 percent of the workforce, up from 45.2 in 1990 and 46.6 in 2000. The biggest changes in the ethnic composition of the workforce are the decrease in the percentage of whites in the workforce and the increase in the percentage of Hispanics. The percentage of African-Americans has remained stable. 6. How does diversity contribute to competitiveness? How does diversity contribute to conflict? Six arguments have been proposed for how diversity contributes to competitiveness. •The cost argument suggests that organizations that learn to cope with diversity will generally have higher levels of productivity and lower levels of turnover and absenteeism. •The resource acquisition argument for diversity suggests that organizations that manage diversity effectively will become known among women and minorities as good places to work. •The marketing argument suggests that organizations with diverse workforce will be able to understand different market segments better than will less diverse organizations. •The creativity argument for diversity suggests that organizations with diverse workforces will generally be more creative and innovative than will less diverse organizations. •The problem-solving argument suggests that the pool of unique information is larger in more diverse organizations. Thus, if more information can be brought to bear on a problem, there is a higher probability that better solutions will be identified. •The systems flexibility argument for diversity suggests that organizations must become more flexible as a way of managing a diverse workforce. Diversity in an organization can also become a major source of conflict for various reasons. One potential avenue for conflict is when an individual thinks that someone has been hired, promoted, or fired because of her or his diversity status. Another source of conflict stemming from diversity is through misunderstood, misinterpreted, or inappropriate interactions between or among people of different groups. Some evidence suggests that conflict may be specially pronounced between older and younger women in the workplace because older women feel that they have sacrificed family for career and resent the relatively greater accommodation made for women today. Conflict can arise as a result of fear, distrust, or individual prejudice. Members of the dominant group in an organization may worry that newcomers from other groups pose a personal threat to their own position in the organization. 7. Identify and discuss various individual strategies for managing diversity. The different individual strategies for managing diversity include: •Understanding—while people need to be treated fairly and equitably, managers must understand that cultural factors cause people to behave in different ways and that these differences should be accepted. •Empathy—people in an organization should try to understand the perspective of others. •Tolerance—even if individuals do not enjoy cultural differences, they must learn to tolerate differences and work around them. •Communication—problems often become magnified over diversity issues because people are afraid or otherwise unwilling to openly discuss issues that relate to diversity. 8. What is a multicultural organization? Do you think such an organization exists? A multicultural organization is one that has achieved a high level of diversity, one that can fully capitalize on the advantage of the diversity, and one that has few diversity-related problems. As such, clearly, some organizations are more multicultural than others. Like diversity, multiculturalism should be viewed on a continuum rather than in terms of absolutes. 9. What are the special issues faced when managing knowledge workers? Employees who add value simply because of what they know are usually referred to as knowledge workers, and how well these employees are managed is seen as a major factor in determining which firms will be successful in the future. Knowledge workers include computer scientists, engineers, and physical scientists, and they provide special challenges for the HR managers. They often believe they have the right to work autonomously, and they identify more strongly with their profession than they do with any organization—even to the extent of defining performance in terms recognized by other members of their profession. Knowledge workers require extensive and specialized training, and not everyone is willing to make the human capital investments necessary to move into these jobs. In fact, even after knowledge workers are on the job, retraining and training updates are critical so that their skills do not become obsolete. Compensation and career-development policies for knowledge workers must also be specially tailored. Perhaps the biggest challenge facing firms that employ knowledge workers is figuring out how to attract and retain them. 10. How are social issues and the human resource management function linked? Human resource managers are more involved with social issues because Employees, especially younger employees in the twenty-first century, are more interested in social issues than employees have been for quite some time. Some of these causes include corporate social responsibility (or satisfying the needs of key stakeholders), green-oriented business, and the fair treatment of employees. With regard to the fair treatment of workers, the employment of prison inmates and illegal immigrants are two widely discussed issues in the human resource management. HR managers must work diligently to provide the proper opportunities for employees so that they reach some of their personal/professional goals related to social issues. Ethical Dilemmas in HR Management Scenario Summary The senior human resource executive of a firm had succeeded in increasing the diversity in its workforce substantially. However, the firm had some unfortunate financial setbacks and the senior human resource executive has no choice but to lay off 300 employees for a period of 6 months. The senior human resource executive is currently puzzled over the criteria to use in selecting people for layoffs. If the senior human resource executive uses strict seniority, women and ethnic minorities will bear the brunt of the layoffs because they are all among the newest employees in the firm. If the senior human resource executive uses strict performance, however, the older and more senior (and predominantly white-male) workers will bear the brunt because the newer employees have the most current training and job skills. The senior human resource executive also wonders what role loyalty should play, because many of the older workers could have left for higher-paying jobs a few years ago but chose to stay. Questions 1. What are the ethical issues in this situation? It is laudable to have a diverse workforce and to retain workers on the basis of productivity, but it is also laudable to reward loyalty. It is not the fault of the older workers that they are white males or that their training is somewhat outdated. 2. What are the basic arguments for and against the different criteria in selecting employees to be laid off? If the senior human resource executive use productivity, the firm will gain in efficiency because it receives both direct benefits in terms of higher productivity and indirect benefits from diversity that has taken years to attain. However, the senior human resource executive may send a message that the organization does not value loyalty, and when workers receive other job offers, they may take them because of the lack of job security. 3. What do you think most managers would do? What would you do? Most managers would likely strive to create a diverse and inclusive workplace by implementing policies and practices that promote diversity and respect for all employees. This may include: 1. Implementing diversity training programs to educate employees about the importance of diversity and inclusion. 2. Establishing diversity recruitment strategies to attract candidates from diverse backgrounds. 3. Encouraging open communication and dialogue among employees to foster understanding and respect for different perspectives. 4. Creating a culture that values and celebrates diversity through recognition programs and events. 5. Addressing any instances of discrimination or bias promptly and decisively. As for what I would do, I would focus on understanding the unique strengths and perspectives that each individual brings to the table and strive to create an environment where everyone feels valued and respected. I would also work to foster a culture of continuous learning and improvement, where diversity and inclusion are not just buzzwords but integral parts of how we operate as a team. Assignment Purpose: The purpose of this exercise is to help develop increasingly important human resource skills as they relate to multicultural issues and challenges. Step 1: Read and reflect on the scenario that follows: A firm has recently undergone a significant increase in its workforce. Many of the new workers it hired are immigrants from Eastern Europe and Asia. Several do not speak English very well, but all are hard workers who appear to want to be successful and to fit in with their co-workers. Recently, however, some problems have come to your attention. Several female workers have begun to complain about an increase in sexual harassment. The supervisors have noticed an increase in tardiness and absenteeism among all the workers. One has decided that some action is needed. One is unsure about how to proceed. Consequently, one would have decided to spend a few days thinking about what to do. Step 2: Answer the following questions. 1. Think of as many causes as you can for each of the two problems you face. The problem with sexual harassment may be due to a difference in laws and cultures of the countries of origin. It may also be that the language and other communication barriers are creating a misunderstanding between members of different cultures. The absenteeism may be a sign that workers are unhappy with their work. 2. Determine how you might address each problem, given the potential array of factors that might have contributed to each? First, one must talk to the individuals who claim harassment and to others who are unhappy and learn what specific complaints they may have about the new hires. Second, one must talk to the new hires and learn what they feel is the reason for the complaints. Third, one must educate both the new hires and the old hires about the respective cultures. One must be specific about the behavior that will not be tolerated and behavior that must be tolerated by the other party. 3. What role may the organization culture be playing in this situation, apart from issues of multiculturalism? The organization may not have trained the new hires or the older hires in aspects of diversity that have been discussed in this chapter. The organization may not have a system for communicating or dealing with problems between employees. The organization itself may not be encouraging tolerance. 4. What role may multiculturalism be playing in this situation, apart from issues of organization culture? If these new hires are recent immigrants, they may not have had time to become socialized to U.S. culture. They may truly not understand the subtle differences between behaviors that are acceptable and not acceptable in the workplace. An inability to communicate in English may also cause problems to linger because of the inability of the employees to work out their problems on their own. Solution Manual for Human Resources Angelo Denisi, Ricky Griffin 9781285867571
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