Organizational Environment, Part 4

Question 1: Cite the competitive advantages that a diverse workforce brings.

Answer 1: Numerous studies have shown that more diverse companies tend to perform better over the long term. Diverse employers seem better able to recruit, retain, and inspire their employees. Employees are more likely to give their all for an organization which they feel respects their background. Companies with a diverse labor force also seem to have a better understanding of the diverse marketplace. In particular, the presence of women and minorities in the sales and marketing departments seems to be tied to greater rates of sale to those demographics. Diverse companies demonstrate greater levels of innovation and are less likely to succumb to groupthink. Also, diverse organizations seem to be more attuned to changes in the marketplace and are more likely to have a flexible organizational structure.

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Question 2: Cite the challenges that diversity poses in the workplace.

Answer 2: False or unconsidered assumptions: a manager’s unconscious prejudices can lead to poor decisions, especially in hiring; for instance, a manager may assume that a woman or a small man is incapable of performing a job requiring physical strength.Diminished cohesiveness: because employees come from different backgrounds, they have less in common and find it harder to get along; in this situation, it is essential to get the entire group united behind the organizational missionCommunication difficulties: managers waste time repeating themselves and elaborating on simple instructions.Lack of social comfort and trust: employees find it difficult to relate to one another and feel ill at ease in one another’s presence.Stereotyping: employees assume that the members of another cultural or social group share similar characteristics.

Question 3: Compare monolithic organizations, pluralistic organizations, and multicultural organizations.

Answer 3: There is very little cultural integration in a monolithic organization, because there is very little cultural differentiation between employees. In a monolithic organization, the only minority employees tend to be in very low-status jobs. In the United States, however, most companies went from being monolithic to being pluralistic during the 1960s and 1970s. A pluralistic organization eliminates discrimination and employs people from all races, ethnicities, and genders. Even within a pluralistic organization, though, it is not unusual for similar employees to be in the same fields or to cluster socially. In a multicultural organization, diversity is an avowed goal and minorities are present at all levels. Indeed, managers make a point of using the diverse backgrounds of employees to the advantage of the firm. Such organizations eliminate prejudice and discrimination, and are better at helping employees reach their full potential.

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