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Strategic Human Resource Management Plan Paper

C H A P T E R 3 Diversity and Multiculturalism HIRING MULTICULTURAL On a Tuesday afternoon, as you are getting ready to go to lunch, you receive an e-mail from your human resources

(HR) manager about the need to hire a new project manager, and there is a $500 bonus for referring a friend who

successfully joins the company. Immediately, you e-mail your friend Daniel, because you know he would be great

for the job. Daniel is eventually hired for the position, and a few months later a new e-mail goes out asking for

friend recommendations for a new position. You and Daniel both recommend someone, and eventually that per-

son gets hired. Over the next year, hiring notices are not advertised externally as the organization has had good

luck with this hiring practice. Seems like a great way to recruit new people, doesn’t it? It can be, but it also can be a

detriment to the diversity and multiculturalism of the workplace. How, you might wonder?

While not true across the board, people have a tendency to spend time with people who are like themselves,

in race, income level, and other aspects of diversity such as sexual orientation. In fact, according to the National In-

stitute of Child Health and Human Development and a study published in the American Journal of Sociology, it is

much more likely that someone will name a person in their own race as a friend than someone of a different race.[1]

Likewise, even from a young age, people tend to choose friends who are of the same race. As a result, when you re-

commend Daniel for a position, it is highly likely that Daniel is similar, from a diversity perspective, to you. Then,

when Daniel recommends someone for a job, it is highly likely that he, too, is recommending someone with similar

characteristics as you both. This obviously creates a lack of multicultural diversity in the workplace, which can mean

lost profits for companies.

HRM and Multiculturalism

The author introduces Chapter 3 on diversity and multiculturalism.

View the video online at: http://app.wistia.com/embed/medias/283df66b1a

diversity

The real or perceived differences between individuals.

multiculturalism

Looks at power and privilege differences in society.

power and privilege

A system of advantages based on race, gender, sexual orientation, and other components of diversity.

1. DIVERSITY AND MULTICULTURALISM

L E A R N I N G O B J E C T I V E S

1. Define, explain, and identify your own power and privilege. 2. Provide reasoning as to why diversity is important to maintain profitability.

Many people use the terms diversity and multiculturalism interchangeably, when in fact, there are ma- jor differences between the two. Diversity is defined as the differences between people. These differ- ences can include race, gender, sexual orientation, religion, background, socioeconomic status, and much more. Diversity, when talking about it from the human resource management (HRM) perspect- ive, tends to focus more on a set of policies to meet compliance standards. The Equal Employment Op- portunity Commission (EEOC) oversees complaints in this area. We discuss the EEOC in Section 3 and in greater detail in Chapter 4 and Chapter 5.

Multiculturalism goes deeper than diversity by focusing on inclusiveness, understanding, and respect, and also by looking at unequal power in society. In a report called “The 2007 State of Work- place Diversity Management Report,”[2] most HR managers said that diversity in the workplace is

1. not well defined or understood at work, 2. focuses too much on compliance, and 3. places too much emphasis on gender and ethnicity.

This chapter focuses on the advantages of a diverse workplace and discusses multiculturalism at work and the compliance aspect of diversity.

1.1 Power and Privilege As defined in this chapter, diversity focuses on the “otherness” or differences between individuals and has a goal of making sure, through policies, that everyone is treated the same. While this is the legal and the right thing to do, multiculturalism looks at a system of advantages based on race, gender, and sexual orientation called power and privilege. In this system, the advantages are based on a system in which one race, gender, and sexual orientation is predominant in setting societal rules and norms.

The interesting thing about power and privilege is that if you have it, you may not initially recog- nize it, which is why we can call it invisible privilege. Here are some examples:

1. Race privilege. Let’s say you (a Caucasian) and your friend (an African American) are having dinner together, and when the bill comes, the server gives the check to you. While this may not seem like a big issue, it assumes you (being Caucasian) are the person paying for the meal. This type of invisible privilege may not seem to matter if you have that privilege, but if you don’t, it can be infuriating.

2. Social class privilege. When Hurricane Katrina hit New Orleans in 2005, many people from outside the storm area wondered why so many people stayed in the city, not even thinking about the fact that some people couldn’t afford the gas to put in their car to leave the city.

3. Gender privilege. This refers to privileges one gender has over another—for example, the assumption that a female will change her name to her husband’s when they get married.

4. Sexual orientation privilege. If I am heterosexual, I can put a picture of my partner on my desk without worrying about what others think. I can talk about our vacations together or experiences we’ve had without worrying what someone might think about my relationship. This is not the case for many gay, lesbian, and transgendered people and their partners.

Oftentimes the privilege we have is considered invisible, because it can be hard to recognize one’s own privilege based on race, gender, or social class. Many people utilize the color-blind approach, which says, “I treat everyone the same” or “I don’t see people’s skin color.” In this case, the person is showing invisible privilege and thus ignoring the privileges he or she receives because of race, gender, or social class. While it appears this approach would value all people equally, it doesn’t, because people’s differ- ent needs, assets, and perspectives are disregarded by not acknowledging differences.[3]

Another important aspect of power and privilege is the fact that we may have privilege in one area and not another. For example, I am a Caucasian female, which certainly gives me race privilege but not gender privilege. Important to note here is that the idea of power and privilege is not about “white male

46 HUMAN RESOURCE MANAGEMENT

FIGURE 3.1

While there may be no “money fairy,” diversity has proven to result in higher profits for companies.

© Thinkstock

bashing” but understanding our own stereotypes and systems of advantage so we can be more inclusive with our coworkers, employees, and managers.

So what does this all mean in relation to HRM? It means we can combine the understanding of certain systems that allow for power and privilege, and by understanding we may be able to eliminate or at least minimize these issues. Besides this, one of the best things we can do for our organizations is to have a diverse workforce, with people from a variety of perspectives. This diversity leads to profitab- ility and the ability to better serve customers. We discuss the advantages of diversity in Section 1.

Human Resource Recall

Take this week to examine your own power and privilege as a result of gender, race, or social class. Notice how people treat you because of your skin color, gender, or how you dress and talk.

Stereotypes and the Effect on Privilege

This video discusses some racial stereotypes and white privilege through “on the street” interviews.

Please view this video at http://www.youtube.com/watch?v=Q1wztUJ4VVE.

1.2 Why Diversity and Multiculturalism? When many people look at diversity and multiculturalism, they think that someone’s gender, skin col- or, or social class shouldn’t matter. So diversity can help us with policies to prevent discrimination, while multiculturalism can help us gain a deeper understanding of the differences between people. Hopefully, over time, rather than look at diversity as attaining numerical goals or complying with the law, we can combine the concepts to create better workplaces. Although many books discuss laws relat- ing to diversity, not many actually describe why diversity is necessary in the workplace. Here are a few main reasons:

1. It is the law. 2. We can better serve customers by offering a broader range of services, such as being able to speak

a variety of languages and understanding other cultures. 3. We can better communicate with one another (saving time and money) and customers. 4. With a multicultural perspective, we can create better ideas and solutions.

Fortune 500 Focus

Hilton is one of the most recognized names in the hotel industry. Hilton employs 130,000 people in 3,750 ho- tels in 84 countries. The hotel chain, with some locations franchised, focuses on diversity and inclusion as part of its operations. First, it has a director of global diversity and inclusion, who plays a key role in executing the Hilton global diversity and inclusion efforts, which are focused on culture, talent, workplace, and marketplace diversity strategies. Each Hilton brand must establish its own diversity performance goals and initiatives, which are monitored by the diversity council. The diversity council is made up of the company board of directors, the CEO, and vice president of human resources. At any given time, Hilton has thirty or more diversity initiatives in place,[4] which are managed by the diversity council.

Hilton has created several diversity programs within the communities in which the hotels operate. For ex- ample, Hilton was one of the first hotel chains to develop an outreach program to educate minority and fe- male entrepreneurs for franchise investments. One part of the program includes invitation-only seminars that discuss what it takes to be a successful hotel owner. Hilton says its diversity seminars are driven by the fact that it wants employees to reflect the diversity of the customers.

In addition to the outreach program, Hilton partners with historically black colleges and universities for recruit- ing, which creates an effective tie to jobs once students graduate. It has developed a supplier tracking system, so it knows the total number of supplier payments made and how many of those suppliers are female or minorities. William A. Holland, the vice president for workforce planning and analysis says, “It takes leadership to make diversity work, and our diversity initiative comes from the highest levels of our organization.”[5]

CHAPTER 3 DIVERSITY AND MULTICULTURALISM 47

http://www.youtube.com/watch?v=Q1wztUJ4VVE
Promoting a multicultural work environment isn’t just the law. Through a diverse work environment and multicultural understanding, organizations can attain greater profitability. A study by Cedric Her- ring called Does Diversity Pay?[6] reveals that diversity does, in fact, pay. The study found those busi- nesses with greater racial diversity reporter higher sales revenues, more customers, larger market shares, and greater relative profits than those with more homogeneous workforces. Other research on the topic by Scott Page, the author of The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies[7] ended up with similar results. Page found that people from varied back- grounds are more effective at working together than those who are from similar backgrounds, because they offer different approaches and perspectives in the development of solutions. Often people believe that diversity is about checking a box or only providing window dressing to gain more customers, but this isn’t the case. As put by Eric Foss, chairperson and CEO of Pepsi Beverages Company, “It’s not a fad. It’s not an idea of the month. It’s central and it’s linked very directly to business strategy.”[8] A study by the late Roy Adler of Pepperdine University shows similar results. His 19-year study of 215 Fortune 500 companies shows a strong correlation between female executives and high profitability.[9] Another study, conducted by Project Equality, found that companies that rated low on equal opportun- ity issues earned 7.9 percent profit, while those who rated highest with more equal opportunities resul- ted in 18.3 percent profit.[10] These numbers show that diversity and multiculturalism certainly is not a fad, but a way of doing business that better serves customers and results in higher profits.

As managers, we need to recognize this and develop policies that recognize not only the import- ance of diversity but the importance of nurturing multicultural understanding in the workplace. Many employees, however, may be resistant to a discussion on diversity and multiculturalism. Much of this may have to do with their own power and privilege, but some resistance may be related to the discom- fort people may feel when faced with the realization that change is a necessity and the cultural makeup of the workplace is changing. Some people may feel “We’ve always done it this way” and are less willing to change to the new ways of doing things.

Perhaps one of the best diversity statements by a Fortune 500 company was made by Jose Manuel Souto, the CFO for Visa in Latin America. He says, “A diverse workforce is critical to providing the best service to our global clients, supporting our business initiatives, and creating a workplace environ- ment that promotes respect and fairness.”[11]

Now that you have an understanding of the meaning of diversity, power, and privilege, as well as the importance of diversity, we will discuss specific diversity strategies in Section 2.

K E Y T A K E A W A Y S

< Diversity is the real or perceived differences between individuals. This can include race, gender, sexual orientation, size, cultural background, and much more.

< Multiculturalism is a term that is similar to diversity, but it focuses on development of a greater understanding of how power in society can be unequal due to race, gender, sexual orientation, power, and privilege.

< Power and privilege is a system of advantages based on one’s race, gender, and sexual orientation. This system can often be invisible (to those who have it), which results in one race or gender having unequal power in the workplace. Of course, this unequal power results in unfairness, which may be of legal concern.

< Diversity is important to the success of organizations. Many studies have shown a direct link between the amount of diversity in a workplace and the company’s success.

E X E R C I S E S

1. Perform an Internet search to find a specific diversity policy for an organization. What is the policy? From what you know of the organization, do you believe they follow this policy in reality?

2. Visit the website http://www.diversityinc.com and find their latest “top 50 list.” What criteria are used to appear on this list? What are the top five companies for the current year?

48 HUMAN RESOURCE MANAGEMENT

http://www.diversityinc.com
2. DIVERSITY PLANS

L E A R N I N G O B J E C T I V E S

1. Be able to apply strategies to create a multicultural work environment and diversity plans. 2. Be able to create an HR plan with diversity considerations.

While state and federal laws must be followed to ensure multiculturalism, the culture of the company and the way the organization operates can contribute to the nurturing of a multicultural environment (or not). Most companies have a formalized and written antidiscrimination and harassment policy. For example, Zappos’s policy states, “The diversity of Zappos’ employees is a tremendous asset. We are firmly committed to providing equal opportunity in all aspects of employment and will not tolerate any illegal discrimination or harassment. Examples of such behavior include derogatory comments based on racial or ethnic characteristics and unwelcome sexual advances. Please refer to the applicable sec- tions of the Employee Handbook for further guidance.” [12]

Implementing a policy is an excellent first step, but what is important is how the company acts on those formalized processes and written policies. Let’s say, for example, an organization has a published policy on inclusion of those with physical disabilities, but much “schmoozing” and relationship devel- opment with managers takes place on the golf course on Friday afternoons. While the policy states the company doesn’t discriminate, their actions and “traditions” show otherwise and do discriminate against those with disabilities. If this is where the informal work and relationship building take place, an entire group could be left out of this process, likely resulting in lower pay and promotion rates. Like- wise, organizations that have a “beer Friday” environment may discriminate against those whose reli- gions do not condone drinking alcohol. While none of these situations are examples of blatant discrim- ination, a company’s culture can contribute to an environment that is exclusive rather than inclusive.

Many organizations have developed diversity management plans that are tied to the written di- versity policy of the organization. In fact, in many larger organizations, such as Hilton, manager- or director-level positions have been created to specifically manage diversity plans and programs. Josh Greenberg, a researcher in the area of workplace diversity, contends that organizations with specific di- versity plans tend to be able to facilitate changes more quickly than companies without diversity plans.[13] He says there are three main steps to creating diversity plans:

1. Assessment of diversity. Employee satisfaction surveys, discussions, and open forums that can provide insight into the challenges and obstacles to diversity. Inclusion of all workers for input is necessary to create a useful plan.

2. Development of the diversity plan. Based on step 1, a series of attainable and measurable goals should be developed regarding workplace diversity.

3. Implementation of the plan. The commitment of executives and management is necessary. Formulating action plans based on the goals developed in step 2 and assignment of implementation and measurement of those plans must follow. The action plan should be the responsibility of the entire organization, not just the director of diversity or human resources.

In Section 2, we discuss some of the HR plan considerations in company culture and “our way of doing things” that are worth considering when creating a diversity plan.

2.1 Recruitment and Selection As you saw in the opening of Chapter 3, sometimes organizations do not mean to be exclusive or dis- criminatory, but their practices are discriminatory and illegal. For example, the Equal Employment Opportunity Commission (EEOC) says it is illegal to publish a job advertisement that shows a prefer- ence for a particular type of person or discourages someone from applying for a job. For example, a Facebook post that says “recent college graduates wanted” might be inclusive to a younger group and discouraging to a diverse (older) workforce, not making the post multicultural. Another example might be the reliance on word-of-mouth advertisement for job openings. Suppose you have a mostly Hispanic workforce and use word of mouth for recruitment. It is likely that most new hires will also be Hispanic. This is also illegal, but perhaps a consideration is the lack of diversity you will have in your workplace with these recruitment methods.

Make sure that job announcements aren’t posted only for your Facebook friends to see; post them in a variety of places to gain the largest and most diverse response.

CHAPTER 3 DIVERSITY AND MULTICULTURALISM 49

four-fifths rule

The rule states that a selection rate for any race, sex, or ethnic group that is less than four-fifths of the rate for the group with the highest rate could be regarded as adverse impact.

adverse impact

Refers to employment practices that may appear to be neutral but have a discriminatory effect on a protected group.

We address discrimination in the selection process in Chapter 5. However, a mention of the four- fifths rule here is important to determine how we can quantitatively evaluate discrimination in our se- lection practices. One way to calculate possible discrimination is by using the four-fifths rule, or 80 percent rule. The rule states that a selection rate for any race, sex, or ethnic group that is less than four- fifths of the rate for the group with the highest rate could be regarded as adverse impact. Adverse im- pact refers to employment practices that may appear to be neutral but have a discriminatory effect on a protected group. For example, let’s assume 100 women and 500 men applied to be firefighters. Let’s say 20 of those women were hired and 250 men were hired. To determine adverse impact based on the four-fifths rule, calculate the following:

< Selection rate for women: 20 percent < Selection rate for men: 50 percent < Then divide the highest selection rate: .20/.50 = .4

Because .4, or 40 percent, is less than four-fifths, there may be adverse impact in the selection process for firefighters.

2.2 Testing If employment tests are required, a test must be in direct relation to the job. For example, an organiza- tion that uses a personality test in hiring must be able to show that the personality test results are nondiscriminatory and do not exclude a population.

In addition, if a reasonable accommodation is needed, such as an interpreter, and it does not cause financial difficulty for the organization, this should be granted.

Also consider the type of test and how it might exclude a certain group of people, such as those who don’t speak English as a first language. We will discuss multiculturalism and testing further in Chapter 5.

2.3 Pay and Promotion Development of policies related to pay and promotion is key to fairness in a multicultural situation. It is widely published that women make about 77 percent of what men earn for similar jobs.[14] Many studies have tried to determine a cause for this pay inequity, and here are some of the possible reasons studied and researched:

1. Hours worked. Studies have said that women tend to work fewer hours because of child-care and housework expectations.

2. Occupational choice. A study performed by Anne York at Meredith College[15] found that women tend to choose careers that pay less because they are worried about balancing family and career. In addition, numerous studies show that women choose careers on the basis of gender stereotypes (e.g., nurse, teacher) and that this leads to lower pay.

3. Stereotypes. The concept of male bias is a possibility. In many studies, people were more likely to choose male doctors over female doctors, even when experience and education were the same.[16] There appears to be a perception that men may be more competent in certain types of jobs.

4. Maternity and family leave. Women leaving the workforce for a short or extended period of time may affect the perception of promotability in the workplace.

5. Salary negotiation. A study performed by Bowles and Babcock[17] showed that men were eight times more likely to negotiate salary than women. In addition, when women did negotiate, they received lower monetary returns. Consider a study performed by Cornell University, which found that women were often negatively affected in their job when they negotiated salary, as compared to men not being viewed negatively after negotiations.

Whatever the reason for pay difference, all managers should be aware of these differences when hiring and promoting. Allowing managers to determine the pay for their employees can also bring out negat- ive stereotypes—and lead to breaking of the law. Determining a set pay schedule for all new and pro- moted employees can help remedy this situation.

A factor in promotions can also be the mentor-mentee relationship. Most individuals in organiza- tions will have an informal mentor who helps them “through the ranks.” Traditionally, this informal mentor relationship results in someone “pairing up” with another who has similar physical character- istics, is the same gender, or has a similar mind-set. As a result, if the organization has, for example, mostly men, it is likely the female will not be informally mentored, which can result in lack of promo- tion. Likewise, if the workforce consists of mostly Caucasian females, it is likely the African American

50 HUMAN RESOURCE MANAGEMENT

FIGURE 3.2

Checking your own perceptions on multiculturalism can be a good first step to creating a more multicultural and diverse workplace.

© Thinkstock

male may not develop an informal mentor relationship with his female counterparts. Development of a formal mentorship program to ensure that everyone has a mentor is one way to alleviate this situation. Mentorship programs are discussed in Chapter 8.

2.4 Now What? Now that you have an awareness of the aspects of HR that could be affected by multiculturalism, you may consider what steps you can take to create a more multicultural workplace. The first step would be to create a diversity plan, as discussed earlier in this section. The second step would be to look at the operation of the HR department and to figure out what departmental measures can be taken to pro- mote diversity.

HR, for example, can provide a training series on power and privilege and how it relates to the workplace. Awareness is the first step to creating a truly multicultural environment. Once employees recognize their own power and privilege, the training could be developed to include laws related to di- versity, and discussions on bias can take place. Then discussions can be held on how to improve HR plans such as job analysis, recruitment, and selection to create a multicultural work environment. Rath- er than thinking about this training as one of many objectives that must be accomplished, think about the training from the conversation perspective. Getting the conversation started is the first step in this personal and professional development process for employees.

Some of the aspects to creating a training focused on multiculturalism might in- clude the following:

1. Build a cultural knowledge about customs, religions, and histories. 2. Discuss treatment of people based on them as individuals, rather than as part of a

“group,” which can result in stereotyping. 3. Teach employees to listen actively, which can help raise cultural awareness. 4. Train employees to rethink current policies and how those policies might be

exclusive to a certain group. 5. Work on resistance to change. Many employees think, “This is the way we have

always done it, and now we have to change it because we have a group of ____ working here now.”

6. Does your leadership team have a multiculturalism perspective? Are many ethnic backgrounds and other multicultural traits represented?

While these suggestions may not eliminate power and privilege, the ability to talk about differences and expectations can be a key ingredient to creating a more inclusive envir- onment. Sometimes this type of training can help people evaluate their perceptions. For example, suppose a complaint came through that a woman was making derogatory sexual comments to only one group of men in an organization. When talked to about it, she said she made comments to the “techies” because she thought the comments would provide them a needed confidence boost, but she generally wouldn’t make those types of comments. This is an example of her perception (“techies” need confidence boosts from women) followed by her action (the comments) on this perception. When we assume our perceptions are correct, we are usually wrong. Training can get people to consider their emotions, stereotypes, and expectations. Besides training, asking ourselves a series of important questions can be the start to making diversity and multiculturalism work. The University of California, San Francisco human resource department lists some of these ques- tions, which are shown in the sidebar.

Things to Consider When Creating a Multicultural and Diverse Work Environment

< Do you test your assumptions before acting on them?

< Do you believe there is only one right way of doing things, or that there are a number of valid ways that accomplish the same goal? Do you convey that to staff?

< Do you have honest relationships with each staff member you supervise? Are you comfortable with each of them? Do you know what motivates them, what their goals are, and how they like to be recognized?

< Are you able to give negative feedback to someone who is culturally different from you?

< When you have open positions, do you insist on a diverse screening committee and make additional outreach efforts to ensure that a diverse pool of candidates has applied?

CHAPTER 3 DIVERSITY AND MULTICULTURALISM 51

< When you hire a new employee, do you not only explain job responsibilities and expectations clearly but orient the person to the campus and department culture and unwritten rules?

< Do you rigorously examine your unit’s existing policies, practices, and procedures to ensure that they do not differentially impact different groups? When they do, do you change them?

< Are you willing to listen to constructive feedback from your staff about ways to improve the work environment? Do you implement staff suggestions and acknowledge their contribution?

< Do you take immediate action with people you supervise when they behave in ways that show disrespect for others in the workplace, such as inappropriate jokes and offensive terms?

< Do you make good faith efforts to meet your affirmative action goals?

< Do you have a good understanding of institutional isms such as racism and sexism and how they manifest themselves in the workplace?

< Do you ensure that assignments and opportunities for advancement are accessible to everyone?

< What policies, practices, and ways of thinking have differential impact on different groups?

< What organizational changes should be made to meet the needs of a diverse workforce?

Source: University of California, San Francisco, “Managing Diversity in the Workplace,” chap. 12 in Guide to Managing Human Resources, accessed July 11, 2011, http://ucsfhr.ucsf.edu/index.php/pubs/hrguidearticle/chapter-12-managing-diversity-in-the-workplace/#684.

Human Resource Recall

Why is multiculturalism important in the workplace? What is your role, as an employee in your organization, to ensure a diverse workforce?

How Would You Handle This?

Refer a Friend

Your manager is very concerned about the cost of hiring the three new people you need. As a result, she doesn’t want to post the advertisement in a variety of places; she thinks it’s best to just use a “refer a friend” re- cruitment strategy. When she moves forward with this strategy, ten people turn in résumés. Upon looking fur- ther, it appears all applicants went to the same private religious college and graduated around the same time. You are concerned that this method of recruitment lacks diversity. How would you handle this with your manager?

How Would You Handle This? The author discusses the How Would You Handle This situation in this chapter at: https://api.wistia.com/v1/ medias/1371393/embed.

K E Y T A K E A W A Y S

< Oftentimes there are cultural aspects to an organization that make it resistant to an inclusive environment. These are often not obvious, but it is important to be aware of how your own company culture impacts multiculturalism.

< One way to begin the discussion within your organization is to create diversity action plans, for which the entire company is responsible and for which HR is the change agent. In addition to companywide initiatives, HR can also look within its own HR plans to see where it may be able to change.

< In recruitment, awareness of how and where you post announcements is crucial.

< Testing should be fair and unbiased and shouldn’t negatively impact someone based on race, national origin, gender, social class, or educational level.

< There are many reasons for differences in pay. Development of a set pay scale can alleviate some of the issues surrounding unfair pay, especially between men and women.

< Formal mentorship programs can create multicultural understanding and can ensure people do not stick with their own race or gender when helping someone move up the ranks in an organization.

52 HUMAN RESOURCE MANAGEMENT

http://ucsfhr.ucsf.edu/index.php/pubs/hrguidearticle/chapter-12-managing-diversity-in-the-workplace/#684
https://api.wistia.com/v1/medias/1371393/embed
https://api.wistia.com/v1/medias/1371393/embed
Equal Employment Opportunity Commission (EEOC)

A federal agency charged with the task of enforcing federal employment discrimination laws.

E X E R C I S E S

1. What are some things we can do, personally, to be more multiculturally efficient?

2. What are the advantages of having a set pay scale? What are the disadvantages?

3. MULTICULTURALISM AND THE LAW

L E A R N I N G O B J E C T I V E S

1. Define the role of the Equal Employment Opportunity Commission (EEOC). 2. Explain the various types of laws covered by the EEOC.

As we already know, it is in an organization’s best interest to hire and promote a multicultural and di- verse workforce. Sometimes though, people are still discriminated against at work. As a result, a federal agency has been established to ensure employees have a place to file complaints should they feel dis- criminated against. This is the topic of Section 1. However, please note that each of these topics is dis- cussed in Chapter 4 as well, but they are also worth mentioning here.

3.1 Equal Employment Opportunity Commission (EEOC) The Equal Employment Opportunity Commission (EEOC) is a federal agency charged with the task of enforcing federal employment discrimination laws. The laws include those that protect people from discrimination in all areas of employment, such as discrimination based on race, color, religion, sex, national origin, age, and disability. People who have filed a discrimination charge are also protec- ted against discrimination under the EEOC. Employers with at least fifteen employees (twenty for age discrimination) are covered under the EEOC. This agency covers not only discrimination in hiring but also discrimination in all types of work situations such as firing, promotions, harassment, training, wages, and benefits. The EEOC has the authority to investigate charges of discrimination against em- ployers. The agency investigates the claims, makes a finding, and then tries to settle the charge. If they are unsuccessful in settling the charge, the EEOC has the right to file a lawsuit on behalf of the com- plainants. The EEOC has headquarters in Washington, DC, with fifty-three field offices throughout the United States.

If a company has more than one hundred employees, a form called the EEO-1 must be filled out yearly. This form confirms the demographics of an organization based on different job categories.[18] An organization that employs more than fifty people and works for the federal government must also file an EEO-1 yearly, with the deadline normally in September. In addition, organizations must post the EEOC notice, which you have probably seen before, perhaps in the company break room. Finally, or- ganizations should keep on file records such as hiring statistics in the event of an EEOC investigation.

It is necessary to mention here that while there is a legal compliance concern, as discussed before, it is in the company’s best interest to hire a diverse workforce. So while we can discuss the legal aspects, remember that the purpose of having a diverse workforce is not just to meet EEOC requirements but to create a better, more profitable workplace that better serves customers.

CHAPTER 3 DIVERSITY AND MULTICULTURALISM 53

Title VII of the Civil Rights Act

This act, passed in 1964 and enforced by the EEOC, covers several areas of discrimination including age, race, and sex.

bona fide occupational qualification (BFOQ)

A quality or attribute employers are allowed to consider when making decisions during the selection process.

Age Discrimination in Employment Act (ADEA)

Created in 1967 and enforced by the EEOC, this law prohibits discrimination based on age and covers people who are age forty or older.

TABLE 3.1 How the EEOC Process Works and Requirements for Employers

Requirements by EEOC

Post Federal and State EEOC notices

File yearly report called EEO-1

Keep copies of documents on file

Process for Investigation

1. The EEOC complaint is filed.

2. The EEOC notifies the organization of the charges.

3. The EEOC acts as a mediator between the employee and the employer to find a solution.

4. If step 3 is unsuccessful, the EEOC will initiate an investigation.

5. The EEOC makes a determination, and then the employer has the option of remedying the situation or face a potential lawsuit.

3.2 EEOC Federal Legislation While the EEOC is the larger governing body, many pieces of legislation relating to multicultural prac- tices are part of the EEOC family of laws. Many of these laws began with Title VII of the Civil Rights Act in 1964. This act, enforced by the EEOC, covers several areas in which discrimination was rampant. However, a bona fide occupational qualification (BFOQ) is a quality or attribute em- ployers are allowed to consider when making decisions during the selection process. Examples of BFOQs are a maximum age limit for airline pilots for safety reasons and a Christian college’s require- ment that the president of the college be Christian.

EEOC laws relate specifically to the following and are discussed in detail in Chapter 4 and Chapter 5:

1. Age 2. Disability 3. Equal pay 4. Genetic information 5. National origin 6. Pregnancy 7. Race/color 8. Religion 9. Retaliation

10. Sex 11. Sexual harassment

Age

Age discrimination involves treating someone less favorably because of his or her age. Created in 1967, the Age Discrimination in Employment Act (ADEA) is enforced by the EEOC. This law covers people who are age forty or older. It does not cover favoring an older worker over a younger worker, if the older worker is forty years or older. The law covers any aspect of employment such as hiring, firing, pay, job assignments, promotions, layoffs, training, fringe benefits, and any other condition or term of employment.