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chapter 2
Chapter 2: Diversity in Organizations

Diversity:

Describe the two major forms of workforce diversity.
Managers need to recognize and capitalize on individual differences to get the most from their employees. Effective diversity management increases an organization’s access to the widest possible pool of skills, abilities, and ideas. Managers also need to recognize that differences among people can lead to miscommunication, misunderstanding, and conflict.
Demographic Shifts:
1. Changing Times
In the past, OB textbooks noted that rapid change was about to occur as the predominantly white, male managerial workforce gave way to a gender-balanced, multiethnic workforce. Today, that change has occurred, and it is increasingly reflected in the makeup of managerial and professional jobs.

2. Closing Gaps
Compared to 1976, women today are much more likely to be employed full time, have more education, and earn wages comparable to those of men.1 The earnings gap between whites and other racial groups has decreased significantly, too; past differences between whites and Asians have disappeared or been reversed.2 Workers over 55 are an increasingly large portion of the workforce as well.

3. Persistent Inequality
This permanent shift toward a diverse workforce means organizations need to make diversity management a central component of their policies and practices. However, differences in wages across genders and racial and ethnic groups do still persist, and executive positions continue to be held by White males in numbers far beyond their representation in the workforce in general.

4. Aging of the Workforce
A survey by the Society for Human Resources Management shows some major employer concerns and opportunities resulting from the demographic makeup of the U.S. workforce.3 The aging of the workforce was consistently the most significant concern of HR managers. The loss of skills resulting from the retirement of baby boomers, increased medical

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