2001 by Prentice Hall 4-1 Diversity as an Asset Greater creativity. Employee diversity can stimulate consideration of less obvious alternatives. Better problem solving. Homogenous groups are prone to a phenomenon called groupthink, in which all members quickly converge on a mistaken solution because they share the same mindset and view the problem through the lens of conformity. Greater system flexibility. In todays rapidly changing business environments, flexibility is an important characteristic of successful firms. 2001 by Prentice Hall 4-2 Challenges in Managing Employee Diversity Valuing Employee Diversity u In some ways, the idea that diversity is good runs counter to the melting pot tradition. Individual versus Group Fairness u How far should management go in adapting HR programs to diverse employee groups? Resistance to Change u Although employee diversity is a fact of life, the dominant groups in organizations are still composed of white men. 2001 by Prentice Hall 4-3 Challenges in Managing Employee Diversity (cont.) Group Cohesiveness and Interpersonal Conflict u Although employee diversity can lead to greater creativity and better problem solving, it can also lead to open conflict and chaos if there is mistrust and lack of respect among groups. Segmented Communication Networks u One study found that most communication within organizations occurs between members of the same sex and race. Resentment u In a vast majority of U.S. organizations, equal employment opportunity (EEO) was a forced change rather than a voluntary one. 2001 by Prentice Hall 4-4 Challenges in Managing Employee Diversity (cont.) Backlash u While women and minorities may view a firm's cultural diversity policy as a commitment to improving their chances for advancement, white men may see it as a threat. Retention u The job satisfaction levels of women and minorities are often lower than those of white men. Competition for Opportunities u As minority populations grow in the U.S., competition for jobs and opportunities is likely to become much stronger. Women Are Moving into Fields Previously the Province of Men Emerging Trends A Question of Ethics To what extent should employers be responsible for the appropriate care of their employees children?