Module 8 - Diversity and Equity Flashcards
What is diversity?
Diversity refers to being different. Differences include • gender; • • age; • • experience; • • culture; • • ethnicity; • • educational levels; • • skill groups; • • family responsibilities; • • disability. • When we refer to workforce diversity we are therefore acknowledging such differences as age, gender, ethnicity, sexuality, health, physical ability (and more).
Define diversity management
• Diversity management refers to the procedures and policies organisations put in place to manage those differences. such management procedures include the implementation of overriding criteria such as merit in recruitment and selection, promotion, training and other workplace opportunities, and fairness in treatment for all employees.
What is corporate social responsibility?
CSR consists of organizational activities intended to benefit society and the environment beyond the firms immediate financial interests or legal obligations. It is the view that companies have a contract with society in which thyey must serve stakeholders beyond shareholders and customers.
what areas is it difficult to increase diversity?
age and gender.
Gender pay equity
• Prior to 1969 australia had a system of institutionalised wage differences for men and women.
• The award rates were half those of men in the post 2nd world war II.
• These difference were enshrined in industrial awards and representated a model of employment known as the ‘male breadwinner model’. It was assumed that make employment was the primary source of household income and that women were house-carers and child-bearers. Men required a family wage that would support a family and women were expected to participate in paid employment for short periods and to enshrew a career.
• In 1969 the conciliation and arbitration commission enshrined the principle of equal pay – men and women should be paid the same for the same work.
• In 1972, the commission made the decision of ‘equal pay for work of equal value’.
• From 1974-1978, the gender pay gap (i.e. tje ratio of female earnings to male earnings) narrowed from 72% to 90%. This measurement excluded part-time pay rates.
• In an analysis of the gender pay gap, white house 2004 found that there were differences between parttime and full time earnings. He found that the ration of part-time to full-time earnings was declining.
• Whitehouse suggests that the gender pay gap is greater than indicated by the data since accumulated earning difference are even greater due to the fact that women have breaks from continuous employment and therefore cannot accumulate benefits based on continuous service.
• In a study of accounting, morley (2003) et al found that there were persistent pay differences by gender. Gender was found to be an important determinant of earnings within the accouting profesion.
• One of the problems with the equal pay for work of equal value principle was demonstrating that women were underpaid relative to men in areas of equal skill and responsibility. In 1998, the IR commission of NSW undertook an inquiry into geneder pay equity. Key findings of the report included that;
o Prominence be given to women whose rates where it was quite apparent that their rates were lower in comparison to men that require similar skills and responsibility
o Th bargaining position of women was relatively poor in comparison to that of men.
o The application of ‘work value’ in the ‘equal pay for work of equal value principle’ should be objective, transparent and non-discriminitory
o Support should be provided for equal remuneration proceedings.
• Will the gender gap be eliminated? It will narrow as women’s tertiary education and labour force participation rates increase.
• There is still debate over the application of ‘equal pay’ principles because the occupational distribution of men and women remains different.
• Many female occupations have limited career paths and part-time employment usually inhibits career path progression.
• National wage cases (the safety net pay decisions) are important as women dominate the population of low-paid workers. Lifting the minimum wage helps reduce the gender wage gap. Enterprise Bargaining agreements that emphasis individualism are unable to address broad issues such as occupational pay underevauluation. Agreements that move away from collective means of pay to settle someone’s rate of pay (awards and minimum pay adjustments) to the individual bargaining actually disadvantage women workers (mainly because women are in the service sector and in part-time and casual employment roles).
• When arovska and Hall 1999 did a review of enterprise bargaining, they found that improved wage outcomes for all workers were often the result of trade offs or giving something up (working longer hours).
• A study by whitehouse and Frino 2003 noted that women were over-represented in the lower paying award system of agreement making and were dependent on safety net wage adjustments for wage increases.
• A review by preston 2007 found that while the gender wage gap had remained stable, it was an inadequate indicator of womens pay progress because the existing data compared full-time pay rates; the exclusion of part-time workers understated the gap since the female part-time share is relatively higher and the rates of pay for part-timers are typically at the low end of occupational pay classifications.
Ethnicity
- Managers might need also to be sensitive to cultural discord by developing an awareness of sometimes deep, historical resentments that exist between some migrant groups, which might be based upon wars, massacres, religion and politics.
- A primary error in managing employees in the workplace, leading to active or structured discrimination, is to stereotype individuals in the workforce.
- discrimination might unintentionally occur as a result of failing to be aware of different cultural perspectives.
- Managing diversity is complex.
- Syed and Pio conclude that diversity management has multiple dimensions and needs to take account of a range of factors not only in the workplace but also at the personal level and in their social context. Four multiple factors contribute to the jeopardy of discrimination faced by Muslim women in Australian workplaces as a result of stereotyping and subtle discrimination: they are gender, ethnicity, religion and country of origin
- Nearly one-quarter of indigenous Australians are located in remote areas of Australia and work opportunities are rare and limited. However half the aboriginal population lives in major cities. IN 2006, 57.3 percent were employed in the major cities and 52 percent in the inner regions. Still high umemployment rate. Government programs have attempted to redress the labour market disadvantage faced by indigenous workers, including direct employment programs, training programs, job placement and welfare to work programs.
- The indigenous employee may find it difficult to adapt to the mainstream workplace culture and behaviour, they may now be living cross culturally dealing with differing cultural and behavioural requirements at work and home (Smith, 2005). Additionally, indigenous Australians have extended family, community and cultural responsibilities. Many indigenous people find work-life balance difficult, especially in the first six to twelve months of new employment (Dockery and Milson, 2007). They become disillusioned and discouraged under the social pressure and may have few role models to assist them in this transition; therefore it is a distinct advantage to have the added support of an effective mentor service
- The role of mentoring in diversity management is not covered in this introductory course, but is usually covered in HRM studies.
What is Institutionalized discrimination ?
Institutionalized discrimination refers to the unjust and discriminatory mistreatment of an individual or group of individuals by organizations such as governments and other societies.
• Discrimination can take place at a number of levels. It can be in terms of entry into jobs and the workplace, pay and promotions, or the way managers exercise their decions at the workplace.
• Discrmination can also be practised by unions and workers – in the past, unions and employees protested against the use of chinese and Kanak labour in the agricultural sector.
• Discrimination can be practised by consumers who boy cott products or organisations due to the characteristics of the workforce.
• Discrimination can be sanctioned and implemented by the state – the south African policy of apartheid being an extreme example of workforce division and exclusion on the basis of race.
• Prior to 1969 there was a different minimum wage for men and women. Some occupations were segregated i.e reserved for men or women. Indigenous Australians were faced with inferior wage rates and often had their wages sequested and held in trust.
• Elemts of institutionalised discrimination at the workplace still exist.
o There is a legally mandated lower wage rate for young workers despite the existence of an age discrimination act.
o There is also exemptions for small business in the application of unfair dismissal laws.
• Workplace discrimination is illegal and it is the responsibility of managers and workers to ensure that there is compliance with a number of anti-discrimination laws that oulaw discrimination on the basis of a range of personal characteristics including age, race, sexuality, disability, political convictions and gender.
• Collective agreements should not contain clauses that discriminate against workers.
Work and family policies
• Increasingly, emphasis is bring placed by policy makers on employment conditionas that are compatitble with both work and family responsibilities. This is due to;
- a result of the increasing labour fource participation of women, many of whom have caring responsibilities.
- Changing composition of the household – there are now fewer single-income households and more dual-income households.
- These changes must be viewed alongside major changes to the population, workforce and labour market, including smaller families, delays in having children, the ageing of the population (caring for elderly population), growing female labour-force participation and growth in casual and part-time work.
• Family friendly arrangements provide workers with the opportunity to meet expected and unexpected family duties.
Anti-discrimination legislation
• Australia has an extensive range of anti-discrimination legislation that is supported by the federal Human Rights and Equal Opportunity Comission (HREOC) which is responsible for enforcing the legislation.
• The HREOC has assigned commissioners to deal with discrimination in the areas of age, race, gender and disability.
• The major anti-discrimination legislation at the federal level is;
1. Racial Discrimination Act 1975
It is unlawful to discriminate on the basis of race, colour, descent, national origin or ethnic origin. This applies to a number of activities including employment and the right to join a trade union.
2. Sex Discrimination Act 1984
It is unlawful to discriminate on the basis of gender, marital status, pregnancy and family responsibility. The Act covers employment, employment agencies, awards and enterprise agreements.
3. Disability Discrimination Act 1992
It is unlawful to discriminate on the basis of physical, intellectual, psychiatric, sensory or learning disabilities, physical disfigurement, disorders or illnesses. The act covers employment among other areas such as education and access to premises.
4. Age discrimination Act 2004
Prohibits discrimination on the basis of age. It covers similar areas of activity to the other legislation including education and employment. However, there are exemptions to the Act in a number of areas including social security access (e.g. youth allowance) and wages (e.g youth-based wages). There are also exemptions offered to certain organisations such as charities and religios-based orgs.
In the case of age discrimination there is a ‘dominent reason test’. What this means is that if an action is taken for more than one reason, then the Age Discrimination Act applies only if age were the dominant reason for taking the decision.
• On page 233-234, there is a big table which summarises the above points but also mentions the macimum compensation.
• The above Acts are also supported by state legislation (e.g. the NSW Anti Discrimination Act 1977 and the Queensland Anti-Discrimination Act 1991).
1. Individuals need to lodge complaints of discrimination in writing to the HREOC. The complaint is reviewed where it may be disallowed, conciliated by the HREOC or (if failing at conciliation) the matter can be heard before a federal magistrates court. This review and assessment procedure applies to each of the federal discrimination acts.
• All employers are responsible for ensuring that their workplaces comply with the requirements of anti-discrimination legislation.
• The HREOC notes that there is a vicarious liability in that ‘an employer, regardless of their size, may be legally responsible for discrimination or harassment which occurs at the workplace unless it can be shown that all reasonable steps have been taken to reduce the liability’.
• In terms of taking steps to prevent discrimination and harassment, the HREOC suggests the appropriate procedires could include:
1. Developing a written policy, in consultation with staff and union that prohibits harassment and discrimination.
2. Removing offensive materials from the workplace
3. Prohibiting the inappropriate use of internet and email
4. Providing training for all amangers to eliminate discrimination and harassment at the workplace
5. Including anti-discrimination and harassment polciies in the induction programs for all new employees.
6. Having a process for ensuring that anti-discrimination and harassment procedures are in place, understoof and operable.
• The anti-discrimination legislation puts the onus on managers and workers to eliminate discriminatory behavior and discriminatory practices at work and in the terms and conditions of employment.
• While awareness has increased, there still remain problems with the enforcement and interpretation of the legislation.
1. First, it is individual based (its up to individuals to demonstrate that forms of discrimination are taking place). This can be difficult in terms of resource access and understanding of the processes involved.
2. Second, there are usually resource disparities between the parties, especially if cases proceed to the courts.
3. Thirdly, structural factors that lead to disadvantage (for example, the underevaluation of occupations dominated by women, or the poor health and aschooling of Indigenous Australians) are not incorporated into the legislation. This means that individuals face barriers in sustaining and anti-discrimination claim. In additiona, the dilution of the unfair dismissal protection by the national workplace relations system further diminishes the ability of individual workers to pursue anti-discrimination claims. The shift towards individual bargaining (and reduced collective rights) and dilution of unfair dismissal protection will reduce the protection for women from harassment at work.
• Anti-discrimination legislation underpins awards and agreements. There are exceptions to the application of the legislation, for example, in the area of junior wage rates. Anti-discrimination is included in many industrial agreements often to highlight its importance and to include it with procedures for dealing with complaints and grievances.
EEO Legislation
• The federal Affirmative Action (equal Opportunity) Act was introduced in 1986. This Act sought to redress the disadvantage of women in the workforce through requiring organisations to develop relevant programs and to report in the nature and effectiveness of these programs.
• Despite its title, the Act was not one of affirmative action in the sense of giving priority to women employees or enforced a system of quotas in terms of promotions (as was the case with US affirmative action rights). Instead, the 1986 Act required that orgs with more than 100 employees develop and submit an EEO program to the federal Affirmative Action Agency. This involved profiling the org, consulting with ees and unions, developing an EEO program, assigning responsibility for implementing this program, evaluating the program and reporting on the program.
• While it was mandatory for orgs to do this, there were no penalties improsed for not conforming to the Act. Nor was there any penalties associated with non-reporting and for not developing an EEO program. However, offending orgs could be named in federal parliament.
• This program was based on good corporate citizenship and assumed that orgs would see benefits from improving the conditions of female workers.
• Through developing EEO programs, organisations would not only be acting in the public interest but would also be advantaged through having more committed female workers (known as the business case for EEO programs).
• Corporate awards and prizes were given to orgs that were deemed to have developed and implemented effective EEO programs.
• Some EEO programs which were reported and implemented by employers were;
1. Promotion opportunities are available to all employment catagories
2. Interview panels have been trained in EEO awareness
3. Permanent part-time work is available.
• Some programs that were not really utilized or infrequently used were;
1. Reduce remuneration gap between men and women
2. Provide child care assistance
3. Paid maternity leave is provided
• The act was reviewed in 1999 and in 2000, it was replaced by the Equal Opportunity for Women in the Workplace Act. This act essentially reduced the reporting details and requirements, excluded union or employee participation and waived reporting for orgs which had effective EEO programs.
• Under the Act, employers can apply for the title “EOWA Employer of Choice for Women) which allows them to use the title and logo on advertising and company publicity. In order to gain this, an org needs to demonstrate that it has achieved excellence in 6 areas. It must have policies that;
1. Support women across the organization
2. Use effective processes and practices
3. Support a commitment to fully utilizing and developing its people (including women
4. Educate its employees on their rights and obligations regarding sex-based harassment
5. Promote an inclusive organizational culture that is championed by the CEO, driven by senior executives and holds line managers accountable
6. Deliver improved outcomes for women and the business
• There are a number of limitiations associated with EEO legislation;
1. First it applies only to large organisations (the majority of female employees (around 60%) are not covered by the legislation
2. It is a voluntarist regime that is not enforceable
3. The reports are not audited.
4. It is a management centred program, assuming delivery through human resource program
5. Many women employees, especially casuals and part-time workers are usually excluded from training and development programs and career progression.
• In general, EEO programs are not required to be translated into legally binding awards or workplace agreements.
: Managing Diversity at the workplace
• Another approach to disadvantage and discrimination is for organisations to institute voluntary programs that recognize the special needs of their diverse and constituent workforces.
• Outside legislative requirements, organisations can also develop their own workplace programs that recognize diversity and address disadvantage. Such programs, independently organized and implemented are part of a process known as ‘managing diversity’ at the workplace.
• This approach originated from the US where there is an ethnically diverse workforce in which disadvantage us extensive (especially for native americans).
• Manging diversity rests on the business case for diversity programs i.e. it is in the financial interest of the business to develop and implement programs that address the special needs and aspirations of staff as this can improve employee retention, incrase commitment to the org, raise productivity and improve staff morale.
• In Australia, managing diversity differs from EEO in a number of ways;
1. Managing diversitt is generated withing the org; EEO is an externally imposed requirement
2. Managing diversity covers all employees; EEO only covers women workers
3. EEO imposes minimalist conditions; managing diversity is open in terms of what an orgnaisation develops.
4. EEO is based on differences between groups; managing diversity stresses individualism and individual difference.
• The diversity management approach is potentially more comprehensive and innovative than EEO or anti-discrimination legislation: it allows for businesses to incorporate differences across all employees. However, diversity management is voluntary and has no norms and so it means that workers are dependent on the circumstances of their employing organisination.
• It is usually large organisations with an HR department that will develop a diversity management program (workjers in other orgs will either miss out or be dependent on legislative standards).
• There are c.asses of workers in large orgs such as casuals, part-timers and temps who will be outside the corporate diversity or EEO program.
