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2 Overview of Diversity D i v e r s i t y C h a l l e n g e Learning Objectives T ennis, a sport played in various venues such as private clubs, schools, parks, and recreational facilities, provides its participants with the strenuous exercise needed to maintain a healthy lifestyle. Hispanics, however, are relatively unlikely to play tennis they represent less than 10 percent of all participants. Participant numbers are even lower for members of other racial minority groups. Relative to Whites, Hispanics are more likely to play at recreational facilities (rather than private clubs), to begin playing tennis at a later age, and to have different motivations to participate. Because the discretionary income of Hispanics is generally lower than that of Whites, they also have fewer opportunities to participate in tennis. These differences are important because the Hispanic population is the fastest growing minority group in the United States and is the largest minority group in Texas, New Mexico, and California, states where minority group members represent the majority of the states citizens. Recognizing this apparent contradiction, the United States Tennis Association (USTA) has embarked on a number of initiatives designed to attract and recruit athletes to the sport. For instance, the organization offers a multicultural excellence program grant aimed at developing racial minority tennis players. As another example, the Texas Section of the USTA makes special efforts to target Hispanics and entice them to participate in tennis by using such strategies as increasing the availability of public courts, emphasizing the sport s health benefits, and advertising and promoting the sport in Spanish. Regardless of the strategy used, attracting Hispanics and members of other racial minority groups to tennis is essential to the sport s growth and survival. After studying this chapter, you should be able to: n Define diversity and diversity management. n List and explain the different forms of diversity. n Discuss the different factors that led to an increased interest in diversity. Information adapted from: n Caldwell, A. A. (2005, August 11). Minorities become majority in Texas. The Eagle, pp. A7, A9 n Fitzgerald, M. P., Fink, J. S., & Riemer, H. A. (2002). USTA Texas Section marketing research report: Implications for growing tennis membership. Austin, Texas: Authors; 3

3 4 Chapter 1 Diversity Challenge R e f l e c t i o n Imagine that you are the manager of the Texas Section of the USTA, then answer the following questions: 1. What strategies would you use to attract Hispanics and other minorities to tennis? 2. What are specific marketing or promotional activities that could be developed? 3. What changes are needed at an organizational level to attract minority participants? D iversity is one of the most important topics in the context of sport and physical activity today. As the opening scenario illustrates, the United States population is changing; therefore, organizations and the people who work in them must also change. Although the scenario focuses on current racial changes, other changes are also occurring, including those based on sex, age, beliefs, attitudes, and preferences. Due to these changes, managers must now implement alternative marketing and promotional activities to attract diverse participants and spectators and must structure their organizations so they are open to all people, irrespective of their demographic characteristics, preferences, or beliefs. Managers, athletic administrators, coaches, and others in the sport industry should be aware of the legal implications associated with having a diverse workforce and how various mandates and laws influence the human resource decisions they make. Because diversity is now a central issue for persons in sport organizations, it is crucial that they understand the underlying dynamics and effects of diversity and implement strategies to maximize the benefits of having a diverse workforce. This chapter provides an overview of diversity. The first section examines several definitions of diversity and diversity management, developing from them the definitions used throughout the text. This is followed by a discussion of the various forms of diversity and the ways in which people can differ. The third section identifies and analyzes the seven factors that contribute to the current interest in and importance of diversity. Finally, the last section provides a brief overview of the major diversity-related issues discussed in subsequent chapters. Definitions his section considers several definitions of diversity and diversity management in order to develop the working definitions used in the text. Diversity To begin developing a working definition of diversity, consider the following definitions used by others in this field:

4 Overview of Diversity 5 Diversity is defined as real or perceived differences among people that affect their interactions and relationships (Bell, 2007, p. 4). Diversity refers to differences between individuals on any attribute that may lead to the perceptions that another person is different from self (van Knippenberg, De Drue, & Homam, 2004, p. 1008). Diversity is the distribution of personal attributes among interdependent members of a work unit (Jackson, Joshi, & Erhardt, 2003, p. 802). Diversity refers to differences among people that are likely to affect their acceptance, work performance, satisfaction, or progress in an organization (Hayes-Thomas, 2004, p. 12). Diversity is an aggregate group level construct that represents differences among members of an interdependent work group with respect to a specific personal attribute (Joshi & Roh, 2007, p. 3). Diversity is any characteristic used to differentiate one person from others (Joplin & Daus, 1997, p. 32). We can draw several points from these definitions. First, most of the definitions consider the group or dyad (i.e., two people working together, such as a supervisor and subordinate) as a requisite condition. People must be able to compare their attributes to the characteristics of others in the dyad or group. Without an ability to compare, people do not know if they are similar to or different from others. Thus, we can say that diversity is a dyadic or group-related topic. Second, diversity is concerned with differences among people (Bell, 2007); therefore, a truly diverse group has various characteristics. For example, some may consider a group of five African Americans working in a sport marketing firm to be diverse because the group is composed entirely of members of a racial minority. However, if the definitions we cited earlier are applied, the group is actually homogeneous, not diverse, because each member is an African American. Another group in the same sport marketing firm has as its members two Hispanics, one White, one African American, and one Asian American. Clearly, with respect to race, this group has a broader array of attributes, as persons from four racial backgrounds are included. Relative to the group of five African Americans, the latter group is more racially diverse because it reflects more racial differences. Third, note that van Knippenberg et al. (2004) and Bell (2007) assert that differences between a person and other members of the group or dyad may lead to perceptions of being different. Others have also noted that actual differences may lead to perceptions of being different (Riordan, 2000), and they reason that perceptions of being different have a greater impact on subsequent outcomes than the actual differences themselves. Refer again to the two groups in the sport marketing firm discussed previously. The members of the all African American group, because they are all racially similar to one another, are likely to perceive themselves as similar to one another as well. Because the Asian American in the second group is racially different from four other members, this person is likely to perceive herself to be racially different from others in the group. Thus, actual differences result in perceptions of dissimilarity.

5 6 Chapter 1 Finally, diversity is related to various work outcomes (Hayes-Thomas, 2004). These outcomes can occur at the individual level, such as the satisfaction a physical education student has with his teacher or the performance an employee realizes at work, and at the group level, including the conflict, cohesion, or creativeness of the group. Diversity also impacts organizational outcomes such as product innovation, personnel turnover, and organizational effectiveness. The benefits and possible shortcomings of diversity are discussed in greater detail later in this chapter and throughout the text. Using the discussion and the previous definitions, diversity can be defined as the presence of differences among members of a social unit that lead to perceptions of such differences and that impact work outcomes. This definition highlights (a) the presence of differences, (b) the dyadic or group nature of diversity, (c) the manner in which actual differences can influence perceptions of such heterogeneity, and (d) the impact diversity has on subsequent outcomes. Finally, Prasad, Pringle, and Konrad (2006) argue that a discussion of power differences among social groups is critical to the understanding of diversity. As DiTomaso, Post, and Parks-Yancy (2007) note, group differences are rarely sustained if they are just different (e.g., blue eyes and brown eyes) (p. 475); rather, some diversity forms are more meaningful than others as a result of the socially constructed power differences among group members, the historical context, and the political nature of organizations (Cunningham & Singer, 2009). Notice that, although power is not explicitly mentioned in the definition (nor in DiTomaso et al. s), the effects are readily observable. Differences among group members are unlikely to result in perceptions of such differences (Bell, 2007; van Knippenberg et al., 2004) unless there are socially constructed meanings attached to the characteristics in question. Objective differences in race should result in greater perceptual differences than corresponding differences in eye color. Power is also a contributing factor to the relationship between diversity and subsequent work outcomes. For instance, group members from disadvantaged groups often have their ideas discounted by majority group members (DiTomaso et al., 2007). Collectively, this evidence points to the important role of power in discussions of diversity a point elaborated upon in subsequent chapters. Diversity Management In addition to defining diversity, it is also necessary to define diversity management. Consider first how other authors define diversity management: Diversity management is an organizational practice which seeks to redress employees negative responses to differences associated with age, gender, race, class, occupation, and religion, as well as physical ability and sexual orientation (Lorbiecki, 2001, p. 345). Managing diversity is creating a climate in which the potential advantages of diversity for organizational or group performance are maximized while the potential disadvantages are minimized (Cox & Beale, 1997, p. 2). Diversity management is the proactive management technique designed to utilize employee differences in order for an organization to glean a competitive advantage in the marketplace (Fink & Pastore, 1999, p. 313).

6 Overview of Diversity 7 Diversity management is the purposeful use of processes and strategies that make... differences among people into an asset rather than a liability for the organization (Hayes-Thomas, 2004, p. 12). Several conclusions about diversity management can be drawn from these definitions. First, diversity management is generally considered to be proactive and management-initiated (Fink & Pastore, 1999; Hayes-Thomas, 2004). This differs from reactive measures organizations may take to respond to federal or state initiatives, such as affirmative action guidelines. Rather, diversity management is viewed as a purposeful, proactive strategy organizations use to realize a competitive advantage and organizational effectiveness. Second, diversity management is aimed at improving the interactions among persons within a social unit who differ in some way (Lorbiecki, 2001). Although diversity has many benefits to the individual, group, and organization, dissimilarities among interacting people can also lead to friction, process losses, and other negative outcomes. The purpose of diversity management, therefore, is to minimize these potential pitfalls. Finally, diversity management is a strategic action aimed at maximizing the benefits that diversity can bring to the social unit (Cox & Beale, 1997; Hayes- Thomas, 2004). Just as organizations, departments, or teams set strategic objectives and initiatives to accomplish tasks and achieve goals, diversity management is a deliberate plan established to realize the benefits of diversity. Diversity can bring tangible benefits to an organization and serve as a source of competitive advantage (Robinson & Dechant, 1997); however, for these benefits to be realized, managers must be strategic in their policy and decision-making process. When managers fail to adopt an effective strategy or when they treat diversity as a problem to be dealt with, the advantages diversity can bring to a social unit are not likely to materialize (Fink & Pastore, 1999). Thus, as Hayes-Thomas (2004) notes, effective diversity management entails making differences among people into an asset rather than a liability for the organization (p. 12). Using the previous definitions and the discussion, diversity management may be defined as a proactive, strategic action aimed at capitalizing on the benefits diversity can bring to an organization. This definition highlights the strategic nature of diversity management and requires a proactive, rather than reactive, management plan that emphasizes the advantages of diversity and seeks to eliminate potential pitfalls. Because people differ in so many ways, it is useful to classify the types of differences. The next section discusses the various forms of diversity. Forms of Diversity uch of the early work in diversity focused on demographic attributes such as sex, race, or age. However, as our definition of diversity illustrates, limiting the examination only to demographic differences results in an overly narrow approach to the study of diversity. Rather, diversity entails all the ways in which people can differ, including dissimilarities based on demographics, culture, language, physical and mental ability, education, preference, attitudes, and beliefs. Harrison, Price, and Bell (1998) identified two forms of diversity: surface-level and deep-level (see Exhibit 1.1).

7 8 Chapter 1 exhibit 1.1 Forms of diversity. n Surface-level diversity: differences among individuals based on readily observable characteristics such as age, sex, race, and physical ability. n Deep-level diversity: differences among individuals based on psychological characteristics. n Information diversity: those differences based on knowledge and information, oftentimes resulting from variations in education, functional background, training, and organizational tenure. n Value diversity: those differences in values, attitudes, beliefs, and preferences. Adapted from Harrison, Price, & Bell (1998) and Jehn, Northcraft, & Neale (1999). Surface-Level Diversity Surface-level diversity includes those dimensions that are readily observed dissimilarities based on sex, race, age, and in some cases, physical ability and language. These variations are important because people make judgments as to how similar they are to others based on these characteristics. For example, when people enter a classroom, aerobics class, or workplace, they make almost instantaneous assessments of their similarity, or lack thereof, to others in the social unit with respect to demographic attributes. An African American coach who enters a room of White coaches almost instantly knows that she is racially different from the others. Surface-level diversity is also important because demographic attributes are permanent and potentially strong sources of member identity. Similarly, cues about these differences are continually present in face-to-face interactions because of others outward appearance. For example, members of faceto-face teams have a constant reminder of how other team members vary with respect to age, sex, race, and the like; as a result, the perceptions of difference are continually reinforced. Deep-Level Diversity The second form of diversity identified by Harrison et al. (1998) is termed deeplevel diversity dissimilarities among people based on psychological characteristics such as attitudes, beliefs, values, culture, or preferences. In general, deep-level differences become apparent only through interaction with others. Consider once again the previous example of the African American coach in the room of Whites. If the African American coach engages in conversation with others in the room, she might learn that some have values, attitudes, and beliefs similar to hers. Thus, even though the coaches may differ in surface-level characteristics, they may be quite similar with respect to deep-level characteristics. As this example illustrates, people can be different on one level, but similar on another. Deep-level diversity can be divided into two categories, as identified by Jehn, Northcraft, and Neale (1999): information diversity and value diversity.

8 Overview of Diversity 9 Information diversity. Information diversity refers to differences based on knowledge or information that members bring to an organization or group. Members may vary in their functional background, level of education, amount of training, or tenure in the organization. For example, sport organization executive boards are frequently comprised of members from various business sectors in the community, including banking, coaching, and marketing. Thus, the board members bring a variety of experiences and sources of information to the board, thereby increasing the level of information diversity. Value diversity. The second category of deeplevel diversity is value diversity. A group has high value diversity when there are variations in members attitudes toward work, personal preferences, or beliefs. These differences may be based on personality attributes, such as conscientiousness, or personal traits such as the value one attaches to sport and physical activity. Suppose some members of an athletic department place top priority on education and moral citizenship, while others value individual and team performance. In this case, employees attitudes toward athletics differ; thus, that athletic department is characterized by value diversity. Interdependence of Surfaceand Deep-Level Diversity alternative P e r s p e c t i v e s Classifying Diversity. Chelladurai (2009) adopted an alternative approach to classifying the forms of diversity. His first form is based on appearance and visible features age, sex, or race and this form is synonymous with Harrison et al. s notion of surface-level diversity. A second form is based on behavioral preferences; for example, food or dress preferences. Because these differences are readily observed, this is a form of surface-level diversity. Third, Chelladurai identified value and attitudinal differences. This form is more akin to the deep-level diversity that comes to light only after interacting with others. Finally, Chelladurai proposed that people could also vary based on their cognitive orientations and individual skills, also considered deep-level differences that can be discerned only through observing an individual s task performance. Thus far, I have discussed surface- and deep-level diversity as independent concepts. In reality, the two may be intertwined. In many cases, surface-level demographics might be representative of more deep-level characteristics. For example, a person, Jim, born in the 1930s is likely to have certain life experiences, expectations, preferences, and values that are quite different from a person, Jackson, born in the 1980s. Jim lived through World War II, the Korean War, and the Vietnam War, worked in an era prior to the advent of computers and the Internet, and experienced a host of civil rights movements. These experiences, and others like them, shaped his values, beliefs, and attitudes. Jackson, on the other hand, has not experienced as many wars, considers workplace technologies a fact of life, and knows only of workplaces governed by equal employment opportunity laws. As with Jim, these factors shaped Jackson s values, beliefs, and attitudes. Thus, Jim and Jackson, who differ in the surface-level characteristic of age, are likely to vary in their deep-level characteristics as well. A number of studies have demonstrated the link between surface- and deeplevel diversity (Cunningham, 2006; Thomas, Ravlin, & Wallace, 1996). One example is seen in Cunningham s (2007) research of track and field coaches. In his first study, he found that both the age and racial diversity of the coaching staff were

9 10 Chapter 1 positively associated with coaches perceptions of diversity. Racial diversity had a stronger effect, however, probably because of the historical significance of race. He then conducted a second study, also of track and field coaches, to understand the effects of such perceptions. Cunningham found that perceptions of surface-level diversity were reliably associated with perceptions of deep-level diversity. Coaches who believed their staffs were high in deep-level diversity also expressed less coworker satisfaction and greater intentions to leave the staff. Collectively, these studies demonstrate that people take cognitive stock of their coworkers characteristics and form impressions of the group (i.e., perceptions of group diversity) that can influence their work experiences. Understanding the Emphasis on Diversity his next section considers why the topic of diversity is so important and receives such interest. The literature on diversity points to seven specific factors: changing demographics, changing attitudes toward work, changes in the nature of work, legal mandates, social pressures, potential negative effects of diversity, and the value-in-diversity hypothesis (see Exhibit 1.2). Each of these factors is discussed in greater detail. Changing Demographics The most important factor spurring interest in diversity is the changing demographic makeup of the workforce. In the United States, significant changes in the exhibit 1.2 Factors contributing to interest in, and importance of, diversity. Changing demographics: increases in the median age, proportion of racial minorities, and women in the workforce. Changing attitudes toward work: changes in the commitment and loyalty to employers and work family conflict. Changes in the nature of work: increases in the number of organizations that structure work around teams, the impact of globalization, and the frequency of mergers and acquisitions. Legal mandates: federal and state laws that require equal employment opportunities for all persons, irrespective of demographic characteristics or background. Social pressures: the notion that organizations have a moral and ethical obligation to have a diverse workplace. Potential negative effects of diversity: diversity can potentially lead to negative outcomes such as low satisfaction, high conflict, and poor team performance. Value-in-diversity hypothesis: diversity can positively influence desired individual, group, and organizational outcomes.

10 Overview of Diversity 11 racial, sex, and age composition of the country took place during the 20th century, and demographics are projected to continue changing. Shifts were also seen in socioeconomic status. Demographic changes in the population correspond to changes in the workforce, thus making diversity an organizational reality. These changes prompted managers and other professionals to take note of diversity and to devise strategies to manage such differences. I examine specific demographic shifts in further detail below. Racial minority representation From 1980 to 2000, the Hispanic population in the United States doubled. Significant growth occurred for other racial groups as well, as evidenced in Exhibit 1.3. By 2050, the minority population is expected to be million of a total U.S. population of 429 million; thus, racial minorities will represent roughly 55 percent of the population. Whites are expected to comprise 46.3 percent of the population in 2050, down from 64.7 percent in The Hispanic population is projected to increase significantly, representing about one of three Americans by The proportion of African Americans is expected to decrease slightly (from 12.2 to 11.8 percent), while Asian Americans share of the population is expected to increase from 4.5 to 7.6 percent. These changes are expected to be reflected in the workforce, and as a result, employees of sport and physical activity organizations will grow more racially diverse. Consequently, people are likely to be working with, working for, or supervising someone who is racially different. Projected racial changes in the U.S. population. exhibit Percent of Population White Asian African American Hispanic Other races Year

11 12 Chapter 1 Furthermore, potential customers will also become more racially diverse; therefore, managers will have to devise strategies aimed at attracting those customers to their goods and services. Median age Changes in the median age of the U.S. population have also been dramatic. According to the U.S. Census Bureau, at the beginning of the 20th century, the median age was 22.9 years. This figure increased over the 100-year span such that by the year 2000, over half of the U.S. population was over 35.3 years of age. Much of that change is a result of the large number of babies born in the 1940s and 1950s the baby boom generation. As the baby boomers have grown older, so too has the overall population. The population of persons age 65 and older grew tenfold in the 20th century; furthermore, projections indicate the U.S. population will continue to grow older into the 21st century, so that by 2050, one in five people will be over age 65 (see Exhibit 1.4). Not only is the nation growing older but people are also working to a later age, resulting in greater age diversity within all organizations, including those for sport and physical activity, and an older potential consumer base. Just as strategies are needed to attract persons from different racial groups to purchase an organization s goods and services, so too is there a need to devise plans to draw older customers to the organization. exhibit 1.4 Projected changes in percentages of various age ranges in the U.S. population Age Ranges Percent of Population Year

12 Overview of Diversity 13 Sex composition Sex composition of the United States has also changed, though not as dramatically as the shifts in age and race. The U.S. Census Bureau reports that the U.S. population shifted from majority male at the beginning of the 20th century to majority female by the century s midpoint. At the end of the 20th century, women still outnumbered men (see Exhibit 1.5). Although women continue to enter the workforce in increasing numbers, they are still less likely to be members of the workforce than men. It should be noted, however, that the magnitude of the difference in the proportion of men and women in the workforce has decreased over time (see also Tsui & Gutek, 1999). As with the other forms of diversity, the increase in the proportion of working women means sex diversity in all types of organizations has increased as well. Socioeconomic status Changes also have occurred with respect to socioeconomic status. Data from the U.S. Census Bureau indicate that in 1967, the mean income in 2008 dollars of the primary householder was $39,899, a figure that increased to $50,132 by In isolation, these figures do not tell us much, as they simply indicate that people make more money over time, something that could be attributed to inflation. However, other data indicate that the share of aggregate income is increasingly unevenly dispersed. In 1967, the top 5 percent of all households possessed a 17.2 percent share of aggregate income. By 1980, the share had actually dropped to 16.5 percent. However, since that time, the share of aggregate income held by the top 5 percent increased. By 2008, the top 5 percent of all households possessed 21.5 percent Change in the proportion of the sexes in the U.S. population. exhibit 1.5 Males per 100 Females Males U. S. Census Bureau data.

13 14 Chapter 1 exhibit 1.6 Income changes in the U. S. population Gini Index U. S. Census Bureau data. of the aggregate income. The Gini Index, a measure that summarizes the dispersion of income over the entire income distribution, also increased during that time. This increase means that the income is increasingly being received by one group of people (see Exhibit 1.6). As this exhibit indicates, the socioeconomic status of the U.S. population has changed over time, with the distribution of wealth growing increasingly inequitable. Global changes Such changing demographics occurred in other areas of the world as well. Canada witnessed an increase in the proportion of native persons and other racial minorities during the last 20 years (Haq, 2004). New Zealand also witnessed increased racial diversity, primarily due to immigration from Asian countries (Haq, 2004). Further, the populations of a large number of European nations, as well as Japan and Australia, continue to increase in median age (Haq, 2004). In the UK, estimates suggest that women will account for 90 percent of the increase in the British workforce in the next 10 years (Hewitt, 2002), and by 2008, over 70 percent of women were employed (Record number of women employed, 2008). These figures indicate that increasing diversity is occurring globally. Changing Attitudes Toward Work Just as the demographic composition of the workforce has changed, so too have employees attitudes toward work (Mathis & Jackson, 2006; Ployhart, Schneider, & Schmitt, 2006). Employees are no longer likely to spend an entire career with a single organization, moving up through the ranks as they progress in tenure and skills. Rather, employees are now likely to move from one organization to another