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Diversity in the Workplace

We have no hope of solving our problems without harnessing the diversity, energy, and creativity of all our people. 

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Diversity in the Workplace

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We have no hope of solving our problems without harnessing the diversity, energy, and creativity of all our people.

– Roger Wilkins

When we make soup, we need different ingredients. However, each of them is essential to the taste of the soup. Similarly, in a workplace, we need people with diverse backgrounds and characteristics to develop unique ideas. In this explanation, we discuss diversity in the workplace, its importance, challenges, and benefits. Ready to dive into the topic of diversity in the workplace? Keep on reading!

Diversity in the Workplace Definition

Due to globalization and the increased mobility of the population around the world, diversity in the workplace has become the need of the hour and its definition has formed. Many companies have realized this change and have started to embrace it. A company with a diverse workforce offers much more in terms of productivity and performance. Let's discuss what it means.

Diversity in the workplace means hiring employees of different demographics (age, gender, race, sexual orientation, religion, education, etc.). It also includes providing equal growth and participation opportunities to all employees.

For companies, it is essential to have diversity in the workplace; the reason is simple – it enables them to introduce unique business solutions that could disrupt the market resulting in potentially increased market share or profitability.

While addressing diversity in the workplace, it is crucial to understand its value to a company. Diversity is not just limited to the hiring process; it is a broader concept. Companies must create a culture where employees with diverse backgrounds have the freedom to express themselves and contribute to the common success. It would enhance the reputation of the companies, which would help them to attract top talents in the industry.

Cities such as New York, London, and Berlin have become business hubs in the world because the companies in these cities feature a high level of diversity in the workplace.

Importance of Diversity in the Workplace

The importance of diversity in the workplace is about hiring employees of different backgrounds and allowing them to shine in the workplace. It adds value as these employees help a company to reach its objectives. We cannot downplay the importance of diversity in the workplace. It allows a company to build a workforce that can tackle various challenges.

Diversity in the workplace also helps in building a well-rounded workforce. These employees have different problem-solving approaches and can grow professionally through collaboration. Diversity in the workplace increases Employee Engagement as they feel valued by management. Another important aspect of diversity in the workplace is a better understanding of customers. As the employees belong to diverse backgrounds, they represent society comprehensively. It allows the company to know the pulse of the customers and provide personalized products or services to them.

Inclusion and Diversity in the Workplace

The terms "inclusion" and "diversity" in the workplace are mostly used together; however, these two are different terms that we must understand separately.

Inclusion means including someone or something as part of a group.

SHRM defines inclusion as the "achievement of a work environment in which all individuals are treated fairly and respectfully, have equal access to opportunities and resources, and can contribute fully to the organization's success".1

Diversity Inclusion
Diversity means the differences in demographics that make people unique.Inclusion means policies and norms that make people feel included regardless of their unique demographics.
Diversity in the workplace is about bringing people from different backgrounds together to achieve a common goal.Inclusion is about policies and strategies that help companies implement diversity effectively.
Diversity can only be effective with inclusion.Inclusion is an important aspect of diversity in the workplace.

Table 1 - Diversity vs. Inclusion

Inclusion is equally important in the workplace. The management must ensure that employees feel valued and included in the company. It would ultimately increase the employees' Job Satisfaction and engagement. This would also ensure that the company reaches its objectives and improves its market position.

It is now established that diversity in the workplace is tied to the inclusion of employees. These two, when used together, can bring positive change in the workplace culture. Diversity and inclusion policies must be incorporated together not only for ethical reasons but also for financial reasons. It would help companies to reach their objectives and maintain an excellent reputation in terms of workplace culture.

Cultural Diversity in the Workplace

What is cultural diversity in the workplace? When employees belong to different cultures, they could add more value to the organization. They bring different sets of skills, experiences, and approaches to the table.

Cultural diversity in the workplace means forming a workforce that has people from different cultural backgrounds.

For organizations, it is essential to develop a work environment where they welcome employees from every culture and give them equal opportunities to grow. Corporate culture management is key to ensuring the effectiveness of an organization.

This is the reason why organizations should introduce cultural competency training to avoid problems. This will assist the organization in dealing with employees from different cultures. It also ensures that employees are aware of their own cultures and respect the practices of other cultures.

Diversity in the workplace Cultural diversity adds value to an organization StudySmarterFig. 1 - Cultural diversity adds value to an organization

Diversity in the Workplace Benefits

Diversity and inclusion in the workplace mean acknowledging each employee's strengths and valuing their existence in the organization and therefore have certain benefits. It is a huge asset for an organization when managed effectively. Below we discuss some top benefits of diversity in the workplace.

1. More perspectives – Having employees from different backgrounds means having more perspectives. Each of them could bring something new to the table. It helps an organization in problem-solving.

2. Better decision-making – Having more perspectives leads to better decision-making. Employees could provide disparate information that would help in making better and more informed decisions.

3. More innovation – With diversity and inclusion in the workplace, the management gives freedom to the employees to express their opinions freely. Employees feel valued, and they come up with unique business solutions. It leads to more innovation in the organization.

4. Higher Employee Engagement Employees who feel valued by the company feel secure and satisfied with the job. It increases employee engagement which is essential for getting the desired results.

5. Improved company reputation – In any industry, organizations that promote diversity and inclusion in the workplace are seen as ideal organizations in terms of work culture. It eventually helps them to attract top talents and improve their workforce.

Challenges of Diversity in the Workplace

Diversity in the workplace offers many benefits to organizations; however, some challenges come with it. Managers need to consider the following challenges to make the workplace culture diverse and inclusive.

1. Communication issues – This is one of the common issues with having a diverse workforce. Employees belonging to different socio-economic backgrounds or age brackets may prefer different ways of communication. It could create problems for the organization as communication issues mean employees do not get the right information. An organization could face delays in projects resulting in a waste of resources.

2. Cultural stereotypes – Cultural stereotypes and prejudices exist, and these things can negatively affect the culture of an organization. Employees could use these stereotypes to justify their actions. It would also hamper their Ability to understand other cultures with an open mind.

3. Trust deficit – Another challenge of diversity in the workplace is the trust deficit. Employees who belong to the minority group could feel unfairly treated by management. When they encounter any problems, they might not share them with the managers because of a lack of trust. It is the job of managers to build trust with the workforce.

4. Discrimination – The issue of discrimination could arise with a diverse workforce. Some employees might feel they are being treated unfairly. It could prevent them from expressing themselves, resulting in a lack of Job Satisfaction.

Diversity in the Workplace Examples

Many companies worldwide have successfully integrated diversity and inclusion in the workplace; here are a couple of examples.

Mastercard

Mastercard sits comfortably in the top half of the table of companies with diverse workplace environments. It has taken some good initiatives to ensure diversity in the organization. It claims to support the idea of "equal pay for equal work." It also offers Employee Benefits without discrimination. These benefits include adoption assistance, fertility treatments, etc.2

Lenovo

Lenovo has managed to create a diverse workplace culture. It scored 100% on the corporate equality index in 2017 and 2019. This index represents the policies of organizations regarding LGBTQIA+ equality. Due to its policies of promoting diversity in the workplace, it can attract talented employees.2

Diversity in the Workplace - Key takeaways

  • Diversity in the workplace enables organizations to introduce unique business solutions that could disrupt the market resulting in potentially increased market share or profitability.
  • Hiring employees from diverse backgrounds is not diversity in its true sense; they must be given equal opportunities to grow.
  • Diversity in the workplace helps companies to attract top talents in the industry.
  • Diversity in the workplace helps in building a well-rounded workforce.
  • Diversity increases employee engagement as they feel valued by the management.
  • Diversity and inclusion policies must be incorporated together for effective implementation.

References

  1. Seattle SHRM, Diversity and inclusion: https://shrm-seattle.site-ym.com/page/Diversity128
  2. Kiely Kuligowski, 6 Examples of Diverse and Inclusive Companies:https://www.businessnewsdaily.com/15970-diverse-inclusive-companies.html

Frequently Asked Questions about Diversity in the Workplace

Diversity in the workplace means hiring employees belonging to different demographics (age, gender, sex, religion, education, etc.) It also includes providing equal growth and participation opportunities to these employees. 

Internal, external, organizational, and worldview are the 4 types of diversity in the workplace. 

The five elements of diversity in the workplace are race, gender, religion, sexual orientation, and ethnicity.

Diversity in the workplace increases employee engagement as they feel valued by the management. Another important aspect of diversity in the workplace is a better understanding of customers.

The 3 ways to promote diversity are: to acknowledge differences, avoid cultural prejudices, and establish trust.

An organization that hires employees from different cultural backgrounds is the best example of diversity in the workplace. 

Final Diversity in the Workplace Quiz

Diversity in the Workplace Quiz - Teste dein Wissen

Question

Define diversity in the workplace. 

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Answer

Diversity in the workplace means hiring employees belonging to different demographics (age, gender, sexual orientation, race, religion, education, etc.)

Show question

Question

_________ enables organizations to introduce unique business solutions that could disrupt the market.

Show answer

Answer

Diversity in the workplace

Show question

Question

_________ can enhance the reputation of the companies. 

Show answer

Answer

Diversity

Show question

Question

Diversity in the workplace is about hiring employees of different backgrounds and allowing them to shine in the workplace

Show answer

Answer

True 

Show question

Question

Diversity in the workplace helps in building a ___________ workforce.

Show answer

Answer

Well-rounded

Show question

Question

Diversity in the workplace decreases employee engagement.

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False

Show question

Question

Diversity in the workplace helps companies understand customers better. 

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Answer

True 

Show question

Question

Define inclusion.

Show answer

Answer

Inclusion means including someone or something as part of a group. 

Show question

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Diversity can only be effective without inclusion.

Show answer

Answer

False

Show question

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Inclusion is an important aspect of diversity in the workplace.

Show answer

Answer

True

Show question

Question

Inclusion is about policies and strategies that help companies implement diversity effectively.

Show answer

Answer

True

Show question

Question

Define cultural diversity.  

Show answer

Answer

Cultural diversity in the workplace means forming a workforce that has people from different cultural backgrounds. 

Show question

Question

Cultural competency training does not help in making diversity effective in a company. 

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Answer

False

Show question

Question

Having more perspectives does not lead to better decision-making.

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Answer

True

Show question

Question

How does diversity increase employee engagement? 

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Answer

An employee, who feels valued by the company, feels secure and satisfied with the job. This increases employee engagement.

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Question

What are the two primary types of diversity in a business environment?

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Answer

The two primary types of diversity in a business environment are Internal or Inherent Diversity, and External or Acquired Diversity.

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What does Internal or Inherent Diversity refer to in a business setting?

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Internal or Inherent Diversity refers to traits that are inherent to an individual and typically unchangeable like race, gender, and age.

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What are examples of External or Acquired Diversity in a business setting?

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Examples of External or Acquired diversity in a business setting include factors such as religion, educational background, professional experience, and cultural fluency.

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What are the two main types of diversity in the workplace?

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Answer

The two main types of diversity in the workplace are internal or inherent diversity and external or acquired diversity.

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What are some of the advantages and issues with diversity in the workplace?

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Advantages of diversity in the workplace include improved decision making, increased creativity, innovation, attracting broader talent, and enhanced ROI. Issues can include language barriers, generation gap, increased conflict, low team bonding, and misunderstandings due to diverse cultural norms.

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Question

What are some strategies for managing diversity in the workplace?

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Answer

Some strategies for managing diversity in the workplace include diversity training and facilitating open conversations about diversity.

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Question

What does 'cultural diversity' signify in a business context?

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In a business context, 'cultural diversity' signifies the incorporation of individuals from different cultural backgrounds, which encompasses variations in values, beliefs, customs, and behaviours.

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Question

What are the four prominent types of cultural diversity?

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The four prominent types of cultural diversity are: Ethnic Diversity, Religious Diversity, Linguistic Diversity, and Racial Diversity.

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What are the effective approaches for navigating cultural diversity?

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Navigating cultural diversity effectively involves encouraging open Communication, showing Respect for individual beliefs and customs, being flexible to accommodate diverse needs, and conducting Cultural Competence Training.

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Question

What are the two substantial types of social diversity?

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The two substantial types of social diversity are socio-economic diversity and lifestyle diversity.

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What is the impact and importance of social diversity?

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Answer

Social diversity enriches society, fosters mutual respect, encourages tolerance, and enhances societal cohesion. However, it can also lead to misunderstandings, conflicts, and social segregation.

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Question

How is social diversity manifested in the United States, Japan, and India?

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Answer

The US exhibits racial, ethnic, and socio-economic diversity. Japan showcases lifestyle and socio-economic diversity despite homogeneity in ethnicity. India displays diversity in language, religion, ethnicity, socio-economy, and lifestyle.

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Question

What does the concept of 'intersectionality' in diversity mean?

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Intersectionality implies that types of diversity don't exist in isolation. They intersect to define an individual's unique identity and are influenced by socio-cultural, economic, and regulatory elements.

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Question

What are some of the challenges and benefits of a diverse society?

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Challenges of a diverse society include conflicts due to diverse value systems, potential prejudices, and issues with inclusivity and equality. Benefits include a range of perspectives fostering creativity and innovation, promoting tolerance and acceptance, and leading to social progress and growth.

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How can diversity be promoted and celebrated in different settings?

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Answer

Diversity can be promoted in workplaces through equal opportunity policies, unbiased recruitment, and inclusive practices. In society, it can be achieved through inclusive education, balanced media representation of diverse groups, respect for all languages and cultures, and anti-discrimination laws.

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Question

What is discrimination in the workplace?

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Discrimination in the workplace is the unjust treatment of individuals based on their inherent or perceived differences like race, gender, age, religion or disability. This can manifest in various forms including bias in hiring, promotion, job assignment, termination, compensation, and harassment.

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What is age discrimination in the workplace?

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Age discrimination in the workplace occurs when a job applicant or an employee is treated less favourably due to their age. Hiring, promotion, and compensation should not be influenced by an individual's age.

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What is disability discrimination in the workplace?

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Disability discrimination refers to prejudiced treatment of workers or job applicants based on their physical or mental disability. It is prohibited by law and businesses are required to make reasonable accommodations for disabled employees.

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What is an example of gender discrimination in the workplace?

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Answer

A qualified female employee is passed over for a managerial position in favour of a less experienced male colleague.

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How can age discrimination manifest in the workplace?

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A software company not considering a perfectly qualified older candidate for a role because they assume he might not be as adept with advanced technology due to his age.

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How can disability discrimination happen in a workplace?

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A Corporation refusing to invest in sign language education for its employees despite hiring a hearing-impaired individual, thus limiting that individual's potential and participation severely.

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What are some primary causes of workplace discrimination?

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The primary causes of workplace discrimination include societal and individual biases, unconscious bias, a lack of diversity and inclusion awareness, and organisational culture that fosters exclusion or tolerates prejudices.

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Question

What are some effects of discrimination in the workplace at the individual level?

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Answer

At the individual level, discrimination can lead to stress, anxiety, depression, other mental health issues and physical health effects like hypertension. It can also lead to job dissatisfaction, lower self-esteem, and reduced productivity.

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How does discrimination in the workplace affect an organisation?

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Answer

Workplace discrimination can foster a negative company culture, taint the company's reputation, affect business relationships, and impact financial performance. Also, companies may face legal and financial repercussions from discrimination claims, including lawsuits, fines, and penalties.

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Question

What are the legal protections in place to prevent discrimination in the workplace?

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Answer

The Equality Act 2010 enshrines laws against discrimination based on age, gender, ethnicity, religion, disability and sexual orientation. It proscribes discriminatory actions, and provides protections and rights to employees and job applicants.

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Question

What steps should someone take if they are a victim of discrimination or harassment at work?

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Answer

They should document the incident, report it to their supervisor or designated person within the company, engage the grievance procedure, consider reporting to the Equality and Human Rights Commission (EHRC), and file a claim with the Employment Tribunal if necessary. They may also seek legal advice.

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What is the difference between Direct and Indirect Discrimination?

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Answer

Direct Discrimination refers to treating someone less favorably based on a protected characteristic. Conversely, Indirect Discrimination occurs when a company's policies, practices or procedures inadvertently disadvantage a group with a protected characteristic.

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What are the key strategies to prevent age discrimination in the workplace?

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Answer

The key strategies to prevent age discrimination include raising awareness of stereotypes and unconscious bias, implementing fair recruitment and promotion practices, conducting equality impact assessment, providing diversity training, and creating clear policies against age discrimination.

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Question

What does the term 'Job Carving' mean in the context of preventing disability discrimination in the workplace?

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Answer

'Job Carving' refers to modifying job descriptions to suit the abilities and skills of disabled employees, facilitating a win-win situation for both the employee and employer.

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Question

What is an Equality Impact Assessment (EIA) and how can it help prevent workplace discrimination?

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Answer

EIA is a process that ensures decision making is fair, particularly when considering changes or proposing new services. It highlights any unintentional discrimination and identifies areas for promoting equality, thereby enhancing the fairness of policies.

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Question

What is Stereotype Threat in the context of Business Studies?

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Answer

Stereotype Threat is a situational predicament where people fear that their behavior will confirm existing stereotypes about their group, affecting attitude, behavior, and performance in organisational settings.

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Question

What are the two levels of Stereotype Threat?

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Answer

The two levels are the Individual Level, where work suffers due to anxiety to disprove the stereotype, and the Organisational Level, where a hostile work environment resulting from stereotype threat can lead to lower productivity and higher turnover.

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Question

Who introduced the term 'Stereotype Threat' in the academic world?

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Answer

Claude Steele, a distinguished social psychologist, introduced the term 'Stereotype Threat' in the academic world.

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Question

What are some examples of Stereotype Threat in organisational behaviour?

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Answer

Examples include a high-performing female employee under-performing in negotiations due to stereotypes about women being less effective negotiators, or an older worker avoiding roles involving new tech tools due to stereotypes about older workers lacking technological prowess.

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Question

What situations can cause Stereotype Threat to arise in the workplace?

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Answer

Stereotype Threat can arise due to repeated emphasis on group identity, workplace inequality and discrimination, and high pressure situations like appraisals, presentations, or meetings.

Show question

Test your knowledge with multiple choice flashcards

_________ can enhance the reputation of the companies. 

Diversity in the workplace is about hiring employees of different backgrounds and allowing them to shine in the workplace

Diversity in the workplace helps in building a ___________ workforce.

Next

Flashcards in Diversity in the Workplace99

Start learning

Define diversity in the workplace. 

Diversity in the workplace means hiring employees belonging to different demographics (age, gender, sexual orientation, race, religion, education, etc.)

_________ enables organizations to introduce unique business solutions that could disrupt the market.

Diversity in the workplace

_________ can enhance the reputation of the companies. 

Diversity

Diversity in the workplace is about hiring employees of different backgrounds and allowing them to shine in the workplace

True 

Diversity in the workplace helps in building a ___________ workforce.

Well-rounded

Diversity in the workplace decreases employee engagement.

False

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