Organizational Diversity

The workforce of the United States continues to grow more diverse. Employment equity legislation has [Page 1248]made organizational diversity an issue of legal, ethical, and strategic interest. Data reported in 2005 by the Equal Employment Opportunity Commission (EEOC) indicate an increase in the percentage of people of color in the private sector from 27% in 1998 to 30% in 2003. In 2005 the Department of Labor reported that while foreign-born workers currently account for 15% of the workforce, up from 11% in 1998, they have also accounted for 46% of the net increase in the labor force since 2000. The percentage of women in the workforce has also risen. In 2004, 59% of all women were in the workforce, up from 43% in 1998, as compared to 75% and 73% of men in the workforce in 2004 and 1998, respectively. Additionally, the Bureau of Labor Statistics projections for 2004–2014 predict the number of workers over 55 years old will grow by 49.1%, outpacing growth in the entire workforce by five times. The number of disabled Americans in the workforce increased from 29% in 1998 to 35% in 2004, according to the National Organization on Disability. These trends indicate that the workforce continues to become more heterogeneous on multiple dimensions.

There are two major perspectives on what characteristics the term diversity should encompass in organizational settings. One perspective defines diversity based on the demographic characteristics covered in the civil rights legislation enforced by the EEOC. This defines diversity in terms of race/ethnicity, gender, age, national origin, religion, veteran status, and disability. The other perspective is broader, encompassing the EEOC categories as well as other distinguishing characteristics, including sexual orientation, values, abilities, personality characteristics, education, languages spoken, physical appearance, marital status, geographic origin within the United States, tenure with the organization, functional specialization, and economic status. Although a broader definition of diversity may be more inclusive because it encompasses the many ways in which organizational members can differ from one another, it is also problematic in that it ignores the power differences associated with the powerful impact of race, gender, and disability status. The narrower EEOC definition includes only the legally protected categories—groups whose social identities limit their access to societal and organizational resources.

Although it is important to acknowledge that diversity can be constructed across multiple aspects of a person, the impact of different identities is certainly not equal. Segregation in organizations and the demographics of organizational hierarchies reflect American society broadly, which shapes the expectations and experiences of employees. Power, authority, and leadership are allocated disproportionately to certain demographic groups; hence, access to higher-level positions is likely to be difficult for historically disad-vantaged groups. Although organizations are more diverse in sheer numbers in the workforce, this diversity is not seen within a given job type or across levels within organizations. Data from the 2000 Census indicate that job segregation by race and gender are common in the workplace. According to EEOC data, although White men make up 37% of the private industry workforce, they comprise 85% of all officials and managers and only 21% of all service positions. Whereas women of color make up 15% of the private industry workforce, they comprise only 6.3% of the officials and managers and 25% of all service positions. Thus, positions of power and authority in the private sector are populated disproportionately by White males. Low-wage sectors continue to be dominated by women and people of color, where they have little access to training or advancement opportunities; such thwarted access is a well-documented source of stress and turnover.

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