MGMT 615 Leading Organizations

Previously we started the discussion and brought an article about the globalization process in the labor market. This topic is closely linked to the diversity theme brought up by Robbins and Judge (2022). The globalization process is linked to diversity, but beyond this aspect, diversity encompasses the heterogeneity that can exist in a company, such as, in the words of the authors Robbins and Judge (2022): “individual characteristics like age, gender, race, identity, sexual orientation, ethnicity, and abilities can influence interactions and performance in the workplace.” The author shows the change in the labor market in the US, including more women, a higher percentage of people from ethnic minorities, and people over 55 years old active in the workforce.

Companies are part of society, and society has many problems that affect the performance of employees in companies. There is the problem of sexism, misogyny, racism, prejudice against people with disabilities, against the elderly, among others. Even when a legal and institutional framework recognizes a fundamental right, the results to mitigate the harmful effects of the past can take decades or centuries. Historically, it is very recently that some rights were considered, such as the ratification of the 19th Amendment in 1920 in the United States, which ensured women’s suffrage and the first national election with women’s participation. Even though women have gained more rights over the past century, discrimination and stereotypes still persist, and there are still many challenges to be overcome. Robbins and Judge (2022) define discrimination as: “Noticing a difference between things; often we refer to unfair discrimination, which means making judgments about individuals based on stereotypes regarding their demographic group.” And stereotype as: “Judging someone based on one’s perception of the group to which that person belongs.”

Robbins and Judge (2022) show that in 2016, 46.8% of the workforce was made up of women, but even so, we see a gap in leadership positions and salaries, favoring men. In a 2024 Fortune report, of the top 500 companies in the United States, only 10.4% had female leaders. In a 2024 Forbes report, it is shown that women earn on average 16% less than men. The role of the manager should be to find ways to not perpetuate discrimination (salary is included in this item) and stereotypes. Thinking about this salary issue, Chapko’s (2024) work shows how salary transparency can help in this matter. In the article, she shows that 8 American states have salary transparency laws and that these laws, in her words: “caused an 8.57% increase in women’s wages.”

Robbins and Judge (2022) said that one of the implications for the manager: “Understand your organization’s antidiscrimination policies thoroughly and share them with all employees.” One of the programs that a company can have to change the status quo is to encourage some training or club to encourage women’s leadership and a gender pay equity program, showing that the company cares about closing this gap. This is a global problem; across Europe, there is only one country where women earn more on average than men, as shown in a Euronews report from 2024.