Human Resource Management
10th Edition
Chapter 3
WORKPLACE DIVERSITY, EQUAL
EMPLOYMENT OPPORTUNITY,
AND AFFIRMATIVE ACTION
© 2008 by Prentice Hall
3-1
HRM in Action: Sequencing Moms,
Bringing Them Back
• Today, more new mothers are leaving the
labor force only to return later, often called
sequencing moms
• Major employers are reaching out to
sequencing moms to be sure they do not
make a permanent exit
• Tangible shift toward companies accepting
returning women professionals
© 2008 by Prentice Hall
3-2
Projected Future Diverse Workforce
• By 2010, civilian labor force is projected to
increase by 17 million to 158 million.
• U.S. workforce will become more diverse
• U.S. Department of Labor projects by
2013, available jobs will outnumber
workers by 6.7 million and by 2030,
available jobs will outnumber workers by
30 million.
© 2008 by Prentice Hall
3-3
Diversity and Diversity
Management
Diversity - Any perceived difference
among people: age, race, religion,
functional specialty, profession,
sexual orientation, geographic origin,
lifestyle, tenure with organization, or
position, and any other perceived
difference.
© 2008 by Prentice Hall
3-4
Diversity Management
Ensuring factors are in place to
provide for and encourage
continued development of diverse
workforce by melding actual and
perceived differences among
workers to achieve maximum
productivity
© 2008 by Prentice Hall
3-5
Managing Diverse Workforce:
Various Components
• Single Parents &
Working Mothers
• Women in Business
• Dual Career
Families
• Workers of Color
• Older Workers
• Persons with
Disabilities
• Immigrants
• Young Persons with
Limited
Education/Skills
• Educational Level of
Employees
© 2008 by Prentice Hall
3-6
Single Parents and Working Mothers
• Number is growing
• Many marriages end in divorce
• Widows and widowers who have
children
• Need alternative child-care
arrangements
• 72% of mothers with children
under 18 are in work force
© 2008 by Prentice Hall
3-7
Women in Business
• Account for 45% of workforce
• Hold half of all management,
professional, and related
occupations
• Over 9 million women-owned
businesses
• Increasing number of
nontraditional households
• Organizations must address
work/family issues
© 2008 by Prentice Hall
3-8
Dual Career Families
• Both husband and wife have
jobs and family
responsibilities
• Majority of children growing
up today have both parents
working outside home
• Some have established
long-distance jobs
• Want more workplace
flexibility
• Revised nepotism policy
© 2008 by Prentice Hall
3-9
Workers of Color
• Often experience
stereotypes
• Often encounter
misunderstandings and
expectations
• Bicultural stress
• Socialization in one’s
culture of origin can lead
to misunderstandings in
workplace
© 2008 by Prentice Hall
3-10
Older Workers
• Population is growing
• Long-term labor shortage is
developing
• Many organizations actively
courting older employees to
remain on job longer
• Needs and interests may
change
• May require retraining
© 2008 by Prentice Hall
3-11
Persons with Disabilities
• Limits amount or kind of work person can do or
makes its achievement unusually difficult
• Perform as well as unimpaired in productivity,
attendance and average tenure
• ADA prohibits discrimination against qualified
individuals with disabilities
• Serious barrier is bias, or prejudice
• Manager can set the tone
© 2008 by Prentice Hall
3-12
Immigrants
• Large numbers of
immigrants from Asia and
Latin America have
settled in many parts of
United States
• Newer immigrants
require time to adapt
• Managers must work to
understand different
cultures and languages
© 2008 by Prentice Hall
3-13
Young Persons with Limited
Education or Skills
• Many thousands of
young, unskilled workers
are hired
• Poor work habits
• Tardy or absent
• Can do many jobs well
• Jobs can be de-skilled
© 2008 by Prentice Hall
3-14
Educational Level of Employees
• Bipolar country with
regard to education
• Half of new jobs need
some education beyond
high school
• Those with limited
education will be left out
of empowerment effort
© 2008 by Prentice Hall
3-15
Trends & Innovations: Superdads
• Majority of men today are vastly more
involved in the rearing of their children and
maintenance of their households than their
fathers were
• Job of stay-at-home dad is becoming more
attractive to today’s working dads
• Have disadvantage of having few role
models to show them the way
© 2008 by Prentice Hall
3-16
Equal Employment
Opportunity And
Affirmative Action
© 2008 by Prentice Hall
3-17
Equal Employment Opportunity: An
Overview
• EEO modified since passage of Equal Pay
Act of 1963, Civil Rights Act of 1964, and
Age Discrimination in Employment Act of
1967
• Congress has passed other legislation
• Major Supreme Court decisions
interpreting provisions handed down
• Executive orders signed into law
© 2008 by Prentice Hall
3-18
Laws Affecting Equal
Employment Opportunity
© 2008 by Prentice Hall
3-19
Civil Rights Act of 1866
• Oldest federal legislation
affecting staffing
• Based on Thirteenth
Amendment
• No statute of limitations
• Employment is a
contractual arrangement
© 2008 by Prentice Hall
3-20
Equal Pay Act of 1963
• Prohibits employer from paying employee
of one gender less money than employee
of opposite gender, if both employees do
work that is substantially the same
• Jobs considered substantially the same
when they require equal skill, effort, and
responsibility and they are performed
under similar working condition
© 2008 by Prentice Hall
3-21
Title VII of Civil Rights Act of 1964 - Amended 1972
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•
•
•
•
•
Greatest impact on HR management
Illegal for employer to discriminate
Fifteen or more employees
Exceptions to Title VII
Persons not covered by Title VII
Created the Equal Employment
Opportunity Commission (EEOC)
© 2008 by Prentice Hall
3-22
Illegal for Employer to Discriminate
•
•
•
•
•
Race
Color
Sex
Religion
National origin
© 2008 by Prentice Hall
3-23
Exceptions to Title VII
• Bona fide occupational
qualifications (BFOQs)
• Seniority and merit
systems
• Testing and
educational
requirements
© 2008 by Prentice Hall
3-24
Persons Not Covered by Title VII
• Aliens not authorized to work in
United States
• Members of Communist party
• Homosexuals
© 2008 by Prentice Hall
3-25
Age Discrimination in Employment Act
Of 1967--amended In 1978 & 1986
• Illegal to discriminate against anyone 40
years or older
• Administered by EEOC
• Pertains to employers who have 20 or
more employees
• Provides for trial by jury
• Possible criminal penalty
• Older Workers Benefit Protection Act
(OWBPA)
© 2008 by Prentice Hall
3-26
Age Can Be Bona Fide
Occupational Qualification
• Federal Aviation Administration
can force commercial pilots to
retire at 60
• Greyhound did not violate ADEA
when refused to hire persons 35
years or older as intercity bus
drivers
• Likelihood of risk or harm to
passengers was involved with
both cases
© 2008 by Prentice Hall
3-27
Rehabilitation Act of 1973
• Prohibits discrimination against disabled
workers
• Government contractors, subcontractors,
and organizations
• Two primary levels
• $2,500 required to post notices they agree
to take affirmative action to recruit, employ,
and promote qualified disabled individuals
© 2008 by Prentice Hall
3-28
Rehabilitation Act of 1973 (Cont.)
• If contract or subcontract exceeds
$50,000, or if contractor has 50 or more
employees, employer must prepare written
affirmative action plan
• Administered by Office of Federal Contract
Compliance Programs (OFCCP)
© 2008 by Prentice Hall
3-29
Pregnancy Discrimination Act of 1978
• Amendment to Title VII of Civil
Rights Act
• Pregnancy, childbirth, or
related medical condition
• Questions about family plans,
birth control techniques, and
the like may be discriminatory
because they are not asked of
men
• Benefits area also covered
© 2008 by Prentice Hall
3-30
Immigration Reform and Control
Act (IRCA) of 1986
• Granted amnesty to approximately 1.7
million long-term unauthorized workers
• Established criminal and civil sanctions
against employers who knowingly hire
unauthorized aliens
• Reduces threshold coverage to 4
employees
• Toughened criminal sanctions for
employers who hire illegal aliens
© 2008 by Prentice Hall
3-31
Immigration Reform and Control
Act (IRCA) of 1986 (Cont.)
• Denied illegal aliens federally funded
welfare benefits
• Legitimized some aliens through an
amnesty program
• Candidates for employment are not
required to be U. S. citizens but they must
prove they are eligible to work in the
United States
© 2008 by Prentice Hall
3-32
Immigration Reform and Control
Act (IRCA) of 1986 (Cont.)
• Employers must require all new
employees to complete and sign a
verification form (Form I-9) to certify their
eligibility for employment
• Establish their eligibility for employment by
presenting a U.S. passport, alien
registration card with photograph, or a
work permit that establishes the person’s
identity and employment eligibility
© 2008 by Prentice Hall
3-33
Illegal Immigration Reform and
Immigrant Responsibility Act of
1996
• Passed partly in response to the fact that at least one of
the terrorists who blew up World Trade Center (1993)
had legally entered on a student visa
• Places severe limitations on persons who come to
United States and remain in the country longer than
permitted by their visas and/or persons who violate their
nonimmigrant status
• Three year ban
• Ten year ban
© 2008 by Prentice Hall
3-34
Americans with Disabilities Act of
1990 (ADA)
• Prohibits discrimination against qualified
individuals with disabilities
• Person who has, or is regarded as having,
a physical or mental impairment that
substantially limits one or more major life
activities, and has a record of such an
impairment, or is regarded as having such
an impairment
© 2008 by Prentice Hall
3-35
Americans with Disabilities Act
(ADA) (Cont.)
• EEOC guidelines on pre-employment
inquiries and tests regarding disabilities
prohibit inquiries and medical
examinations intended to gain information
about applicants’ disabilities before a
conditional job offer
• Ask only about potential employees’ ability
to do the job, and not about their
disabilities
© 2008 by Prentice Hall
3-36
Civil Rights Act of 1991
• Provide appropriate remedies for intentional
discrimination and unlawful harassment
• Codify business necessity and job related
• Confirm authority and guidelines for finding of
disparate impacts under Title VII. Disparate
impact occurs when certain actions in the
employment process work to the disadvantage
of members of protected groups.
• Concept discussed under the topic of adverse
impact.
© 2008 by Prentice Hall
3-37
Civil Rights Act of 1991 (Cont.)
• Expand scope of relevant civil
rights statutes to provide adequate
protection to victims of
discrimination
• Extraterritorial employment
• Does not apply to U.S. companies
operating in other countries if it
would violate laws or customs of
foreign country
• Glass Ceiling Act
© 2008 by Prentice Hall
3-38
Damages Permitted
Number of
Employees
Damages
15-100
$50,000
101-200
201-500
Over 500
$100,000
$200,000
$300,000
© 2008 by Prentice Hall
3-39
Glass Ceiling
Invisible barrier in
organizations that
prevents many women
and minorities from
achieving top-level
management positions
© 2008 by Prentice Hall
3-40
Uniformed Services Employment and
Reemployment Rights Act (USERRA) of
1994
• Provide protections to Reservists and
National Guard members
• Workers entitled to return to civilian
employment after completing military
service
• Intended to eliminate or minimize
employment disadvantages to civilian
careers that can result from service in
uniformed services
© 2008 by Prentice Hall
3-41
Veterans’ Benefits Improvement Act
(VBIA) of 2004
• Amends portions of the USERRA
• Enhances housing, education, and other
benefits for veterans
• Requires employers to post a notice
informing employees of their rights under
USERRA
• Increases the health care continuation
period for employees on military leave
from 18 months to 24 months
© 2008 by Prentice Hall
3-42
State and Local Laws
• State and local laws
affect EEO
• When EEOC
regulations conflict with
state or local civil rights
regulations
• Legislation more
favorable to women
and minorities applies
© 2008 by Prentice Hall
3-43
Significant U.S. Supreme Court Decisions
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Griggs v Duke Power Company
Albermarle Paper Company v Moody
Phillips v Martin Marietta Corporation
Espinoza v Farah Manufacturing
Company
• Dothard v Rawlingson
• University of California Regents v Bakke
© 2008 by Prentice Hall
3-44
Significant U.S. Supreme
Court Decisions (Cont.)
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American Tobacco Company v Patterson
Adarand Constructors v Pena
Grutter v Bollinger
Gratz v Bollinger
O'Connor v Consolidated Coin Caterers
Corp.
© 2008 by Prentice Hall
3-45
Griggs v Duke Power Company
• Major decision affecting HR
management
• When HR management
practices eliminate higher
percentage of minority or
women applicants, burden
of proof on employer to
show practice is job related
© 2008 by Prentice Hall
3-46
Griggs v Duke Power Company (Cont.)
• Questions in employment procedures
that should be avoided if not job related
include credit record, conviction record,
garnishment record, and education
• Asking nonjob-related questions is legal;
it is how a hiring person uses information
that makes it illegal
© 2008 by Prentice Hall
3-47
Albermarle Paper Company v
Moody
Reaffirmed idea that
any test used in
selection process, or
in promotion
decisions, must be
validated if it has an
adverse impact on
women and minorities
© 2008 by Prentice Hall
3-48
Phillips v Martin Marietta
Corporation
• Company discriminated
against woman because she
had young children
• Major implication – Firm
cannot impose standards for
employment only on women
• Neither application forms nor
interviews should contain
questions for women that do
not
also
apply
to
men
© 2008 by Prentice Hall
3-49
Phillips v Martin Marietta
Corporation (Cont.)
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•
•
•
•
Examples of questions that should not be
asked are:
Do you wish to be addressed as Ms.,
Miss, or Mrs.?
Are you married?
Do you have children?
Do you plan on having any more children?
Where does your spouse work?
© 2008 by Prentice Hall
3-50
Espinoza v Farah Manufacturing
Company
• Title VII does not
prohibit
discrimination on
basis of lack of
citizenship
© 2008 by Prentice Hall
3-51
Dothard v Rawlingson
• Impact of decision was height and weight
requirements must be job related.
• Argument does not rebut prima facie
evidence showing requirements have
discriminatory impact on women, whereas
no evidence was produced correlating
these requirements with requisite amount
of strength thought essential to good
performance
© 2008 by Prentice Hall
3-52
University of California Regents v
Bakke
Reaffirmed that race may be taken into
account in admission decisions
© 2008 by Prentice Hall
3-53
American Tobacco Company v
Patterson
Allows seniority and
promotion systems
established since
Title VII to stand,
although they
unintentionally hurt
minority workers
© 2008 by Prentice Hall
3-54
O’Connor v Consolidated Coin
Caterers Corp.
Declared discrimination
is illegal even when all
employees are
members of the age
protected age group.
© 2008 by Prentice Hall
3-55
Adarand Constructors v Pena
Criticized moral
justification for affirmative
action, saying raceconscious programs
cause unconstitutional
reverse discrimination
and harm those they
seek to advance
© 2008 by Prentice Hall
3-56
Grutter v Bollinger
• Appeared to support the Bakke decision
• Ruled in a 5-4 decision that colleges and
universities have a compelling interest in
achieving diverse campuses
• Schools may favor black, Hispanic, and
other minority students in admissions as
long as administrators take the time to
assess each applicant’s background and
potential
© 2008 by Prentice Hall
3-57
Gratz v Bollinger
In trying to achieve diversity, colleges and
universities cannot use point systems that
blindly give extra credit to minority
applicants
Court determined that Michigan’s 150-point
index for screening applicants, which gave
an automatic 20 points to minority
applicants, was not the proper way to
achieve racial diversity
© 2008 by Prentice Hall
3-58
Equal Employment Opportunity
Commission (EEOC)
• Title VII of Civil Rights Act, as
amended, created the EEOC
• Filing a discrimination charge
initiates EEOC action.
• Certain exceptions to coverage of
Title VII
© 2008 by Prentice Hall
3-59
Steps in Handling a Discrimination Case
Charge Filed
Attempt at a No-Fault Settlement
Investigation by the EEOC
Issue a Probable Cause or a No Probable Cause Statement
Attempt at Conciliation
Recommendations for or Against Litigation
Recommendation Against
Litigation – Right to Sue Notice Issued
to Charging Party
Recommendation for
Litigation – EEOC Initiates Action
© 2008 by Prentice Hall
3-60
Equal Employment Opportunity
Commission (Cont.)
• Some factors that determine
whether EEOC will pursue
litigation are (1) number of
people affected by alleged
practice; (2) amount of money
involved in charge; (3) other
charges against employer; and
(4) type of charge.
• EEOC files suit in only about 1%
of charges
© 2008 by Prentice Hall
3-61
Uniform Guidelines on Employee
Selection Procedures
Single set of principles designed to assist
employers, labor organizations,
employment agencies, and licensing and
certification boards in complying with
federal prohibitions against employment
practices that discriminate on basis of
race, color, religion, gender, and national
origin
© 2008 by Prentice Hall
3-62
Concept of Disparate Treatment
• Employer simply treats some people less
favorably than others because of race, religion,
sex, national origin, or age
• Most easily understood form of discrimination
• Common forms of disparate treatment include
selection rules with racial, sexual, or other
premise, prejudicial action, unequal treatment on
individual basis, and different hiring standards
for different groups
© 2008 by Prentice Hall
3-63
Concept of Adverse Impact
• Defined in terms of selection rates
• Established by Uniform Guidelines
• Occurs if women and minorities are not
hired at rate of at least 80% of bestachieving group
• Also called the four-fifths rule
© 2008 by Prentice Hall
3-64
Concept of Adverse Impact (Cont.)
Success rate for women and minority applicants
Success rate for best-achieving group applicants
= Determination of
adverse impact
• Assuming adverse impact shown, employers
have two avenues available if they desire to use
particular selection standard.
• First, employer may validate a selection device
by showing it is predictor of success
• Second avenue is bona fide occupational
qualification (BFOQ) defense
© 2008 by Prentice Hall
3-65
Adverse Impact Example 1
• During 2007, 400 people were hired for a
particular job. Of the total, 300 were white and
100 were black. There were 1,500 qualified
applicants for these jobs, of whom 1,000 were
white and 500 were black. Using the adverse
impact formula, you have:
• 100/500
0.2
________ = _____ = 66.67%
• 300/1,000
0.3
• Thus, adverse impact exists.
© 2008 by Prentice Hall
3-66
Adverse Impact Example 2
• During 2007, assume that 300 blacks and
300 whites were hired. But there were
1,500 qualified black applicants and 1,000
qualified white applicants. Using the
adverse impact formula, you have:
300/1,500
•
0.2
_________ = ____
300/1,000
=
66.67%
0.3
• Thus, adverse impact exists.
© 2008 by Prentice Hall
3-67
Additional Guidelines
• Guidelines on Sexual Harassment
• Guidelines on Discrimination
Because of National Origin
• Guidelines on Discrimination
Because of Religion
© 2008 by Prentice Hall
3-68
Guidelines on Sexual
Harassment
• Title VII generally prohibits
gender discrimination in
employment
• EEOC issued interpretative
guidelines
• Two distinct types of sexual
harassment; (1) where hostile
work environment is created,
and (2) when there is quid pro
quo
© 2008 by Prentice Hall
3-69
EEOC Definition of Sexual Harassment
Unwelcome sexual advances, requests for sexual favors, and
verbal or physical conduct of sexual nature that occur under
any of following situations:
1.
2.
3.
When submission to such conduct is made either
explicitly or implicitly a term or condition of individual’s
employment
When submission to or rejection of such conduct by
individual is used as basis for employment decisions
affecting individual
When conduct has purpose or effect of unreasonably
interfering with individual’s work performance or
creating intimidating, hostile, or offensive working
environment
© 2008 by Prentice Hall
3-70
Sexual Harassment
• Employers are liable for acts of supervisors,
regardless of whether employer is aware of
sexual harassment act
• Employer is responsible for acts of co-workers if
employer knew, or should have known, about
them
• May be liable for acts committed by
nonemployees in workplace
• Immediate and appropriate action
© 2008 by Prentice Hall
3-71
Meritor Savings Bank v Vinson
• First sexual harassment
case to reach U.S.
Supreme Court
• Ruled Title VII is not
limited to discrimination
with only economic or
tangible effects
© 2008 by Prentice Hall
3-72
Harris v Forklift Systems, Inc.
• Expanded hostile workplace concept and
made it easier to win sexual harassment
claims
• No longer does severe psychological
injury have to be proved. Plaintiff only
needs to show employer allowed hostile to
abusive work environment to exist
© 2008 by Prentice Hall
3-73
Oncale v Sundowner Offshore
Services
• Held that same-sex sexual harassment
may be unlawful under Title VII
• Does not prohibit all verbal or physical
harassment in the workplace, only that
which constitutes discrimination because
of sex
© 2008 by Prentice Hall
3-74
Guidelines on Discrimination
Because of National Origin
Discrimination on basis of national origin
as denial of equal employment opportunity
because of:
• Individual’s ancestors or place of birth
• Individual has physical, cultural, or
linguistic characteristics of national origin
group
© 2008 by Prentice Hall
3-75
Guidelines on Discrimination
Because of National Origin (Cont.)
National origin protection also covers
(1) marriage or association with person of specific
national origin
(2) membership in, or association with,
organization identified with, or seeking to
promote interests of national groups
(3) attendance at, or participation in, schools,
churches, temples, or mosques generally used
by persons of national origin group
(4) use of individual’s or spouse’s name that is
associated with national origin group
© 2008 by Prentice Hall
3-76
English-only Rule
• Courts generally ruled in employer’s favor
if rule would promote safety and product
quality and stop harassment
• Rule must be justified by a compelling
business necessity
© 2008 by Prentice Hall
3-77
Guidelines on Discrimination
Because of Religion
Employers have
obligation to
accommodate religious
practices unless they can
demonstrate a resulting
hardship
© 2008 by Prentice Hall
3-78
Methods for Accommodating
Religious Practices
• Voluntary substitutes
• Flexible scheduling
• Lateral transfers
• Change in job assignments
• Union should accommodate by
permitting donations
© 2008 by Prentice Hall
3-79
Executive Order
Directive issued by
President, having force
and effect of laws
enacted by Congress
© 2008 by Prentice Hall
3-80
Affirmative Action
• Many believe the concept of affirmative
action got its beginning in 1948 when
former president Harry S. Truman officially
ended racial segregation in all branches of
the military by issuing Executive Order
9981
• Officially it began in 1965 when President
Lyndon B. Johnson signed EO 11246
© 2008 by Prentice Hall
3-81
Executive Order 11246
• Establishes the policy of the U.S.
government as providing equal opportunity
in federal employment for all qualified
people
• Prohibits discrimination in employment
because of race, creed, color, or national
origin
• Positive, continuing program in each
executive department and agency
© 2008 by Prentice Hall
3-82
Executive Order 11375
• In 1968 EO 11246
modified.
• Changed word “creed” to
“religion” and added sex
discrimination to other
prohibited items
© 2008 by Prentice Hall
3-83
Affirmative Action Programs
Approach developed by
organizations with government
contracts to demonstrate workers
are employed in proportion to
their representation in firm's
relevant labor market
© 2008 by Prentice Hall
3-84
Degree of Control OFCCP
Will Impose
• Involves $10,000- $50,000 contracts.
These contractors governed by equal
opportunity clause
• If contractor (1) has 50 or more
employees, (2) has contract of $50,000 or
more, must develop written affirmative
action program for each establishment and
file annual EEO-1 report
© 2008 by Prentice Hall
3-85
Degree of Control OFCCP
Will Impose (Cont.)
• When contracts exceed $1 million
• All previously stated requirements must be
met
• OFCCP is authorized to conduct preaward compliance reviews
© 2008 by Prentice Hall
3-86
What Is Included in an AAP?
• Policy statement has to be developed
• Analysis of deficiencies in the utilization of
minority groups and women
• Conduct a utilization analysis
• Analyze of all major job groups
• Underutilization is defined as having fewer
minorities or women in a particular job
group than would reasonably be expected
by their availability
© 2008 by Prentice Hall
3-87
Underutilization Example
• If utilization analysis shows the availability
of blacks for a certain job group is 30%,
organization should have at least 30%
black employment in that group. If actual
employment is less than 30%,
underutilization exists, and firm should set
a goal of 30% black employment for that
job group.
© 2008 by Prentice Hall
3-88
Primary Focus
• Goals and timetables
• Annual and ultimate
• Annual goal is to move toward
elimination of underutilization
• Ultimate goal is to correct all
underutilization
• Goals should not establish inflexible
quotas that must be met
© 2008 by Prentice Hall
3-89
A Global Perspective: Not the
Glass Ceiling, the Bamboo Ceiling
• Asian Americans are fastest-growing
minority in the U.S.
• Why are there are so few Asian Americans
at the very highest levels of U.S.
companies?
• Most Asians share certain cultural values
that are the opposite of what it takes to
succeed in the corporate world
© 2008 by Prentice Hall
3-90
© 2008 by Prentice Hall
3-91
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