Deck 17: Managing a Diverse Workforce

Question 1

From the evidence presented in the case, do you think that Wal-Mart violated any U.S. laws, as shown in Figure 17.4? If so, which ones, and why?

Answer 1

The given case describes about a legal case between world known grocery store chain 'WM stores' and few female employees. The female employees filed a case against the store on the basis of gender discrimination. The female employees filed the case against the company based on class action claiming that they have filed the case on behalf of approximately 1.5 million female employees. It was the largest employment discrimination lawsuit ever heard in US history. The supreme court of US reversed the order of the district court.
On studying the case, one can find evidences where 'WM' has clearly violated multiple U.S. laws that have been highlighted in the book. The store has violated 'Equal Pay Act (1963)'. This act makes it mandatory for an organization to pay equal payment for substantially equal work by both men and women. In the case there are evidences given which clearly shows violations of the act. The case mentions that the plaintiff Ms. 'D' had put allegations against WM stores that, females were paid less than men in comparable positions, despite of having seniority and equal or better qualifications. There were also charges of female employees getting fewer promotions to the position of store managers and had long waiting time as compared to male counterparts.
The statistical data presented by the lawyers showed that women's representation was less at each successive position in the management. 90 percent of the female employees were customer service managers (supervisors and cashiers) but only 15 percent females were store managers. There are examples such as female manager's average annual earnings were $89,280 but male employees on the same level earned $105, 682. These examples showed difference in pay based on gender.
Another law that has been violated in this case is 'Civil Rights Act (1964)'. This right prohibits discrimination in employment based on color, race, gender, or nationality. In this case, the discrimination at workplace was based on gender. There are evidences that reflect the violations of the law. For example, it is being mentioned in the case that women got less promotions to store management positions as compared to male employees. Also, there have been evidences that female employees waited for longer period as compared to male employees at the same level. With each successive level in the management, female representation decreased which indicates discrimination on basis of gender.

Question 2

What actions has Wal-Mart taken before and after the certification of the class action to promote equal opportunity for all employees?

Answer 2

The given case discuss about a legal case between well known food stores chain 'WM stores' and few female employees. The female employees filed a case against the firm on the basis of gender discrimination. The female employees filed the case against the company based on class action claiming that they have filed the case on behalf of approximately 1.5 million female employees. It was the largest employment discrimination lawsuit ever heard in US history. The supreme court of US reversed the order of the district court.
After studying the case details one can identifying some steps that WM stores took before and after the case to promote equal opportunity for all employees.
As per the store's statement on its website, the organization declared that it's a great place for women to work. During the course of contesting the lawsuit, the store established an 'Office of Diversity'. A chief diversity officer was also appointed. The firm linked officers' bonuses, in part, to their success in meeting diversity goals for the very first time. The firm also declared that it would promote females in proportion to the applicable numbers.
In year 2009, after the case, the firm' new CEO announced the formation of a global women's council that would comprise of 14 members representing diverse markets in which the company is operational. The main aim of this council was to increase female participation in management.
The supreme court of the U.S. revered the order of the district court by not admitting the case as a class action. But, there are evidences that showed that discrimination existed on the basis of gender. Therefore, the management must take efficient measures to eliminate discrimination in any form thus avoiding reputation loss and loss of money in legal hassles.

Question 3

If you were an executive of the company, what further steps would you take, if any? How would you communicate your diversity program to your employees and to the public?

Answer 3

The given case discuss about a legal case between well reputed food chain 'WM stores' and few female employees. The female employees filed a case against WM stores on the basis of gender discrimination. The female employees filed the case against the company based on class action claiming that they have filed the case on behalf of approximately 1.5 million female employees. It was the largest employment discrimination lawsuit ever heard in US history. The supreme court of US reversed the order of the district court.
In the given circumstances and changing laws and policies, an organization must take various steps to make the workplace discrimination free as well as foster an inclusive culture. There are various steps executives may take to promote diversity and eliminate any kind of discrimination at workplace. Following steps could be taken by the organizations and management to improve work culture and get rid of discrimination:
• Organizations must follow laws and adopt policies that makes it mandatory to provide equal opportunities for employment and prohibits discrimination based on gender, race and other diversity factors.
• The executives must implement policies and procedures that foster welcoming, fair and accommodating work culture.
• The firms must have clear diversity mission and objectives. And the responsibility can be given to the managers to implement them and they can be held accountable for the success and failure of the mission.
• Companies must provide cultural and sensitivity training to all employees including top managers.
• Managers can be rewarded for meeting diversity goals.
• Recruitment practices must be such that allows having a pool of diverse and qualified candidates.
• Steps can be taken to break the 'glass ceiling'. It includes identifying people from diverse backgrounds including sex, color, religion etc. and provide them with mentors and other required support.
• Various diversity councils or committees can be charged with the responsibility of monitoring company's goals regarding diversity and firm's progress towards those goals.
After reading the case, one can identify that such type of lawsuits harm an organization's reputation as well as bring lot of costs to the firm. The firm can communicate about diversity programs to the employees and public through various mediums. In today's world the best medium to communicate about such programs and practices are through social networking sites. The firm can communicate about the programs through firm's web site. They can use print as well as digital media for advertising about their diversity programs. The firms must include company's policies and procedures about diversity in employee handbook. Firms can sponsor programs that promote diversity this would help in promoting the organizations view about diversity and inclusion in general public as well as employees. Firm can provide educational training about diversity and inclusion to employees to promote an inclusive and fair work culture. Employees working for such firms would act as ambassadors for the organizations that promote diversity at workplace.

Question 4

What do you think would be an appropriate outcome of this case, and why?