Most U.S. companies and institutions were originally patterned by the values and experiences of western European white men. These individuals were the ones who established the American organizational cultures. These white males built cultures that mirrored their own values and experiences and that supported their goals and priorities. During this early era, most women did not work outside the home and minority roles were very limited in the workplace. Although diversity did exist, those individuals who were different were expected to assimilate into the existing white male culture (Dickson, 1992; Jamieson & O'Mara, 1991; Loden & Rosener, 1991; Thomas, 1990). Even though individuals who are different from white males now constitute the great majority of society, and the American workforce, they continue to be perceived as being outside the cultural norm in many organizations. This has resulted in limited career opportunities and low expectations for most diverse populations (Dunnette & Motowidlo, 1982; Loden & Rosener, 1991).
In the near future, the labor market will become more and more a seller's market. The shrinking of the workforce and the shortage of appropriate skilled labor will force employers to compete to attract, retain, and effectively manage all available employees (Finney, 1989; Jackson & Alvarez, 1992; Johnston & Packer, 1987; Morrison, 1992). Many organizations are changing their cultures and beginning to apply more emphasis to valuing and managing diversity mainly because they have a greater understanding of the significant role that diversity will play in their future competitive and organizational success (Finney, 1989; Griggs, 1995; S. Jackson, 1991; O'Hare, 1993).
The demographic composition of our society and the workforce has changed considerably and is expected to continue undergoing dramatic changes in the near future (Bolick & Nestleroth, 1988; Johnston & Packer, 1987). Loden and Rosener (1991) conclude that the demographic change will be away from the European-American male and more towards an increasingly diverse and segmented population. This population will include women and men of all races, ethnic backgrounds, ages, and lifestyles. It will include people of diverse sexual/affectional orientations, religious beliefs, and different physical abilities, who will need to work together effectively.
Others also agree that modern society is undergoing a historic transition from a predominately white society rooted in Western culture to a global society composed of diverse racial and ethnic minorities (O'Hare, 1993; Thomas, 1996; Triandis, Kurowski, & Gelfand, 1994). The U.S. Bureau of the Census (1994) predicts that by the 21st century today's racial and ethnic minorities who now comprise about 25% of the U.S. population will comprise nearly one-half of the population. In the next century, African Americans, Asians, and Latinos will outnumber whites in the U.S.
In addition, the rapid growth in the number of minorities has been marked by an increasing diversity in terms of language differences, cultural beliefs, and other practices within these population groups as new immigrant groups from the 1980s (e.g., Vietnamese, Cambodians, Dominicans, Nicaraguans) have joined earlier immigrant groups of Mexican Americans, Cuban Americans, Chinese Americans, and Japanese. Also, by 2010, Hispanics are expected to supplant African Americans as the nation's largest minority group. Hispanics have higher fertility than African Americans and Whites, more immigration, and the infant mortality rate of African Americans is twice that of Hispanics (O'Hare, 1993).
The demographic trends will most certainly affect the makeup of the U.S. labor force. Throughout the 1990s, people of color, white women, and immigrants will account for 85% of the net growth in our nation's labor force (Goldstein & Gilliam, 1990; Johnston & Packer, 1987; Offermann & Gowing, 1990). In 1980, women made up 43% of the total workforce. By the year 2000, they will account for more than 47%, and 61% of all American women will be employed. Also, in 1980, African Americans made up 10% of the total workforce and Hispanics accounted for 6%. By the end of the 1990s, African Americans will make up 12% of the total labor force, Hispanics will account for 10%, and Asians another 4% (U.S. Bureau of Labor Statistics, 1993).
The significant increase in minority populations also affects marketplace demands (Rossman, 1994). The Population Reference Bureau (Popular Reference Bureau Integrated, 1997) concludes that African Americans, Asians, and Latinos currently make up about 21% of the U.S. consumer base and they are expected to reach 25% by the year 2000. Pollar and Gonz[daggerdbl]lez (1994) noted that organizations benefit from diversity by tapping into the tremendous purchasing power that minorities have. They provided two examples: (1) older Americans spend over $800 billion annually; and (2) minority markets buy more goods and services than any country that trades with the United States (p. 22). African Americans represent a potential spending power of $300 billion which would be ninth in the world (Rossman, 1994). To market products and serve a variety of diverse customers effectively, organizations will have to employ a diverse workforce (C. Jackson, 1991).
The American workforce will continue to mature, and there will be an increase in the racial and ethnic diversity within the elderly population as well (U.S. Department of Commerce & U.S. Department of Health and Human Services, 1993). The average age of the workforce is expected to increase, from age 36 in 1986 to age 39 by the year 2000. The combination of changes in the age distribution of employees and new flatter organization structures mean that several generations of workers can find themselves working side by side (Jackson & Alvarez, 1992). Even if employees from these different generations were all white Americans, they would differ fundamentally in their values and attitudes about work (Elder, 1985), physical and mental functioning (Rhodes, 1983), as well as the everyday concerns that reflect their age group. There will also be increasing differences within each generation, gender, and cultural group.
An increasing number of youth in the 16- to 24-year-old group will be entering the job market by the end of the 1990s. These youths are likely to be more ethnically diverse than the workers in today's workforce (Finney, 1989; Johnston & Packer, 1987; Triandis & Bhawuk, 1994). According to Hamilton (1990), "The great challenge facing the nation is to prepare a changing population of young people to do new kinds of work. Failure imperils economic health, social progress, and democracy itself" (p. 1). As the U.S. economic conditions get better, the demands for workers will increase and employers will also have to turn increasingly to young people or otherwise suffer from a serious labor shortage.
Racial and linguistic biases continue to stifle employment opportunities for young minority youth. Schools have not fully developed, nor have workplaces fully utilized, the talents of minority youth (Hamilton, 1990; Triandis, 1976). Minority youths have a greater probability of being poor, living in poverty, or otherwise being disadvantaged. An increasing number of young people are diverging from the white middle-class pattern. Educational institutions and workplaces must adapt to changes in the youth population. Education and workplace training that are typically effective with advantaged youth will not necessarily enable disadvantaged youth to reach their full potential (Bloomfield, 1989; Hamilton, 1990; Ihlanfeldt & Sjoquist, 1993).
Gay men, lesbians, and bisexual individuals are also defined as new minorities in the workplace (Carnevale & Stone, 1995). Even though a lesbian and gay civil rights movement in the United States emerged in the 1950s, members of these groups are still rejected, and sometimes even more so than other minorities (Rogers, 1997). The proportion of the gay population has been a debate for decades. According to Stewart (1996), about five million people in the United States form part of this minority group. They are becoming not only an important part of the workforce but also an important market segment. They constitute a segment of the American population which is highly educated and is financially better off than other households (Carnevale & Stone, 1995).
People with disabilities form another group that is becoming increasingly part of the workforce. Workers with disabilities have to be integrated in the labor force by law. They have been historically stereotyped and discriminated against because of their disabilities: "Such individuals are generally viewed as not being capable employees" (Henderson, 1994a, p. 105). However, the Americans with Disabilities Act of 1990 has been a major piece of legislation that has tried to reverse this situation for workers with disabilities. Henderson identified the reasons the American with Disabilities Act was created:
To (1) provide a clear and comprehensive national mandate for the elimination of discrimination against individuals with disabilities; (2) provide clear, strong, consistent, enforceable standards addressing discrimination against individuals with disabilities; (3) ensure that the federal government plays a central role in enforcing the standards established in the act on behalf of individuals with disabilities; and (4) invoke congressional authority, including the power to invoke the Fourteenth Amendment to regulate commerce, in order to address major areas of discrimination faced day-to-day by people with disabilities.
(p. 105)
Due to the Americans with Disabilities Act of 1990, people with disabilities benefit, as does society, because supported employment helps decrease government subsidies and increases tax revenues and productivity (p. 107).
When considering the changes in society and the workplace, it is easy to understand the significant role that diversity will play in the future competitive and organizational success. Regardless of whether one looks at diversity as a societal, a workplace, or a consumer marketing issue, these demographic changes cannot be disregarded (Jackson & Associates, 1992). The character of society and the workforce is changing and is expected to change significantly in the future. All these changes have directed many organizations to explore the business implications and have provided a strong rationale for managing diversity in the workplace.