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This note spotlights continuing prejudice in organizational life and makes suggestions for how to reduce or eliminate it. The note defines prejudice, discrimination, and institutional prejudice. The dynamics of prejudice formation are outlined. Suggestions for managing personal and institutional prejudice are given. The note is intended for use as a springboard for class discussion on prejudice and discrimination in organizations. The approach is more value-laden than descriptive of the legal definitions. This note and its teaching note are applicable to "John Franklin" (OB-0382) and "Cheryl Young" (OB-0383).