Organizational Behavior V2.

0
By Talya Bauer and Berrin Erdogan
Published by:
Flat World Knowledge, Inc.

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13-1
Chapter 2

Managing Demographic
and Cultural Diversity
Learning Objectives

1. Understand what
constitutes diversity
2. Explain the benefits of
managing diversity
3. Describe challenges of
managing a workforce with
diverse demographics
4. Describe the challenges of
managing a multicultural
workforce
5. Understand diversity and
ethics © 2010 Jupiterimages Corporation

6. Understand cross-cultural
issues regarding diversity

1-3
Case Study: IBM

Virginia “Ginni” Rometty became Chair of the Board and CEO of IBM in 2012. She began
her career with IBM in 1981 in Detroit, Michigan. Since then she held a series of
leadership positions including Senior Vice President and Group Executive, IBM Sales,
Marketing and Strategy where she was responsible for business results in the 170 global
markets in which IBM operates and pioneered IBM's rapid expansion in the emerging
economies of the world. As part of this, she established IBM's Growth Markets
organization, which is expected to contribute as much as 30% of IBM revenues by 2015.
Source: Photo courtesy of IBM.
Case Discussion Questions

1. IBM has been championed for its early implementation of equality among
its workforce. At the time, many of these policies seemed radical. To
IBM’s credit, the movement toward equality worked out exceptionally
well for them. Have you experienced policy changes that might seem
radical? Have these policies worked out? What policies do you feel are
still lacking in the workforce?
2. If you or your spouse is currently employed, how difficult would it be to
take time off for having a child?
3. Some individuals feel that so much focus is put on making the workplace
better for underrepresented groups that the majority of the workforce
becomes neglected. Do you feel this was the case at IBM? Why or why
not? How can a company ensure that no employee is neglected, regardless
of demographic group?
4. What types of competitive advantages could IBM have gained from
having such a diverse workforce?
What is Diversity?

• Diversity is the way in which people are similar or

different from each other.

© 2010 Jupiterimages Corporation

1-6
Benefits of Diversity

Higher creativity in decision making

Better understanding and service of customers

More satisfied workforce

Higher stock prices

Lower litigation expense

Higher company performance

Challenges of Diversity

• The similarity-attraction phenomenon is

the tendency to be more attracted to
individuals who are similar to us.
Challenges of Diversity

Deep level
diversity
•Values
•Attitudes
•Beliefs

Surface level diversity

•Gender
•Race
•Age
•Physical Abilities
Challenges of Diversity

• A faultline is Asian Female Caucasian Male

an attribute Asian Female Caucasian Male
along which
Asian Female Caucasian Male
a group is
split into
subgroups. Asian Male Caucasian Female

Asian Female Caucasian Male

Asian Female Caucasian Male

Challenges of Diversity

• Stereotypes
are Men Women
generalizations Assertive Relationship
about a
particular
oriented
group of Active Passive
people.
Specific Diversity Issues

Sexual Gender
Orientation Diversity Race Diversity
Diversity • Earnings Gap
• Glass Ceiling

Employees with Religious

Age Diversity
Disabilities Diversity
OB Toolbox: I think I am being asked illegal
interview questions. What can I do?

Refuse to answer

Answer shortly

Answer the intent

Walk away from the

interview
Managing Cultural Diversity

Diversity
Training
Make Programs
Review
managers
Recruitment
accountable
Practices
for diversity

Build a
Affirmative
culture of Diverse
Action
respecting Organization
Programs
diversity
OB Toolbox: Dealing With Being Different

Invest in
Choose your
building
mentor
effective
carefully
relationships

Investigate
Know your
company
rights
resources

1-15
Discussion

• What does it mean for a company to manage diversity

effectively? How would you know if a company is doing
a good job managing diversity?
• What are the benefits of effective diversity
management?
• How can organizations deal with the “similarity-
attraction” phenomenon? Left unchecked, what are the
problems this tendency can cause?
• What is the earnings gap? Who does it affect? What are
the reasons behind earnings gap?
• Do you think that laws and regulations are successful in
eliminating discrimination in the workplace? Why or
why not?
Cultural Diversity

• Culture refers to values, beliefs, and

customs that exist in a society.

© 2010 Jupiterimages Corporation

 Individualism-Collectivism

Individualism Collectivism
Cultures in which people Cultures where people have
define themselves as stronger bonds to their groups
individuals and form looser and group membership forms
ties with their groups. their self identity.
 USA  Guatemala
 Australia  Ecuador
 UK  Indonesia
 Canada  Pakistan
 Hungary  China
Power Distance

Low Power Distance High Power Distance

A society that views an A society that views an
unequal distribution of unequal distribution of
power as relatively power as relatively
unacceptable. acceptable.
 Austria  Malaysia
 Denmark  Slovakia
 Israel  Philippines
 Ireland  Russia
 New Zealand  Mexico
Uncertainty Avoidance

Low Uncertainty Avoidance High Uncertainty Avoidance

Cultures where individuals Cultures where individuals
are comfortable in prefer predictable situations
unpredictable situations and and have a low tolerance for
have a high tolerance for ambiguity.
ambiguity.
 Denmark  Belgium
 Jamaica  El Salvador
 Singapore  Greece
 China  Guatemala
 Sweden  Portugal
Aggressive-Nurturing (Masculinity-Femininity)

Masculinity Femininity
Cultures where individuals Cultures where individuals
value achievement, value maintaining good
competitiveness, as well as relationships, quality of life,
acquisition of money and and caring for the weak.
other material objects.
 Slovakia  Norway
 Japan  Netherlands
 Hungary  Sweden
 Austria  Costa Rica
 Venezuela  Chile
OB Toolbox: Prepare Yourself for a Global Career

Learn a language

Immerse yourself in
different cultures

Develop an openness to
different experiences

Develop a strong social

support network

Develop a sense of humor

Case Study: Goodwill Industries

Source: Ken Wolter / Shutterstock.com

 Case Discussion Questions

1. What are Goodwill’s competitive advantages?

2. Goodwill has found success in the social services. What problems might result
from hiring and training the diverse populations that Goodwill is involved with?
3. Have you ever experienced problems with discrimination in a work or school
setting?
4. Why do you think that Goodwill believes it necessary to continually innovate?
Build Cultural Intelligence

• Cultural intelligence is the capability to

understand how a person’s cultural
background influences behavior.

© 2010 Jupiterimages Corporation

Avoid Ethnocentrism

• Ethnocentrism is the belief that one’s

own culture is superior to other
cultures.
Listen to Locals

• Convergys, a Cincinnati-based call center

company was building a cafeteria for its
employees in India. During the planning
phase, a VP from India pointed out that
Indian food is served hot, and building a
cafeteria to serve only sandwiches would
create dissatisfied employees in India.
Culture Changes

• It is important to recognize that culture

changes. Showing sensitivity to the
Indian caste system may be outdated
advice for anyone doing business in India
today.
Do Not Always Assume Culture Is the Problem

• When marketing people from the United

States interact with engineers in other
countries, misunderstanding can occur
due to the difference in viewpoint
between marketing and engineering
employees rather than different cultural
backgrounds.
Discussion

• What is culture? Do countries have uniform national

cultures?
• How would you describe your own home country’s
values on the four dimensions of culture?
• Reflect on a time when you went to a different
country or interacted with someone from a different
culture. How did the cultural differences influence
your interaction?
• How does culture influence the proper leadership style
and reward system that would be suitable for
organizations?
• Imagine that you will be sent to live in a foreign
country different from your own in a month. What are
the types of preparations you would benefit from
doing?