Managing Global & Culturally Diverse Organization.

Jonathan, May, Rosanna, Weijing

Managing Global & Culturally Diverse Organization

Agenda

Introductory VideoDiversityCase study: It’s just

feedbackOrganizational CultureGlobal Management

Diversity

All the ways in which we differ**The Pillsbury Company’s definition

Gender

Race

Age

Physical Abilities

Sexual Orientation

Cultural Background

Ethnic Background

Attitudes

Perspectives

QualitiesCalifornia State University Channel Islands www.csuci.edu/.../html/web_data/file13.htm

The Law• Acknowledges diversity • stresses equal rights • Protects against

discrimination

Why do we need to manage diversity?

Why Manage Diversity

Talent management

Market Understanding

Better Leadership

Enhanced Creativity

Quality Team Work

0%10%

20%30%

40%50%

60%70%

80%90%

100%

Pecentage

Human Resource Executives Answered:

Why Manage Diversity

Why?

In 1992 Hay Group surveyed 1,405 company: Only 5% are doing a very good job of managing the diversity of their workforces.

Diversity management requires a long-term commitment and the payback is often not as tangible or predictable as other investments .

Impact on the bottom line is not easily demonstrated

Why Manage DiversityCost savings• Higher turnover costs• Higher Absenteeism Rates• Discrimination Lawsuits

Winning the competition for talent• Attracting, retaining, and promoting excellent employees • Sustaining competitive advantage

Driving business growth• Increased marketplace understanding• Greater creativity• Higher quality team problem-solving• Improved leadership effectiveness• Better global relations

Cost Savings

Turnover and absenteeism rates among women and people of color is high:Black Vs Whites 40% higherWomen Vs Men Twice as higher at all agesConsequence:Added recruiting, staffing, and training costs per person (93% of departing employee’s annual salary)

Cost Savings

Liability: Lawsuits on Sexual, Race and Age Discrimination

Awareness raised the frequency of complaints: 20 times more in 1990 as compared to 1970

The average jury award for a discrimination lawsuit is $600,000 (USA)

Winning the Battle for Talent

Organizations are competing to recruit, develop and retain the best employees from minorities groups to increase their representation in the labour pool.Attract by applying best PracticesRetain by: offering feedback, coaching and counselling and engage in mentoring relationshipsProvide promotion opportunities

Driving Business Growth

• Increased marketplace understanding• Greater creativity• Higher quality team problem-solving• Improved leadership effectiveness• Better global relations

How Cultural Differences ManifestGenderlect * Cross-National

Men: Seek independenceWomen: Seek InterdependenceMen: Prefer conflictWomen: Seek to mitigate conflict & preserve harmonyMen: DirectWomen: IndirectMen: Engage in report talkWomen: Engage in rapport talkMen: Adopt a lecturing modeWomen: Engage in listening modeMen: Say “yes” only when they agreeWomen: Say “yes” to mean “I’m with you. I follow”

Americans: Value independenceJapanese: Value interdependenceAmericans: Are confrontativeJapanese: Seek to preserve HarmonyAmericans: Are directJapanese: Are indirectAmericans: Engage in report talkJapanese: Engage in rapport talkAmericans: Adopt a lecturing modeJapanese: Engage in listening modeAmericans: Say “yes” when they agreeJapanese: Say “yes” to mean “I understand”

Source: Dr. Tanner’s Book: You Just Don’t Understand: Men and Women in Conversation (1990). Cited in: Managing Cross-National and Intra-National Diversity By: Rosalie L. Tung. Publication: Human Resource Management (1986-1998); Winter 1993; 32, 4; pg. 461

http://www.jeitosa.com/presentations

Gestures

It’s Just FeedbackPlace US subsidiary of Japanese company

Employee American – 2 years on the job

Boss Japanese manager

Incident Employee receive 4/5 performance ratingEmployee dissatisfied, Asks for constructive feedback with specifics on how to

improveManager assures him that it is a good performance, without any specific details

OutcomeBoth are disturbed:

Employee: wanted to know where he stands, perceived his boss as ineffective, slave-driver, and unable to give an honest feedbackManager: wanted employee to feel good and be motivated to strive for excellence, perceived employee as immature for demanding constant feedback

Communication failed for both parties 

Diversity ManagementTwo types of diversity Management• Cross-national (Global) • Intra-national

Similarities Differences Acculturation process Styles and patterns of

communication

Legislation Magnitude Time horizon

Acculturation

Cultural Preservation

Yes No

Partner attractiveness

Yes Integration/ Pluralism

Assimilation

No Separation Deculturation

Modes by which two groups adapt to each other and resolve cultural differences

The Process of Diversity Management

To capitalize on the benefits and minimize the costs of worker diversity:

• Determining business objectives or needs

• Identifying actions required for each objective or need

• Conducting a cost/benefit analysis • Developing tracking mechanisms

to assess progress and financial impact

Organizational Culture

What is Culture?

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Internal IntegrationDetermines how members relate to one another•Constitutes a collective perspective of organization members (values, beliefs, norms)•Shared by most members of the organization•Systematically “passed along” to new members•Shapes members’ views of the organization and its purpose•Shapes members’ views of the job and its purpose

Provides sense of identity for members•Guides and controls behavior•Enhances internal cooperation•Guides decision-making•Enhances commitment•Provides justification•Allows anticipation of actions of others

External IntegrationInfluences how organization meets goals and deals with outsiders

•Influences perceptions of the organization by outsiders•Guides and controls behavior with/of outsiders•Shapes expectations of outsiders

Elements of Culture• Invisible Elements• Visible Elements

Question Does the invisible manifest in visible?Question Does the visible inform the invisible?

Elements of CultureInvisible Elements: • Values about what is important• Assumptions & beliefs about what is true• Attitudes toward others and issues• Norms about appropriate & inappropriate

Visible Elements• Symbols• Language & Slogans• Rituals and Ceremonies• Heroes• Stories

Cultural Intelligence (CQ)• Filipino School Study• She told The Chronicle newspaper in

Montreal that she confronted the principal, and was told: "Madame, you are in Canada. Here in Canada you should eat the way Canadians eat.".

• "Racism and ethnocentrism are an affront to human dignity and have no rightful place in any country in this modern day and age," said a statement from the government body.

“Leaders with high CQs understand how to encounter new cultural situations, judge what goes on in them and make appropriate adjustments to understand and behave effectively in those otherwise disorienting circumstances. They have repertories of strategies and behaviors of orienting themselves when they encounter unfamiliar behaviors and perspectives, so they can discern whether a seemingly bizarre behavior is explained by culture or is unique to a particular person or organization. Such discernment is critical in, for instance, cross-border negotiations, understanding new markets, unifying dispersed leadership teams and developing global marketing plans.”

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Cultural Models

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Four Types of Culture

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Cultures Around the World

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Cultural Differences

Intergenerational Cultures

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Workplace Differences• Generational differences and communication patterns are significant factors in

workplace differences. There are four generations in the workforce, with baby-boomers and Generation X populations comprising a significant portion of the total.

• These two groups share little in common relative to the desired work environment.• Baby boomers are team-oriented, tend to spend their entire career with one

organization, work long hours and communicate within homogenous relationships.• Gen Xers, on the other hand, are motivated by experiential work assignments with

diverse individuals, moving often from one assignment of job, and they desire balance in their work and life.

• Communication patterns are another source of workplace difference. For instance, nonverbal actions such as eye contact can have subtle differences, but if this difference is not understood it can have both an embarrassing and negative impact on the way business is done.

• Foe example, eye contact in the United States is seen as sign of confidence. In the United Kingdom, eye contact is necessary, but too much of it makes people uncomfortable. Some Arab nations value eye contact, and too little is disrespectful. But in many Asian Cultures, too much eye contact is considered rude and disrespectful.

• Leveraging cultural differences through cultural intelligence development can assist organizations in navigating through these complexities.

Cultural Change StrategiesDevelop self awareness by leadershipAvoid equating personal identity with that of the organizationAvoid elitist trap

Steps to be followed- Discourage the development of personality cult or hero worshipping- Practices delegation and participation to encourage development of enduring management structures independent of the influence of an individual leader

Encourage constructive dissent to take decision makers away from the influence of charismatic leader- Promote functional values (co-operation, discipline, fairness, initiatives)- Be willing to step aside or move on if the staying involved inhibits and transition to a more stable and strategic culture- Recruit and select people with values congruent with functional organizational values- Institutionalize the proper functional values by extensive socialization- Prevent the development of counter-cultures by a strong central culture- Remove the charismatic leader if he/she is blocking the effective transformation of the entrepreneurial organization into a strategic culture

Core Abilities Managing Across Cultures• Understand, appreciate, and use cultural factors that can affect behavior• Appreciate the influence of work-related values on decisions, preferences,

and practices• Understand and motivate employees with different values and attitudes• Communicate in the local language• Deal effectively with extreme conditions in foreign countries• Utilize a global mindset (use a worldwide perspective to constantly assess

threats or opportunities)

Diversity: Myths vs. RealitiesMyth (1) Diversity is about exclusivity.

No its about inclusivity and maximizing everyone`s talents and contributions for organizations to gain a competitive human resource advantage.

Myth (2) Diversity is just another fad.No, because the national and demographic workplace trends

prove its here to stay. The real question is whether you can manage it as a positive rather than a negative force for change in your organization.

Myth (3) Diversity is just another form of EEO/AAP.

No, because Diversity goes beyond compliance as an organizational commitment to excellence, by using diversity as a source of strength.

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Diversity: Myths vs. RealitiesMyth (4) Diversity is not a problem, Its an opportunityTrue, only if well managed

Myth (5) Diversity is the HR Departments responsibility . No, its our responsibility

Myth (6) Diversity is about just race and gender. No, because managing diversity is much broader and pervasive than just race and gender.

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Diversity: Myths vs. Realities

Myth (7) Diversity is only about minorities and women in the workplace. No its about recognizing the diversity of your internal(employees)and external customers to compete in a diverse market, both nationally and globally.

Global Management

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The Flattening of the World

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Stress in the International Situation

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Why International Assignments Fail…

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Hidden Costs of International Fail

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International Assignment Selection Process

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Global Mindsets Model

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Becoming a Globally ALERT Leader…

谢谢

Thank You!

Aitken, P. & Higgs M. (2010) Developing Change Leaders: The Principles and Practices of Change            Leadership Development.

Building a Business Case for Diversity Author(s): Gail Robinson and Kathleen Dechant Source: The Academy of Management Executive (1993-2005), Vol. 11, No. 3 (Aug., 1997), pp. 21 -31

de Anca, C., & Vázquez Vega, A. (2007). Managing diversity in the global organization :Creating new business values [Gestión de la diversidad en la organización global. English]. Houndmills, Basingstoke, Hampshire; New York: Palgrave Macmillan.

Fatehi, K. (2008). Managing internationally :Succeeding in a culturally diverse world. Thousand Oaks, CA: Sage Publications. Gundling, E. & Zanchettin, A. (2007) Global Diversity: Winning Customers and Engaging Employees            within World Markets. Nicholas Brealey International

Managing Cross-National and Intra-National Diversity. By: Rosalie L TungHuman Resource Management (1986-1998); Winter 1993; 32, 4; ABI/INFORM Global pg. 461

 Paton, R. A. & McCalman J. (2008) Change Management : A Guide to Effective Implementation            3rd Edition. Sage

Tallman, S. (2009). Global strategy :Global dimensions of strategy. Chichester, West Sussex, U.K.: John Wiley & Sons.

Valuing Diversity: A Tale of Two Organizations Author(s): Jacqueline A. Gilbert and John M. Ivancevich Source: The Academy of Management Executive (1993-2005), Vol. 14, No. 1, Themes: Forming Impressions and Giving Feedback (Feb., 2000), pp. 93-105

Wild, J. J., Wild, K. L., & Han, J. C. Y. (2008). International business :The challenges of globalization (4th ed.). Upper Saddle River, N.J.: Pearson Prentice Hall.

The Role of Human Resources in Managing Diversity: Change Agent or Change Captive? Retrieved August 2, 2010, from http://jhuaa.org/ppts/The-Role-Of-Human-Resources-in-Managing-Diversity.ppt. Author unknown (2007, July). Organizational Culture and Managing Resistance. Retrieved August 2, 2010 from http://www.authorstream.com/Presentation/Techy_Guy-32841-culturechange-Organizational-Culture-Managing-Resistance-Issues-Internal-Integration-Cont-External-Adaptat-as-Entertainment-ppt-powerpoint/

Reference List