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This chapter’s objectives are to: Understand how managers organize international businesses, explain the challenges and opportunities of working with cultural differences, understand the legal requirements for respecting workforce diversity, recognize and explain the implications of changing workforce demographics.
MANAGEMENT SECOND EDITION Chapter Diversity in a Global Learning Objectives § § § § § Understand how managers organize international businesses Explain the challenges and opportunities of working with cultural differences Understand the legal requirements for respecting workforce diversity Recognizeandexplaintheimplicationsofchanging workforcedemographics Interpretthedimensionsofdiversityasamanagement strategytoincreaseinnovation,creativity,andperformance Copyrightâ2017JohnWiley&Sons,Inc ManaginginaGlobalEconomy(p. 118) Đ Đ Toachieveresultsintodaysglobaleconomy, managersmustunderstandinternationalbusiness practices,includinginternationaltraderules, agreements,andlegalrequirements Managersmustunderstandculture Copyrightâ2017JohnWiley&Sons,Inc ManaginginaGlobalEconomy(cont.) Đ Globalorganizations(p.119) • • § § Global company – organization with operations in multiple countries and its senior management decision making centrally located in one country Multidomestic company – organization with operations in multiple countries and its senior management decision making distributed across the countries in which it operates Importingprocessofacquiringproductsandservicesfrom anothercountry Exportingprocessofcreatingproductsinonecountryand sellingtheminanother Copyrightâ2017JohnWiley&Sons,Inc ManaginginaGlobalEconomy(cont.) Đ Strategicpartnerships(p.119) ã § Direct foreign investment • § Agreement between two or more organizations to share complementary resources to develop and sell products and services Buying existing or building new businesses in other countries World Trade Organization (WTO) • Organization responsible for global trade rules between countries Copyrightâ2017JohnWiley&Sons,Inc ManaginginaGlobalEconomy(cont.) Đ Regionaltradezones(p.119) ã ã ã ã Zonesestablishedthroughtradeagreementsamongseveralcountriesin which trade barriers are reduced or eliminated for member countries North American Free Trade Agreement (NAFTA) involves Canada, Mexico, and the United States European Union – political and economic union of 27 European countries that share a common currency Association of Southeast Asian Nations (ASEAN) – cooperative organization of 10 countries in Southeast Asia established to promote economic, political, and social progress throughout the region Copyright ©2017 John Wiley & Sons, Inc ApplyingCriticalThinking(p.120) Đ Successtothesuccessful Figure5.1a Copyrightâ2017JohnWiley&Sons,Inc ApplyingCriticalThinking(cont.) Đ Successtotheclient! Figure5.1b Copyrightâ2017JohnWiley&Sons,Inc CulturalDifferences(p.121) Đ Culturalintelligence ã Đ Abilitytounderstandandmakeeffectivedecisionsbased onculturaldifferences Threeapproachestodealwithculturaldifferences • • • Ethnocentric – management believes that people who share their cultural values make the best managers Polycentric – management believes that managers from a particular country know best how to achieve results in that cultural context Geocentric – management seeks talent and best practices from all around the world Copyrightâ2017JohnWiley&Sons,Inc CulturalDifferences(cont.) Đ Hofstedesdimensionsofculture(p.121) ã Individualismversuscollectivism Đ ã Powerdistance § • Tolerance for ambiguity and desire for structure Competition versus cooperation § • Distribution of power Uncertainty avoidance (p. 122) § • Welfareoftheindividualversusthatofthegroup Valueofpersonalachievementversuscollaboration Longưtermversusshortưtermorientation Đ Concernaboutthefutureversusconcernaboutthepresentandpast Copyrightâ2017JohnWiley&Sons,Inc LegalBasisforManagingDiversity (cont.) Đ Dimensionsofdiversity Figure5.4 Copyrightâ2017JohnWiley&Sons,Inc LegalBasisforManagingDiversity (cont.) Đ Affirmativeaction(p.125) ã Đ Disabilities ã Đ Physicalormentalimpairmentsthatsubstantiallylimitoneormoreof anindividualsmajorlifeactivities Discrimination ã Đ Proactivestepstakentocounteractdiscrimination Treatingindividualsorgroupsunfairlybasedondiversitytraits Glassceiling ã Invisiblebarrierthatlimitstheopportunitiesofwomenandminorities foradvancementtoupperưlevelpositions Copyrightâ2017JohnWiley&Sons,Inc LegalBasisforManagingDiversity (cont.) Đ Wagegapbetweenmenandwomen Figure5.5 Copyrightâ2017JohnWiley&Sons,Inc LegalBasisforManagingDiversity (cont.) Đ WomeninU.S.business Figure5.6 Copyrightâ2017JohnWiley&Sons,Inc TalentinaDiverseWorkforce(p.129) Đ Changingworkforceagedemographics Figure5.7 Copyrightâ2017JohnWiley&Sons,Inc TalentinaDiverseWorkforce(cont.) Đ Workforcetrends Figure5.8 Copyrightâ2017JohnWiley&Sons,Inc TalentinaDiverseWorkforce(cont.) Đ Workforcetrends Figure5.8 Copyrightâ2017JohnWiley&Sons,Inc TalentinaDiverseWorkforce(cont.) Đ Workforcetrends Figure5.8 Copyrightâ2017JohnWiley&Sons,Inc TalentinaDiverseWorkforce(cont.) Đ Outsourcing(p.131) ã Đ Offshoring ã Đ Hiringanoutsidecompanytofulfilloneormoreofan organizationscorefunctions Movingabusinessprocesstoanothercountry Professionalemployeeorganizations(p.132) ã Offeremployeemanagementservicestoothercompanies Copyrightâ2017JohnWiley&Sons,Inc ManagingDiversityasanAdvantage (p.133) Figure5.9 Copyrightâ2017JohnWiley&Sons,Inc ManagingDiversityasanAdvantage (cont.) Đ Diversityasastrategy(p.133) ã • Investing in diversity positively affects creativity and innovation which increases performance Social integration – degree to which individuals in a group share and collaborate based on their unique perspective Figure 5.10 Copyright ©2017 John Wiley & Sons, Inc Managing Diversity as an Advantage (cont.) Đ Howdiversityaffectscreativityandinnovation ã Diversitydimensionsaffectgroupandteamprocesses, ultimatelyincreasingorganizationalcreativityand innovation Figure5.11 Copyrightâ2017JohnWiley&Sons,Inc ApplyingCriticalThinking(p.135) Đ FixesthatfailưAdoomedculturalfix Figure5.12 Copyrightâ2017JohnWiley&Sons,Inc ManagingDiversityasanAdvantage (cont.) Đ Fosteringdiversity(p.134) ã • • • Build a company culture that embraces diversity as a core tenet (p. 136) Design a business strategy to attract and retain talent to support the organization’s culture and to meet client expectations Establish policies and expectations of practices to support the business strategy Structureindividualandgroupskillsandcompetencies necessarytosupporttheorganizationsculture,strategy, policies,andpractices Copyrightâ2017JohnWiley&Sons,Inc ManagingDiversityasanAdvantage (cont.) Đ IBMsdiversityasastrategicadvantage Figure5.13 Copyright ©2017 John Wiley & Sons, Inc ... Copyrightâ2017JohnWiley&Sons,Inc ManaginginaGlobalEconomy(p. 118) Đ Đ Toachieveresultsintodaysglobaleconomy, managersmustunderstandinternationalbusiness practices,includinginternationaltraderules, agreements,andlegalrequirements... ManagingDiversityasanAdvantage (cont.) Đ Howdiversityaffectscreativityandinnovation ã Diversitydimensionsaffectgroupandteamprocesses, ultimatelyincreasingorganizationalcreativityand innovation... Copyrightâ2017JohnWiley&Sons,Inc ManagingDiversityasanAdvantage (p.133) Figure5.9 Copyrightâ2017JohnWiley&Sons,Inc ManagingDiversityasanAdvantage (cont.) Đ Diversityasastrategy(p.133) ã ã Investingindiversitypositivelyaffectscreativityand