What Is Diversity?

Diversity is defined as a difference or

variety. Without differences or variety
among people in the world, the ability
to grow and learn would be limited.

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What Is Diversity In The Workplace?

Diversity in the workplace refers to

differences we recognize in ourselves and
others, such as: Age, Gender, Culture, Race,
Ethnicity, Religion, Family Structures,
Physical and Mental Disabilities or
Challenges.

2
Importance of Diversity

It is therefore necessary to understand and

embrace diversity. It is also necessary to
understand that each person’s
contributions to the organization are
important as a means for growth.

3
Why is globalization significant for organizational behavior?

 Forces of globalization.
– Rapid growth in information technology and
electronic communication.
– Movement of valuable skills and investments.
– Increasing cultural diversity.
– Implications of immigration.
– Increasing job migration among nations.
– Impact of multicultural workforces.
 Culture and Global Diversity
• Culture shock
• Ethnocentrism
• Popular Dimensions of Culture
• Values and National Cultures (Hofstede)
• Understanding Cultural Differences
- Relationships with People
• universalism vs. particularism
• individualism vs. collectivism
• neutral vs. affective
• specific vs. diffuse
• achievement vs. prescription

- Attitudes toward time

- Attitudes toward environment
• Planning and Controlling Global Operations
– use of computer-based global networks
– political risk analysis

• Organizing and Leading Global Operations

– multinational organization structure
• geographical
• product
– expatriates
• employees who live and work in foreign countries
 Homogeneity & Heterogeneity
• Cultural homogeneity means having culture without diversity (in its race,

religion and national origin) or cultural environment where most is the

same without many differences or variations, uniform and similar.

• Cultural Heterogeneity is how relatively dissimilar one group of people

are from another group's beliefs and ideas. An example would be a

Mexican -American from an Anglo American in respect to English music

Dimensions of National Cultures/Values and National Cultures (Hofstede)

• Power distance: equality vs. inequality

• Individualism vs. Collectivism
• Masculinity vs. Femininity
• Uncertainty avoidance
• Long-term orientation
 Dimensions of National Cultures
Power Distance

• Degree of equality or inequality between people in a

society

– High Power Distance:

• Inequalities of power and wealth
• Likely to follow a caste system
• Does not allow for significant upward mobility of
citizens
– Low Power Distance:
• De-emphasizes differences in power and wealth
• Equality and opportunity for everyone is stressed
 Dimensions of National Cultures
Individualism vs. Collectivism

• Degree to which the society reinforces individual or collective

achievement and interpersonal relationships

– Individualism:
• Individuality and individual rights are paramount in
society
• Individuals may tend to for a large number of looser
relationships
– Collectivism:
• Close ties between individuals
• Reinforce extended families and collectives
• Everyone takes responsibility for fellow members in
group
 Dimensions of National Cultures
Masculinity vs. Femininity
• Degree to which the society reinforces or does not
reinforce traditional masculine work role model of
male achievement, control and power

– High Masculinity:
• High degree of gender differentiation
• Males dominate large portion of society and
power structure

– Low Masculinity:
• Low level of gender differentiation and
discrimination between genders
• Females and males treated equally in all aspects
of society
 Dimensions of National Cultures
Uncertainty Avoidance

• Degree of tolerance for uncertainty and ambiguity in

society (unstructured situations)

• High Uncertainty Avoidance:

– Low tolerance for uncertainty and ambiguity
– Rule orientation: laws, rules, regulations and
controls
• Low Uncertainty Avoidance:
– Less concern about ambiguity
– Tolerance for variety of opinions
– Readily accepts change, takes more and greater
risks
 Dimensions of National Cultures
Long Term Orientation

• Degree to which society embraces or does not embrace

long-term devotion to traditional forward thinking values.

• High Long-term orientation:

– Values long-term commitments and respect for tradition
– Strong work ethic where long-term rewards are expected
as a result of today’s hard work
– Business may take longer to develop for “outsiders”
• Low Long-term orientation::
– Does not reinforce long-term traditional orientation
– Change occurs rapidly; long-term traditions and
commitments are not impediments to change
 National Culture Rankings
World Average

http://www.geert-hofstede.com/
National Culture Rankings: China

High Power Distance:

High level of power and
wealth inequality

Low individualism:
Close “member group”

High LTO: Perseverance will

overcome obstacles

 
National Culture Rankings: India

High Power Distance:

Highest level of all cultures;
Accepted cultural norm

High masculinity:
Third highest

Low uncertainty avoidance:

Open to unstructured ideas

High LTO: Perseverance will

overcome obstacles

 
National Culture Rankings: United States

Low Power Distance

Focus on equality

High Individualism:
Highest of all attributes
Individualistic, self-reliant

High masculinity:
Women shift towards male traits

Low uncertainty avoidance:

Few rules, flexibility

Low LTO:
Meet obligations

 
National Culture Ranking
Arab Region

High Power Distance

High level of inequality;
Cultural norm

Low Individualism:
Highly collective member
Group; look out for members

High uncertainty avoidance:

Rules/laws to eliminate or
avoid unexpected
National Culture Rankings:
Israel
Low Power Distance
Egalitarian

High Individualism:
Independence

High uncertainty avoidance:

Rules/laws to eliminate or
avoid unexpected
National Culture Rankings:
Mexico

High Power Distance

Power and wealth
differentiation

Low Individualism:
Strong extended family
structure

Low uncertainty avoidance:

Rules/laws to eliminate or
avoid unexpected. Risk
Averse.
National Culture Ranking
Philippines

High Power Distance

High level of inequality;
Cultural norm

Low Individualism
Collectivism

Low uncertainty avoidance:

Flexible, risk taking

Low long-term orientation

Not bound by tradition
National Culture Ranking
Japan

High Masculinity

High Uncertainty Avoidance

High Long-term Orientation

United States-Japan Comparison
 Environment and Global Operations

• Multinational Corporation (MNC)

– business with extensive international operations in
more than one country
 Environment and Global Operations

• Types of Multinational Corporations

– Ethnocentric
• exert strict control over foreign operations
– Polycentric
• give foreign operations more freedom to operate as
separate entities
– Geocentric
• seek total integration of global operations
 Types of Organizations
• Monolithic organizations

– an organization that has a low degree of integration

• employs few women, minorities, or other groups that differ from the
majority
– low minority employees must adopt the norms of the majority
• has a highly homogeneous employee population

• Pluralistic organizations

– have a more diverse employee population

– use an affirmative action approach to managing diversity
– some acceptance of minorities into the informal network
– much less discrimination and less prejudice
• Multicultural organizations
– values cultural diversity and seeks to utilize and encourage
it
– fully integrate gender, racial, and minority group members
both formally and informally
– absence of prejudice and discrimination
– low levels of intergroup conflict
– synergistic environment
• all members contribute to their maximum potential and the
advantages of diversity can be fully realized
 Environmental Challenges in the Global
Economy
• Economic Systems
– Central-planning
• government makes basic economic decisions for entire
country
– Free-market
• operate under capitalism

Schermerhorn Chapter 5 29
 Environmental Challenges in the Global
Economy
• Laws vary between countries
– common legal problems
• incorporation practices
• negotiating contracts
• protecting patents, trademarks and copyrights
• foreign exchange restrictions

Schermerhorn Chapter 5 30
 Environmental Challenges in the Global
Economy
• Human resource concerns
– illiteracy
– absence of appropriate skills
– shortage of labor supplies

Schermerhorn Chapter 5 31
 Environmental Challenges in the Global
Economy
• Pros of MNCs
– larger tax bases
– increased employment opportunities
– technology transfers
– introduction of new industries
– development of local resources
 Environmental Challenges in the Global
Economy
• Cons of MNCs
– extract excessive profits
– dominate local economy
– do not respect local customs and laws
– fail to help domestic firms develop
– do not transfer most advanced technology
 Dimensions of Employee Diversity
• Inborn Differences
– Age, ethnicity, gender, physical abilities, race.
• Acquired Differences
– Education, religion, military experience,
geography, income, work, parental status, marital
status
 Attitudes toward Diversity
• Ethnocentrism
– Our group is inherently superior to others-do it our way or
not at all.
• Common in the business world
• Produce a monoculture-one set of values
• Ethno-relativism
– No one group is inherently superior
– Produces a pluralistic environment-everyone is welcome
• Training shifts people in the organization from one to
the other.
 Definition of the
Managing Diversity Competency
– understanding and appreciating employee
differences to build a more effective and profitable
organization
– recognizing the characteristics common to specific
groups of employees while dealing with such
employees as individuals and supporting,
nurturing, and utilizing their differences to the
organization’s advantage
 Core Abilities of the
Managing Diversity Competency
• Foster an environment of inclusion for all
• Learn from others with different characteristics, experiences,
perspectives, and backgrounds
• Embrace and support diversity
• Work with others because of their talents and contributions,
rather than personal attributes
• Provide leadership in addressing diversity-based conflicts
• Apply diversity laws, regulations, and organizational policies
related to your position
 Selected Categories of Diversity*

• Primary Categories: Genetic characteristics that affect a

persons self-image and socialization, appear to be unlearned and are
difficult to modify
– Age, race, ethnicity, gender, physical abilities and
qualities.
• Secondary categories: Learned characteristics that a person
acquires and modifies throughout life
– Education, work experience, income, marital status,
religious beliefs, geographic location, parental status,
behavioral style
 Definition of the
Managing Across Cultures Competency
• Involves the ability to recognize and embrace
similarities and differences among nations and
cultures and then approach key organizational and
strategic issues with an open and curious mind
– Culture = the dominant pattern of living, thinking, and
believing that is developed and transmitted by people,
consciously or unconsciously, to subsequent generations
– Cultural values = those consciously and subconsciously
deeply held beliefs that specify general preferences,
behaviors, and define what is right and wrong.
 Core Abilities of the
Managing Across Cultures Competency
• 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)
 Individualism*
as a Work-Related Value
• Individualism = the tendency of people to look after
themselves and their immediate family, which implies a
loosely integrated society
• In cultures that emphasize individualism, people view
themselves as independent, unique, and special; value
individual goals over group goals; value personal identity,
personal achievement, pleasure, and competition; accept
interpersonal confrontation; and are less likely to conform to
other’s expectations
• Such cultures include the United States, Australia, New
Zealand and the United Kingdom
• Example: “Stand on your own two feet!”
 Collectivism*
as a Work-Related Value
• Collectivism = the tendency of people to emphasize their
belonging to groups and to look after each other in exchange
for loyalty
• Cultures that emphasize collectivism are characterized by a
tight social framework, concern for the common welfare,
emotional dependence of individuals on larger social units, a
sense of belonging, a desire for harmony, with group goals
being viewed as more important than individual goals, and a
concern for face-saving
• Such cultures include India, Japan, China, Venezuela, and
Indonesia
• Example: “The nail that sticks up gets hammered down!”
 The changing workplace
• Globalization
– 70% of all U.S. businesses compete with
companies overseas
• The Changing Workforce
– Older workers
– Women
– People of color
– Immigrants
Components Of A Diversified Workforce

Gender

Racial and ethnic Age

minorities in the
United States Other
Religious affiliation
Workforce Veteran status
Immigrants
Diversity Expectations and values
Lifestyle
Physically and Skill level
Educational level
mentally disabled Economic class
Workstyle
Function and/or position
within the company
• Workers of the future
– until recently, white, American born males
dominated the U.S. workforce
• now, they only account for 15 percent of the net
growth
– Gender issues - growing number of women working
outside the home
– Minorities and immigrants - growing percentage of the
workforce
• estimated that 14 percent of the work force is foreign
born
• African Americans are about 12 percent, Asian
Americans are about 5 percent
Mentally and physically disabled - largest unemployed
minority population is the U.S.
• disability - a physical or mental impairment that
substantially limits one or more major life activities
• disabled lack access to educational and workplace
environments
• attitudes of employers an important barrier to
employment
• Age of the workforce
– average age is increasing
• many older workers are opting for early
retirement
• fewer new workers will enter the labor force
than will be lost through retirement
– retirement-age workers can be encouraged to
remain or reenter the workforce on a flexible or
part-time basis
• Future jobs and workforce qualifications
– the U.S. is becoming a predominantly service-
oriented economy
– people without high school diplomas are at a
distinct disadvantage
– gap is growing between the knowledge and skills
jobs require and those many employees and
applicants possess
• literacy is often the underlying problem
• employers are combating this basic-skills gap
– offer in-house basic-skills training program
• Challenges of a diverse workforce
– Lower cohesiveness - lack of similarity in culture causes
diverse groups to be less cohesive
– Communication problems - most common negative effect
– diversity increases errors and misunderstandings
– Mistrust and tension - mistrust and misunderstanding of
those who are different because of a lack of contact and
low familiarity
– Stereotyping - inappropriately stereotype their “different”
colleagues rather than accurately perceiving and
evaluating those individuals’ contributions, capabilities,
aspirations, and motivations
• stereotypes affect how people are treated