The Challenge of Managing Diversity in a Global Context

1. The Challenge of Managing Diversity in a Global Context Successful management of an increasingly diverse workforce is among the most important global challenges. Due to: • Today’s global economy; • Global demographic trends; and • Growing demand for equal rights for disenfranchised workers.

2. World Wide Population Trends

3. Population Trends in Developed Countries • Low birth rates • Increased longevity • Low ratio of retirees/workers Need Immigrants to keep their current levels of economic activity

4. Population Trends in Developing Countries • High birth rates • Improved medical conditions • Lower mortality rates • High unemployment Need to immigrate to find jobs

5. Developing countries Industrialized countries • High birth rates • Improved medicine • Lower mortality rates • High unemployment • Low birth rates • Increased longevity • Low ratio of retirees/workers Push Pull Worldwide Population Trends Both push and pull factors are working toward the same outcome: A more diverse work force.

6. National Population Trends

7. The Challenge of Managing Diversity in a Global Context The problems arising from today’s workforce diversity are caused not by the changing composition of the work force itself, but by the inability of companies and society to truly integrate and utilize a heterogeneous work force at all levels of the organization

8. Growth of OD in Global Settings • The rapid development of foreign economies • The increasing worldwide availability of technological and financial resources • The emergence of a global economy

9. Generalizability of OD to all populations? Barriers to Transferability: • Deep-level differences between societies: cultural values, beliefs, attitudes, norms • Contextual defining features: nature of political and social context, laws, economic environment

10. Power Distance • Extent to which members of a society accept that status and power are distributed unequally in an organization • Organizations in these cultures tend to be autocratic, possess clear status differences, and have little employee participation

11. Uncertainty Avoidance • The extent to which members of a society tolerate the unfamiliar and unpredictable • Organizations in these cultures tend to value experts, prefer clear roles, avoid conflict, and resist change

12. Individualism • The extent to which people in a society believe they should be responsible for themselves and their immediate family • Organizations in these cultures tend to encourage personal initiative, value time and autonomy, accept competition, and autonomy is highly valued

13. Economic Development • Subsistence Economies • Primarily agriculture-based • Industrializing Economies • Moderately developed and tend to be rich in natural resources • Industrial Economies • Highly developed and emphasize nonagricultural industry

14. Cultural and Economic Contexts of International OD Practice Cultural Fit with OD Practice Low High Moderate South Pacific South America Middle East India South Africa Level of Economic Development Central America Eastern Europe Asia United Kingdom Scandinavia USA High

15. Worldwide Strategic Orientations • Offer products/services in more than one country • Balance product and functional concerns with geographic issues of distance, time, and culture • Carry out coordinated activities across cultural boundaries using a wide variety of personnel

16. Interventions for Worldwide Strategic Orientations • The International - Sell existing products/services to nondomestic markets • The Global Orientation-Centralized with a global product structure • The Multinational Orientation-Operate a decentralized organization • The Transnational Orientation -Tailored products for local needs

17. The Integrative-Responsiveness Framework High Need for Global Integration Low Low High Need for Local Responsiveness Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

18. Global Social Change Organizations • Their primary task is a commitment to serve as an agent of change in the creation of environmentally and socially sustainable world futures • They have discovered and mobilized innovative social-organizational architectures • They hold values of empowerment in the accomplishment of their global change mission • They are globally-locally linked in structure, membership, or partnership and thereby exist as entities beyond the nation-state • They are multi-organizational and often cross-sectoral

19. Application Stages of Global Social Change Org • Build the local organization • Using values to create the vision • Recognizing that internal conflict is often a function of external conditions • Understanding the problems of success • Create horizontal linkages • Build a network of local organizations with similar views and objectives • Develop vertical linkages • Create channels of communication and influence upward to governmental and policy-level, decision-making processes

20. Vertical Linkages Vertical information systems High Add positions to hierarchy Degree of Vertical Coordination and Control Required Rules and plans Hierarchical referral Low Low High Information Capacity of Linkage Mechanism

21. Horizontal Linkages High Teams Full-time integrators Task forces Degree of Horizontal Coordination Required Liaison roles Direct contact Information Systems Low Low High Costs of Coordination

22. Diversity and Exclusion: A Critical Workforce Problem

23. Exclusion • The experience of social exclusiontranscends national boundaries. • Around the world, individuals and groups who do not belong to the “main stream” are excluded from job opportunities, information networks, team membership, and the decision making process.

24. The Challenge Creating a work environment that welcomes diversity, is inclusive of those who are different from the ‘main stream’, and allows individuals to utilize their talents in a mutually satisfactory way.

25. The Inclusive Workplace Micro • Values and utilizes individual and inter-group differences within its workforce • Cooperates with, and contributes to, its surrounding community • Alleviates the needs of disadvantaged groups in its wider environment • Collaborates with individuals, groups, and organizations across national and cultural boundaries Macro

26. Inclusive Policies and Practices Inclusive Policies and Practices: Diversity Policies and Practices that an organization can implement to create an inclusive environment Management leadership: senior management taking the lead in major diversity projects Education and Training: conducting seminars and workshops to increase diversity awareness and skill building, and to help employees understand the need for, and meaning of, valuing diversity

27. Inclusive Policies and Practices (cont.) Performance and Accountability: developing diversity action plans to meet the goals of specific business units and of the Organization and holding managers accountable by linking diversity performance to compensation Work-family balance: offering flexible work arrangements to accommodate diverse needs and life styles of employees Career Development and Planning: establishing career development and planning initiatives for women and members of under-represented groups to ensure fair promotion and to increase diversity representation in managerial level jobs.

28. Resistance Perspective • Problem Statement: Diversity as non-issue or threat. • Desired Outcome: Protect the Status quo Discrimination and Fairness Perspective • Problem Statement: Differences cause problems. • Desired Outcome: Level the playing field for protected groups. Access & Legitimacy Perspective • Problem Statement: Differences create opportunities. • Desired Outcome: Access to employees and customers Learning Perspective • Problem Statement: Differences and similarities offer opportunities and costs • Desired Outcome: Individual and organizational learning for long-term effect.

29. Please describe the US based IBM diversity initiative? How did it develop over time? Who is involved?

30. What does it mean to engage employees as partners at IBM?

31. IBM VIDEO • http://www.youtube.com/watch?v=6NMHQZjamLY&noredirect=1 • http://www-03.ibm.com/employment/us/diverse/50/exectask.shtml

32. Were diversity goals linked to business goals? If so, how?

33. How was diversity integrated with management practices? What factors were central to the successful implementation of this major change initiative?

34. Diversity Management Abroad • What would you change? What would you keep the same? • http://www.hbs.edu/centennial/businesssummit/global-business/managing-human-capital-global-trends-and-ch allenges.html • 56:00

35. Wrap-up • Managing diversity nationally and internationally is a key component of being successful in today’s marketplace!