Managing Global & Culturally Diverse Organization. Jonathan, May, Rosanna, Weijing. Agenda. Introductory Video Diversity Case study: It’s just feedback Organizational Culture Global Management. Diversity. All the ways in which we differ* * The Pillsbury Company’s definition. Gender.
Managing Global & Culturally Diverse Organization
All the ways in which we differ*
*The Pillsbury Company’s definition
California State University Channel Islands www.csuci.edu/.../html/web_data/file13.htm
Human Resource Executives Answered:
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
Turnover and absenteeism rates among women and people of color is high:
Added recruiting, staffing, and training costs per person (93% of departing employee’s annual salary)
Liability: Lawsuits on Sexual, Race and Age Discrimination
Organizations are competing to recruit, develop and retainthe best employees from minorities groups to increase their representation in the labour pool.
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
US subsidiary of Japanese company
American – 2 years on the job
Employee receive 4/5 performance rating
Employee dissatisfied, Asks for constructive feedback with specifics on how to improve
Manager assures him that it is a good performance, without any specific details
Both 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
Two types of diversity Management
Modes by which two groups adapt to each other and resolve cultural differences
Determines how members relate to one another
Provides sense of identity for members
Influences how organization meets goals and deals with outsiders
Does the invisible manifest in visible?
Does the visible inform the invisible?
“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.”
Four Types of Culture
Cultures Around the World
Cultural Change StrategiesDevelop self awareness by leadershipAvoid equating personal identity with that of the organizationAvoid elitist trapSteps 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 leaderEncourage 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
Myth (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.
Myth (4) Diversity is not a problem, Its an opportunity
True, 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.
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.
The Flattening of the World
Stress in the International Situation
Why International Assignments Fail…
Hidden Costs of International Fail
International Assignment Selection Process
Global Mindsets Model
Becoming a Globally ALERT Leader…
Aitken, P. & Higgs M. (2010) Developing Change Leaders: The Principles and Practices of Change
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 Tung
Human 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/