Chapter 2

1. Chapter 2 Understanding and Valuing Differences

2. A Rich Stew • The modern workplace is much more than a melting pot in which contents are transformed into a uniform mass. • It is more like a rich stew, with ingredients varying in origin and properties, providing different flavors, nuances, and textures, and retaining their character while contributing to the whole. • Many characteristics of these ingredients are important, including race and ethnic origin, gender, age, abilities, sexual orientation, personality, attitudes, and much more.

3. A Rich Stew (Continued) • As the ingredients become more varied, they offer the potential for an expanded, more exotic and exciting menu. • Still, it is a challenge to blend the ingredients in ways that bring out their best properties. • And, a stew that is a delight to one person may seem bland or bitter or simply unpalatable to another. • In this chapter we explore the challenge of recognizing and capturing the best qualities of available ingredients -- valuing diversity -- while creating a successful stew -- managing diversity.

4. Attitudes Demographic Diversity Perceptions Personality Cross-Cultural Differences Some Individual Differencesin Organizations Individual Differences

5. Managing Diversity • Diversityrefers to the membership mix in organizations in terms of gender, race, ethnic origin, and other characteristics. • The Pillsbury Company defines diversity as “all the ways in which we differ.” • Historically, many companies have focused on the potential problems created by a diverse workforce. • It was felt there would be more misunderstandings and coordination problems as diversity increased. • Very real prejudices against members of certain groups, such as blacks and women, could lead to conflict and mistrust. • Increasingly, organizations are learning to value diversity.

6. Valuing Diversity • Diversity can provide a powerful competitive advantage. • A diverse workforce brings more perspectives and a wider range of knowledge to bear on problems, increasing creativity and decision-making effectiveness. • Diversity helps the firm understand and meet the needs of diverse markets. • Companies that become successful at managing a diverse workforce also see their recruiting prospects enhanced. • Active steps toward fostering diversity in the workplace include training for tolerance, rewarding diversity efforts, changing employee attitudes toward diversity, and developing supportive personnel policies.

7. Focus on Management:Diversity Awareness at Celanese • Ernest Drew, the former CEO of Celanese, became an advocate of a more diverse workforce while attending a conference for Celanese’s top 125 officers, mostly white men, who were joined by about 50 lower-level women and minorities. • The group split into problem-solving teams, some mixed by race and sex and others all white and male, to address questions relating to Celanese’s corporate culture. • When the teams presented their findings, one thing seemed clear to Drew. “It was so obvious that the diverse teams had the broader solutions. … For the first time, I realized that diversity is a strength as it relates to problem solving.” • As a result, Drew made Celanese a pioneer in attracting, retaining, and promoting women and minorities.

8. The Best Companies for Minorities(From Figure 2-1)

9. Training for Tolerance • Firms are adopting many approaches toward training for tolerance. • At Celanese, the top 26 officers are each required to join two organizations in which they are a minority. • Firms are also providing training to integrate sexual orientation into ongoing diversity efforts. • Many firms are “gender training” to promote tolerance between the sexes.

10. Rewarding Diversity Efforts • Some firms are tying performance appraisal to their efforts to increase diversity. • At Celanese, attainment of workforce diversity is one of four sets of outcomes that are equally weighted in performance appraisals. • Coca-Cola’s then chairman and CEO, Douglas Daft, announced in 2000 that he would tie his own compensation and that of others throughout the management ranks to diversity goals and would create an executive position for promoting minorities.

11. Changing Employee Attitudes Toward Diversity • Companies are using a variety of innovative approaches to develop more positive employee diversity-related attitudes and skills. • US WEST Dex trains its employees via a three-day diversity awareness workshop. • US WEST Dex also uses “resource groups,” volunteer-driven meetings that address the concerns of particular employees, such as women, blacks, Hispanics, gays, and lesbians; all employees are encouraged to attend.

12. Focus on Management: DiversitySeminars at Rohm & Haas Texas Inc. • At Rohm & Haas cross-functional teams are part of total quality efforts and were selected to take advantage of the variety of experiences and perspectives offered by diversity. • However, as positions opened up on other teams, employees began to migrate to teams composed of members with whom they felt they had more in common; African American employees, for example, would apply for teams with more African American members. • Rohm & Haas launched five-hour awareness seminars that stressed the benefits of diversity and focused on tension that any kind of difference creates. • 95% of employees participated, and the company credits the seminars with getting its quality efforts back on track.

13. Developing Personnel PoliciesThat Support Diversity • AT&T, which has announced major job cuts every year since 1990, monitors workforce reduction by department and finds creative ways to keep valued workers, regardless of their gender or color. • Workers may be retrained for work elsewhere in AT&T or assigned to the in-house temporary agency and loaned out to various departments until permanent jobs are found for them. • AT&T also offers valued laid-off employees an “enhanced leave of absence” in which the employee takes two years off to go to school or travel, with full benefits and assurance of reemployment at the same level and pay if a job in the company is available upon return.

14. Develop a Definition of What Diversity Means in the Organization Identify Specific Objectives for the Diversity Program Develop the Elements of the Program That Support Diversity Goals Foster a Culture That Supports the Diversity Program Evaluate the Diversity Program and Modify as Needed Implement the Diversity Program Educate All Employees Regarding the Diversity Program Identify Measures of the Diversity Program’s Effectiveness The Bottom Line: Developing aDiversity Program Obtain the Support of Top Management

15. Personality

16. Understanding Personality • Personality is the organized and distinctive pattern of behavior that characterizes an individual’s adaptation to a situation and endures over time. • The distinctive character of personality allows us to tell people apart. • The enduring character of personality permits us to recognize people and to anticipate their behaviors. • Personality determines how people respond to new situations and interact with others, whether they can work on their own, and much else.

17. Aristotle’s Challenge Anyone can become angry -- that is easy. But to be angry with the right person, to the right degree, at the right time, for the right purpose, and in the right way -- this is not easy. ARISTOTLE, The Nichomachean Ethics

18. In The Nichomachean Ethics, Aristotle presented a challenge to manage our emotional life with intelligence. Our passions, when well exercised, have wisdom; they guide our thinking, our values, our survival. The question is, how can we bring intelligence to our emotions?

19. The Marshmallow Test • Children at age 4 were given an IQ test and the “Marshmallow Test.” With the Marshmallow Test, the child is given a marshmallow and told that if s/he can put off eating it until later, s/he can have two. • Twelve to fourteen years later, reaction to this moment of impulse was twice as powerful a predictor as IQ of how children did on the Scholastic Aptitude Test. It also predicted adjustment, popularity, confidence, and dependability.

20. Is IQ Enough? • Most experts now agree that IQ scores are heavily influenced by a relatively narrow range of linguistic and math skills. • So, IQ taps only a small part of the structure of intellect. • The skills tapped by IQ tests may be relevant to classroom performance but less so as life’s path diverges from academe. • This suggests the need to take a broader view of intelligence.

21. How Do People Describe An “Intelligent” Person? • Solves problems well • Displays interest in the world at large • Accepts others for what they are • Admits mistakes • Is goal oriented • Converses well Together, these suggest that people focus on the practical and worldly side of intelligence, rather than just on “academic” intelligence.

22. “IQ” “Emotional Intelligence” Some Forms of Intelligence(Howard Gardner -- Frames of Mind) • Logical-mathematical • Linguistic • Bodily-kinesthetic • Visual-spatial • Musical • Interpersonal • Intrapersonal • Naturalist

23. Personal Intelligences • Interpersonal intelligence is the ability to understand other people: what motivates them, how they work, how to work cooperatively with them. • Intrapersonal intelligence is the capacity to form an accurate model of oneself and to be able to use that model to operate effectively in life.

24. “Emotional intelligence is a phrase for a different way of being smart. It’s not the usual way of thinking about it -- academic smarts -- IQ -- it’s how you do in life, how you manage yourself, your feelings, how you get along with other people, whether you’re empathic, how well motivated you are.” Daniel Goleman, author Emotional Intelligence What Is Emotional Intelligence?

25. The amygdala is deep within the most elemental parts of the brain. Two “Brains” • The amygdala -- the “emotional brain,” the source of emotional life • The neocortex -- the “thinking cap,” source of planning, learning, and memory

26. Questions Calling for EQ • Should you trust a coworker with a confidence? • Is a friend on the verge of a nervous breakdown? • How should you behave in an escalating argument? • How should you respond to a racist joke?

27. Why Care About Emotional Intelligence? • The emotional brain may “highjack” the rational brain. Fear, rage, and jealousy may prevent us from rationally addressing problems. • EQ is especially important in higher-level jobs, including leadership roles. While technical skills may suffice in lower-level positions, the ability to deal with others becomes critical as we advance in organizations. • EQ is critical for working in groups. • EQ is needed to effectively manage diversity. • EQ helps us adapt to new situations.

28. Key Emotional Intelligence Abilities • Self-Awareness -- Recognizing an emotion as it engulfs us; • Emotion Management -- Controlling reactions to emotion-laden events so that our response fits the situation; • Self-Motivation -- Directing emotions in service of a desirable goal; • Empathy -- Recognizing emotions in others; • Relationship Management -- Managing the emotions in others.

29. Some Consequences of EQ In business settings, EQ has been found to be related to: • leadership ability • group performance • individual performance • interpersonal/social exchange • change management skills • ability to conduct performance appraisals

30. Multiple Intelligences at Saturn Corp. • At Saturn Corp., all 10,000 employees are required to take 92 hours of instruction each year. • They first learn about the multiple intelligences. • They then select courses of their choosing, such as safety or leadership. • Instructors adapt multiple-intelligence training to the programs. They might, for instance, use music to enhance technical training courses.

31. Personality Theories • Some early personality theories saw behavior as being related to innate traits, such as independence, sociability, and humility. These traits were felt to be stable, enduring, and interrelated. The unique combination of these traits was seen as a clue to personality. • According to Sigmund Freud’s psychoanalytic theory, we are motivated by drives or instincts. We may be unaware of these drives, and they are largely outside our control.

32. Personality Theories (Continued) • Humanistic-existential theories focus on the total personality of the individual rather than on the separate behaviors that make up the personality. They emphasize striving for awareness and fulfillment of human potential. • Learning theories see personality as a set of patterns of learned behaviors. That is, personalities differ because people have different experiences in childhood and throughout life. • Together, the approaches provide a variety of potentially useful perspectives for examining and predicting human behavior.

33. Risk-Taking Propensity The “Big 5” Type A and Type B Proactive Personality Self- Monitoring Authoritarianism Machiavellianism Dogmatism Tolerance for Ambiguity Locus of Control Some Key Personality Dimensions PERSONALITY

34. Risk-Taking Propensity • People differ markedly in their risk-taking propensity. • Some are risk averse; they like to “play it safe,” choosing alternatives that are likely to give a relatively low but certain return. • Others -- risk seekers -- like to gamble. They prefer alternatives that may turn out very well or very poorly. • Risk seekers tend to make fast decisions based on relatively little information.

35. Proactive Personality • Proactivity is the extent to which people take actions to influence their environments/ • Proactive individuals look for opportunities, show initiative, take action, and persevere until they are able to bring about change. • Proactive individuals have been shown to engage in high levels of entrepreneurial activities and to have relatively high levels of job performance. • This is a trait that is highly valued by employers.

36. Authoritarianism • Authoritarianindividuals believe that power and status should be clearly defined and that there should be a hierarchy of authority. • They feel that authority should be concentrated in the hands of a few leaders and that this authority should be obeyed. • Authoritarian leaders expect unquestioning obedience to their commands. • Authoritarian subordinates willingly give obedience. • Authoritarian individuals are likely to be comfortable in organizations that emphasize rules and the chain of command.

37. Dogmatism • Dogmaticindividuals are closed-minded. • They have rigid belief systems and “doggedly” stick to their opinions, refusing to revise them in the face of conflicting evidence. • Dogmatic individuals make decisions quickly, based on relatively little information, and are confident in their decisions. • They like to follow the rules and are unlikely to consider novel alternatives. • They may perform acceptably in well-defined, routine situations, but do poorly in situations requiring creativity.

38. Locus of Control • Locus of control is an indicator of an individual’s sense of control over the environment and external events. • A person with an internal locus of control feels in control of his or her life. • A person with an external locus of control feels controlled by fate, chance, and circumstance. • Internals are generally more highly motivated than externals. • Leaders who are internal tend to choose more innovative strategies and to be more proactive and future oriented.

39. Tolerance for Ambiguity • Individuals with high tolerance for ambiguity welcome uncertainty and change. • Those with low tolerance for ambiguity see such situations as threatening and uncomfortable. • Since managers are increasingly facing dynamic, unstructured situations, tolerance for ambiguity is clearly an important characteristic.

40. NICCOLO MACHIAVELLI Machiavellianism • Machiavellians: • think any behavior is acceptable if it achieves their goals • try to manipulate others • are unemotional and detached • “look out for Number One” • aren’t likely to be good team players • are relatively likely to be unethical

41. Web Wise: Machiavelli’s The Prince • The term Machiavellian comes from Niccolo Machiavelli, author of The Prince. Machiavelli wrote The Prince as a practical guide for the ruling Medici family on how to deal with the problems a monarch faces in staying in power. • The main theme of the book is that princes should retain absolute control of their territories and should use any means necessary to accomplish this end, including deceit. • The book has caused Machiavelli’s name to become synonymous with self-serving, manipulative, deceitful behavior.

42. Self-Monitoring • Self-monitoring is a person’s ability to adjust his or her behavior to external, situational factors. • High self-monitors: • are very sensitive to external cues and are “chameleon-like.” • can present striking contradictions between their public and private lives -- are capable of “disguise.” • are effective in “boundary role” situations and other situations requiring multiple “faces.” • High self-monitors are more likely to assume leadership roles than low self-monitors

43. Type A and Type B • Type Aindividuals: • feel great time pressure and impatience. • work aggressively, speak explosively, and find themselves constantly struggling. • Type B individuals show the opposite pattern -- relaxed, steady-paced, and easygoing. • Type A individuals: • are much more likely than Type B’s to experience high stress levels and associated symptoms, including coronary heart disease. • have trouble delegating responsibility to others, don’t work well in groups, and are impatient with tasks requiring prolonged problem solving. • Relatively few Type A’s rise to high levels in organizations.

44. The “Big 5” Model • Extraversion: Sociable, talkative, assertive • Agreeableness: Good-natured, cooperative, trusting • Conscientiousness: Responsible, dependable, persistent, achievement oriented • Emotional Stability: Calm, enthusiastic, secure • Openness to Experience: Imaginative, artistically sensitive, intellectual

45. The “Big 5” and Performance • Extraverts tend to take on leadership roles. • Agreeableness is especially significant in careers where teamwork or customer service is important. • Conscientious individuals have high levels of job performance. • Openness to experience is related to performance in training programs.

46. Why Care About Globalization? • You are likely to spend part of your career in other countries. • According to Andrew Grove, with globalization “every employee will compete with every person in the world who is capable of doing the same job. There are a lot of them, and many of them are very hungry.” • You may suddenly find yourself working for a foreign firm. • Your firm -- and your job -- will increasingly depend on international trade. • You will be managing a culturally diverse workforce even if you never leave the U.S.

47. Diversity on the New York Yankees • During the 1998 season New York Yankees pitching coach Mel Stottlemeyer did a masterful job of overseeing one of the most international pitching staffs in major league baseball. • The staff included Graeme Lloyd from Australia, Orlando “El Duque” Hernandez from Cuba, Hideki Irabu from Japan, and Ramiro Mendoza and Mariano Rivera from Panama. • They led the Yankees to 114 wins, the most in American League history.

48. The Hofstede Framework • Geert Hofstede, a Dutch researcher who worked as a psychologist for IBM, studied 116,000 people working in 64 countries. • He identified five important dimensions on which national cultures differ.

49. Time Orientation Individualism vs. Collectivism Quality Versus Quantity of Life Power Distance Uncertainty Avoidance The Hofstede Framework National Culture

50. Individualism and Collectivism • Individualismrefers to a loosely knit social framework in which people are chiefly supposed to look after their own interests and those of their immediate family. The society offers individuals a great amount of freedom. • Collectivismrefers to a tight social framework in which people expect other groups to which they belong to look after them and protect them in times of trouble. In exchange for security, they offer loyalty. “The nail that sticks out will be pounded down.” • Individualistic countries include Australia, the U.S., Great Britain, and the Netherlands. Collectivist countries include Columbia, Pakistan, Venezuela, Peru, and Taiwan.