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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.

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Presentation Transcript
  • Introductory Video
  • Diversity
  • Case study: It’s just feedback
  • Organizational Culture
  • Global Management


All the ways in which we differ*

*The Pillsbury Company’s definition


California State University Channel Islands

The Law
  • Acknowledges diversity
  • stresses equal rights
  • Protects against discrimination
  • Why do we need to manage diversity?
why manage diversity
Why Manage Diversity

Human Resource Executives Answered:

why manage diversity1
Why Manage Diversity


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

cost savings
Cost Savings

Turnover and absenteeism rates among women and people of color is high:

  • Black Vs Whites 40% higher
  • Women Vs Men Twice as higher at all ages


Added recruiting, staffing, and training costs per person (93% of departing employee’s annual salary)

cost savings1
Cost Savings

Liability: Lawsuits on Sexual, Race and Age Discrimination

  • Awareness raised the frequency of complaints: 20 times more in 1990 as compared to 1970
  • The average jury award for a discrimination lawsuit is $600,000 (USA)
winning the battle for talent
Winning the Battle for Talent

Organizations are competing to recruit, develop and retainthe best employees from minorities groups to increase their representation in the labour pool.

  • Attract by applying best Practices
  • Retain by: offering feedback, coaching and counselling and engage in mentoring relationships
  • Provide promotion opportunities
driving business growth
Driving Business Growth
  • Increased marketplace understanding
  • Greater creativity
  • Higher quality team problem-solving
  • Improved leadership effectiveness
  • Better global relations
how cultural differences manifest
How Cultural Differences Manifest

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


it s just feedback
It’s Just Feedback


US subsidiary of Japanese company


American – 2 years on the job


Japanese manager


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

diversity management
Diversity Management

Two types of diversity Management

  • Cross-national (Global)
  • Intra-national

Modes by which two groups adapt to each other and resolve cultural differences

the process of diversity management
The Process of Diversity Management
  • To capitalize on the benefits and minimize the costs of worker diversity:
  • Determining business objectives or needs
  • Identifying actions required for each objective or need
  • Conducting a cost/benefit analysis
  • Developing tracking mechanisms to assess progress and financial impact
what is culture
What is Culture?

internal integration
Internal Integration

Determines how members relate to one another

  • Constitutes a collective perspective of organization members (values, beliefs, norms)
  • Shared by most members of the organization
  • Systematically “passed along” to new members
  • Shapes members’ views of the organization and its purpose
  • Shapes members’ views of the job and its purpose

Provides sense of identity for members

  • Guides and controls behavior
  • Enhances internal cooperation
  • Guides decision-making
  • Enhances commitment
  • Provides justification
  • Allows anticipation of actions of others
external integration
External Integration

Influences how organization meets goals and deals with outsiders

  • Influences perceptions of the organization by outsiders
  • Guides and controls behavior with/of outsiders
  • Shapes expectations of outsiders
elements of culture
Elements of Culture
  • Invisible Elements
  • Visible Elements


Does the invisible manifest in visible?


Does the visible inform the invisible?

elements of culture1
Elements of Culture

Invisible Elements:

  • Values about what is important
  • Assumptions & beliefs about what is true
  • Attitudes toward others and issues
  • Norms about appropriate & inappropriate

Visible Elements

  • Symbols
  • Language & Slogans
  • Rituals and Ceremonies
  • Heroes
  • Stories
cultural intelligence cq
Cultural Intelligence (CQ)
  • Filipino School Study
  • She told The Chronicle newspaper in Montreal that she confronted the principal, and was told: "Madame, you are in Canada. Here in Canada you should eat the way Canadians eat.".
  • "Racism and ethnocentrism are an affront to human dignity and have no rightful place in any country in this modern day and age," said a statement from the government body.

“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.”

Cultural Models

Four Types of Culture

Cultures Around the World

Cultural Differences

intergenerational cultures
Intergenerational Cultures

workplace differences
  • Generational differences and communication patterns are significant factors in workplace differences. There are four generations in the workforce, with baby-boomers and Generation X populations comprising a significant portion of the total.
  • These two groups share little in common relative to the desired work environment.
  • Baby boomers are team-oriented, tend to spend their entire career with one organization, work long hours and communicate within homogenous relationships.
  • Gen Xers, on the other hand, are motivated by experiential work assignments with diverse individuals, moving often from one assignment of job, and they desire balance in their work and life.
  • Communication patterns are another source of workplace difference. For instance, nonverbal actions such as eye contact can have subtle differences, but if this difference is not understood it can have both an embarrassing and negative impact on the way business is done.
  • Foe example, eye contact in the United States is seen as sign of confidence. In the United Kingdom, eye contact is necessary, but too much of it makes people uncomfortable. Some Arab nations value eye contact, and too little is disrespectful. But in many Asian Cultures, too much eye contact is considered rude and disrespectful.
  • Leveraging cultural differences through cultural intelligence development can assist organizations in navigating through these complexities.
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
core abilities managing across cultures
Core Abilities Managing Across Cultures
  • 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)
diversity myths vs realities
Diversity: Myths vs. Realities

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.

diversity myths vs realities1
Diversity: Myths vs. Realities

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.

diversity myths vs realities2
Diversity: Myths vs. Realities

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…

Reference List

Aitken, P. & Higgs M. (2010) Developing Change Leaders: The Principles and Practices of Change

            Leadership Development.

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

Author unknown (2007, July). Organizational Culture and Managing Resistance. Retrieved August 2, 2010 from