1. PowerPoint Presentation by Charlie Cook Copyright © 2005 South-Western. All rights reserved. Chapter 16 Cultural Diversity and International Organizational Behavior

2. Copyright © 2005 South-Western. All rights reserved.16–2 Learning Objectives After reading and studying this chapter and doing the exercises, you should be able to: 1.Understand the scope, competitive advantages, and success factors associated with cultural diversity. 2.Identify and explain key dimensions of cultural differences. 3.Describe what is required for managers and organizations to become multicultural. 4.Be more aware of barriers to good cross-cultural relations. 5.Explain how motivation, ethics, appropriate negotiation skills, conflict resolution, and empowerment practices can vary across cultures. 6.Appreciate the nature of diversity training and cultural training.

3. Copyright © 2005 South-Western. All rights reserved.16–3 Cultural Diversity: Scope The scope of cultural diversity  Valuing diversity means to respect and enjoy a wide range of cultural and individual differences.  Scientifically measuring diversity is fairly easy, in practice, diversity may not be visible or manifest itself readily.  The goal of a diverse organization is for persons of all cultural backgrounds to achieve their full potential.

4. Copyright © 2005 South-Western. All rights reserved.16–4 The Diversity Umbrella (condensed) Race Sex or gender Religion Age(young, middle- aged, and old) Generation differences Ethnicity Education Abilities Mental disabilities Physical disabilities Values and motivation Sexual orientation Marital status Family status Personality traits Functional background Technology interest Weight status Hair status Style of clothing and appearance Tobacco status EXHIBIT 16-1

5. Copyright © 2005 South-Western. All rights reserved.16–5 The Competitive Advantage of Diversity Gain a marketing advantage, including increased sales and profits. Reduce costs for absenteeism and turnover through increased job satisfaction and helps avoid age, race and discrimination lawsuits. Attract more diversity applicants. Provide useful ideas for favorable publicity and advertising. Workforce heterogeneity may offer a creativity advantage.

6. Copyright © 2005 South-Western. All rights reserved.16–6 Factors Associated with Diversity Success CEO Initiation and Support. Human Resources Initiatives Organizational Communication Corporate Philosophy Measures of Company Success

7. Copyright © 2005 South-Western. All rights reserved.16–7 Cross-Cultural Values Key dimensions of differences in cultural values:  Individualism versus collectivism  Power distance  Uncertainty avoidance  Materialism versus concern for others  Long-run versus short-run orientation  Formality versus informality  Urgent time orientation versus casual time orientation  High context versus low context cultures

8. Copyright © 2005 South-Western. All rights reserved.16–8 Culturally-Based Differences in Management Style Culture provides values that guide acceptable managerial behavior and leadership styles. Transplanted managers may need to adopt some of the characteristics of the national stereotype of an effective leader in the local culture.

9. Copyright © 2005 South-Western. All rights reserved.16–9 Culturally-Based Differences in Management Style: Stereotypes Germany Technically expert, authoritarians France Elitist, authoritarians Japan Formal, consensus seekers China Low-profile, tough negotiators United States Emotional, egalitarians

10. Copyright © 2005 South-Western. All rights reserved.16–10 The Multicultural Manager Relates effectively to and can motivate people across race, gender, age, social attitudes and lifestyles. Respects and values cultural differences. Can conduct business in a diverse, international environment. Is aware and interested in why people of other cultures act as they do. Does not assume that the ways of one’s culture are the only ways things should be done. Is not ethnocentric in assuming that the superiority of one culture over that of another culture.

11. Copyright © 2005 South-Western. All rights reserved.16–11 Protocol Do’s and Don’ts in Several Countries EXHIBIT 16-2a

12. Copyright © 2005 South-Western. All rights reserved.16–12 Protocol Do’s and Don’ts in Several Countries EXHIBIT 16-2b

13. Copyright © 2005 South-Western. All rights reserved.16–13 The Multicultural Organization An organization that values cultural diversity and is willing to encourage and even capitalize on such diversity. Benefits of a multicultural organization  Achieves the benefits of valuing diversity  Avoids the problems of not managing for diversity:  Increased turnover  Interpersonal conflict  Communication breakdowns

14. Copyright © 2005 South-Western. All rights reserved.16–14 Developmental Stages for the Multicultural Organization EXHIBIT 16-3 MONOCULTURAL Exclusion of minorities and women from power NONDISCRIMINATORY Unfair advantage of majority group removed, but no culture change MULTICULTURAL Shares power and influence with all; major culture change

15. Copyright © 2005 South-Western. All rights reserved.16–15 Diversity Initiatives at Major Business Firms EXHIBIT 16-4 Note: Figures indicate percentage of companies responding that they address certain issues through diversity initiatives. Source: “Impact of Diversity on the Bottom Line,” an SHRM/Fortune survey reflecting the responses of 121 HR professionals from 1,000 companies on Furtune magazine’s list of the “100 Top Companies to Work For.” Presented in Lin Grensing-Pophal, “Reaching for Diversity,” HR Magazine, May 2002, p. 56. Reprinted with the permission of HR Magazine published by Society for Human Resource Management, Alexandria, VA.

16. Copyright © 2005 South-Western. All rights reserved.16–16 Barriers to Cross-Cultural Relations Perceptual expectations  Predispositions about the appropriate appearance and physical characteristics of individuals. Ethnocentrism  A belief that one’s culture is the best and judging other cultures by how closely they resemble one’s own culture. Intergroup rather than interpersonal relations  Stereotyping individuals based on their group membership and not making the effort to relate.

17. Copyright © 2005 South-Western. All rights reserved.16–17 Barriers to Cross-Cultural Relations Stereotypes in intergroup relations  Assuming an individual’s personal characteristics are based on their group membership. Language differences  When people do not understand each other’s languages, the possibility for misunderstanding multiplies.

18. Copyright © 2005 South-Western. All rights reserved.16–18 Cross-Cultural Processes: Motivation In order to use motivational concepts across cultures, managers must know two key factors:  Which needs the people are seeking to satisfy.  Which rewards will satisfy those needs. Research findings:  A motivational concept that has a good cultural fit with a culture can be successfully applied to that culture.

19. Copyright © 2005 South-Western. All rights reserved.16–19 Cross-Cultural Processes: Ethics Global business practices and behaviors create ethical and legal dilemmas for managers:  The choice of which culture’s code of ethics to follow.  Conflicts between individual and organizational responsibilities for ethical behavior.  The ethics of outsourcing when doing so may create an human health or environmental safety hazard in another culture.

20. Copyright © 2005 South-Western. All rights reserved.16–20 Cross-Cultural Processes: Negotiations Suggestions for negotiating abroad:  Use a team approach.  Be patient.  Learn to tolerate less than full disclosure of information.  Accept silence as part of negotiating.  Take no for an answer sometimes.  Study the other culture’s negotiating style in advance..

21. Copyright © 2005 South-Western. All rights reserved.16–21 Cross-Cultural Processes: Conflict Resolution National cultures influence which method of conflict resolution a manager will choose. Tinsley’s models of conflict resolution:  Deferring to status power: Japanese  Applying regulations: Germans  Integrating interests: Americans

22. Copyright © 2005 South-Western. All rights reserved.16–22 Diversity Training Attempts to bring about workplace harmony by teaching people how to get along better with diverse coworkers.  Objectives of diversity training: –Fostering awareness and acceptance of individual differences. –Helping participants understand their own feelings and attitudes about people who are different. –Exploring how differences might be tapped as assets in the workplace. –Enhancing work relations between people who are different from each other.

23. Copyright © 2005 South-Western. All rights reserved.16–23 Training in Cross-Cultural Relations Cultural training  A set of learning experiences designed to help employees understand the customs, traditions, and beliefs of another culture.  Culture shock  The physical and psychological symptoms that can develop when a person is abruptly placed in another culture. –Cultural training is designed to help expatriates avoid culture shock which is a major contributor to the high failure rate of overseas assignments.