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Learning ObjectivesDefine diversity
Understand how different cultures view diversity
Explain Cox’s model of the multicultural organization
Discuss various ways of managing diversity in organizations
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Learning Objectives (cont.)Describe unintended results of managing diversity
Consider how managing diversity can be a competitive advantage
Debate whether approaches to managing diversity are converging or diverging worldwide
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DiversityA range of individual differences, including those that are visible and those that are not, e.g.
Gender, age, ethnicity
National origin, religion, disability
Education, profession, family status, etc.
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How Different Cultures View Diversity
Difference in meeting the challenge
The United States
Canada
Japan
Germany
South Africa
Within and across cultural factors
Range of population
Laws
Social movements
Economic conditions
Globalization
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The United StatesFundamental tradition of valuing equality and equal opportunity Legal basis for managing diversityMulticulturalism and valuing diversity well established Concern with the “business case” Debate over affirmative action
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CanadaLegislation applies only to regulated industries,
E.g., Broadcasting, telecommunications, banking, railroads, airlines, shipping, government owned, etc.
Forbid direct and indirect discrimination
Pay equity law in Ontario and QuebecComparable value: Equal pay for work that is the same or equally important and difficult
Some comprehensive organizational programsCentral funding for diversity programs
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JapanRelatively homogenous populationChanging legislation and employment practices that affect women workersImpact of social demographic changes on the labor market
Gender issuesSmall firms and foreign firms in JapanDiversity challenge to Japanese firms Low birth rateAging population
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Population Estimates by Age and Sex in Japan (2004 est.)
0
100200
300
400500
600
Population (10,000)
Lessthan 9
15~19 25~29 35~39 45~49 55~59 65~69 75~79 Over85
Male
Age (5-year group)
MaleFemale
Labor force is decreasing in Japan: Younger generation has the tendency of “not want to work”. An aging society, longest life length in the world These job spaces are substituted with 2.3 million immigrants & non-visa
foreign labors in Japan. Most of them are Brazilian.
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Current Population and TrendsCountries
Median Age
65 or over
Life Expectancy
Pop Growth
U.S 36.0 12% 77.43 .92%
Canada 38.2 13% 79.96 .92%
Germany 41.7 18% 78.54 .02%
Japan 42.3 19% 81.04 .08%
S. Africa 24.7 5% 44.19 -.25%
China 31.8 7% 71.96 .57%
India 24.4 5% 63.99 1.44%
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Organizations’ View of Problems in Hiring Foreign Workers (Japan)
42%
41%
21%
21%
18%
13%
12%
11%
0% 10% 20% 30% 40% 50%
Cultural Differences
Communication
Training
Adaptability
Wage
Responsibility
Rent
Ability
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GermanyHistory of guest workersLiberal law for asylum seekersEvolving treatment of womenRecognizes EU’s six core dimensions of diversity
Treaty of Amsterdam, 1997Gender, age, race or ethnicity, sex orientation, disability, religions
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The foreign worker population in Germany increased tremendously over a 40-year period, from 80,000 in the mid 1950s to three million in the late 1980s.Now the immigrant population in Germany has reached approximately 8 million.The more Germans built their economy the more they need foreign labor help.
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
1950s 1980s 2004
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South Africa as a Rainbow NationA mixture of African roots and deep European impactsThe new democratic order created in 1994 is avowedly committed to establishing a true rainbow nation
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Cultural DiversityEthnic divisions
black 75.2%, white 13.6%, Colored 8.6%, Indian 2.6%
ReligionsChristian: Most whites and coloreds, and about 60% of blacksHindu: 60% of Indians,Muslim: 2%
11 Official LanguagesAfrikaansEnglishNdebelePediSothoSwaziTsongaTswanaVendaXhosaZulu
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The New ConstitutionProhibits discrimination based on race, religion, gender, age, national origin, and financial resource
Schools are required to use four instructional languages so that no students would be disadvantaged because of the language barriers.
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Key Challenges to a Rainbow NationHigh unemployment rate (Ginsberg, 1998; CIA 2002)
Population grows at 1% faster than the GDPOfficial unemployment rate at 30%, 2000Estimated to rise to 55% by 2005
Educational reformMulti instructional languagesOutcome based educationRestructuring the systemsShortage of financial resourcesShortage of quality teachers
HIV/AIDS (CIA 1999 est.)Population – 45 millionAdult prevalence rate – 19.94%People living with HIV/AIDS – 4.2 millionHIV/AIDS deaths – 250,000
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Six Dimensions to Analyze Organizational Capacity for Effective Integration of Cultural Diversity
Dimensions Definition
Acculturation Cultural groups adapt to each other and resolve cultural differences
Structural Integration
Cultural profiles of organizational members including hiring, job-placement, and job status
Informational Integration
Inclusion of minority-culture members in informal networks and activities outside of normal working hours
Cultural Bias Prejudice and discrimination
Organizational Identification
Feelings of belongingness, loyalty, and commitment to the organization
Inter-group Conflict Friction, tension, and power struggles between cultural groups
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Characteristics of Cox’s Three Organizational Types
Pluralism
Full
Full
Both prejudice and
discriminationare eliminated
No majority-minority gap
Low
Form of Acculturation
Degree of Structural Integration
Integration into Informal Organization
Degree of Cultural Bias
Levels of Organizational Identification
Degree of Intergroup Conflict
Assimilation
Minimal
Virtually none
Both prejudice and discrimination against minority-
culture groups are prevalent
Large majority-minority gap
Low
Dimension ofIntegration Monolithic Plural Multicultural
Assimilation
Partial
Limited
Progress on both prejudice and
discrimination, but both continue to exist, especially institutional
discrimination
Medium to largemajority-minority gap
High
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Creating an Organization That Can Manage Diversity
Organizational VisionTop Management CommitmentAuditing and Assessment of NeedsClarity of ObjectivesClear AccountabilityEffective CommunicationCoordination of ActivityEvaluation
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Techniques for Managing DiversityManaging Diversity Training Program
Core Groups
Multicultural Teams
Senior Managers of Diversity
Targeted recruitment and selection programs
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Other Organizational ApproachesCompensation and reward programs tied to achieving diversity goalsLanguage trainingMentoring programsCultural advisory groupsCorporate social activities that celebrate diversity
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Unintended Results of Managing Diversity
Programs that focus on encouraging certain groups may create feelings of unfairness or exclusion in others
Giving preferential treatment to certain groups may stigmatize their members
Increasing diversity without recognition and rewards for the new members can create organizational tension
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How diversity may influence workers’ pay and job security?
There are 16 million foreign-born workers in the U.S.
SF – 26% of the population is foreign-bornImmigrants tend to earn lessParticularly those without a high school education
Impact by education-7.4% for low skill jobs not requiring a high school education -3.6% with college degrees
Impact on wages by race 1980-2000
All U.S. born -3.7%Asian -3.1%Black -3.5%Hispanic -4.5%White -5.0%
Source: Harvard ResearchCited by SF Chronicle 5-4-04
How about diversity issues in Japan, Germany, and South Africa?How about diversity issues in Japan, Germany, and South Africa?
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Immigrant women entrepreneurs on the rise in the U.S. (USBLS, Feb. 2005)
Rise by 190% since 1990 By 468% since 1980:
Mexico 16.5%Korea 6.1%Vietnam 4.9%Philippines 4.0%El Salvador 3.7%Germany 3.6%Canada 3.3%
Top industries:Private households: 13.7%Child day care 9.2%Restaurants/food services 8.3%Beauty salons 6.0%Services to buildingsand dwellings 3.9%
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Reentering workforce poses problems for professional women
50% were “frustrated”18% described the job search as “depressing”
83% were over 35 years of age81% had an MBABetter opportunities with smaller firmsWith more work-life balance
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Managing Diversity for Competitive Advantage
Cost Saving
Resource Acquisition
Marketing
Creativity and Innovation
Problem Solving
Organizational Flexibility
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Managing Diversity for Competitive Advantage
Not inevitably good or bad for an organizationHR managers generally see positive benefitsPositive or negative news on diversity issues may affect the stock priceLooking beyond the “Business Case”
Labor market realityAmerican value Social expectation
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Convergence or Divergence?Increasing domestic multiculturalism
Increasing globalization of organizations
Antidiscrimination laws
Need for foreign labors
Increasing domestic multiculturalism
Increasing globalization of organizations
Antidiscrimination laws
Need for foreign labors
Homogeneous populations may see managing diversity as less important or irrelevant
Economic problems may lead to resentment against foreign workers or immigrants
Homogeneous populations may see managing diversity as less important or irrelevant
Economic problems may lead to resentment against foreign workers or immigrants
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Implications for ManagersManaging a diverse workforce is an important part of an international manager’s job.
Both international and domestic managers must understand the impact of diversity and know how to utilize the assets
Organizations should be aware that different cultures view diversity differently, and should consider diversity impacts both within and across borders.