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Chapter II

Responding to Global and Cultural Diversity

Learning Objectives

After studying this chapter, you should be able to:Define a multinational corporation.Describe the effects of regional cooperative arrangements on managing global enterprises.Contrast parochialism and ethnocentrism.List the six basic dimensions along which cultures vary in Kluckhohn and Strodtbecks framework.Describe Hoftstedes four cultural dimensions.Characterize the Unites States on Hoftsedes dimensions.Contrast affirmative action with the work force diversity movement.List the common characteristics in a comprehensive work force diversity program.Pervasiveness of Diversity

Diversity- is defined here in a broad sense as human groupings based on race, ethnicity, gender, class, age, religion, sexual orientation, learning styles, nationality and disability.

International Diversity people from different countries have common characteristics that differentiate them from people in other countries.

Intranational Diversity differences of people within a specific country.Welcome to the Global Village

Multinational CorporationsAre companies that maintain significant operations in two or more countries simultaneously.

European Union common market made up of 15 nations: France, Denmark, Belgium, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, the United Kingdom, Austria, Finland, Sweden, and Germany

North American Free Trade Agreement (NAFTA)Agreement that phases out tariffs on most goods traded among the United States, Canada, and Mexico.

Facing the International Challenge

National Culture primary values and practices that characterize a particular country.

Parochialism narrow view of the world; an inability to recognize differences between people.

Ethnocentric Views beliefs that ones cultural values and customs are superior to all others.Are National Cultures Becoming More Homogenous?

In some ways yes, but the approach is not yet justified at presentwhy?

There are differences in OB across national cultures.These differences explain a large proportion of the variance of attitudes and behaviors.And for now at least, and probably for a number of years to come, these differences are not decreasing at any significant rate.Assessing Differences Between Countries

Kluckhohn-Strodtbeck Framework one of the most widely referenced approaches for analyzing variations among culture.It identifies six basic cultural dimensions:

Relationship to the environmentTime orientationNature of peopleActivity orientationFocus of responsibility Conception of spaceThe Hofstede Framework- is a more comprehensive analysis of cultural diversity.It confirmed that national culture had a major impact on employees work-related values and attitudes.Found that managers and employees vary on four dimensions of national culture:Individualism versus collectivismPower distanceUncertainty avoidanceQuantity versus quality of lifeIndividualism national culture attribute describing a loosely knit social framework in which people emphasize only the care of themselves and their immediate family.

Collectivism national culture attribute that describes a tight social framework in which people expect others in groups of which they are a part to look after them and protect them.Power Distance national culture attribute describing the extent to which a society accepts the idea that power in institutions and organizations is distributed unequally.

Uncertainty Avoidance national culture attribute describing the extent to which a society feels threatened by uncertain and ambiguous situations and tries to avoid them.Quantity of Life national culture attribute describing the extent to which societal values are characterized by assertiveness and materialism.

Quality of Life national culture attributes that emphasizes relationships and concern for others.Culture Shock confusion, disorientation, and emotional upheaval cause by being immersed in a new culture.

Affirmative Action Programs programs that enhance the organizational status of members of protected groups.Managing Diversity in Organizations

Flexible work assignmentsChild and elder - care benefitsDiversity training