The Benefits of Diversity The Benefits of Diversity Seminar 6 Bus 476 – Intercultural Management Wendy R. Carroll, PhD.

Outline Cultural Invisibility: Strategies for recognizing culture Strategies for Managing Diversity Global Strategic Options and Approaches Steps to Creating a Cultural Synergy

What is Cultural Invisibility? Managers don’t usually “see” culture. Source: Alder, N (2007). International Dimensions of Organizational Behaviour, 5 th Edition. Common but misleading assumptions Less common, but more appropriate, assumptions HomogeneityBelief in melting potHeterogeneityBelief in cultural pluralism Similarity“They” are all just like meSimilarity and Differences “They” are not just like me ParochialismOnly one way – my wayEquifinalityMultiple ways to do things EthnocentrismOur way is the best wayCultural Contingency Our way is ONE possible way. The best way depends on the countries and people involved.

Strategies for Managing Cultural Diversity There are three strategies for managing cultural diversity: Parochial –Most common response by organizations to cultural diversity –Approach by managers “our way is the only way” Ethnocentric –Managers recognize diversity but only as a source of problem –Approach by managers “our way is the best way” –Leads to both advantages and disadvantages Synergistic –Approach by managers “our ways and their way differ, but neither is inherently superior to the other” Source: Alder, N (2007). International Dimensions of Organizational Behaviour, 5 th Edition.

Global Strategic Options Source: Alder, N (2007). International Dimensions of Organizational Behaviour, 5 th Edition, p My Culture’s Way Their Culture’s Way Cultural Compromise Cultural Accommodations Cultural Synergy Cultural Avoidance Cultural Domination

Five Approaches Cultural Dominance: home or dominant organization think their way is the only way to do things. Cultural Accommodation: rather than try to maintain “home- country” practices, managers attempt to imitate the other country’s practices. Cultural Compromise: both sides concede to some practices. Cultural Avoidance: act as if no differences of conflicts exist. Cultural Synergy: develop new solutions to leverage the best from practices of both countries. Source: Alder, N (2007). International Dimensions of Organizational Behaviour, 5 th Edition.

Steps to Creating Cultural Synergy Step 1: Describe the situation –What is the situation from your culture’s perspective? –What is the situation from the other culture’s perspective? Step 2: Interpreting the cultures (determining the underlying assumptions) –Which assumptions help us understand your and their cultures? Step 3: Increasing cultural creativity –Create culturally synergetic alternatives by leveraging both cultures –Select an alternative – see what fits best –Implement the culturally synergistic solution Source: Alder, N (2007). International Dimensions of Organizational Behaviour, 5 th Edition, p. 112.

Seminar: 6 Article 3: Managing Cultural Diversity – Early thoughts 1991 Key Concepts Limitations Contributions Provides research and arguments on how managing diversity can create a competitive advantage and cut down costs. Providing job satisfaction for minorities will decrease turnover rate which costs companies extensively due to training new staff. Minority groups within an organization proved to be more effective at “thinking outside the box”. Research data show that minority groups were able to use their different experiences to come up with different and effective solutions to problems. “The Valuing Diversity” approach needs to be explored in companies outside of North America and Europe. Not enough data on the effects a white minority group will have on an organization that is based outside North America and Europe. Managers and global managers can use this information as a guide to create their own company policy to their advantage. Provides a stepping stone for researchers to expand on in the future.

Article 4: The Cost and Opportunity of Diversity Management Key Concepts What is the central point to this article? Equal Opportunity Programs focus on an activist culture Diversity Management focuses on holistic business approach Particular costs for Diversity Specialists include: Higher stress, stunted career development (negative role reputation) Particular costs for Diversity Champions include: stress, fatigue (overworking), job is misunderstood or undervalued Limitations What are some of the problems with these concepts? Study was only taken from the UK, other cultures may differ Limited # of participants (41), mostly from the financial service sector The article doesn’t give evidence on why to use Diversity Management Contributions What use can this information be to global leaders and managers? Ensure fair treatment for employees Ensure training at all levels, so the organization as a whole understands Diversity Management Highlights problems in Equal Opportunity Programs that shouldn’t be repeated