Chapter 14 Managing Work Groups across Cultures: From Small Teams to Large Labor Forces

Overview Managing groups across cultures Labor relations in and across cultures Copyright © Houghton Mifflin Company. All rights reserved.

Managing Groups across Cultures Great potential for pooling knowledge and getting things done Can be unproductive if not managed properly Additional challenges when working with multicultural groups Copyright © Houghton Mifflin Company. All rights reserved.

Cultural Differences in Groups Individualists and collectivists In-groups and out-groups Family Organization Group Process Cooperative, group enhancing Self-enhancing, competitive Copyright © Houghton Mifflin Company. All rights reserved.

Group Productivity Social loafing—being less productive in a group because one believes the group will do the work. Phenomenon most pervasive in U.S. Also evident in collectivists cultures when working with out-groups Managers must match methods and tasks based on the cultural environment Copyright © Houghton Mifflin Company. All rights reserved.

Managing Diversity Managers likely to have diverse work groups There are different philosophies on diversity Most managers think of it as a negative to productivity Diversity holds promise for innovation and productivity over time Copyright © Houghton Mifflin Company. All rights reserved.

Philosophies about Diversity Copyright © Houghton Mifflin Company. All rights reserved.

Cultural Diversity in Groups: Advantages and Disadvantages Copyright © Houghton Mifflin Company. All rights reserved.

Guidelines for Forming Effective Multicultural Groups Choose appropriate tasks Explicit recognition of differences Adoption of a vision/mission Equal status among team members Feedback Copyright © Houghton Mifflin Company. All rights reserved.

Labor Relations Labor groups larger than teams and more complex to manage Management and labor have different perspectives Relationships may be highly regulated Must consider alliances or connections with other groups Copyright © Houghton Mifflin Company. All rights reserved.

Labor Unions Concerned with: Pay level – Benefits Job security – Working conditions Involvement in decision making Power and regulation of relationship varies MNCs manage labor issues across multiple countries Copyright © Houghton Mifflin Company. All rights reserved.

Severance Payments Required for European Employees Copyright © Houghton Mifflin Company. All rights reserved.

Unions around the World Influence varies Membership high in many countries, declining in others Most pervasive in Western countries Impacted by government and political environment Economic vs. political orientation Copyright © Houghton Mifflin Company. All rights reserved.

Union Density Rates around the World Copyright © Houghton Mifflin Company. All rights reserved.

Unions in EU Countries Power still strong Highly regulated and protected Economic focus Germany (Codetermination system) Political focus France, Netherlands, United Kingdom Cooperative focus Belgium Copyright © Houghton Mifflin Company. All rights reserved.

Unions in Asia Japan China Other Asian countries Enterprise or in-house unions One company, one union Harmonious relationship China Iron rice bowl, full employment policy Different for joint ventures Other Asian countries Many variations Often in a state of transition Copyright © Houghton Mifflin Company. All rights reserved.

Unions in Mexico Regulations favor labor Federal legislation Relatively high participation Impact of NAFTA Maquiladoras Copyright © Houghton Mifflin Company. All rights reserved.

Unions in Africa Generally underdeveloped Varies from compliance to active involvement Countries in transition i.e., South Africa Copyright © Houghton Mifflin Company. All rights reserved.

International Employee Unions Develop transnational bargaining systems International Labor Organization (ILO) Guidelines and standards for labor conditions and treatment Ratification and compliance International Confederation of Free Trade Unions (ICFTU) Assist national unions in dealings with MNCs International Trade Secretariats (ITSs) Industry-based groups Copyright © Houghton Mifflin Company. All rights reserved.

Effectiveness of International Unions Unique laws of each country Ability to play one country against another National interests tend to be greatest concern Competitive attitude View foreign members as competitors rather than allies Copyright © Houghton Mifflin Company. All rights reserved.

Other Forms of Employee Control/Input Variety of terms: Industrial democracy Self-management Worker participation Joint Consultation Committees (JCCs) Works Councils Board Membership Copyright © Houghton Mifflin Company. All rights reserved.

Rankings of the General Climate of Industrial Relations in Thirty-Seven Countries Copyright © Houghton Mifflin Company. All rights reserved.

Strike Activity General decline since 1970s Decline in the number of days lost due to work stoppages Shift in the nature of strikes Toward Political objectives Public/service sector Work process issues (security, participation) Away from Outcomes such as pay level Copyright © Houghton Mifflin Company. All rights reserved.

Strike Activity in a Variety of Countries Copyright © Houghton Mifflin Company. All rights reserved.

Unions and Strike Activity Managers generally find working with unions difficult However, there are some benefits to unionization May quell more extreme and militant worker action Fewer incidence of violence Smoother management-worker relations Copyright © Houghton Mifflin Company. All rights reserved.