Cultural Diversity and International Organizational Behavior Chapter 15 Cultural Diversity and International Organizational Behavior Fundamentals of Organizational Behavior 2e Andrew J. DuBrin PowerPoint Presentation by Charlie Cook

Learning Objectives Understand the scope, competitive advantages, and success factors associated with cultural diversity. Identify and explain key dimensions of cultural differences. Describe what is required for managers and organizations to become multicultural. Be more aware of barriers to good cross-cultural relations. Explain how motivation, ethics, conflict resolution, and skills needed for negotiation can vary across cultures. Appreciate the nature of diversity training and cultural training. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

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. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

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 15-1 A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

The Competitive Advantage of Diversity Managing diversity well offers a marketing advantage, including increased sales and profits. Effective management of diversity reduces costs of absenteeism and turnover through increased job satisfaction and helps avoid age, race, and discrimination lawsuits. Companies with a favorable diversity reputation will attract more diversity applicants. Workforce diversity can provide a company with useful ideas for favorable publicity and advertising. Workforce heterogeneity may also offer a company a creativity advantage. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Factors Associated with Diversity Success CEO Initiation and Support Human Resources Initiatives Organizational Communication Corporate Philosophy Measures of Company Success A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

The Diversity Index at Allstate EXHIBIT 15-2 A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

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 A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

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. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

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 A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Multicultural Managers and Organizations The Multicultural Manager Has the skills and attitudes to relate effectively to and motivate people across race, gender, age, social attitudes, and lifestyles. Respects and values the cultural differences. Has the ability (e.g., is bilingual) to conduct business in a diverse, international environment. Has a cultural sensitivity in being aware and interested in why people of other culture act as they do. Is not parochial in assuming 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’s culture over that of another culture. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Protocol Do’s and Don’t’s in Several Countries EXHIBIT 15-3a A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Protocol Do’s and Don’t’s in Several Countries EXHIBIT 15-3b A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Multicultural Managers and Organizations The Multicultural Organization 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 A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Developmental Stages for the Multicultural Organization Monocultural Exclusion of minorities and women from power Nondiscrimination Unfair advantage of majority group removed, but no culture change Multicultural Shares power and influence with all; major culture change EXHIBIT 15-4 A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Barriers to Good 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 Stereotypes in intergroup relations Assuming an individual’s personal characteristics based on their group membership. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

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. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

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 a human health or environmental safety hazard in another culture. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Cross-Cultural Processes: Negotiations Suggestions for negotiating abroad: Use a team approach. Do not push for informality. Be patient. Learn to tolerate less than full disclosure of information. Accept silence as part of negotiating. Take no for an answer sometimes. Be adaptable. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Cross-Cultural Processes: Conflict Resolution National cultures influence which method of conflict resolution a manager will choose. Tinsley’s models of conflict resolution: Conflict Resolution Model Cultural Group Membership Deferring to status power Japanese Applying regulations Germans Integrating interests Americans A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Diversity Training and Cultural 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. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Diversity Training and Cultural Training Training in Cross-Cultural Relations Cultural training A set of learning experiences (e.g., mastering a foreign language) 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. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.