1 Mgmt 371 Chapter Six The Multicultural Environment Much of the slide content was created by Dr, Charlie Cook, Houghton Mifflin, Co.©

Exam I Wednesday June 3 from 10:00-11: multiple choice and 7 true false questions. Bring a green scantron. 2

3 The Nature of Diversity and Multiculturalism Multiculturalism The broad issues associated with differences in values, beliefs, behaviors, customs, and attitudes held by people in different cultures. Diversity When members of a group differ from one another, usually along demographic lines in such characteristics as age, gender, or ethnicity.

4 Reasons for Increasing Diversity and Multiculturalism

5 Dimensions of Diversity and Multiculturalism Age Distributions Median age of the U.S. workforce is increasing and will continue to do so for the next several years Aging Baby boomers Higher legal retirement ages Improved health care (Increased life expectancy for 2008: overall 78.1; men, 75.2; women, 80.9) Declining birth rate  US fertility replacement rate is 2.03 (zero growth is 2.1)  Europe 1.3 to 1.5.  Japan 1.3  Pakistan at 4.8.

6 Dimensions of Diversity and Multiculturalism Gender Women are increasing in their participation in the workforce. Women constitute 46% of the workforce since1994. Demand for more flexible work hours. Careers may have gaps. Job sharing child care concerns. Flexible leave. The “glass ceiling” has a discriminatory effect of on female managers.

7 Dimensions of Diversity and Multiculturalism Ethnicity U.S. workforce will have an increasing number of Hispanic workers and a decline in white workers. Hispanics are the fastest growing ethnic minority and the largest ethnic group percent of the total population. Multilingual workplaces. Educational & skill deficiencies. Underrepresentation in sciences and professions. More individuals are calling themselves multi- racial (“two or more races”) indicating that the “melting pot” is very much alive.

8 Age Distribution Trends in the United States

9 Percentage of Japan’s Population Over 65

10 Ethnicity Distribution Trends in the United States Source: U.S. Census Bureau.

11 Dimensions of Diversity and Multiculturalism Other Dimensions of Diversity More handicapped individuals in the workforce. Increases due to diversity in religious and political beliefs and viewpoints, lifestyles, and various other individual characteristics. Multicultural Differences The increasing globalization of business Immigration patterns

12 How Diversity and Multiculturalis m Promote Competitive Advantage

13 Cost Argument According to the text, those who manage diversity may experience higher levels of productivity. There is little empirical research in support of this.* The relationship between diversity & performance may depend on organizational contests. Diversity management may reduce turnover and absenteeism. Dysfunctional turnover & absenteeism are real costs. Reducing either reduces costs for any organization. *Kochan, et al. (2003). The effects of diversity on business performance: Report of the diversity research network. Human Resource Management 42 (1): 3-21.

14 Resource Acquisition Argument Necessary to attract individuals with critical KSA. This has been particularly true for women who now account for the majority of business majors.

15 Marketing Argument Allows firms to tap ethnic market segments. Empirical research supports this contention. African Americans respond better to African American sales personnel & marketing. Firms develop different marketing campaigns for different ethnic groups. Note the increased efforts to tap Latino markets.

16 Creativity Argument Textbook notes that multicultural organizations bring multiple perspectives and ways of thinking to the organization.

17 Problem-Solving Argument It is argue that the multicultural organization increased pool of information and perspectives upon which to make decisions. Empirical research indicates that multicultural organizations develop more alternative in the decision process—it does not evaluation the quality of the alternatives.

18 Systems Flexibility Argument It is argued that since organization must become more flexible in dealing with diverse and multicultural workforce, that this makes the organizational system itself more flexible.

19 America’s Best Companies for Minorities Company Union Bank of California MacDonald’s PNM Resources Sempra Energy Denny’s Fannie Mae Southern California Edison SBC Communications Freddie Mac Pesico Percent Minority 55.8%/38.9% 52.6%/36.6% 47.9%/34.6% 47.6%/28.9% 46.7%/28.9% 43.7%/32.6% 43.6%/28.5% 37.8%/28.5% 32.5%/32.5% 26.9%/17.1%

20 Diversity, Multiculturalism, and Conflict Sources of Conflict Personnel actions being attributed to diversity status. Permissible AAPs Impermissible AAPs Misunderstood, misinterpreted, or inappropriate actions between people or groups. Cultural differences in work hours, personal styles, interpersonal relations, and conflict. Fear, distrust, or individual prejudices.

21 Traditional Approaches to Diversity Training Legal awareness – legal implications of discrimination. Cultural awareness – attempts to deal with stereotypes through discussion and exercises. Sensitivity training – sensitizes people to the differences among them and how their words and behaviors are perceived by others.

22 Mixed Reviews on Diversity Training’s Effectiveness Draws attention to differences and builds walls rather than breaking them down. Is viewed as being “politically correct” by focusing on blaming the majority group for past wrongs that are no longer relevant.

23 Managing Diversity and Multiculturalism in Organizations Individual Strategies Understanding the nature and meaning of diversity and multiculturalism. Developing empathy in understanding the perspective of others. Developing tolerance of fundamental cultural differences. Having a willingness to communicate and discuss diversity and multiculturalism issues.

24 Toward The Multicultural Organization Basic Characteristics Pluralism – very group in the organization works to better understand very other group Full structural integration – the internal workforce of the organization mirrors its external labor market. Full integration of the informal network – the firm has removed all barriers to entry and participation in any and all organization activities

25 Toward The Multicultural Organization Absence of prejudice and discrimination – the organization has eliminated all traces of bias and prejudice. No gap in organizational identification – the firm has eliminated cultural, racial, ethnic, and gender stereotypes. Low levels of intergroup conflict – members within the organization have tolerance for and openly communicate with everyone else. Often enforced by organizations for violators.

26 The Multicultural Organization

27 Sample question Bob & Dave’s is a small family-owned business that manufactures and markets fruit spreads. The profit that it earns from the sale of the fruit spreads is an example of a(n) _____ resource. A. International B. Physical C. Human D. Financial E. Information

28 Sample question Bob & Dave’s is a small family-owned business that manufactures and markets fruit spreads. Its finished goods inventory of fruit spreads is an example of a(n) _____ resource. A. International B. Physical C. Human D. Financial E. Information

29 Sample question Debra Doolittle is a manager in a company that manufactures lighting systems for basketball stadiums, arenas, and other sports venues. One of her responsibilities is to ensure timely distribution of shipments to customers. When performing this activity, Doolittle will be working in which functional area? A. Marketing B. Finance C. Production D. Operations E. Administration