Back to Table of Contents pp Chapter 16 Culture and Diversity in Business

Introduction to Business, Culture and Diversity in Business Slide 2 of 59 Why It’s Important To succeed in the workplace, you need to know a company’s corporate culture and diversity issues.

Introduction to Business, Culture and Diversity in Business Slide 3 of 59 Cultural Mores In business, culture refers to the culture of other countries with which companies have to do business. It also refers to the standards of a particular company.

Introduction to Business, Culture and Diversity in Business Slide 4 of 59 Culture in a Global Economy Failure to understand the culture of a country where you’re doing business can ruin a deal or lead to a marketing disaster.

Introduction to Business, Culture and Diversity in Business Slide 5 of 59 Marketing Abroad To successfully market products in another country, you need to be aware of differences in language and customs.

Introduction to Business, Culture and Diversity in Business Slide 6 of 59 Workers Abroad Companies doing business in other countries need to be aware of cultural differences in the workplace.

Introduction to Business, Culture and Diversity in Business Slide 7 of 59 Business Etiquette What is considered acceptable social behavior and manners in business, or business etiquette, differs from country to country.

Introduction to Business, Culture and Diversity in Business Slide 8 of 59 Business Etiquette Many companies avoid cultural problems by hiring local managers in countries where they do business.

Introduction to Business, Culture and Diversity in Business Slide 9 of 59 Business Etiquette As more companies trade globally, there is an increasing demand for people who have studied other languages and cultures.

Introduction to Business, Culture and Diversity in Business Slide 10 of 59 Corporate Culture A company’s corporate culture is its shared values, beliefs, and goals. It can be defined formally through a company code of ethics, a written manual, and the orientation process.

Introduction to Business, Culture and Diversity in Business Slide 11 of 59 Corporate Culture A company’s corporate culture can be defined informally through dress codes, work habits, and social activities.

Introduction to Business, Culture and Diversity in Business Slide 12 of 59 Formal Culture In a formal culture, there might be a strict hierarchy, or chain of command, with one person at the top who makes all the decisions.

Introduction to Business, Culture and Diversity in Business Slide 13 of 59 Formal Culture In a formal culture, there might be several levels of management, or bureaucracy, below.

Introduction to Business, Culture and Diversity in Business Slide 14 of 59 Formal Culture Job titles are very important as indicators of power and status within a company. Dress codes and work hours are strictly enforced.

Introduction to Business, Culture and Diversity in Business Slide 15 of 59 Informal Culture At a company with an informal culture, employees are encouraged to make decisions on their own rather than going through layers of management.

Introduction to Business, Culture and Diversity in Business Slide 16 of 59 Informal Culture Job titles are not as important as creativity and teamwork in the informal culture.

Introduction to Business, Culture and Diversity in Business Slide 17 of 59 Informal Culture Few companies have a culture that is entirely formal or informal. Within the same company there are often different cultures.

Introduction to Business, Culture and Diversity in Business Slide 18 of 59 Diversity in the Workplace Companies have to deal with a variety of people with different backgrounds and identities, or diversity.

Introduction to Business, Culture and Diversity in Business Slide 19 of 59 Diversity in the Workplace Diversity is a feature of people in the workforce. Diversity in the workforce means differences in skills, work habits, and approaches to tasks.

Introduction to Business, Culture and Diversity in Business Slide 20 of 59 The Impact of Diversity on Business The population of the United States has become more ethnically diverse. The population is also getting older and living longer.

Introduction to Business, Culture and Diversity in Business Slide 21 of 59 The Impact of Diversity on Business The 76 million babies born in the United States between 1946 and 1964 are called the baby boom generation.

Introduction to Business, Culture and Diversity in Business Slide 22 of 59 The Impact of Diversity on Business The baby boom generation controls $2.6 trillion and has about 51 percent of the wealth in the country.

Introduction to Business, Culture and Diversity in Business Slide 23 of 59 The Impact of Diversity on Business The older baby boomers will turned 65 in 2011 and the number of Americans over 65 will nearly double in 2030.

Introduction to Business, Culture and Diversity in Business Slide 24 of 59 The Impact of Diversity on Business The number of families with single parents is now around 30 percent. Changes like these have a far-reaching effect on business.

Introduction to Business, Culture and Diversity in Business Slide 25 of 59 Changes in the Workplace In the last few years about 85 percent of the people who entered the workforce were women and members of ethnic minorities.

Introduction to Business, Culture and Diversity in Business Slide 26 of 59 Changes in the Workplace There are greater numbers of women, Asians, Hispanics, and African Americans in management positions.

Introduction to Business, Culture and Diversity in Business Slide 27 of 59 Changes in the Workplace The youth labor force (ages 16 to 24) is expected to grow more rapidly than the overall labor force for the first time in 25 years. Meanwhile, people are working more years than ever before.

Introduction to Business, Culture and Diversity in Business Slide 28 of 59 Figure 16.2 A SNAPSHOT OF THE WORKFORCE U.S workers in the workforce grouped by age. Which age group has the largest number of workers? Which group do you think will increase as a percentage of the workforce over the next 25 years?

Introduction to Business, Culture and Diversity in Business Slide 29 of 59 Changes in the Marketplace A more diverse population means a more diverse marketplace. Companies that used to target only white males now target many groups.

Introduction to Business, Culture and Diversity in Business Slide 30 of 59 Managing Diversity Human resources managers manage diversity. Workers know that a good diversity management program is a mark of a company that’s good to work for.

Introduction to Business, Culture and Diversity in Business Slide 31 of 59 Managing Diversity The goal of diversity management programs is to help all employees find a place in the company and help the company achieve its objectives.

Introduction to Business, Culture and Diversity in Business Slide 32 of 59 Managing Diversity Excluding someone on the basis of age, gender, or ethnicity is called discrimination.

Introduction to Business, Culture and Diversity in Business Slide 33 of 59 Laws Against Discrimination To discriminate against someone on the basis of age is called ageism. To protect older workers, the U.S. government passed the Age Discrimination in Employment Act.

Introduction to Business, Culture and Diversity in Business Slide 34 of 59 Laws Against Discrimination The Equal Employment Opportunity Act was passed to strengthen laws protecting workers from discrimination on the basis of gender, ethnicity, or other aspects of identity.

Introduction to Business, Culture and Diversity in Business Slide 35 of 59 Laws Against Discrimination In 1990, the Americans with Disabilities Act (ADA) was passed requiring businesses to provide facilities such as wheelchair ramps for people with individual needs.

Introduction to Business, Culture and Diversity in Business Slide 36 of 59 Diversity Programs To deal with diversity in the workplace, most companies now offer diversity training programs.

Introduction to Business, Culture and Diversity in Business Slide 37 of 59 Diversity Programs The goal of diversity training programs is to promote trust and cooperation among workers of different backgrounds so they work more effectively together.

Introduction to Business, Culture and Diversity in Business Slide 38 of 59 Benefits of Diversity The benefits to a company that promotes diversity in the workplace are: A broader range of ideas and ways of looking at things continued

Introduction to Business, Culture and Diversity in Business Slide 39 of 59 Benefits of Diversity Helping a company to understand and serve the needs of a more diverse marketplace A greater sense of morale and commitment to company goals

Introduction to Business, Culture and Diversity in Business Slide 40 of 59 Benefits of Diversity Companies that value diversity have: Increased productivity and efficiency Lower turnover rates Less absenteeism Fewer legal costs from employee grievances