A Cross-cultural Perspective on Managing Diversity Alan Li Duong Hua Jing Ting Liang Maciej Malinowski

Global Context Mature Market Economies and System: –NAFTA—North American free Trade Agreement. US, Canada, Mexicao –Pacific Asia—a market system located in Southeast Asia. China, Japan, Thailand, Malaysia, Singapore, Indonesia, South Korea, Taiwan, Philippines, and Australia.

Global Context [cont.] High Potential / High Growth Economies: –relatively underdeveloped and immature –weak industry, weak currency, and relatively poor consumers. –Government: opening doors and promoting international trade. –Representative: China is largely underdeveloped.

Definitions Diversity: is a range of difference, including gender, race, ethnicity, and age—characteristics that might be apparent from looking at someone. Multiculturalism: the broad issues associated with differences in values, beliefs, behaviors, customs, and attitudes held by people in different cultures.

Environmental Challenges The Economic Environment –Economic System, Natural Resources, Infrastructure The Political / Legal Environment –Government Stability, Incentives for International Trade, Controls on International Trade, Economic Communities The Cultural Environment –Values, Symbols, Beliefs, and Language

Dimensions of Diversity and Multiculturalism Age Distributions Gender Under to to to to or older 21.4% 20.1% 13.9% 13.1% 14% 12.9% 23.5% 18.2% 14.6% 17.2% 12.7% 18.5% By 2025, more than one-third of the population will be over age 50:

Dimensions of Diversity and Multiculturalism [cont.] Age Distribution in China

Dimensions of Diversity and Multiculturalism [cont.] Ethnicity White O therr ac i a l o r e thnic g ro up 37.6% 62.4% 28% 72% Racial or ethnic breakdown Hispanics17.6% Blacks13% Asians6.2% Native Americans0.8% Racial or ethnic breakdown Hispanics11.5% Blacks12.1% Asians3.7% Native Americans0.7% By 2025, Hispanics will be the largest minority group in the United States. The share of the population of each group now and projected in 2025

Dimensions of Diversity and Multiculturalism [cont.] Han Chinese 91.9%, Zhuang, Uygur, Hui, Yi, Tibetan, Miao, Manchu, Mongol, Buyi, Korean, and other nationalities 8.1%

Dimensions of Diversity and Multiculturalism [cont.] Other Dimensions –Disabilities; Single Parent; Dual-career Couple; Gays and Lesbians. Multicultural Differences between China and US –Environment –Time –Action –Communication

Increasing diversity and multiculturalism in organizations Increased aware- ness that diversity improves the quality of the workforce The globalization movement Legislation and legal action Changing demographics in the labor force Reasons for Increasing Diversity and Multiculturalism

Multiculturalism and Conflicts [cont.] Therefore, it is important that mangers respond appropriately when problems occur. Cases: Shoney’s Inc; Danny’s; Smith Barney. Program to eliminate such problems…..

Managing Diversity in Organization Individual Strategies: –Understanding –Empathy –Tolerance –Willingness to Communicate

Managing Diversity in Organization [cont.] Organizational Approaches: – Organizational Policies – Organizational Practices, –Diversity and Multicultural Training –Organizational Culture.

Techniques for Managing Diversity Managing Diversity Training Program Core Groups Multicultural Team Senior Managers of Diversity Other Approaches

Global Manager Prospective Knowledge Flexibility Sensitivity Judgment Reflection

Case Study IBM—A World Diversity At IBM –Is Big Blue Thinking Big Enough? –Is Diversity Working? –Valuing Diversity: An Ongoing Commitment

Multiculturalism and Competitive Advantage: Cost argument Resource Acquisition Argument Marketing Argument Creativity Argument Systems Flexibility Argument

Conclusion Forces For Convergence Forces For Divergence Effective International Management