Chapter 16: Culture and Diversity in Business Unit 5: Human Resources

Culture in Business Describe the effect of culture on doing business globally Describe how corporate cultures differ among businesses

Culture in a Global Economy Culture: the beliefs, customs, and attitudes of a distinct group of people – dress, food, language, art – history, geography, and religion Culture may refer to an entire country, ethnic group, social group, or institution.

Culture and Business In business, culture has two important meanings. In the broad sense, it refers to the customs of other countries with which companies do business. A custom is a practice followed by people of a particular group or region Business culture refers to the standards of a particular company.

As companies trade worldwide, they must be aware of different cultural and business practices (e.g. etiquette, business customs, rules for personal interactions)

Culture in a Global Economy o Companies that trade with other countries must be aware of differences in o Language o Currencies o Laws o Eating habits o even systems of measurements. Failure to understand the culture of a country in which you do business can ruin a deal or lead to a marketing disaster

Consider This... Why is it important to understand other cultures when doing business in a global marketplace? What are some things that you would do when planning to conduct business in another country?

Marketing Abroad To market products successfully in another country, companies must research the country’s languages, customs, and tastes.

Marketing Abroad Example: Pillsbury translated “Jolly Green Giant” into Arabic and it became “Intimidating Green Ogre” Coca-Cola changes the amount of carbonation and sugar in its products to suit the tastes of different countries

Doing Business Abroad Companies doing business in other countries must be aware of cultural differences that affect the workplace. Problems for EuroDisney -Fear of cultural imperialism -Resistance to strict dress codes -Mandatory use of English in meetings -3,000 French workers quit

Doing Business Abroad Think about marketing goods in other countries. What are some obstacles you might face?

Business Etiquette Business etiquette: conduct that is considered socially acceptable in business; differs from country to country Example: In the USA receiving a gift from a potential business partner could be seen as a bribe. But in Japan it is customary to give gifts, and there are many rituals involved. In India, before doing business it is customary to have tea. In Mexico, throwing documents on a table during a meeting is considered an insult

Business Etiquette Strategies to avoid cultural problems – Hire local managers “THINK GLOBAL, ACT LOCAL” (e.g. hire a Swedish person to manage office in Sweden) – Train American employees to live and work in other countries As more countries trade globally, there is an increased demand for people who have studied other languages and cultures. – Study high-demand language/culture (Spanish, Mandarin/Chinese, Arabic, etc.) – Spend a semester or two of college studying abroad – Teach English in a foreign country

Corporate Culture Corporate culture: a company’s shared values, beliefs, and goals Culture may be defined – Formally, through a company code of ethics, a written manual, and the orientation process – Informally, through dress codes, work habits, and social activities Factors influencing cultures may include – Company’s founder – Industry (banking vs. technology) – Geographic location (NYC vs. Silicon Valley) Consider This Why is it important to know something about a firm’s corporate culture before accepting a job there? Consider This Why is it important to know something about a firm’s corporate culture before accepting a job there?

Examples of corporate cultures o McDonald’s & Disney: stress customer service and family values. Employees are expected to be clean-cut and greet each customer with a smile. o FedEx, Ben & Jerry’s, and Patagonia stress worker satisfaction and concerns for environment.

Examples of corporate cultures o Company founder can influence its culture, William Hewlett stressed a “people first” culture o Regional differences: Wall Street firm in NY may expect to wear a suit and tie. High-tech company in California might wear T-shirts and shorts to work.

Corporate Culture continued... Formal Culture May have a strict hierarchy, or chain of command May have one top decision maker with several layers of management below (bureaucracy) Making changes or passing down decisions may be complicated Job titles indicate power/status Dress codes and work hours strictly enforced Informal Culture Employees encouraged to make decisions on their own; may have decentralized organization Work hours are more flexible; may also work from home May value innovation over tradition Job titles are not as important Dress code is more casual Note: There may be different cultures within one company.

Considering Corporate Culture Form groups of two to four people. Appoint a timekeeper and recorder. Discuss the following questions. Your recorder should write your answers on a separate sheet of paper (to hand in at end of class). – Review the descriptions of formal and informal culture. What are some drawbacks and benefits of each? – Describe the classroom culture of your favorite class(es). What classroom rules, work habits, and activities help shape how you work, act, and deal with problems? How does this culture influence your work as students? Try to connect your discussion of classroom culture to the notes on corporate culture.

Videos for culture Google NYC - google-an-exclusive-look-at-its-nyc-office/88595E54- 0ACC-42D0-963B-0D940612BFA9.htmlhttp:// google-an-exclusive-look-at-its-nyc-office/88595E54- 0ACC-42D0-963B-0D940612BFA9.html Under Armour - center/ # http:// center/ # Google UBRN -

Diversity in the Workplace Identify ways in which cultural diversity has an impact on business Companies are more aware of the growing spending poser of different consumers groups. Human resources managers find ways to draw on the strengths of culturally diverse workers.

Cultural Diversity Companies tend to thrive when they have diversity, a variety of employees with different backgrounds and identities. People are diverse in terms of – Age – Fender – Ethnicity – Individual needs – Education – Marital status – Income – Religious beliefs

Cultural Diversity Diversity in the workplace means Differences in skills, work habits, and approaches to tasks. People with the same assignments will carry them out in different ways

Cultural Diversity Some people stereotype others who are different from them To stereotype people is to identify them by a single trait or as a member of a certain group rather than as individuals. Your success on the job will depend on how well you work with and for people who are different fromyou

The Impact of Diversity on Business ● US population is becoming more ethnically diverse. ● Each year more than 1 million people come to US ● Growing populations ● Fastest growing population is Hispanic and Asian o Hispanic- up 60% in TX and CA

The Impact of Diversity on Business ● Population is getting older and living longer. ● More workers age 65 and over are working past retirement age. ● Women in the labor force expected to rise slightly faster rate than for men. ● Workers aged are the largest share of the workforce

Changes in the Workplace ● Women and minorities are taking more leadership / management roles. ● Many workers from various cultures meet people of different ages, ethnic background, and abilities

Changes in the Marketplace o More diverse workplace = more diverse marketplace. o Different groups with spending power o Target audiences change o Many ads in multiple languages (English and Spanish)

Changes in the Marketplace o Baby Boomer Generation: 76 million born between many are reaching retirement age and developing specific needs o Millennial Generation: 80 million born early 1980 – 2000’s sometimes called “echo boomers” 1 st generation to grow up with technologies such as computers and cell phones

Managing Diversity Human Resource Managers oversee diversity. – Try to make the company inclusive by hiring different characteristics, backgrounds, and ethnicities. – Leads to more realistic world views, which can lead to competitive advantage – Diversity is an asset when dealing with clients and customers of various cultures. – Draw on the strength of the company’s melting pot

Laws Against Discrimination Discrimination is unfair treatment of a person or group, usually because of prejudiced attitudes about race, ethnicity, age, religion, or gender. Many laws have been passed to prevent discrimination. In the past, workers over the age of 40 were often fired or denied jobs in favor of younger workers. This form of discrimination is called ageism.

Laws Against Discrimination o Age Discrimination in Employment Act prohibits discrimination against workers based on their age. o Equal Employment Opportunity Act- protects against discrimination against age (ageism), gender, ethnicity, etc o Americans with Disabilities Act (ADA) – prohibits discrimination against qualifies people who have disabilities. Employers must make reasonable accommodation for qualified person with a disability.

Diversity Programs Companies offer diversity training programs to promote tolerance among workers that helps to reduce conflicts among workers. Diversity training breaks down stereotypes Managers must avoid stereotypes They must create a work environment in which prejudice is not tolerated and diversity is welcomed and respected. They must create a corporate culture that values diversity

Benefits of Diversity A diverse workforce offers a broader range of ideas and points of view Greater diversity in the workplace helps a company better understand and serve diverse markets Diversity improves morale among employees and strengthens their commitment to company goals. Companies that value diversity have – increased productivity and efficiency – lower turnover rates – less absenteeism – Fewer legal costs from employee complaints

Questions 1 In the business arena: a) Only men should stand for handshaking and all introductions b) Only women should stand for handshaking and all introductions c) It is not necessary for men or women to stand for handshaking and all introductions d) Both men and women should stand for handshaking and all introductions

Question 2 For easy reading, one’s name badge should be worn: a) On the left shoulder b) On the right shoulder c) On the left hip d) Around one’s neck

Question 3 When eating bread in a restaurant, you should: a) Butter the whole piece of bread, pick it up, and eat one bite at a time. b) Break off a bite-sized piece of bread and then butter and eat one bite at a time

Question 4 The best way to meet people at a business or social function is to: a) Head for the bar or buffet immediately upon arrival b) Introduce yourself to two people who are standing close and talking softly c) Look confident, standing in the center of the room, and wait for someone to approach you d) Introduce yourself to a person standing alone e) Stick close to those you know very well and forget about the rest

Question 5 When making a business introduction, you should : a) Wing it b) Introduce the less important/junior person to the more important/senior person c) Introduce the more important/senior person to the less important/senior person d) Don’t do anything. It is their responsibility to introduce themselves.

Question 6 When expressing thanks to someone who has given you a gift, you: a) Send an because it is faster and more efficient b) Send a handwritten note within 48 hours c) Pick up the phone and call within 72 hours d) Consider a verbal thank you sufficient

Question 7 When you are dining with someone important and your cell phone rings, you: a) Answer it within two rings and keep the call brief b) Ignore it and pretend that someone else’s phone is ringing c) Apologize and turn the phone on silent mode. The person you’re with takes priority. d) Apologize, step away from the table, and take the call in the lobby or restroom.

Question 8 When you are dining in a restaurant and you accidentally drop your fork on the floor, you: a) Pick it up, wipe it off, and use it anyway b) Pick it up, give it to the server, and ask him to bring you another one c) Leave it on the floor and ask the server to bring you another one d) Leave it on the floor and use your neighbor’s fork when he’s not looking

Question 9 When seated at a round or rectangular table: a) Remember, left to right, B-M-W: bread, meal, water b) Remember left to right, D-D-R: drink, dinner plate, roll c) It doesn’t matter. There’s enough water and bread to go around anyway.

Question 10 When you are finished eating, your napkin should be a) Folded loosely and placed on the right side of your plate b) Folded loosely and placed on the left side of your plate c) Folded loosely and placed on the center of your plate d) Folded like a dove or pirate’s hat and placed in the center of your chair

Question 11 When two business people communicate, how far apart should they stand? a) 1.5 feet b) 3 feet c) 7 feet

Question 12 It is acceptable to tell a business colleague that his/her zipper is unzipped. a) True b) False

Question 13 When answering a business phone, always answer a) With a simple hello. It sounds more approachable and less pretentious. b) With your name c) With your name, department, title, and a greeting

Question 14 When you reach a doorway at the same time as another person, the following rules apply: a) Whoever arrives first should open it and hold it for those who are following b) Men should always open doors for women c) Women should open doors for men to prove that they are no longer oppressed d) Always open the door for someone of either sex if that person has his or her hands full

Question 15 When exiting an elevator and a more senior person is toward the back, always: a) Step aside to let the more important person exit first b) Exit first if you are closest to the door

Question 16 On “Casual Friday”, which item(s) of clothing is (are) generally considered inappropriate? a) Khaki slackse) Loafers b) Sweat pantsf) Flip flops c) Baseball capsg) Jeans d) Polo-type shirts

Question 17 You have just heard a coworker in the cubicle next to yours speak rudely to a client on the phone. You should: a) Wait until the call is finished, then tell the person that their behavior is unacceptable b) Tell your boss c) Respect your coworker’s privacy and refrain from commenting

Question 18 You have exchanged a couple of angry s with a coworker who, in your opinion, is being unreasonable. It’s getting out of hand. You should: a) Stop the communication and let things cool off b) Send one more blistering , summarizing the situation and how upset you are with that person’s behavior, and :cc the recipient’s supervisor c) Change the medium. Call the person on the telephone or go sit down face to face.

Question 19 If you have a morsel of food lodged in your teeth and you want to remove it, you: a) Take your knife when no one is looking and remove the morsel promptly with the blade b) Raise your napkin to your mouth and discreetly use a sugar packet or your business card to remove the morsel c) Politely ask your server for a toothpick d) Excuse yourself and go to the restroom to pick your teeth in private

Academic Vocabulary Distinct - distinguishable to the eye or mind as discrete; separate Ethnic - of or relating to large groups of people classed according to common racial, national, tribal, religious, linguistic, or cultural origin or background Region- a broad geographic area distinguished by similar features Tradition – an inherited, establishes, or customary pattern of thought, action, or behavior

Academic Vocabulary Diverse - differing from one another Assignments - a specified task Prohibits – forbid by authority Accommodation – the provision of what is needed; adaption or adjustment