1. Cultural Diversity and International Organizational Behavior

2. 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.

3. 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 16-1

4. The Competitive Advantage of Diversity
Gain a marketing advantage, including increased sales and profits.
Reduce costs for absenteeism and turnover through increased job satisfaction and helps avoid age, race and discrimination lawsuits.
Attract more diversity applicants.
Provide useful ideas for favorable publicity and advertising.
Workforce heterogeneity may offer a creativity advantage.

5. Factors Associated with Diversity Success
CEO Initiation and Support.
Human Resources Initiatives
Organizational Communication
Corporate Philosophy
Measures of Company Success

6. 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

7. 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

8. The Multicultural Manager
Relates effectively to and can motivate people across race, gender, age, social attitudes and lifestyles.
Respects and values cultural differences.
Can conduct business in a diverse, international environment.
Is aware and interested in why people of other cultures act as they do.
Does not assume 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 culture over that of another culture.

9. Protocol Do’s and Don’ts in Several Countries
EXHIBIT 16-2a

10. Protocol Do’s and Don’ts in Several Countries
EXHIBIT 16-2b

11. The Multicultural Organization
An organization that 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

12. Developmental Stages for the Multicultural Organization
Shares power and influence with all; major culture change
NONDISCRIMINATORY
Unfair advantage of majority group removed, but no culture change
MONOCULTURAL Exclusion of minorities and women from power
EXHIBIT 16-3

13. Diversity Initiatives at Major Business Firms
Note: Figures indicate percentage of companies responding that they address certain issues through diversity initiatives.
Source: “Impact of Diversity on the Bottom Line,” an SHRM/Fortune survey reflecting the responses of 121 HR professionals from 1,000 companies on Furtune magazine’s list of the “100 Top Companies to Work For.” Presented in Lin Grensing-Pophal, “Reaching for Diversity,” HR Magazine, May 2002, p. 56. Reprinted with the permission of HR Magazine published by Society for Human Resource Management, Alexandria, VA.
EXHIBIT 16-4

14. Barriers to 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 and not making the effort to relate.

15. Barriers to Cross-Cultural Relations
Stereotypes in intergroup relations
Assuming an individual’s personal characteristics are based on their group membership.
Language differences
When people do not understand each other’s languages, the possibility for misunderstanding multiplies.

16. 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.

17. 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 an human health or environmental safety hazard in another culture.

18. Cross-Cultural Processes: Negotiations
Suggestions for negotiating abroad:
Use a team approach.
Be patient.
Learn to tolerate less than full disclosure of information.
Accept silence as part of negotiating.
Take no for an answer sometimes.
Study the other culture’s negotiating style in advance..

19. Cross-Cultural Processes: Conflict Resolution
National cultures influence which method of conflict resolution a manager will choose.
Tinsley’s models of conflict resolution:
Deferring to status power: Japanese
Applying regulations: Germans
Integrating interests: Americans

20. Diversity 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.

21. Training in Cross-Cultural Relations
Cultural training
A set of learning experiences 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.