1. Business Leadership and Organizational Behavior Challenges for Managers Craig W. Fontaine, Ph.D.

2. Globalization

3. Transition to Global Organizations

4. Global Organizations

5. A global organization is an organization that produces or sells products or services in more than one country Organizations enter the global market to enhance both the input and output sides of their business Inputs include: Special raw materials Inexpensive or highly-skilled labor Outputs - major motivation is expansion of customer base Why go Global?

6. From Multinational Organizations (national issues are the focus) To Transnational (Global Organizations) (global viewpoint supersedes national issues) Change in Perspective

7. National Culture “The knowledge, beliefs, art law, morals, customs and other capabilities of one group distinguishing it from other groups.” Main features of culture: –Culture is shared –Culture is intangible –Culture is confirmed by others

8. Culture and International Business Culture is very important to the practice of international business. Impacts strategic moves. Influences decisions. The lens through which motivation occurs. Management, decision making, and negotiations are all influenced by culture. Culture influences nearly all business functions from accounting to finance to production to service.

9. Culture and International Business Culture is what makes international business practice difficult or easy, depending on how similar or different cultures are. Culture can be either both divisive and unifying.

10. Correlates of Culture Culture is correlated with other variables that vary cross-nationally, like language and religion. It is useful to remember that culture often cuts across religious, linguistic, and national borders. Religious, linguistic and national boundaries also often cut across cultures.

11. National Culture Classifications Culture and Nation are not synonymous. National and cultural boundaries overlap partially, and there will be cultural differences in almost all nations. To make things simpler, however, scholars have created cultural typologies that try to describe cultural differences and ascribe them to national boundaries.

12. National Cultural Clustering Ronen and Shenkar’s culture clustering

13. National Cultural Clustering Huntington’s civilization clustering

14. Intercultural Competency Training Source: Developed by Andrea Graf, Ph.D., Technical University of Braunschweig, Germany, and Robert L. Mathis, Ph.D., SPHR.

15. Cultural sensitivity training Cross-cultural task forces/teams Global view of human resource functions Planning Recruitment and Selection Compensation Training and Development Cultural Differences Approaches

16. Language The artifacts that surround language: Linguistics – or the meanings of words Proxemics – or the distance that speakers stand from one another Pragmatics – the cultural interpretations of words, gestures Non-verbal Communication – The gestures and body language that accompanies spoken words English has become the business world’s lingua franca, and the number one foreign language taught in other countries

17. Language Language is the means by which we communicate verbally. We use it for socialization and for communicating how values and norms are expressed and understood. There are approximately 20 different language families that cut across national borders. Not only are words different, but also syntax and usages are also quite different between language families.

18. Language

20. Language by the Numbers Numbers of speakers of major languages of the world (estimated)

21. Religion Religion contains key values and norms that are reflected in adherents’ way of life. People try to adopt business practices that will satisfy religious tenets without sacrificing modern practices in business.

22. Religion

24. Adherents to major world religions, by geographic region, 1996 (in millions)

25. Global Employee Selection Factors

26. Diversity

27. All forms of individual differences including: culture, gender, age, ability, personality, religion, personality, social status, and sexual orientation Diversity

28. Types of Diversity Gender Diversity Age Diversity Cultural Diversity Sexual Orientation Family Situations Physical and Psychological Disabilities Political Views Personal Idiosyncrasies

29. More women are working than ever before The workforce will continue to get older The number of immigrants has increased Ethnic and racial diversity is increasing U.S. Workforce Change

30. The service economy Interactions between people are key Customer base is more diverse Similarities between people ease process Globalization of business Doing business with people from around world Why Diversity

31. Proportion of Women in the Workforce Source: U..S. Bureau of Labor Statistics Year Percent

32. Gender Diversity More women in workforce today than ever Better educated than ever Most “nonstandard” workers (those who do not hold regular, full-time jobs) are women 55% of workers paid by temporary agencies are women 70% of part-time workers are women Stereotypes still remain –Glass ceiling, etc.

33. Comprise over 46% of the workforce Earn 49% of all doctorates Earn 60% of master’s degrees Earn 58% of undergraduate degrees BUT Little increase in number of women CEOs. Earn 81% of what male counterparts do. Encounter the glass ceiling in the workplace Women

34. Gender Diversity: Wages and Income In 2000, women who worked full-time, year round earned 74.3 cents for each dollar earned by men Over a lifetime of work, the average 25-year-old woman who works full-time, year round until she retires at 65 will earn $523,000 less than the average working man 58% of the workers who benefited from the last minimum wage increase were women

35. Age Diversity As population ages, more older workers are available Re-entry of middle-aged women to work Retirees returning to supplement pension Internships bring in more younger employees

36. Cultural Diversity Affects values, view of the world More than 40% of new entrants into U.S. workforce from non-“majority” groups About 22% new immigrants About 20% African-American or Hispanic Growing international business Employees maintain ties to national and cultural heritage

37. Sexual Orientation Diversity Approximately 10-14% of the US workforce is lesbian, gay, or bisexual ( Disclosure of sexual orientation is a critical and complex decision that is affected by many factors

38. Sexual Orientation Diversity Many discrimination laws do not protect sexual identity LGB employees report often do not report or disclose discrimination.

39. Other Types of Diversity Family situations Single employees (mothers and others) Physical and psychological disabilities Americans with Disabilities Act Political views Personal idiosyncrasies

40. Challenges of Diversity  Synergy challenge –More and more group-based work –Diversity can create positive and negative conflict Can facilitate creative problem-solving Can close down communication Can derail group processes –Group leaders must minimize destructive conflict and maximize diversity of input

41. Workplace Harassment

42. The number of workplace harassment claims filed during recent years has increased dramatically. Harassment is a costly proposition for employers. It can result in: low morale, absenteeism, reduced productivity, employee turnover, and damages and litigation costs. While some individuals may feel that ‘harassment” means only “sexual harassment”, it has become clear that in today’s work environment the term is much broader than that. However sexual harassment is the most common type of workplace harassment Overview of Workplace Harassment

43. Comments about an individual’s skin color or other racial/ethnic characteristics; Negative comments about an employee’s religious beliefs; Negative stereotypes regarding an employee’s birthplace or ancestry; Negative comments an employee’s age when referring to employees 40 and over; Derogatory or intimidating references to an employee’s mental or physical impairment. Examples of Other Types of Workplace Harassment

44. Sexual H arassment Definition Unwelcome verbal, visual, or physical conduct of a sexual nature that is severe or pervasive and affects working conditions or creates a hostile work environment.

45. Breaking down the definition : “Conduct” Conduct is NOT sexual harassment if it is welcome. For this reason, it is important to communicate (either verbally or in writing) to the harasser that the conduct makes you uncomfortable and you want it to stop.

46. “Of a Sexual Nature” Verbal/Written: Comments about clothing, personal behavior, or a person’s body; sexual or sex-based jokes; requesting sexual favors or repeatedly asking a person out; sexual innuendoes; telling rumors about a person’s personal or sexual life; threatening a person, sending emails or text messages of a sexual nature Physical: Assault; impeding or blocking movement; inappropriate touching of a person or a person’s clothing; kissing, hugging, patting, stroking

47. “Of A Sexual Nature” Nonverbal: Looking up and down a person’s body; derogatory gestures or facial expressions of a sexual nature; following a person Visual: Posters, drawings, pictures, screensavers, emails or text of a sexual nature

48. Of a Non-Sexual Nature Non-sexual conduct may also be sexual harassment if you are harassed because you are female, rather than male, or because you are male, rather than female. For example, it may be sexual harassment if you are a woman working as a carpenter on an all-male job, and you are the only one whose tools are frequently hidden by your male co-workers.

49. “Severe or Pervasive” The conduct of the harasser must be either severe or pervasive to be classified as sexual harassment. Although a single unwanted request for a date or one sexually suggestive comment might offend you and/or be inappropriate, it may not be sexual harassment. However, a number of relatively minor separate incidents may add up to sexual harassment if the incidents affect your work environment.

50. “Affects working conditions or creates a hostile work environment” It may be sexual harassment if the conduct unreasonably interferes with your work performance or creates an “intimidating, hostile, or offensive work environment.” For example, it may be sexual harassment if repeated sexual comments make you so uncomfortable at work that your performance suffers or you decline professional opportunities because it will put you in contact with the harasser.

51. Types of Sexual Harassment Quid Pro Quo (“This for that”) A person in a position of authority, typically a supervisor, demands sexual favors as a condition to getting or keeping a job benefit.

52. Hostile Work Environment Verbal, physical or visual forms of harassment, that are sexual in nature, "sufficiently severe, persistent, or pervasive" and unwelcome fall under the category of Hostile Environment Sexual Harassment. A single, severe incident, such as a sexual assault, could create a hostile environment. More commonly, a "hostile environment" is created by a series of incidents.

53. Preventing Sexual H arassment Employees should: –Avoid behavior that may be misconstrued as possible sexual harassment. –Avoid sexual jokes, comments, and e-mails. –Respect a person’s indication that your conduct or attention is not welcome. –Not invade another individual’s personal space. –Not touch anyone without their permission. –Clearly inform those engaging inappropriate sexual orientated behavior that they find it objectionable. –Seek assistance promptly if they are the target of or observe severe or repeated instances of behavior that they believe qualify as sexual harassment.

54. Manager’s Responsibility Monitor workplace behavior, enforce respect. Treat all complaints seriously and confidentially. Do not ignore any allegation. Post/disseminate EEO Policy. Respond to allegations immediately; investigate, as appropriate. Be sensitive but impartial. Interview parties and relevant witnesses. Ask opened-questions. Collect relevant documentation/evidence. Take appropriate corrective action, follow-up Ensure no retaliation. Document your actions.

55. Examples Internet Expert System Robotics © 2013 Cenga ge Learni ng Technology The intellectual and mechanical processes used by an organization to transform inputs into products or services that meet organizational goals. Technological Innovation

56. © 2013 Cengage Learning Alternative Work Arrangements Telecommuting Satellite offices Virtual offices

57. © 2013 Cengage Learning [ Employees ] Gain flexibility Save the commute to work Enjoy the comforts of home [ But, they ] Have distractions Lack socialization opportunities Lack interaction with supervisors Identify less with the organization Technology Enabled Work Arrangements

58. Develop technical competence to gain workers’ respect Focus on helping workers manage the stress of their work Take advantage of the wealth of information available to motivate, coach, and counsel—not to control Manager’s need to…

59. Involving them in decision making regarding technological change Selecting technology that increases workers’ skill requirements Providing effective training Establishing support groups Encouraging creative application of new technology Manager’s New Role