Cross Culture n Div Mgt Hrm

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    Presented By:

    Anil Kumar

    Indu Bansal

    Sandeep Tonk

    Siddhant Rana

    Tushar Srivastava

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    There are over 100 definitions ofculture.

    The following definitions ofculture are tied together by anunderstanding that: culture is learned

    culture is shared

    cultural experiences vary within acultural group

    culture changes continuously every exchange with others is

    intercultural.

    Culture permeates everything wethink, say, do and are.

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    Cross-cultural may refer to cross-cultural studies, a comparative tendency in

    various fields of cultural analysis.

    cross-cultural communication, a field of studythat looks at how people fromdiffering cultural backgrounds communicate.

    any of various forms of interactivity between

    members of separate cultural groups.

    the discourse concerning cultural interactivity,sometimes referred to as cross-culturalism.

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    Considers good of whole rather thanindividual achievement

    Prefer indirectness, politeness & ambiguity.Infer information from message context,rather than from content.

    Convey little information explicitly.

    High-context cultures place value on bodylanguage and nonverbal cues.

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    INDIAN

    ENGLISH CANADIAN

    AUSTRALIAN

    ENGLISHGERMAN

    IRISH

    NEW ZEALAND

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    Rule oriented, people play by external rules

    More knowledge is codified, public, external,and accessible.

    Sequencing, separation of time, of space, ofactivities, of relationships

    Value directness.

    See indirectness as manipulative.

    Value written word more than oralstatements.

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    AFRICAN

    USA

    ARAB

    CHINESE FRENCH

    GREEK

    JAPANESE

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    Primary Factors Race

    Ethnicity

    Sex

    Age

    Secondary Factors Work Style

    Education

    Income

    Marital status

    Personality Rank

    Values

    Geographic location

    The many differences that make us unique

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    An inclusive process ofappreciatingwhat individuals with different

    backgrounds bring to the organization.-Hattie Hill Enterprises, Inc.

    The condition of being different/ UniqueRandom House College Dictionary:

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    Active inclusion of all members in theorganization

    Valuing differences among organizational

    members Competing for the best people Reducing negative behaviors that can

    keep people apart Creating an environment where everyonecan develop their potential

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    Q: If I tell you that my company has a diverseworkforce, what do you think that I mean?

    Q: If I say that my workforce is ethnically

    diverse, is that the same thing?How do companies interpret diversity?

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    Pride in cultural heritage

    Stronger religious orientations

    Immigration to the U.S.

    Higher birth rates among ethnic minorities

    More women entering the workforce

    Population aging

    Increased recognition that the disabled canfunction effectively in society

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    Women

    Minorities

    Older Workers

    UndereducatedWorkers with Disabilities

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    Physical Challenges

    Religion

    Family Status

    Values

    Age

    Sexual Orientation

    Socio-EconomicStatus

    Appearance

    Gender

    EducationLevel

    Marital Status

    ProfessionalBackground

    Workstyle

    RaceMerging

    Culture

    Work/LifeBalance

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    Goal: High performance organization in which every

    individual can perform to his/her potential.

    Benefits: maintaining and increasing market share

    reducing costs

    increasing productivity

    improving the quality of management avoiding potential legal issues

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    Organizations that do not practicediversity management expect less from

    members from certain backgrounds.Organizations practicing diversity

    management expect the best from allmembers. They set high standards and

    demand top performance from everyone.

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    Wider perspectives on problem solving Improves mission effectivenessPositive organizational image that helps in

    recruiting the best people for theorganization

    Larger set of knowledge, skills, abilities,and experiences for meeting the

    organizational mission Makes the organization more adaptable

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    Organizations with diverse membersbring: Broader, richer perspectives to problem

    solving. Such organizations can more directlypinpoint the definition of the problem,generate creative and innovative solutions,evaluate the solutions on many importantcriteria, and choose the best possible solution.

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    Diversity creates inclusiveness for peoplewith different knowledge, skills, abilities,experiences, and perspectives. A breadth

    of backgrounds gives the organization anedge over organizations that mold itsmembers into sameness.

    A diverse organization can react more quicklyand adaptively to organizational challenges

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    Requires that all members actively

    participate in accomplishing the mission.This fosters a respect from all organizationalmembers for what each member can

    contribute to the mission.

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    High perception of an organizationalclimate of consistency and fairness

    Greater pool of expertise, information,

    and experience for problem solvingFocus upon everyone succeeding

    Managing different kinds of people hones

    leadership skills & individualdevelopment.

    Stronger loyalty and commitment to theorganization

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    Creates an image of the organization to theoutside world that is inclusive of people ofdifferent backgrounds. Because differentkinds of people want to associate with anorganization that values diversity.

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    Ambition Work ethic:

    Time consciousness & use Personal space Cleanliness Methods of conducting business

    Problem-solving methods

    Group consensus vs. individual decisions Group conflicts Relationship building Assertiveness Ethics View of women Style of leadership Work procedures

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    Tools for Diversity Management

    Challenges to Diversity Management

    Business Case for Diversity

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    EEO Equal Employment Opportunity Laws that prohibit workplaces discrimination based on

    race, color, region, sex, national origin, age, anddisability. E.g. Citibank in India & US based companies

    Affirmation Action Legally driven by written plans and goals for specificgroups.

    Specific target groups benefit from past discrimination.

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    Both inclusion and valuing differences areimportant for mission accomplishment

    Balancing takes time and effort.

    miscommunication between groups.

    Teams composed of different kinds of people maynot function smoothly

    Balancing & inclusion of everyone and valuingdifferences is not easy.

    Misperceptions of different kinds of people

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    Pro-diversity beliefs demonstrated at the alllevels

    Leadership commitment

    Strategic planning

    Tie to mission effectiveness

    Harness capabilities and foster talent

    Accountability, measurement, and evaluation

    Link to performance

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    Seek out issues regarding div. Strengthen top mgt commitment to div. Choose solutions that balance div.

    Set goals for div. balancing results in a richer, more proactive leadership

    style Train teams in team dynamics Allow sufficient time for teams to iron out differences

    among members Focus teams upon their mission Training about stereotyping and bias can help reduce

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    KFC was founded by Harland Sanders (Sanders) in the early 1930s, when he startedcooking and serving food for hungry travellers who stopped by his service station inCorbin, Kentucky, US.He did not own a restaurant then, but served people on his own dining table in the livingquarters of his service station. His chicken delicacies became popular and people started

    coming just for food.

    Kentucky Fried Chicken was born. Soon, Sanders moved across the street to a motel-cum-restaurant, later named 'Sanders Court & Cafe, that seated around 142 people.Over the next nine years, he perfected his secret blend of 11 herbs and spices and thebasic cooking technique of chicken. Sanders' fame grew and he was given the titleKentucky Colonel by the state Governor in 1935 for his contribution to the state's

    cuisine.

    Sanders' restaurant business witnessed an unexpected halt in the early 1950s, when anew interstate highway was planned bypassing the town of Corbin. His restaurantflourished mainly due to the patronage of highway travellers.

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    Contd..

    The new development meant the end of this. Sanders sold his restaurantoperations. After settling all his bills, he was reduced to living on a meagre $105social security cheque. But Sanders did not hope.

    Banking on the popularity of his product and confident of his unique recipe forfried chicken, Sanders started franchising his chicken business in 1952. He called

    it Kentucky Fried Chicken.

    He travelled the length and breadth of the country by car, visiting as manyrestaurants aspossible and cooking batches of chicken. If the restaurant owners liked hischicken, he entered into a handshake agreement that stipulated payment of a

    nickel9 for each plate of chicken sold by the restaurant. By 1964, Sandersfranchised more than 600 chicken outlets in the US and Canada.

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    Foreign fast food companies were allowed to enter India during the

    early 1990s, thanks to the economic liberalization policy of theGovernment of India (GoI). One of the first fast food multinationals toset foot in India was Kentucky Fried Chicken (KFC), owned by PepsiCo.

    KFC received permission to open 30 new outlets across the country. It

    chose Bangalore as its launch pad because the city had a substantialupper middle class population, with a trend of families eating out.

    Also, it was considered Indias fast growing metropolis in the 1990 .The Bangalore outlet was opened in June 1995. Apart from Bangalore,

    PepsiCo planned to open 60 KFC and Pizza Hut outlets in the countryover the next seven years. However, KFC became embroiled in variouscontroversies even before it started full-fledged business in India.

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    The case highlights the ethical issues involved in Kentucky FriedChicken's (KFC) business operations in India. KFC entered India in 1995 and has been in midst of controversies sincethen. The regulatory authorities found that KFC's chickens did not adhere tothe Prevention of Food Adulteration Act, 1954. Chickens contained nearlythree times more monosodium glutamate (popularly known as MSG, aflavor enhancing ingredient) as allowed by the Act.Since the late 1990s, KFC faced severe protests by People for Ethical

    Treatment of Animals (PETA), an animal rights protection organization.PETA accused KFC of cruelty towards chickens and released a video tapeshowing the ill-treatment of birds in KFC's poultry farms. However,undeterred by the protests by PETA and other animal rightsorganizations, KFC planned a massive expansion program in India

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    KFC entered India in 1995, but a controversy surrounding thelevels of MSG in its preparations and subsequent protests fromfarmers' groups and animal rights activists

    spelt trouble for the company. Ultimately, the company hadto shut all but one outlet in the country.

    Only recently in 2003 it made a quiet re-entry into the Indianmarket. Then came up with the strategies and menu that is

    desirable by the Indian consumers and also to provideVegetarian meals as well. And since 2003 it is expandingsuccessfully its business in India

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    KFC has not understood the significance of cultural,economic, regulatory and ecological issues while

    establishing business in a country like india .

    KFC has not Appreciated the need for protecting animalrights in developed and developing countries like India.

    They have not understood the importance of ethics in doingbusiness.

    They have not examine the reasons for protests of PETA.

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    BUT WHEN IN 2003 IT CAME BACK INTO INDIA WITH THE

    STRATEGIES LIKE

    TARGETTING HIGHER INCOME GROUP LEVEL.

    BUT AT THE SAME TIME PROVIDING MENU WHICH CAN BEAFFORDED BY THE MIDDLE INCOME GROUP LEVEL LIKE KFCMINI BURGER AT RS.25 AND CAME UP WITH MENU LIKE HOTCRISPY CHICKEN WHICH CONTAINS INDIAN SPICES WHICH

    INDIAN PEOPLE LIKE.

    BUT NOW THEY ARE ADHERING THE RULES OF FOOD

    CORPORATION OF INDIA AND PETA AND EXPANDING BUSINESSSUCCESSFULLY

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    Diversity is about leveraging humanpotential, which is critical to enhancemission readiness.

    Diversity management improves missionreadiness and organizationaleffectiveness.

    There are challenges to diversity

    management, but with the correct toolsthe obstacles can be resolved.

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    Admiral Mike Mullen (2006). What I believe: Eight tenets that

    guide my vision for the 21st century Navy. U.S. Naval Institute

    Proceedings, 132(1), 12-16.

    Taylor Cox (1993). Cultural diversity in organizations: Theory,

    research, and practice. San Francisco: Berrett-Koehler.

    Robert J. Schneller (2005). Breaking the color barrier: The U.S.

    Naval Academys first black midshipmen and the struggle for

    racial equality. New York: New York University Press.

    www.kfc.com for case study.

    http://www.kfc.com/http://www.kfc.com/
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