Managing Diversity Chapter 10. IBUS 681 Dr. Yang2 Learning Objectives Define diversity Understand how different cultures view diversity Explain Cox’s

Managing Diversity

Chapter 10

IBUS 681 Dr. Yang 2

Learning ObjectivesDefine diversity

Understand how different cultures view diversity

Explain Cox’s model of the multicultural organization

Discuss various ways of managing diversity in organizations

IBUS 681 Dr. Yang 3

Learning Objectives (cont.)Describe unintended results of managing diversity

Consider how managing diversity can be a competitive advantage

Debate whether approaches to managing diversity are converging or diverging worldwide

IBUS 681 Dr. Yang 4

DiversityA range of individual differences, including those that are visible and those that are not, e.g.

Gender, age, ethnicity

National origin, religion, disability

Education, profession, family status, etc.

IBUS 681 Dr. Yang 5

How Different Cultures View Diversity

Difference in meeting the challenge

The United States

Canada

Japan

Germany

South Africa

Within and across cultural factors

Range of population

Laws

Social movements

Economic conditions

Globalization

IBUS 681 Dr. Yang 6

The United StatesFundamental tradition of valuing equality and equal opportunity Legal basis for managing diversityMulticulturalism and valuing diversity well established Concern with the “business case” Debate over affirmative action

IBUS 681 Dr. Yang 7

CanadaLegislation applies only to regulated industries,

E.g., Broadcasting, telecommunications, banking, railroads, airlines, shipping, government owned, etc.

Forbid direct and indirect discrimination

Pay equity law in Ontario and QuebecComparable value: Equal pay for work that is the same or equally important and difficult

Some comprehensive organizational programsCentral funding for diversity programs

IBUS 681 Dr. Yang 8

JapanRelatively homogenous populationChanging legislation and employment practices that affect women workersImpact of social demographic changes on the labor market

Gender issuesSmall firms and foreign firms in JapanDiversity challenge to Japanese firms Low birth rateAging population

IBUS 681 Dr. Yang 9

Population Estimates by Age and Sex in Japan (2004 est.)

0

100200

300

400500

600

Population (10,000)

Lessthan 9

15~19 25~29 35~39 45~49 55~59 65~69 75~79 Over85

Male

Age (5-year group)

MaleFemale

Labor force is decreasing in Japan: Younger generation has the tendency of “not want to work”. An aging society, longest life length in the world These job spaces are substituted with 2.3 million immigrants & non-visa

foreign labors in Japan. Most of them are Brazilian.

IBUS 681 Dr. Yang 10

Current Population and TrendsCountries

Median Age

65 or over

Life Expectancy

Pop Growth

U.S 36.0 12% 77.43 .92%

Canada 38.2 13% 79.96 .92%

Germany 41.7 18% 78.54 .02%

Japan 42.3 19% 81.04 .08%

S. Africa 24.7 5% 44.19 -.25%

China 31.8 7% 71.96 .57%

India 24.4 5% 63.99 1.44%


Organizations’ View of Problems in Hiring Foreign Workers (Japan)

42%

41%

21%

21%

18%

13%

12%

11%

0% 10% 20% 30% 40% 50%

Cultural Differences

Communication

Training

Adaptability

Wage

Responsibility

Rent

Ability


GermanyHistory of guest workersLiberal law for asylum seekersEvolving treatment of womenRecognizes EU’s six core dimensions of diversity

Treaty of Amsterdam, 1997Gender, age, race or ethnicity, sex orientation, disability, religions


Foreigners in Germany


The foreign worker population in Germany increased tremendously over a 40-year period, from 80,000 in the mid 1950s to three million in the late 1980s.Now the immigrant population in Germany has reached approximately 8 million.The more Germans built their economy the more they need foreign labor help.

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

1950s 1980s 2004


South Africa as a Rainbow NationA mixture of African roots and deep European impactsThe new democratic order created in 1994 is avowedly committed to establishing a true rainbow nation


Cultural DiversityEthnic divisions

black 75.2%, white 13.6%, Colored 8.6%, Indian 2.6%

ReligionsChristian: Most whites and coloreds, and about 60% of blacksHindu: 60% of Indians,Muslim: 2%

11 Official LanguagesAfrikaansEnglishNdebelePediSothoSwaziTsongaTswanaVendaXhosaZulu


The New ConstitutionProhibits discrimination based on race, religion, gender, age, national origin, and financial resource

Schools are required to use four instructional languages so that no students would be disadvantaged because of the language barriers.


Key Challenges to a Rainbow NationHigh unemployment rate (Ginsberg, 1998; CIA 2002)

Population grows at 1% faster than the GDPOfficial unemployment rate at 30%, 2000Estimated to rise to 55% by 2005

Educational reformMulti instructional languagesOutcome based educationRestructuring the systemsShortage of financial resourcesShortage of quality teachers

HIV/AIDS (CIA 1999 est.)Population – 45 millionAdult prevalence rate – 19.94%People living with HIV/AIDS – 4.2 millionHIV/AIDS deaths – 250,000


Six Dimensions to Analyze Organizational Capacity for Effective Integration of Cultural Diversity

Dimensions Definition

Acculturation Cultural groups adapt to each other and resolve cultural differences

Structural Integration

Cultural profiles of organizational members including hiring, job-placement, and job status

Informational Integration

Inclusion of minority-culture members in informal networks and activities outside of normal working hours

Cultural Bias Prejudice and discrimination

Organizational Identification

Feelings of belongingness, loyalty, and commitment to the organization

Inter-group Conflict Friction, tension, and power struggles between cultural groups


Characteristics of Cox’s Three Organizational Types

Pluralism

Full

Full

Both prejudice and

discriminationare eliminated

No majority-minority gap

Low

Form of Acculturation

Degree of Structural Integration

Integration into Informal Organization

Degree of Cultural Bias

Levels of Organizational Identification

Degree of Intergroup Conflict

Assimilation

Minimal

Virtually none

Both prejudice and discrimination against minority-

culture groups are prevalent

Large majority-minority gap

Low

Dimension ofIntegration Monolithic Plural Multicultural

Assimilation

Partial

Limited

Progress on both prejudice and

discrimination, but both continue to exist, especially institutional

discrimination

Medium to largemajority-minority gap

High


Creating an Organization That Can Manage Diversity

Organizational VisionTop Management CommitmentAuditing and Assessment of NeedsClarity of ObjectivesClear AccountabilityEffective CommunicationCoordination of ActivityEvaluation


Techniques for Managing DiversityManaging Diversity Training Program

Core Groups

Multicultural Teams

Senior Managers of Diversity

Targeted recruitment and selection programs


Other Organizational ApproachesCompensation and reward programs tied to achieving diversity goalsLanguage trainingMentoring programsCultural advisory groupsCorporate social activities that celebrate diversity


Unintended Results of Managing Diversity

Programs that focus on encouraging certain groups may create feelings of unfairness or exclusion in others

Giving preferential treatment to certain groups may stigmatize their members

Increasing diversity without recognition and rewards for the new members can create organizational tension


How diversity may influence workers’ pay and job security?

There are 16 million foreign-born workers in the U.S.

SF – 26% of the population is foreign-bornImmigrants tend to earn lessParticularly those without a high school education

Impact by education-7.4% for low skill jobs not requiring a high school education -3.6% with college degrees

Impact on wages by race 1980-2000

All U.S. born -3.7%Asian -3.1%Black -3.5%Hispanic -4.5%White -5.0%

Source: Harvard ResearchCited by SF Chronicle 5-4-04

How about diversity issues in Japan, Germany, and South Africa?How about diversity issues in Japan, Germany, and South Africa?


Immigrant women entrepreneurs on the rise in the U.S. (USBLS, Feb. 2005)

Rise by 190% since 1990 By 468% since 1980:

Mexico 16.5%Korea 6.1%Vietnam 4.9%Philippines 4.0%El Salvador 3.7%Germany 3.6%Canada 3.3%

Top industries:Private households: 13.7%Child day care 9.2%Restaurants/food services 8.3%Beauty salons 6.0%Services to buildingsand dwellings 3.9%


Reentering workforce poses problems for professional women

50% were “frustrated”18% described the job search as “depressing”

83% were over 35 years of age81% had an MBABetter opportunities with smaller firmsWith more work-life balance


Managing Diversity for Competitive Advantage

Cost Saving

Resource Acquisition

Marketing

Creativity and Innovation

Problem Solving

Organizational Flexibility


Managing Diversity for Competitive Advantage

Not inevitably good or bad for an organizationHR managers generally see positive benefitsPositive or negative news on diversity issues may affect the stock priceLooking beyond the “Business Case”

Labor market realityAmerican value Social expectation


Convergence or Divergence?Increasing domestic multiculturalism

Increasing globalization of organizations

Antidiscrimination laws

Need for foreign labors

Increasing domestic multiculturalism

Increasing globalization of organizations

Antidiscrimination laws

Need for foreign labors

Homogeneous populations may see managing diversity as less important or irrelevant

Economic problems may lead to resentment against foreign workers or immigrants

Homogeneous populations may see managing diversity as less important or irrelevant

Economic problems may lead to resentment against foreign workers or immigrants


Implications for ManagersManaging a diverse workforce is an important part of an international manager’s job.

Both international and domestic managers must understand the impact of diversity and know how to utilize the assets

Organizations should be aware that different cultures view diversity differently, and should consider diversity impacts both within and across borders.

Documents

Managing Diversity Chapter 10. IBUS 681 Dr. Yang2 Learning Objectives Define diversity Understand how different cultures view diversity Explain Cox’s