Quản trị kinh doanh - Chapter 5: Diversity in a global environment

Chapter 5Diversity in a Global EnvironmentUnderstand how managers organize international businessesExplain the challenges and opportunities of working with cultural differencesUnderstand the legal requirements for respecting workforce diversityRecognize and explain the implications of changing workforce demographicsInterpret the dimensions of diversity as a management strategy to increase innovation, creativity, and performanceLearning ObjectivesTo achieve results in today’s global economy, managers must understand international business practices, including international trade rules, agreements, and legal requirementsManagers must understand cultureManaging in a Global Economy (p. 118)Global organizations (p. 119)Global company – organization with operations in multiple countries and its senior management decision making centrally located in one countryMulti-domestic company – organization with operations in multiple countries and its senior management decision making distributed across the countries in which it operatesImporting – process of acquiring products and services from another countryExporting – process of creating products in one country and selling them in anotherManaging in a Global Economy (cont.)Strategic partnerships (p. 119)Agreement between two or more organizations to share complementary resources to develop and sell products and servicesDirect foreign investmentBuying existing or building new businesses in other countriesWorld Trade Organization (WTO)Organization responsible for global trade rules between countries Managing in a Global Economy (cont.)Regional trade zones (p. 119)Zones established through trade agreements among several countries in which trade barriers are reduced or eliminated for member countriesNorth American Free Trade Agreement (NAFTA) - involves Canada, Mexico, and the United StatesEuropean Union – political and economic union of 27 European countries that share a common currencyAssociation of Southeast Asian Nations (ASEAN) – cooperative organization of 10 countries in Southeast Asia established to promote economic, political, and social progress throughout the regionManaging in a Global Economy (cont.)Success to the successfulApplying Critical Thinking (p. 120)Figure 5.1aSuccess to the client!Applying Critical Thinking (cont.)Figure 5.1bCultural intelligenceAbility to understand and make effective decisions based on cultural differencesThree approaches to deal with cultural differencesEthnocentric – management believes that people who share their cultural values make the best managersPolycentric – management believes that managers from a particular country know best how to achieve results in that cultural contextGeocentric – management seeks talent and best practices from all around the worldCultural Differences (p. 121)Hofstede’s dimensions of culture (p. 121)Individualism versus collectivismWelfare of the individual versus that of the groupPower distanceDistribution of powerUncertainty avoidance (p. 122)Tolerance for ambiguity and desire for structureCompetition versus cooperationValue of personal achievement versus collaborationLong-term versus short-term orientationConcern about the future versus concern about the present and pastCultural Differences (cont.)Hofstede’s dimensions of culture (cont.)Cultural Differences (cont.)Figure 5.2Global Leadership and Organizational Effectiveness (GLOBE; p. 122)Network of over 150 researchers from 62 cultures assembled to study cultural dynamics in leadership and managementNine cultural dimensionsFound agreement about universal positive attributes of leadershipCultural Differences (cont.)Cultural Differences (cont.)Figure 5.3DiversityDegree to which an organization represents different culturesDeep-level diversity – differences represented in a group cannot be seenSurface-level diversity – differences among group members based on visual cues Legal Basis for Managing Diversity (p. 125)Dimensions of diversityLegal Basis for Managing Diversity (cont.)Figure 5.4Affirmative action (p. 125)Proactive steps taken to counteract discriminationDisabilitiesPhysical or mental impairments that substantially limit one or more of an individual’s major life activitiesDiscriminationTreating individuals or groups unfairly based on diversity traitsGlass ceilingInvisible barrier that limits the opportunities of women and minorities for advancement to upper-level positionsLegal Basis for Managing Diversity (cont.)Wage gap between men and womenLegal Basis for Managing Diversity (cont.)Figure 5.5Women in U.S. businessLegal Basis for Managing Diversity (cont.)Figure 5.6Changing workforce age demographicsTalent in a Diverse Workforce (p. 129) Figure 5.7Workforce trendsTalent in a Diverse Workforce (cont.)Figure 5.8Workforce trendsTalent in a Diverse Workforce (cont.)Figure 5.8Workforce trendsTalent in a Diverse Workforce (cont.)Figure 5.8Outsourcing (p. 131)Hiring an outside company to fulfill one or more of an organization’s core functionsOff shoringMoving a business process to another countryProfessional employee organizations (p. 132)Offer employee management services to other companiesTalent in a Diverse Workforce (cont.)Managing Diversity as an Advantage (p. 133)Figure 5.9Diversity as a strategy (p. 133)Investing in diversity positively affects creativity and innovation which increases performanceSocial integration – degree to which individuals in a group share and collaborate based on their unique perspectiveManaging Diversity as an Advantage (cont.)Figure 5.10How diversity affects creativity and innovationDiversity dimensions affect group and team processes, ultimately increasing organizational creativity and innovationManaging Diversity as an Advantage (cont.)Figure 5.11Fixes that fail - A doomed cultural fixApplying Critical Thinking (p. 135)Figure 5.12Fostering diversity (p. 134)Build a company culture that embraces diversity as a core tenet (p. 136)Design a business strategy to attract and retain talent to support the organization’s culture and to meet client expectationsEstablish policies and expectations of practices to support the business strategyStructure individual and group skills and competencies necessary to support the organization’s culture, strategy, policies, and practicesManaging Diversity as an Advantage (cont.)IBM’s diversity as a strategic advantageManaging Diversity as an Advantage (cont.)Figure 5.13