5: SUCCESS FACTORS IN THE GLOBAL MARKETPLACE

A) Think globally, act locally

B) Recruit and select talented nationals
C) Hire or develop multicultural workers
D) Research and assess potential markets

The advantages and disadvantages of globalization

Depends upon the vantage point of an individual

Advantage: An open economy spurs innovation with fresh ideas from abroad
Disadvantage: To stay competitive in a global economy, many companies reduce wages

6: THE SCOPE, COMPETITIVE ADVANTAGE, AND POTENTIAL PROBLEMS OF MANAGING DIVERSITY

Diversity: mixture of people with different group identities within the same work environment
a) Demographic diversity: mix of group characteristics of the organizations welfare; includes
age, sex, religion, physical status, and sexual orientation
b) Cultural diversity: mix of cultures and subcultures to which the organizations workforce
belongs

We study diversity in the workplace from 5 perspectives:

1) The scope of diversity
2) its competitive advantage
3) potential disadvantages
4) organizational practices for capitalizing on diversity
5) analysis of how the English language is used to unify people in business

1) The Scope of Diversity

Improving cross-cultural relations includes appreciating the true meaning of diversity

Valuing diversity means to respect and enjoy a wide range of cultural, demographic, and
individual differences
To embrace measurable differences
The goal of a diverse organization is for persons of all cultural background to achieve their full
potential, not restrained by group identification
A diverse organization is inclusive, valuing, and appreciating the contributions of every
employee
Integrating generations: to have people of all ages working well together
2 extremes:
a) Traditionalists/veterans (1992-1945): telephone and e-mail
b) Millenials (1981-2000): text messages

2) The Competitive advantage of Diversity

Making diversity a part of organizational strategy

Potential competition (bottom-line) benefits:
1. Managing diversity well offers a marketing advantage, resulting in increased sales and profits.
2. Effective management of diversity can reduce costs.
3. Companies with a favourable record in managing diversity are at a distinct advantage in
recruiting talented people.
4. Workforce diversity can provide a company with useful ideas for favourable publicity and
advertising.
5. Workforce diversity, including the services of a culturally diverse advertising agency, can help
reduce cultural bloopers and hidden biases.
6. Workforce heterogeneity may offer a company a creativity advantage.

3) Potential Problems associated with diversity

Potential for conflict is high ( group members do not necessarily work harmoniously)
Diverse groups may be less cohesive than those with a more homogeneous composition

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4) Organizational practices to encourage diversity

1) Corporate Policies favouring diversity

Formulate policies that encourage and foster diversity

2) Employee Network groups: affiliate on the basis of group characteristics

3) Diversity training: attempts to bring about workplace harmony by teaching people how to get
along better with diverse work associates

5) The English language as a force for unity

English : official language of business

Grammar is less complex
Internet and information technology