Cultural Dimensions

Week 3
 Cross-Cultural Processes: Ethics

Global business practices and behaviors create ethical

and legal dilemmas for managers:
– The choice of which culture’s code of ethics to follow.
– Conflicts between individual and organizational
responsibilities for ethical behavior.
– The ethics of outsourcing when
doing so may create a human
health or environmental safety
hazard in another culture.
 Cross-Cultural Processes:
Negotiations
Suggestions for negotiating abroad:
• Use a team approach.
• Do not push for informality.
• Be patient.
• Learn to tolerate less than full
disclosure of information.
• Accept silence as part of
negotiating.
• Take no for an answer
sometimes.
• Be adaptable.
 Cross-Cultural Processes: Conflict
Resolution
National cultures influence which method of
conflict resolution a manager will choose.
•Tinsley’s models of conflict resolution:
Conflict Resolution Model Cultural Group
Membership
Deferring to status power Japanese
Applying regulations Germans
Integrating interests Americans
Diversity Training and Cultural Training
• Diversity Training
– Attempts to bring about workplace harmony by teaching
people how to get along better with diverse coworkers.
– Objectives of diversity training:

1. Fostering awareness and acceptance of individual differences.

2. Helping participants understand their own feelings
and attitudes about people who are different.
3. Exploring how differences might be tapped as assets
in the workplace.
4. Enhancing work relations between people who are different
from each other.
Diversity Training and Cultural Training
• Training in Cross-Cultural Relations
– Cultural training
• A set of learning experiences (e.g., mastering a foreign language)
designed to help employees understand the customs, traditions,
and beliefs of another culture.
– Culture shock
• The physical and psychological symptoms that can develop when a
person is abruptly placed in another culture.
• Cultural training is designed to help expatriates avoid culture
shock, which is a major contributor to the high failure rate of
overseas assignments.
 Assignment 2%
Arabic Cluster: Bridge between East and West

Adapt sections of the above article to Pakistani

Context.

1200-1500 words

Academic referencing.

Copyright © Allyn & Bacon 2007 7

 Key Terms!

• Stereotyping: assumes that all people within

one culture or group behave, believe, feel, and
act the same.
• Ethnocentrism: occurs when people from one
culture believe that theirs are the only correct
norms, values, and beliefs.
• Self-reference criterion: the assumption that
people in another culture will behave like
people in your culture
 Hofstede’s Cultural Dimensions
Power Distance
• Power distance: The extent to which less powerful members
of institutions and organizations accept that power is
distributed unequally
– High power distance countries: people may blindly obey the orders of
their superiors and are less likely to question authority. Companies
tend to use centralized decision-making and tall organization
structures (many levels of management)
– Low power distance countries: flatter and decentralized organization
structures, smaller ratio of supervisors. Employees are more likely to
question their bosses. Participative management may be used.
 Hofstede’s Cultural Dimensions
Individualism and Collectivism
• Individualism: Tendency of people to look after themselves
and their immediate family only
– Countries high in individualism: High individual initiative.
Promotions are based on achievement. Salaries are
based on market value.
• Collectivism: Tendency of people to belong to groups or
collectives and to look after each other in exchange for
loyalty
– Countries high in collectivism: Low individual initiative.
Salaries and promotions may be based on seniority
 Hofstede’s Cultural Dimensions
Uncertainty Avoidance

• Uncertainty avoidance: Extent to which people feel

threatened by ambiguous situations and have created
beliefs and institutions that try to avoid such situations
– High uncertainty avoidance countries: people have high need for security,
strong belief in experts and their knowledge, more written rules and
procedures, less risk taking by managers
– Low uncertainty avoidance countries: people are more willing to accept
risks associated with the unknown, fewer written rules and procedures,
more risk taking by managers, higher employee turnover, more ambitious
employees
 Hofstede’s Cultural Dimensions
Masculinity and Femininity

• Masculinity: the dominant social values are success, money

and things
– Countries high in masculinity: People place great
importance on earnings, recognition, advancement,
challenge, and wealth. High job stress.
• Femininity: the dominant social values are caring for others
and the quality of life
– Countries high in femininity: great importance on
cooperation, friendly atmosphere, employment security,
and the natural environment. Low job stress.
 Trompenaars’ Cultural Dimensions

• Universalism vs. particularism

– Universalism – the belief that ideas and practices
can be applied everywhere in the world without
modification. People tend to focus on formal rules
and expect business partners to do the same.
– Particularism – the belief that circumstances
dictate how ideas and practices should be applied
and some things cannot be done the same way
everywhere. People tend to focus on relationships,
working things out to suit those involved.
 Trompenaars’ Cultural Dimensions (2)

• Neutral vs. Emotional Cultures

– Neutral culture – a culture in which emotions
are held in check. People try not to show their
feelings
– Emotional culture – a culture in which
emotions are expressed openly and naturally.
People smile, may talk loudly, greet each other
with enthusiasm, show happiness or
unhappiness.
 Trompenaars’ Cultural Dimensions (3)

• Achievement vs. Ascription n

– Achievement culture - culture in which people
are accorded status based on how well they
perform their work and what they have
accomplished
• Job, work performance, education, etc.
– Ascription culture - culture in which status is
attributed based on who or what a person is
• For example, status may be accorded on the basis
of age, gender, family, tribe, ethnic group, etc.
 Trompenaars’ Cultural Dimensions (4)

• Use of time
– Sequential use of time - people do one thing at
a time, keep appointments strictly, follow plans
to the letter
– Synchronous use of time - people do more
than one thing at a time, appointments are
approximate
 Trompenaars' Research on
People and the External Environment

• Inner-directed: People believe in controlling

environmental outcomes and think that
they can control what happens to them
• Outer-directed: People believe in allowing
things to take their natural course and
living in harmony with nature. People are
less likely to believe that they can control
what happens to them.
Managing the Diverse Workforce
 Diversity: A Brief History
Term originated in North America
• Privileged groups: Urban men of Han descent
in China, White men in the United States,
Protestant men in Northern Ireland,
Bureaucracy in Pakistan.
• Under-privileged groups: African Americans,
Northern Africans immigrants in France,
Women in Korea, IDPs in Pakistan
• Exclusion from circles of influence
 Components Of A Diversified
Workforce Gender

Age
Racial and ethnic
minorities
Other
Workforce Expectations and values
Immigrants
Diversity Lifestyle
Skill level
Physically and Educational level
Economic class
mentally disabled Workstyle
Function and/or position
within the company
How Effective Is Your Diversity Program?
Ineffective
2%
Very
Undecided Effective
Somewhat 11%
8% Effective
ineffective 8%
22%

Somewhat
effective
49%
 Diversity Today
• Diversity

– broad term used to refer to all kinds of differences

• race, age, sex, religion, attitudes, physical abilities, life
interests, expectations, flexibility, aggressiveness,
extroversion
– members of different groups share common values,
attitudes, and perceptions
• there is still much diversity within each group
 Diversity Today (cont.)
• Workers of the future
– until recently, white, American born males dominated the
U.S. workforce
• now, they only account for 15 percent of the net growth
– Gender issues - growing number of women working outside
the home
• balancing work life with family responsibilities and parenting
presents an enormous challenge
• average full-time working female earns about 77% of the average
full-time working male
– result of both the level and type of work performed by women
– glass ceiling - invisible barrier hindering a group or individual from
moving beyond a certain level in the corporate hierarchy
 Diversity Today (cont.)
• Workers of the future (cont.)
– Minorities and immigrants - growing percentage of the
workforce
• estimated that 14 percent of the work force is foreign born
• African Americans are about 12 percent, Asian Americans are about
5 percent, Hispanic Americans about 12 percent
• Asians and Hispanics are growing the fasted
– Mentally and physically disabled - largest unemployed
minority population .
• disability - a physical or mental impairment that substantially limits
one or more major life activities
• disabled lack access to educational and workplace environments
• attitudes of employers an important barrier to employment
 Diversity Today (cont.)
• Age of the workforce
– average age is increasing
• many older workers are opting for late retirement
• fewer new workers will enter the labor force than will
be lost through retirement
– retirement-age workers can be encouraged to
remain or re-enter the workforce on a flexible or
part-time basis
 Diversity Today (cont.)
• Future jobs and workforce qualifications
– the world is becoming a predominantly service-oriented
economy
– people without high school diplomas/degree are at a
distinct disadvantage
– gap is growing between the knowledge and skills jobs
require and those many employees and applicants possess
• literacy is often the underlying problem
• employers are combating this basic-skills gap
– offer in-house basic-skills training program
Managing Diversity Versus Affirmative Action
• Affirmative action (AA)
– instituted to curb discrimination and correct the past
exclusion of women and minorities from organizations
– nonetheless, employment discrimination still persists
• AA has not adequately improved the upward mobility of women and
minorities
– reverse discrimination exists when qualified majority
members are passed over for employment opportunities
• Managing diversity
– means moving beyond legislated mandates to embrace a
proactive business philosophy that values differences
– eliminates barriers that hinder attainment of full potential
Competitive advantage through diversity
– original impetus to diversity workforces was social
responsibility and legal necessity
• today, many organizations are also approaching diversity from a
more practical, business-oriented perspective
a. Ability to attract and retain motivated employees
• companies with reputation for diversity have competitive
advantage in the labor market
• companies will be sought out by most qualified employees
• employees who believe that their differences are valued may
become more loyal, productive, and committed
Competitive advantage through diversity
(cont.)
b. Better perspective of a differentiated market
• as the composition of the workforce changes, so does the customer
base of these companies
– diverse customers may prefer to patronize such organizations
• a multicultural workforce can provide a company with greater
knowledge of the preferences and consuming habits of this
diversified marketplace
c. Ability to leverage creativity and innovation in problem
solving
• people from different backgrounds hold different perspectives
• diverse work groups are freer to deviate from traditional approaches
d. Enhancement of organizational flexibility
• managing diversity requires a corporate culture that tolerates
different styles and approaches
 Key Terms
1. Equal Employment Opportunity (EEO):
legislation means that it is against the law to
discriminate
2. Affirmative Action Programs: to achieve
equality of opportunities by focusing on
specific groups and righting past wrongs
3. Diversity management: is proactive and
aimed at promoting a diverse and
heterogeneous workforce
 Giraffe House Analogy
An interesting explanation for the difference
between equal opportunity legislation and diversity
management comes from Australia and uses the
analogy of wild animals in the zoo.
Imagine your organisation is a giraffe house. Equal
opportunity has been very effective widening the door of the
giraffe house to let the elephant in, but home won’t be best
for the elephant unless a number of major modifications are
made to the inside of the house. Without these changes the
house will remain designed for giraffes and the elephant will
not “feel at home.” (Krautil, 1995, p. 22)
 Diversity and Globalisation
• Cox (2001) notes that “the globalization of
business is a trend that makes diversity
competency crucial form any organizations”
(p. 124) because both large and small
companies increasingly derive a significant
portion of their revenues from other countries
in the world.
According to IBM’s chairman and CEO Sam
Palmisano:
“diversity policies lie as close to IBM’s core as
they have throughout our heritage. Today,
we’re building a workforce in keeping with the
global, diverse marketplace, to better serve
our customers and capture a greater share of
the on demand opportunity” (IBM Web page,
2009).
 Definition

Diversity management refers to the voluntary

organizational actions that are designed to
create greater inclusion of employees from
various backgrounds into the formal and
informal organizational structures through
deliberate policies and programs.
 Types of Diversity Management
a) Intra-national diversity management:
managing a diverse workforce of citizens or
immigrants within a single national
organizational context. A German company instituting policies
and training programs for its employees to improve sensitivity and provide
employment opportunities to members of minority groups and recent immigrants
in its workforce

b) Cross-national diversity management:

managing a workforce composed of citizens
and immigrants in different countries. A Korean
company with branches in Japan, China, and Malaysia establishing diversity
policies and trainings that will be applicable in its headquarters and also in its
subsidiaries in these countries
Challenges of a diverse workforce
a. Lower cohesiveness - lack of similarity in culture causes
diverse groups to be less cohesive
b. Communication problems - most common negative effect
• diversity increases errors and misunderstandings
c. Mistrust and tension - mistrust and misunderstanding of
those who are different because of a lack of contact and
low familiarity
d. Stereotyping - inappropriately stereotype their “different”
colleagues rather than accurately perceiving and
evaluating those individuals’ contributions, capabilities,
aspirations, and motivations
• stereotypes affect how people are treated
 Multicultural Organizations
• Monolithic organizations
– an organization that has a low degree of integration
• employs few women, minorities, or other groups that differ from
the majority
– low minority employees must adopt the norms of the majority
• has a highly homogeneous employee population
• Pluralistic organizations
– have a more diverse employee population
– use an affirmative action approach to managing diversity
– some acceptance of minorities into the informal network
– much less discrimination and less prejudice
 Multicultural Organizations (cont.)
• Multicultural organization
– values cultural diversity and seeks to utilize and encourage
it
– fully integrate gender, racial, and minority group members
both formally and informally
– absence of prejudice and discrimination
– low levels of intergroup conflict
– synergistic environment
• all members contribute to their maximum potential and the
advantages of diversity can be fully realized
 How Organizations Can Cultivate A
Diverse Workforce
1. Top management leadership and commitment
a) top management support is critical
b) incorporate organization’s attitudes toward diversity into
the corporate mission statement, strategic plans, and
objectives
c) establish corporate offices or committees to coordinate
the companywide diversity effort that provides feedback
to top management
d) minority advisory groups or task forces to monitor
organizational policies, practices, and attitudes
• assess program impact on diverse groups
• provide feedback and suggestions to top management
 How Organizations Can Cultivate A
Diverse Workforce (cont.)
2. Organizational assessment
a) establish an ongoing assessment of the organization’s
workforce, culture, policies, and practices
• identify problem areas
• make recommendations where changes are needed
b) corporate values and norms should be identified and
critically evaluated regarding their necessity and their
impact on the diverse workforce
 How Organizations Can Cultivate A
Diverse Workforce (cont.)
3. Attracting employees
a) Recruitment - a company’s image can be a strong
recruiting tool
• a reputation for hiring and promoting all types of people can be a
competitive advantage
• many minorities and economically disadvantaged people are
physically isolated from job opportunities
– companies can bring information about job opportunities to the
source of labor
– companies can transport labor to the jobs
 How Organizations Can Cultivate A
Diverse Workforce (cont.)
• Attracting employees (cont.)
b) Accommodating work and family needs
• corporate work and family policies are now one of the most
important recruiting tools
• providing child care leads to:
– decreased turnover and absenteeism
– improved morale
• concerns for dual-career couples expressed by:
– limiting relocation requirements
– provide job search assistance to relocated spouses
 How Organizations Can Cultivate A
Diverse Workforce (cont.)
• Attracting employees (cont.)
c) Alternative work arrangements
• offer flexible work schedules and arrangements
– compressed workweeks
– job sharing - two part-time workers share one full-time job
– teleworking - working from home
– telecommuting - working from home via computer hookup to
the main worksite
 How Organizations Can Cultivate A
Diverse Workforce (cont.)
4. Diversity training
– attempt to identify and reduce hidden biases and
develop skills needed to effectively manage a
diversified workforce
a) Awareness building - to increase awareness of the
meaning and importance of valuing diversity
• sensitize employees to assumptions they make about others
• become familiar with stereotypes and cultural differences
• become familiar with organizational barriers that inhibit the
full contributions of all employees
• teach the unwritten “rules” or cultural values to those who
need to know them
 How Organizations Can Cultivate A
Diverse Workforce (cont.)
• Diversity training (cont.)
b) Skill building - designed to allow all employees to develop
the skills they need to deal effectively with one another and
customers in a diverse environment
• most of the skills taught are interpersonal
• develop personal action plans before they leave the program
• experiential exercises and videotapes often are used
5. Retaining employees
a) Support groups - form minority networks to promote
information exchange and social support
• provide emotional and career support
• help diverse employees understand work norms and cultures
 How Organizations Can Cultivate A
Diverse Workforce (cont.)
• Retaining employees (cont.)
b) Mentoring - higher-level managers help ensure
that high-potential people are introduced to top
management and socialized into the norms and
values of the organization
• help diverse employees enter the informal network
c) Career development and promotion - establish
teams to evaluate the career progress of diverse
employees
• devise ways to move them up through the ranks
 How Organizations Can Cultivate A
Diverse Workforce (cont.)
• Retaining employees (cont.)
d) Systems accommodation - recognize:
• cultural and religious holidays
• differing modes of dress
• dietary restrictions
• needs of individuals with disabilities
e) Accountability - managers held accountable for workforce
development
• performance appraisal and reward systems reinforce the
importance of effective diversity management