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ACKNOWLEDGEMENT
Sometimes an acknowledgement fails in completely expressing the feeling of gratitude that one
feels for the beacons that guided one in one's journey. take this opportunity to thank all who
have been pillars of support to me for this project.
owe my sincere gratitude to Dr. S.F.Chandrasekhar, Professor and Head (HRM Dept.) for
allowing me to undergo my Specialization Project successfully. would like to express my heart
filled gratitude to my guide, Dr.Pavan Patel (Asst. Professor), SSM, for his guidance and timely
help which has made me complete my work.
My special thanks and regards are due to my parents for the motivation, inspiration and help,
without which, could not have completed my project.
At last would like to thank all individuals who have directly or indirectly supported me in giving
final shape to my project.
DECLARATON
Pranil Chakraborty declare that this project report titled "Diversified Workforce Management
submitted in partial fulfillment of the requirement for the PGDM Course is a bonafide record of
the work done by me under the supervision and guidance of Dr.Pavan Patel (Asst. Professor),
SSM. further declare that it is my original work as a part of my academic course.
Date: Pranil Chakraborty
Place: Roll No. 16038
CERTFCATE
This is to certify that Mr. Pranil Chakraborty is a student of Siva Sivani nstitute of Management.
He has undergone the Specialization Project utmost sincerely and has shown regularity. He
worked on the topic "Diversified Workforce Management and completed the project
successfully under my supervision and guidance.
wish him all success in future endeavors.
Date: Dr.Pavan Patel
Place: (Asst. Professor, SSM)
TABLE OF CONTENTS
T A B L E O F C O N T E N T S
CHAPTER 1: NTRODUCTON ABOUT THE STUDY............... 07
1.1 NTRODUCTON...................... 08
1.2 OBJECTVES........................ 10
1.3 SCOPE.......................... 10
1.4 METHODOLOGY ...................... 10
1.5 LMTATONS OF THE STUDY................. 10
CHAPTER 2: REVEW OF LTERATURE.................... 11
2.1 NTRODUCTON........................ 12
2.2 REVEW OF STUDES ON MANAGNG DVERSTY....... 12
2.3 GENERAL OBSERVATONS.................. 19
2.4 CONCLUSON......................... 19
CHAPTER 3: STUDY OF DVERSFED WORKFORCE MANAGEMENT N VAROUS
ORGANZATONS........................ 21
3.1 NTRODUCTON........................ 22
3.2 DVERSTY POLCY..................... 22
3.3 STRATEGES TO BE FOLLOWED........................................... 23
3.4 ORGANZATONS STUDED................. 26
3.5 CONCLUSONS....................... 39
CHAPTER 4: FACTORS AFFECTNG DVERSTY............... 41
4.1 NTRODUCTON........................ 42
4.2 HOFSTEDE'S FVE CULTURAL DMENSONS.......... 42
4.3 TROMPENAARS SEVEN DMENSONS OF CULTURE..... 43
4.4 REPORTS ON CULTURAL DMENSONS............ 44
4.5 EVALUATON OF A DVERSTY PROGRAM.......... 56
4.6 REPORTS ON DVERSTY PROGRAM EVALUATON...... 58
4.7 DVERSTY AUDT....................... 64
4.8 CONCLUSON......................... 65
CHAPTER 5: FNDNGS, SUGGESTONS, AND CONCLUSON......... 66
5.1 FNDNGS OF THE STUDY................. 67
5.2 SUGGESTONS...................... 68
5.3 CONCLUSON........................ 69
BBLOGRAPHY.............................. 71
ANNEXURE 1............................... 72
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Diversity refers to any perceived difference among people: age, race, religion, functional
specially, profession, sexual orientation, geographic origin, and lifestyle, tenure with the
organization or position and any other perceived difference. Diversity is more than equal
employment and affirmative action. Diversity is a source of creativity and innovation that
can provide the potential for future development and competitive advantage.
Diversity management is ensuring that factors are in place to provide for and encourage
the continued development of a diverse workforce by melding these actual and
perceived differences among workers to achieve maximum productivity. Diversity
management involves creating a supportive culture where all employees can be
effective. n creating this culture it is important that top management strongly support
workplace diversity as a company goal and include diversity initiatives in their
companies' business strategies. t has grown out of the need for organization to
recognize the changing workforce and other social pressures that often result. Diversity
is more than being politically correct; it is about fostering a culture that values individuals
and their wide array of needs and contributions. Diversity management aims at reducing
discrimination and promoting equal opportunities.
Effectively managing demographic diversity in the workplace is an increasing but
necessary challenge because of the way demographic composition shapes our
organizational life. The justification for promoting diversity and a multicultural work
environment is based on the claim that such policies create better decision-making
processes, enhance creativity and innovation, and increase business competitiveness.
The organization can fully utilize its diverse human resource talents to sustain its
competitive advantage and comply with requirements of equal opportunity employment.
Social identity theory suggests that people classify themselves and others in categories
based on some salient characteristics, such as gender, race, or ethnicity. They identify
more with members who are similar to their category (in-group) than with dissimilar out-
group members. Such distinctions and attachments affect their group and self-
attribution, including stereotypic attribution. The consequences of socially constructed
identities include in-group favoritism, negative stereotyping and subordinating of out-
groups, inter-group competition, and role conflict. The distinctive identity of employees in
a work setting subsequently results in the exclusion of minorities from group
membership and important decision-making and less access to support, which, in turn,
jeopardizes career advancement. The perception of unfair treatment eventually creates
an overall negative work environment for all employees. From a social identity
perspective, group membership and the perception of group status are relevant to
understanding intergroup relations in organizational settings.
Some of the terms that should be known:
Culture
1. A network of shared understandings, norms, and values that are taken for
granted and that lie beneath the surface and determine how we view and
practice life.
2. Culture tells us how "we are and what attitudes to have about "them', the people
who are different from us.
3. Culture tells us how we should do things and what should be important.
4. Our culture is communicated and affirmed through language, gestures, symbols,
myths, rites and rituals.
Majority Culture
This group exerts the greatest influence, occupies powerful decision-making positions,
and determines life chances of other groups. The official agents of society generally
represent this group's views.
Minority Culture
These groups are underrepresented in decision-making bodies. Culture is transmitted
through family and group members and not by official agents of society. These groups
are treated differently because of shared physical, social, or cultural characteristics.
Ethnic Group
Members consider themselves to be alike because of common ancestry or history.
Race
A cultural classification of populations, using actual or assumed genetic traits to classify
populations of the world.
Disability
The 2ericans with Disabilities ct (ADA) defines disabilities as including but not limited
to alcoholism. blindness, deafness, heart disease, multiple sclerosis, mental or
emotional illness, orthopedic impairments, learning disabilities, and speech impairments.
1.2 0JFCTlvF
1. To study the practices adopted in various organizations to manage the diversified
workforce.
2. To study the various dimensions that affects the diversified culture of organizations.
1.3 SC0PF
After the LPG that occurred in 1991, many foreign players started entering ndia. From
then the scenario of the ndian market in the global perspective has changed. There is a
significant increase in the women workforce in the corporate world. There are even
many individuals from different parts of the world who have started coming and working
in ndia. To manage the total workforce of an organization needs some task to do. Thus,
there is a variety of aspects that has to be looked upon. To be a successful HR
professional one needs to know the country's culture of all the individuals from where
they came. Even there are many issues regarding women that have to be taken care of
by the organization and many of them have taken steps towards achieving success in
understanding their workforce.
1.4 HFTH000l06Y
The descriptive analysis is done on the basis of secondary data. Study material provided
by some organizations, previous reports on Managing Diversity, journals, magazines,
books, newspapers available in libraries of SSM and various websites have been
referred.
1.5 llHlTATl0tS 0F THF STu0Y
n one way or the other, no study can be claimed as a perfect one without any
limitations. This study is also not an exception. Following are the limitations of the
current study:
1. There is not much data available in the internet regarding the study.
2. The analysis is done on the basis of secondary data (descriptive), hence
hypotheses and data analysis part will be missing.
3. Time period was a constraint in making the project report.
2.1 ltTR00uCTl0t
n this chapter different studies conducted by different practitioners, research
outcomes on theoretical and practical aspects of diversity management have
been discussed. t will hone in understanding the various concepts, procedures,
activities with regard to the diversity that prevails in various organizations.
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n the knowledge-driven and technology fuelled economy of the 21
st
century,
intangibles are gaining increasing importance. Optimum utilization and maximum
RO on the capital of the organization forms the fulcrum leveraging the
profitability and liquidity of an organization providing it with the necessary
competitiveness edge in the market. Of all the intangibles assets owned by the
organization, the increasing recognition of Human Capital knowledge pool and
creativity of employees with diverse backgrounds- as an important determinant of
the bottom line of organizations. Most research confirms that the quality of
people management is a better predictor of performance than business strategy,
research and development or quality management.
The development of human capital requires and depends on supportive factors
compensation, enabling and inclusive workplace, recruitment of best talent,
participation in decision making and communication reliability and well
established system of best HR policy and practices. Different employees from
different backgrounds contribute ideas and solutions, the creativity and
innovation index of organization is bound to increase with enriched human
knowledge-pool.
The human capital strategy statement should spell out the organization's outline
of its vision for the contribution of human capital in relation to the future
opportunities and challenges and the role of the HR policies in achieving that
contribution.
Special training to employees to accept and value differences amongst their
colleagues may help in smoothening out some differences temporarily, but deep
rooted discriminatory mind-set and centuries-old cultural-alienation and
prejudices cannot be washed away. A correct cocktail of strategies ranging
from mentoring, training, recruitment and performance management to
dissemination of the vision/mission of the organization's goals would ensure the
success-rate of the diversity initiative. But now due to the widening of the
HLL recruits a diverse workforce that appropriately reflects the demographics of
their consumer base and fulfills talent needs to keep the company competitive
and successful. The results have been promising. t also endeavours to retain
employees by fostering an environment in which employees understand and
value each other and respect differences.
nfosys is also an equal opportunities employer and its employees, irrespective of
nationality, are deputed across various development centres that commensurate
with their skill sets and profiles.
By: Tarun Narayan, Govindkrishna Seshan & Lakshmi Chopra
Companies try all sorts of things to attract and promote minorities and women.
They hire organizational psychologists. They staff booths at diversity fairs. They
host dim-sum brunches and salsa nights. The most popular--and expensive--
approach is diversity training, or workshops to teach executives to embrace the
benefits of a diverse staff. Too bad it doesn't work. A groundbreaking new study
by three sociologists shows that diversity training has little to no effect on the
racial and gender mix of a company's top ranks.
By: Jeff Hutchens
Diversity committees are being set up in many companies. They are
implementing programs designed to make different gender, racial and ethnic
groups feel more comfortable. Many companies abroad have diversity resource
groups that allows employees of a similar background to come together to
support one another. They may have separate groups for Asians, African
Americans, people with disabilities, gay and lesbian employees, Latinos, parents,
and women.
By: Tamara E. Holmes
The Society for Human Resource Management has found that most
organizations believe workplace diversity is important, but only 30 percent have
an official definition of it, and most respondents said there is no common
language to guide companies in managing their diversity efforts. The survey
asked more than 1,400 HR professionals and diversity practitioners to rate how
well their company's diversity practices accomplished their specific business
objectives. Fifty-two percent said that to a "large extent," diversity practices
created a work environment or culture that allows everyone to contribute all that
they can to the organization, while 49 percent said the practices achieved
appropriate representation of racial and ethnic groups. Forty eight
percent of respondents surveyed said that their organization's diversity initiatives
enhanced the ability of people from different backgrounds to work together
effectively. t looks like companies are becoming more aware of the importance
of diversity in the workplace. But here's the bad news: only 38 percent said
diversity practices actually eliminated or minimized prejudice. The survey also
found that smaller companies, defined as those with 99 or fewer employees, are
the least likely to have an official definition of diversity, while public/government
organizations are more likely than private non-profit and for-profit organizations
to define diversity.
Source: Diversityjobs.com
Older workers believe that younger associates drop them from critical informal
communications networks. Companies inadvertently close-off career paths and
training opportunities to mature workers, assuming that they either are
uninterested or unwilling to accept a new challenge. Older workers need to use
some new approaches to reach out to younger colleagues, such as initiating
social outings, and keeping up with modern communication methods such as
texting and instant messaging.
Source: hrmguide.com
While organizations tend to believe that diversity in the workplace is important,
only 30% have an agreed definition of 'diversity', according to a recent Society for
Human Resource Management (SHRM) report.
The 2007 State of Workplace Diversity Management Report is based on a year-
long study on the status of diversity in the workplace conducted in partnership
with the American nstitute for Managing Diversity nc. The survey included 993
human resource professionals and 330 diversity practitioners from a range of
organizations, including publicly and privately owned companies, non-profits, and
the education sector:
While the report states that there is evidence of more awareness of diversity in a
general sense, managing diversity continues to be a challenge. Specifically,
among other hurdles to diversity management, survey respondents emphasized
that the field:
a. s not well-defined or understood
b. Focuses too much on compliance, and
c. Places too much emphasis on ethnicity and/or gender.
Source: hrmguide.com
Effectively managing demographic diversity in the workplace is an increasing but
necessary challenge because of the way demographic composition shapes our
organizational life. The justification for promoting diversity and a multicultural
work environment is based on the claim that such policies create better decision-
making processes, enhance creativity and innovation, and increase business
competitiveness. The organization can fully utilize its diverse human resource
talents to sustain its competitive advantage and comply with requirements of
equal opportunity employment.
Social identity theory suggests that people classify themselves and others in
categories based on some salient characteristics, such as gender, race, or
ethnicity. They identify more with members who are similar to their category (in-
group) than with dissimilar out-group members. Such distinctions and
attachments affect their group and self-attribution, including stereotypic
attribution (Abrams and Hogg, 1999). The consequences of socially constructed
identities include in-group favoritism, negative stereotyping and subordinating of
out-groups, inter-group competition, and role conflict (Wharton, 1992). The
distinctive identity of employees in a work setting subsequently results in the
exclusion of minorities from group membership and important decision-making
and less access to support, which, in turn, jeopardizes career advancement. The
perception of unfair treatment eventually creates an overall negative work
environment for all employees. From a social identity perspective, group
membership and the perception of group status are relevant to understanding
intergroup relations in organizational settings.
By: Crawford, Ronald B.
Researchers of cultural diversity in organizations must look to alternative
theoretical perspectives, such as feminist theories, critical theories, and
sociological paradigms to identify the problematic and methodologies appropriate
to future diversity studies. This research needs to document different voices in
the workforce, especially those that have been marginalized.
Multicultural discourses that incorporate the diverse voices of all workers will not
only transform our public and private economic organizations; they will also
reinvigorate our public discourses and political institutions, strengthening our
social, political, and economic well-being. There have been numerous challenges
issued to academics to become more involved in the pressing social issues of
the day and to demonstrate, in the public arena, the worth of their studies. The
study of cultural diversity and of multicultural discourses in organizations offers
an opportunity for scholars to do that.
By: Fine, Marlene G
Specifically, there will be more women, minority group members, and older
workers, suggesting a more heterogeneous workforce, which is a significant
departure from the largely homogeneous workforces of the past (Johnston and
Packer, 1987). Whereas the notion of diversity brings with it opportunities for
organizations, it poses serious challenges as well.
The notion of diversity is one of differences in people, and as such suggests
different things to different people. Some may consider diversity as a problem, or
challenge that hampers organizational effectiveness. Others may consider
diversity an opportunity to expand valuable perspectives and ideas, thus
enhancing organizational effectiveness. Diversity may suggest images of
alienation of organizational constituencies from one another, it may suggest
images of isolated individuals based on some defining characteristics, or it may
suggest images of a colorful and interesting environment.
By: Galang, M. Carmen
The business case for diversity in the workplace--of race, gender, age, ethnicity
and more--has been examined and debated over the years. Despite its
promotion by governments and social engineers, the benefits aren't always
readily apparent or directly measurable.
Based on interviews with executives at public and private companies and others
in the human resources field, Financial Executives Research Foundation (FERF)
found the business case for diversity consists of diversity's contribution to one or
more of four factors.
The four are: increasing revenue or gross margin; enhancing compliance or
reducing litigation risk; enhancing corporate goodwill (to become the "employer of
choice);" and as part of tone at the top, when corporate leadership believes
diversity is "the right thing to do."
Executives were also found to take a holistic approach to diversity, making it part
of their extended role in leading professional and community organizations.
By: Orenstein, Edith G.
This study compared women's roles, expectations and experiences in two
comparable, male dominated industrial manufacturing companies in Australia.
Both organizations are subject to legislated equal opportunity program and
reporting requirements. The research was conducted to examinee the
differences between what is submitted in their EEO reports and the experience of
women workers in the organizations. Good jobs and poor jobs existed in the
same legislative and industrial framework and in the same local labour market.
The differences are located in a combination of organizational and cultural
conditions.
A slow decline in gender segregation over the last twenty years has been
demonstrated in the USA and Australia (as elsewhere) but women still
predominate in sales and service occupations, and men in skilled trades. The
growth of women's overall representation in management and professional
occupations has increased, especially in female dominated organizations, but
segregation at the workplace level remained almost unchanged, despite nearly
two decades of equal opportunity legislation (Watts 2002).
By: Henderson, Lindy
Much attention is being paid to the topic of diversity in the workplace, as
academicians and managers confront the issues emerging from an increasingly
diverse American workforce. The impact of increased workforce diversity touches
virtually all management concerns. As a result, the diversity literature includes a
large number of areas of inquiry including, though not limited to, the impact of
diversity on communication-oriented outcomes, on cognitive outcomes like
creativity of solutions, and on affective reactions like commitment or satisfaction.
Broadly considered, the literature falls into two categories: the impact of the
organization on diverse groups and the impact of diverse groups on the
organization. Research within the former category focuses on the difficulty that
organizations have in providing fair treatment to diverse groups with differing
needs and on the challenges of managing heterogeneous groups. Reasons for
difficulty in integrating workers range from social constraints that preclude
integration and acceptance of women and minorities into the workgroup to the
conflict faced by managers when weighing diversity objectives against resource
constraints. The majority of this writing paints a negative portrait of the
organization's attempt to handle diversity within its ranks.
The latter category largely argues for the potential benefits that are posited to
derive from diversity in organizations. Many authors have suggested that ethnic
and gender diversity can provide organizational benefits ranging from competitive
advantages such as marketing strength and the ability to attract human
resources at the strategic level to improved creativity in group decision making
and improved task performance. However, studies also indicate that gender and
culture diversity create barriers to effective interactions that hinder performance.
The net result is that research suggests that, without benefit of effective
intervention, there should be as little diversity as possible in decision-making
groups, although, over time, higher levels of diversity may contribute to improved
decision making.
By: Weisbord, Ellen
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To address diversity issues, consider these questions: what policies, practices, and
ways of thinking and within our organizational culture have differential impact on different
groups? What organizational changes should be made to meet the needs of a diverse
workforce as well as to maximize the potential of all workers?
Most people believe in the golden rule: treat others as you want to be treated. The
implicit assumption is that how we want to be treated is how others want to be treated.
But when we look a t this proverb through a diversity perspective, we begin to ask the
question: what does respect look like; does it look the same for everyone? Does it mean
saying hello in the morning, or leaving someone alone, or making eye contact when we
speak?
t depends on the individual. We may share similar values, such as respect or need for
recognition, but how we show those values through behavior may be different for
different cultures. How do we know what different cultures need? Perhaps instead of
using the golden rule, we could use the platinum rule which states: "treat others as they
want to be treated." Moving our frame of reference from an ethnocentric view ("our way
is the best way") to a culturally relative perspective ("let's take the best of a variety of
ways") will help us to manage more effectively in a diverse work environment.
We have a key role in transforming the organizational culture so that it more closely
reflects the values of our diverse workforce. Some of the skills needed are:
1. An understanding and acceptance of managing diversity concepts.
2. Recognition that diversity is threaded through every aspect of management
3. Self-awareness, in terms of understanding your own culture, identity, biases,
prejudices, and stereotypes.
4. Willingness to challenge and change institutional practices that present barriers
to different groups.
t's natural to want a cookbook approach to diversity issues so that one knows exactly
what to do. Unfortunately, given the many dimensions of diversity, there is no easy
recipe to follow. Advice and strategies given for one situation may not work given the
same situation in another context.
Managing diversity means acknowledging people's differences and recognizing these
differences as valuable; it enhances good management practices by preventing
discrimination and promoting inclusiveness. Good management alone will not
necessarily help you work effectively with a diverse workforce. t is often difficult to see
what part diversity plays in a specific area of management.
5. Use a panel interview format. Ensure that the committee is diverse, unit
affiliation, job classification, length of service, variety of life experiences,
etc. to represent different perspectives and to eliminate bias from the
selection process. Run questions and process by them to ensure there is
no unintentional cultural or institutional bias.
6. Ensure that appropriate accommodations are made for disabled
applicants.
7. Know your own cultural biases. What stereotypes do you have of people
from different groups and how well they may perform on the job? What
communication styles do you prefer? Sometimes what we consider to be
appropriate or desirable qualities in a candidate may reflect more about
our personal preferences than about the skills needed to perfor2 the job.
8. Training and education programs
9. Organizational policies that mandate fairness and equity for all
employees.
10. Mentoring programs for minority employees.
11. More systematic career guidance and planning programs.
12. Performance appraisal systems that is non-discriminatory.
13. Outreach programs, such as internship programs, scholarships, targeting
recruitment in the community, and lectures at schools
Fair vs. Same Treatment
Many people think that "fairness" means "treating everyone the same." How well does
treating everyone the same work for a diverse staff? For example, when employees
have limited English language skills or reading proficiency, even though that limit might
not affect their ability to do their jobs, transmitting important information through
complicated memos might not be an effective way of communicating with them. While
distributing such memos to all staff is "treating everyone the same," this approach may
not communicate essential information to everyone. A staff member who missed out on
essential information might feel that the communication process was "unfair." A process
that takes account of the diverse levels of English language and reading proficiency
among the staff might include taking extra time to be sure that information in an
important memorandum is understood. Such efforts on the part of supervisors and
managers should be supported and rewarded as good management practices for
working with a diverse staff.
Managing Diversity is Different from Affirmative Action
9. Do you take immediate action with people you supervise when they
behave in ways that show disrespect for others in the workplace, such as
ethnic jokes and offensive terms?
10. Do you make good faith efforts to meet your affirmative action goals?
11. Do you have a good understanding of institutional isms such as racism
and sexism and how they manifest themselves in the workplace?
12. Do you ensure that assignments and opportunities for advancement are
accessible to everyone?
f we are able to answer yes to more than half the questions, we are on the right track to
managing diversity well.
developing women within the organization, Accenture ensures that it has a competitive
advantage both in selling Client work but also in then delivering Client requirements.
Accenture's Global Women's nitiative aims to help us to attract, retain and advance
women by recognizing, fostering and maximizing their performance. The initiative offers
Accenture women mentoring, networking and other opportunities to ensure that they
continue to succeed and progress in their careers at Accenture.
The Global Women's nitiative works with Accenture leaders to establish an inclusive
environment to create a sense of belonging and community; ensure parity and fairness
in business decisions; provide equal access to opportunities to learn, grow and advance;
be an advocate for work/life balance and flexible work arrangements; provide effective
mentoring and coaching; and support local women's initiatives by attending or organizing
local events.
The supportive policies we have designed to help women improve their working life
include a first class maternity leave policy designed to support them through maternity
and encourage them to return to work. The package includes 9 months full pay and the
opportunity to take a further 3 months unpaid leave.
Other policies include:
1. Flexible working
2. Parental leave
3. Compassionate leave
4. Performance management
5. Career counseling
6. Leave of absence
7. Mentoring for women program
8. Alternative career model for executives wishing to take a lateral career move.
ATTRACTNG, RECRUTNG AND RETANNG THE BEST FEMALE TALENT
Respect for the individual is one of the core values at Accenture. Attracting, retaining,
developing and valuing female talent is a key priority for Accenture both at a UK and
global level and we are constantly monitoring and improving our activities to achieve
this. n the UK, we have a number of part time female senior Executives within the UK
Partner Group illustrating that women are advancing within the organization and flexible
working takes place even at the highest level.
A recent survey to understand the challenges faced by women in the workplace yielded
a great response rate and some encouraging feedback. 68.7% of our women felt that
they were correctly positioned for success in their current role, and significantly, when
asked if they thought men were better positioned for success, there was a 50:50 split.
MNORTES AND WOMEN N MANAGEMENT
More than 22% of company officers are minorities.
More than 20% of company officers are women.
More than 22% of middle management employees are minorities.
More than 44% of middle management employees are women.
EMPLOYEE NETWORKS
Women's leadership network, home office Asian network, Mc Donald's black employee
network, Hispanic steering committee and others provide Mc Donald's employees with
career development, advocacy, support, recruitment and retention assistance. These
employee networks also help the company achieve its diversity vision by improving
process like performance feedback and employee development; recruitment and
retaining excellent employees; maintaining a better connection with other diverse
customer base.
DVERSTY EDUCATON
Seminars and workshops like leveraging diversity; gender speak; Asian career
development; black career development; Hispanic career development; women's career
development and white male forum serve as the cornerstone for bringing diversity to life
in the organization. Diversity education is an ongoing process, creating awareness and
building skill for managing an inclusive, diverse workforce at Mc Donald's.
EXTERNAL PARTNERSHPS
At Mc Donald's they are committed to building their brand value and sustainable
partnerships within the communities in which we do business. Mc Donald's is proud to
partner with national organizations such as catalyst; women's food service forum;
national urban league; national association for the advancement of coloured people;
organizations of Chinese Americans; president's committee on employment of people
with disabilities; national council of La Raza and United States Hispanic chamber of
commerce as well as other national and local community organizations.
DVERSTY POLCY OF TC
TC believes that all its employees must live with social and economic dignity and
freedom, regardless of nationality, gender, race, economic status or religion. n the
management of its businesses and operations therefore, TC ensures that it upholds the
spirit of human rights as enshrined in existing international standards such as the
Universal Declaration and the Fundamental Human Rights Conventions of the LO.
Policy
TC upholds international human rights standards, does not condone human rights
abuses, and creates and nurtures a working environment where human rights are
respected without prejudice.
mplementation
The Corporate Human Resources function of TC is responsible for the Human Rights
Policy design, implementation and updation.
The policy is implemented at all locations of TC through a set of separate policies and
procedures covering each of the main constituents of human rights applicable at the
workplaces.
Monitoring & Audit
The assessment procedures for different constituents of this policy are defined against
each specific policy.
Policy to Prevent Discrimination at Workplace
TC acknowledges that every individual brings a different and unique set of perspectives
and capabilities to the team. A discrimination-free workplace for employees provides the
environment in which diverse talents can bloom and be nurtured. This is achieved by
ensuring that a non-discrimination policy and practice is embedded across the Company
in line with corporate principles and benchmarked business practices.
Policy
TC's approach to its human resources is premised on the fundamental belief in fostering
meritocracy in the organization which, promotes diversity and offers equality of
opportunity to all employees. TC does not engage in or support direct or indirect
discrimination in recruitment, compensation, access to training, promotion, termination or
retirement based on caste, religion, disability, gender, age, race, colour, ancestry,
marital status or affiliation with a political, religious, or union organization or minority
group.
mplementation
Each TC Unit has appropriate systems and checks to ensure compliance with the Policy
and statutory provisions, including means for filing of grievances, collective bargaining
agreements and minutes from worker meetings.
Compliance with the Policy is regularly monitored by Divisional and Corporate HR.
Policy Prohibiting Child Labour and Preventing Forced Labour from Workplace
The foundation of TC's "No Child or Forced Labour policy" is based on the Company's
commitment to find practical, meaningful and culturally appropriate responses to support
the elimination of such labour practices. t thus endorses the need for appropriate
initiatives to progressively eliminate these abuses.
Policy
TC does not employ any person below the age of eighteen years in the workplace.
TC prohibits the use of forced or compulsory labour at all its units. No employee is
made to work against his/her will or work as bonded/forced labour, or subject to corporal
punishment or coercion of any type related to work.
mplementation
This policy is publicly available throughout the Company and clearly communicated to all
employees in a manner in which it can be understood through induction programs, policy
manuals and intranet portals.
The responsibility for the implementation of the policy rests with the Units HR
Department and the security staff who do not permit underage persons to enter the
factory as workers.
Employment contracts and other records documenting all relevant details of the
employees, including age, are maintained at all units and are open to verification by any
authorized personnel or relevant statutory body.
Compliance with the policy is evident in the transparent system of recruitment and the
policy of exit interviews which are undertaken by a manager not directly connected with
the employee. For the unionized employees, compliance is also ensured through a
robust grievance handling procedure and the presence of a union that brings violations
to the notice of the unit HR head.
Monitoring & Audit
Sample checks of the records are undertaken annually by Corporate Human Resources
function.
Audit and assessment is undertaken annually by Corporate nternal Audit and the
Environment, Occupation Health and Safety function.
Policy on nformation and Consultation on Changes
TC's core values support an employee engagement process that aligns its employees
with a shared vision and purpose of the Company in the belief that every individual
brings a different perspective and capability to the team. TC thus harnesses the creative
potential of all its employees by promoting a culture of partnerships to unleash relevant
synergies between different groups of employees.
Policy
All major changes in operations involving work processes, manning norms and other
productivity linked issues are carried out after discussions with the employees and the
recognized unions at each location.
mplementation
Business plans is shared with employees at all units through a series of formal
communication meetings, and through the intranet portals. Unionized employees at the
concerned units are informed of all major changes well in advance through their
representatives.
The responsibility for the implementation of the policy rests with the Unit's HR
Department in the case of unionized employees and with the concerned Divisional
Management Committees for other employees.
The employees are given enough time to consider the implications of change and an
opportunity to discuss their apprehensions, if any, with the management.
The Policy is actualized through consultative meetings with representatives of
employees, culminating in joint minutes/agreements.
Monitoring & Auditing
Compliance with the Policy is regularly monitored by the Unit Head.
American Express was well known in American corporate circles for its commitment to
diversity. The company not only made a conscious effort to recruit a diverse workforce,
but it also created a work culture where diversity was valued and promoted. This case
discusses the diversity initiatives of AmEx. t talks about how the company partnered
with several profit and non profit organizations to ensure that it had access to a diverse
pool of candidates in its recruitment efforts. t also talks about the culture and policies at
AmEx that ensured that diversity was promoted in all parts of the organization. The case
concludes with a commentary on the extent to which the diversity initiatives were
successful at the company, in the light of a law suit filed by some women employees
against the discrimination they faced.
ntroduction
n January 2006, the American Express Company (AmEx) was featured on Fortune's 3
list of the '100 Best Companies to Work for' in America. AmEx was ranked ninth among
large companies, and 37th in the overall ranking of the list of the best employers in the
US. AmEx had been one of the regulars on this list in the early 2000s, and the company
stood ninth in the overall ranking the previous year as well.
Fortune said AmEx's diversity initiatives, especially its policies related to women
employees and minorities, made the company one of the best places to work for in the
US. AmEx's commitment to minorities was also saluted by Black Enterprise, a magazine
committed to the business and consumer issues of the African-American community, in
July 2005.
The magazine included AmEx in its '30 Best Companies for Diversity' list. The 30 best
companies were selected after the editors of the magazine conducted a detailed survey
of more than 1,000 publicly traded American companies and 50 global companies with
significant operations in the US.
Companies which showed a significant representation of African Americans and other
ethnic minorities in four key areas - corporate procurement, corporate boards, senior
management, and the total workforce - were included in the list.
AmEx was also appreciated by other mainstream magazines as well as those catering to
minority groups and special interests such as Hispanic Business and Working Mother,
for its diversity related policies (Refer Exhibit for a list of the awards AmEx received in
2006 and 2005).
n the 1990s, diversity issues came to the fore in corporate America. Not only had a
large number of women and minorities entered the workforce, but markets had also
rapidly expanded beyond national boundaries, compelling companies to adapt their
operations to diverse cultures and societies. n light of these developments, analysts
suggested that for companies to continue growing, they would have to take full
advantage of all the human resources and intellectual capital available to them.
Background
AmEx was originally set up in 1850 as an express company that forwarded freight and
valuables across the US.
n the mid 1800s, the US postal system was not very well developed; not only was the
service slow, but many far flung areas did not have any service at all. Besides, it was
extremely unreliable and very often documents were lost en route.
Therefore, people were reluctant to send valuable papers and articles by post. Henry
Wells, William Fargo, and John Butterfield recognized that the shortcomings of the US
postal system provided a good business opportunity. When AmEx was started, it
provided a service that was not only fast, but also reliable.
Consequently, it earned a reputation as the best express company in the country at that
time. n 1882, AmEx launched a money order business to compete against the money
order service of the US Postal Department.
Around the same time the company also expanded into Europe with the same product.
n Europe, the concept of money orders was still new and AmEx gained the first mover
advantage. n 1891 the company created a new product known as the 'American
Express Travelers Cheque as a substitute to the traditional letters of credit people used
when they traveled abroad.
The Travelers Cheque was launched in denominations of $10, $20, $50, and $100, and
soon became popular with international travelers. The Travelers Cheque triggered off
AmEx's international expansion in a big way. n 1895, the company opened its first
overseas office in Paris. This was followed by a London office in 1896.
By the early 1990s, AmEx had offices across Europe including Denmark, taly, the
Netherlands, Germany and Belgium. n the early 1900s, immigration into the US was at
a high. n 1905 the US mmigration Department appointed AmEx to provide official
currency exchange services to these immigrants. The outbreak of the First World War in
1914 brought in new business opportunities for AmEx.
Diversity at Amex
Diversity was an integral part of the culture at AmEx. AmEx believed that focusing on
diversity was one of the ways to gain competitive advantage in the rapidly expanding
global markets.
Having a diverse workforce allowed AmEx to obtain a better understanding of the varied
markets it operated in. Diversity has been defined in various ways by experts. The
narrow definition, the one pertaining to the Equal Employment Opportunity Commission
(EEOC) in the US, defined diversity in terms of gender, race, ethnicity, nationality, age,
religion, and disability. However, over the years the concept of diversity widened to
include parameters like marital status, language, sexual orientation and tenure with the
organization. AmEx embraced and promoted diversity in the broad sense, and its
diversity initiatives covered a large number of groups including women, minorities, senior
employees, people with disabilities, and homosexuals.
Diversity Eyewash
Despite AmEx's commendable diversity initiatives and the testimony of several satisfied
employees, the company did not escape criticism. Over the years, AmEx had become
involved in a few controversies related to discrimination.
One of the biggest controversies that the company faced was a class action gender
discrimination lawsuit in 1999. During the late 1990s, several female advisors at AEFA
complained to the EEOC that the unit's managers discriminated against them on the
basis of gender, and showed preferential treatment to white males in terms of
assignments, mentoring programs, promotions and compensation. They also said that
they faced a sexually hostile environment at AEFA. Although the complainants were
from different locations, their complaints were similar. Shirley Krieger from AEFA's New
York office said that although she had worked at the unit for more than 13 years, her
superiors had been trying to get her to resign saying that she was 'too old'...
WORK FORCE DVERSTY AT BM
Diversity at the work place in the US originated from the concept of EEO in the 1940s. At
BM, Watson Jr. issued the first equal opportunity policy letter in 1953. Later, it came
under government compliance under the Civil Rights Act of the US in 1964.
With the onset of 'globalization' in the 1980s, organizations initiated efforts to broaden
their marketplace. n an attempt to sustain themselves amidst the continuously
increasing competition, they started doing business across the world. This trend made it
important for them to focus on diverse cultures across borders in order to offer products
and services that suited the specific needs of different markets.
Recruiting People with Disabilities
BM had a well-structured plan in place for recruiting and training people with disabilities.
The recruitment specialists and hiring managers were specially trained for this purpose.
n each business unit, BM had 'line champions' - the managers experienced in hiring
and working with people with disabilities - to facilitate the recruitment process. The
company also worked with various educational institutions for campus recruitment of
such candidates (Refer to Exhibit for various programs conducted by BM to recruit
people with disabilities). Besides, BM had a diversity website where prospective
candidates with disabilities could submit their resumes directly.
Work/Life Balance
4.1 ltTR00uCTl0t
The following section deals with the hofstede's five cultural dimensions, diversity climate
and evaluation of a diversity program. This section will help us understand the factors
that majorly affect the workplace culture. Also the reports attached with the theory
portion gives us a practical idea about how to go about designing a diversity program.
4.2 H0FSTF0F'S FlvF CulTuRAl 0lHFtSl0tS
Power Distance ndex (PD)
t is the extent to which the less powerful members of organizations and institutions (like
the family) accept and expect that power is distributed unequally. This represents
inequality (more versus less), but defined from below, not from above. t suggests that a
society's level of inequality is endorsed by the followers as much as by the leaders.
Power and inequality, of course, are extremely fundamental facts of any society and
anybody with some international experience will be aware that 'all societies are unequal,
but some are more unequal than others'.
ndividualism (DV)
ndividualism on the one side versus its opposite, collectivism, that is the degree to
which individuals are integrated into groups. On the individualist side we find societies in
which the ties between individuals are loose: everyone is expected to look after
him/herself and his/her immediate family. On the collectivist side, we find societies in
which people from birth onwards are integrated into strong, cohesive in-groups, often
extended families (with uncles, aunts and grandparents) which continue protecting them
in exchange for unquestioning loyalty. The word 'collectivism' in this sense has no
political meaning: it refers to the group, not to the state. Again, the issue addressed by
this dimension is an extremely fundamental one, regarding all societies in the world.
Masculinity (MAS)
Masculinity versus its opposite, femininity refers to the distribution of roles between the
genders which is another fundamental issue for any society to which a range of solutions
are found. The BM studies revealed that (a) women's values differ less among societies
than men's values; (b) men's values from one country to another contain a dimension
from very assertive and competitive and maximally different from women's values on the
one side, to modest and caring and similar to women's values on the other. The
assertive pole has been called 'masculine' and the modest, caring pole 'feminine'. The
women in feminine countries have the same modest, caring values as the men; in the
masculine countries they are somewhat assertive and competitive, but not as much as
the men, so that these countries show a gap between men's values and women's
values.
The carrier growth opportunities and the compensation system for the disables are the
same for others (SA/A/UNDECDED/DA/SDA)
There is a special provision made by the company for the travelling of the disables
(SA/A/UNDECDED/DA/SDA)
Caste
Top management encourages the participation of the employees
(SA/A/UNDECDED/DA/SDA)
The understanding between the employees is appreciable (SA/A/UNDECDED/DA/SDA)
There are equal job opportunities for all the employees to build their career graphs
(SA/A/UNDECDED/DA/SDA)
TO COMPARE AND CONTRAST NDA, CHNA, SOUTH KOREA, BRAZL AND
RUSSA ON HOFSTEDE CULTURAL DMENSONS
NDA
ndia has Power Distance (PD) as the highest Hofstede's Dimension for the culture, with
a ranking of 77 compared to a world average of 56.5. This Power Distance score for
ndia indicates a high level of inequality of power and wealth within the society. This
condition is not necessarily subverted upon the population, but rather accepted by the
population as a cultural norm.
ndia's Long Term Orientation (LTO) Dimension rank is 61, with the world average at 48.
A higher LTO score can be indicative of a culture that is perseverant and parsimonious.
ndia has Masculinity as the third highest ranking Hofstede's Dimension at 56, with the
world average just slightly lower at 51. The higher the country ranks in this Dimension,
the greater the gap between values of men and women. t may also generate a more
competitive and assertive female population, although still less than the male population.
ndia's lowest ranking Dimension is Uncertainty Avoidance (UA) at 40, compared to the
world average of 65. On the lower end of this ranking, the culture may be more open to
unstructured ideas and situations. The population may have fewer rules and regulations
with which to attempt control of every unknown and unexpected event or situation, as is
the case in high Uncertainty Avoidance countries.
Power Distance ndex (PD) that is the extent to which the less powerful members of
organizations and institutions (like the family) accept and expect that power is distributed
unequally. This represents inequality (more versus less), but defined from below, not
from above. t suggests that a society's level of inequality is endorsed by the followers as
much as by the leaders. Power and inequality, of course, are extremely fundamental
facts of any society and anybody with some international experience will be aware that
'all societies are unequal, but some are more unequal than others'.
ndividualism (DV) on the one side versus its opposite, collectivism, that is the degree to
which individuals are integrated into groups. On the individualist side we find societies in
which the ties between individuals are loose: everyone is expected to look after
him/herself and his/her immediate family. On the collectivist side, we find societies in
which people from birth onwards are integrated into strong, cohesive in-groups, often
extended families (with uncles, aunts and grandparents) which continue protecting them
in exchange for unquestioning loyalty. The word 'collectivism' in this sense has no
political meaning: it refers to the group, not to the state. Again, the issue addressed by
this dimension is an extremely fundamental one, regarding all societies in the world.
Masculinity (MAS) versus its opposite, femininity refers to the distribution of roles
between the genders which is another fundamental issue for any society to which a
range of solutions are found. The BM studies revealed that (a) women's values differ
less among societies than men's values; (b) men's values from one country to another
contain a dimension from very assertive and competitive and maximally different from
women's values on the one side, to modest and caring and similar to women's values on
the other. The assertive pole has been called 'masculine' and the modest, caring pole
'feminine'. The women in feminine countries have the same modest, caring values as the
men; in the masculine countries they are somewhat assertive and competitive, but not
as much as the men, so that these countries show a gap between men's values and
women's values.
Uncertainty Avoidance ndex (UA) deals with a society's tolerance for uncertainty and
ambiguity; it ultimately refers to man's search for Truth. t indicates to what extent a
culture programs its members to feel either uncomfortable or comfortable in unstructured
situations. Unstructured situations are novel, unknown, surprising, and different from
usual. Uncertainty avoiding cultures try to minimize the possibility of such situations by
strict laws and rules, safety and security measures, and on the philosophical and
religious level by a belief in absolute Truth; 'there can only be one Truth and we have it'.
People in uncertainty avoiding countries are also more emotional, and motivated by
inner nervous energy. The opposite type, uncertainty accepting cultures, are more
tolerant of opinions different from what they are used to; they try to have as few rules as
possible, and on the philosophical and religious level they are relativist and allow many
currents to flow side by side. People within these cultures are more phlegmatic and
contemplative, and not expected by their environment to express emotions.
Long-Term Orientation (LTO) versus short-term orientation: this fifth dimension was
found in a study among students in 23 countries around the world, using a questionnaire
designed by Chinese scholars t can be said to deal with Virtue regardless of Truth.
Values associated with Long Term Orientation are thrift and perseverance; values
associated with Short Term Orientation are respect for tradition, fulfilling social
obligations, and protecting one's 'face'. Both the positively and the negatively rated
values of this dimension are found in the teachings of Confucius, the most influential
Chinese philosopher who lived around 500 B.C.; however, the dimension also applies to
countries without a Confucian heritage.
CHNA
The Chinese rank lower than any other Asian country in the ndividualism (DV) ranking,
at 20 compared to an average of 24. This may be attributed, in part, to the high level of
emphasis on a Collectivist society by the Communist rule, as compared to one of
ndividualism.
The low ndividualism ranking is manifest in a close and committed member 'group', be
that a family, extended family, or extended relationships. Loyalty in a collectivist culture
is paramount. The society fosters strong relationships where everyone takes
responsibility for fellow members of their group.
Of note is China's significantly higher Power Distance ranking of 80 compared to the
other Far East Asian countries' average of 60, and the world average of 55. This is
indicative of a high level of inequality of power and wealth within the society. This
condition is not necessarily forced upon the population, but rather accepted by the
society as their cultural heritage.
China's religion is officially designated as Atheist by the State, although the concepts
and teachings of the ancient Chinese philosopher Confucius (500BC) are woven into the
society at large. Some religious practice is acceptable in China; however, the
government sets rigid limits.
Power Distance ndex (PD) that is the extent to which the less powerful members of
organizations and institutions (like the family) accept and expect that power is distributed
unequally. This represents inequality (more versus less), but defined from below, not
from above. t suggests that a society's level of inequality is endorsed by the followers as
much as by the leaders. Power and inequality, of course, are extremely fundamental
facts of any society and anybody with some international experience will be aware that
'all societies are unequal, but some are more unequal than others'.
ndividualism (DV) on the one side versus its opposite, collectivism, that is the degree to
which individuals are integrated into groups. On the individualist side we find societies in
which the ties between individuals are loose: everyone is expected to look after
him/herself and his/her immediate family. On the collectivist side, we find societies in
which people from birth onwards are integrated into strong, cohesive in-groups, often
extended families (with uncles, aunts and grandparents) which continue protecting them
in exchange for unquestioning loyalty. The word 'collectivism' in this sense has no
political meaning: it refers to the group, not to the state. Again, the issue addressed by
this dimension is an extremely fundamental one, regarding all societies in the world.
Masculinity (MAS) versus its opposite, femininity refers to the distribution of roles
between the genders which is another fundamental issue for any society to which a
range of solutions are found. The BM studies revealed that (a) women's values differ
less among societies than men's values; (b) men's values from one country to another
contain a dimension from very assertive and competitive and maximally different from
women's values on the one side, to modest and caring and similar to women's values on
the other. The assertive pole has been called 'masculine' and the modest, caring pole
'feminine'. The women in feminine countries have the same modest, caring values as the
men; in the masculine countries they are somewhat assertive and competitive, but not
as much as the men, so that these countries show a gap between men's values and
women's values.
Uncertainty Avoidance ndex (UA) deals with a society's tolerance for uncertainty and
ambiguity; it ultimately refers to man's search for Truth. t indicates to what extent a
culture programs its members to feel either uncomfortable or comfortable in unstructured
situations. Unstructured situations are novel, unknown, surprising, and different from
usual. Uncertainty avoiding cultures try to minimize the possibility of such situations by
strict laws and rules, safety and security measures, and on the philosophical and
religious level by a belief in absolute Truth; 'there can only be one Truth and we have it'.
People in uncertainty avoiding countries are also more emotional, and motivated by
inner nervous energy. The opposite type, uncertainty accepting cultures, are more
tolerant of opinions different from what they are used to; they try to have as few rules as
possible, and on the philosophical and religious level they are relativist and allow many
currents to flow side by side. People within these cultures are more phlegmatic and
contemplative, and not expected by their environment to express emotions.
Long-Term Orientation (LTO) versus short-term orientation: this fifth dimension was
found in a study among students in 23 countries around the world, using a questionnaire
designed by Chinese scholars. t can be said to deal with Virtue regardless of Truth.
Values associated with Long Term Orientation are thrift and perseverance; values
associated with Short Term Orientation are respect for tradition, fulfilling social
obligations, and protecting one's 'face'. Both the positively and the negatively rated
values of this dimension are found in the teachings of Confucius, the most influential
Chinese philosopher who lived around 500 B.C.; however, the dimension also applies to
countries without a Confucian heritage.
SOUTH KOREA
South Korea displays Geert Hofstede's Dimensions similar to Latin American countries.
South Korea's ndex values are: PD=60 DV=18 MAS=39 UA=85. South Korea's
closest correlation to another country in the Hofstede's survey is to El Salvador's values
of PD=66 DV=19 MAS=40 UA=94.
South Korea's highest Hofstede's Dimension is Uncertainty Avoidance (UA) at 85,
indicating the society's low level of tolerance for uncertainty. n an effort to minimize or
reduce this level of uncertainty, strict rules, laws, policies, and regulations are adopted
and implemented. The ultimate goal of this population is to control everything in order to
eliminate or avoid the unexpected. As a result of this high Uncertainty Avoidance
characteristic, the society does not readily accept change and is very risk adverse.
South Korea has a low ndividualism (DV) rank of 18. The score on this Dimension
indicates the society is Collectivist as compared to ndividualist. This is manifest in a
close long-term commitment to the member 'group', be that a family, extended family, or
extended relationships. Loyalty in a collectivist culture is paramount, and over-rides most
other societal rules and regulations. The society fosters strong relationships where
everyone takes responsibility for fellow members of their group.
Power Distance ndex (PD) that is the extent to which the less powerful members of
organizations and institutions (like the family) accept and expect that power is distributed
unequally. This represents inequality (more versus less), but defined from below, not
from above. t suggests that a society's level of inequality is endorsed by the followers as
much as by the leaders. Power and inequality, of course, are extremely fundamental
facts of any society and anybody with some international experience will be aware that
'all societies are unequal, but some are more unequal than others'.
ndividualism (DV) on the one side versus its opposite, collectivism, that is the degree to
which individuals are integrated into groups. On the individualist side we find societies in
which the ties between individuals are loose: everyone is expected to look after
him/herself and his/her immediate family. On the collectivist side, we find societies in
which people from birth onwards are integrated into strong, cohesive in-groups, often
extended families (with uncles, aunts and grandparents) which continue protecting them
in exchange for unquestioning loyalty. The word 'collectivism' in this sense has no
political meaning: it refers to the group, not to the state. Again, the issue addressed by
this dimension is an extremely fundamental one, regarding all societies in the world.
Masculinity (MAS) versus its opposite, femininity refers to the distribution of roles
between the genders which is another fundamental issue for any society to which a
range of solutions are found. The BM studies revealed that (a) women's values differ
less among societies than men's values; (b) men's values from one country to another
contain a dimension from very assertive and competitive and maximally different from
women's values on the one side, to modest and caring and similar to women's values on
the other. The assertive pole has been called 'masculine' and the modest, caring pole
'feminine'. The women in feminine countries have the same modest, caring values as the
men; in the masculine countries they are somewhat assertive and competitive, but not
as much as the men, so that these countries show a gap between men's values and
women's values.
Uncertainty Avoidance ndex (UA) deals with a society's tolerance for uncertainty and
ambiguity; it ultimately refers to man's search for Truth. t indicates to what extent a
culture programs its members to feel either uncomfortable or comfortable in unstructured
situations. Unstructured situations are novel, unknown, surprising, and different from
usual. Uncertainty avoiding cultures try to minimize the possibility of such situations by
strict laws and rules, safety and security measures, and on the philosophical and
religious level by a belief in absolute Truth; 'there can only be one Truth and we have it'.
People in uncertainty avoiding countries are also more emotional, and motivated by
inner nervous energy. The opposite type, uncertainty accepting cultures, are more
tolerant of opinions different from what they are used to; they try to have as few rules as
possible, and on the philosophical and religious level they are relativist and allow many
currents to flow side by side. People within these cultures are more phlegmatic and
contemplative, and not expected by their environment to express emotions.
Long-Term Orientation (LTO) versus short-term orientation: this fifth dimension was
found in a study among students in 23 countries around the world, using a questionnaire
designed by Chinese scholars t can be said to deal with Virtue regardless of Truth.
Values associated with Long Term Orientation are thrift and perseverance; values
associated with Short Term Orientation are respect for tradition, fulfilling social
obligations, and protecting one's 'face'. Both the positively and the negatively rated
values of this dimension are found in the teachings of Confucius, the most influential
Chinese philosopher who lived around 500 B.C.; however, the dimension also applies to
countries without a Confucian heritage.
BRAZL
Brazil is similar to many Latin American countries when analyzing Hofstede's
Dimensions.
Brazil's highest Hofstede's Dimension is Uncertainty Avoidance (UA) is 76, indicating
the society's low level of tolerance for uncertainty. n an effort to minimize or reduce this
level of uncertainty, strict rules, laws, policies, and regulations are adopted and
implemented. The ultimate goal of this population is to control everything in order to
eliminate or avoid the unexpected. As a result of this high Uncertainty Avoidance
characteristic, the society does not readily accept change and is very risk adverse.
Brazil has a slightly higher ndividualism (DV) rank of 38 compared to the average Latin
population score of 21. However, virtually all the Latin countries are considered to be
Collectivist societies as compared to ndividualist cultures. This is manifest in a close
designed by Chinese scholars t can be said to deal with Virtue regardless of Truth.
Values associated with Long Term Orientation are thrift and perseverance; values
associated with Short Term Orientation are respect for tradition, fulfilling social
obligations, and protecting one's 'face'. Both the positively and the negatively rated
values of this dimension are found in the teachings of Confucius, the most influential
Chinese philosopher who lived around 500 B.C.; however, the dimension also applies to
countries without a Confucian heritage.
RUSSIA
Orientation Russia/HoIstede`s Russia/Naumov
Individualism 50 41
Masculinity 40 55
Uncertainty avoidance 90 68
Power distance 90 40
Appearance
Businessmen in Russia usually wear suits that are dark and well tailored along with good
dress shoes. A businessman's wardrobe demonstrates the individual's image as a
professional.
Men often do not take off their jackets in negotiations.
Do not stand with your hands in your pockets. This is considered rude.
Women dress rather conservatively, avoiding overly flashy or gaudy outfits.
Women should always cover their heads when entering into any Russian Orthodox
Churches.
Skirts should be worn rather than pants.
When attending dinner in a citizen's home, casual dress of slacks and a nice shirt
without a tie are appropriate.
Behavior
As a foreigner, you are expected to be on time to all business appointments. However,
your Russian counterpart may be late, as this may be a test of your patience. Do not
expect an apology from a late Russian, and do not demonstrate any kind of attitude if
your business appointments begin one or two hours late. This may also be a test of your
patience.
Many Russians speak English, as it is often taught beginning in the third grade.
Russians are highly literate, and have almost a 100% literacy rate.
Good topics of conversation include peace, the current changes taking place in Russia,
and their current economic situation.
4.5 FvAluATl0t 0F A 0lvFRSlTY PR06RAH
The Evaluation Process
- Focus on Program Goals and Objectives as a Guide for Evaluation
ndicators of success should be built around the original goals and specific objectives
that the program was designed to achieve. For programs based on the purposes
described in this guide, goals would define the desired results of extending learning time
and undertaking drug and violence prevention practices. Performance assessment
should focus on the following questions:
a. s the program adhering to its mission and design, and taking steps to reach its
objectives?
b. s the program fulfilling the role it was intended to play in the community?
- Clarify Assumptions about Program Processes
Think about the assumptions your program is making about what management
structures and processes will work in your community. Does information flow clearly? s
there a clear understanding of responsibilities and a system of accountability? These
assumptions should drive program activities and an evaluation will test the accuracy of
the assumptions. f results do not improve, either the assumptions were wrong or an
anticipated event did not take place.
- Select ndicators of Success
ndicators of success should be established for all aspects of a program. Programs will
want to assess whether they are achieving the goals they have set for meeting their
students' needs by examining student performance, drug use and violence reduction,
parental satisfaction, and impact on the community. Programmatic and management
issues will need to be assessed by an appropriate set of indicators measuring the
methods, and perspectives. nfosys recognizes and promotes this power of diversity to
drive innovation.
n an inclusive workplace, all employees contribute to projects freely and equitably.
nfosys actively fosters inclusivity across all of its business units and in every one of its
company offices. t encourages all employees to focus on the commonalities they share
and leverage their differences towards productive teamwork. nclusivity ultimately makes
for a more informed and sensitive employee base that is better able to serve clients.
nfosys was the first ndian T company to establish a company office to manage and
drive all company initiatives dealing with diversity and inclusion. Today we have
employees from over 70 countries. Women constitute more than 32% of our workforce.
nfosys Women nclusivity Network (WN) promotes a gender-sensitive work
environment. WN recognizes the unique aspirations and needs of women. t provides
avenues for vocational, personal and psychological counsel to enable professional and
personal development. Our new Family Matters Network provides support to employees
on parenting matters. nfosys won the first NASSCOM-ndia Today corporate award for
excellence in gender inclusivity in 2007.
nfosys actively seeks to hire and train persons with disabilities. n 2006 and 2007,
nfosys BPO received the Helen Keller award for the best employer from the National
Centre for Promotion of Employment for Disabled People (NCPEDP).
Celebrating diversity
nfosys encourages diversity and inclusivity at the workplace. We help our employees
realize their potential by respecting differences of gender, culture, orientation and
physical ability. As an equal-opportunity employer, we strive to create a workplace that is
free of barriers in the path of progress.
While we celebrate diversity and inclusivity everyday, we renew our commitment through
several activities:
a. On nternational Women's Day (March 7), nfosys organized SPARK, an event
for female students at engineering colleges across ndia. t empowered women
by creating an awareness of career prospects in the T industry.
b. On nternational Youth Day (August 12), nfosys' Diversity Office showcased the
achievements of the company's youngest employees. t focused on how diversity
enables better cooperation and innovation.
c. On August 7-10, nfosys hosted the ndian Youth Summit on Climate Change at
Hyderabad under the auspices of the ndian Youth Climate Network. Delegates
discussed how ndia can be powered by 100% renewable energy and signed a
declaration on climate change.
d. nfosys hosted a round table on 'Employee Well-Being and Building a
Sustainable Organization' in Pune under the auspices of the Forum for Women in
Leadership. Women leaders from leading companies shared best practices and
discussed the role of a responsible organization.
e. nfosys' Family Matters Program launched a portal to address the needs of
working parents. The portal discusses work-life balance policies, offers parenting
counseling and organizes parenting workshops. t provides useful information on
schools and day care facilities, and resources for employees who are relocating.
nference drawn from the above program
a. Employers are updating their diversity training materials. A video tape shown to
managers in the 1980s isn't going to be relevant today. So companies are
moving increasingly to e-learning or Web-based training strategies.
b. Corporate training materials are not just changing in form. They are also getting
an upgrade in content.
c. Diversity committees are being set up in many companies, and they are
implementing programs designed to make different gender, racial and ethnic
groups feel more comfortable.
d. Not only that, but companies are increasingly having to change their diversity
training programs to incorporate issues pertaining to foreign-born workers.
The diversity training programs can be designed for 2 days for nfosys.
The following elements should be there in the course outline:
a. Objectives of the learners
b. Outline of the content
c. The lesson plan
d. Handouts
e. Audio and Visual aids
f. Exercises and assessments
Training schedule and budget is to be designed prior starting of a diversity training
program.
DESGNNG A TRANNG PROGRAM FOR AN
ARBTRARY COMPANY
NTRODUCTON
Once a company has determined they are on a diversity "journey," and are ready to
begin a diversity training program, it is essential that all employees know what is
expected of them and how they will be held accountable for their behaviors.
Today's diversity training is a far cry from what it once was. t was called "Race
Relations Training" in the military, and then became "Cultural Diversity Training" and
today it is called "Diversity Training." More often, people are calling it "nclusive
Workplace Training,"
"Emerging Markets Training" or "Leadership Survival Training." Why this evolution?
Perhaps because a field built upon the implications of ever-changing labor- and
consumer-force demographics is also changing with the "demographic times." Effective
diversity training today takes into consideration both the ever-changing workplace and
the increasingly-diverse marketplace. High-impact diversity training is custom-designed
and developed by the franchise system to meet its unique diversity training and strategy
needs of its internal (workplace/franchisor) diversity issues and external (emerging
market/franchisee) diversity issues.
Training requirements (64 to 80 hours of such skill-building training) often are provided
by employers in these ways:
a. Employers define eight to ten critical, but generic, organization skills that need
improvement within the company. Programs in these topic areas (such as writing,
presentation, and team-building) are offered for junior and senior-level
employees.
b. Employers offer leadership development programs at the middle management
level or for identified star performers who have a defined career path.
Employers also provide training for corrective reasons. Specific problems are identified
and solutions provided through training
OBJECTVES
a. Diversity training should begin with executives so that they can become
Champions of Diversity.
b. To the degree possible, make diversity training mandatory so you lay a
foundation to build upon.
c. Focus diversity training on behaviors.
d. "Get real" with diversity training, even if it delves into sensitive areas.
e. Use facilitators to deliver your diversity training who are experienced and totally
prepared to handle whatever happens in a respectful manner while delivering the
company's message.
METHODS
a. Business Game Stimulations
b. Role Plays
c. Behavior Modeling
d. nstructor led class room Programs
e. Case studies
CURRCULAM DESGN
The training begins with a diversity self-assessment and discussion of why diversity
workplace is both beneficial and here to stay. Through hands on activities participants
will learn organizational and personal benefits of tolerance.
1. Selecting the Trainer: the trainer should be outsourced from some other
MNC.
2. Developing a lesson plan: the content should cover all the diversity issues
and policies that are followed in the company,
3. Training materials:
a. Program Announcements are done on a daily basis so as to keep the
participants up to date with any upcoming event in the training
program.
b. Program Outlines: A brief introduction as to what the training program
should cover on each day, what hurdles the participants will be given.
c. Training Manuals and Textbooks will be given to the participants.
d. Training Aids and Consumables.
RESOURCE PERSONS
Resource persons in this case should be those people who are having Subject Matter
Knowledge.
TRANNG EVALUATON
1. nterviews
2. Questionnaires
3. Stimulation Performance test
TRANNG SCHEDULE
The training schedule is designed to cover a period for 3 days.
BUDGET
Because ndia's economy is emerging, training prices are considered low by U.S.
standards.
Type of training (range in USD):
1. Off-the-shelf programs: $500 to $1,500 per day
2. Customized programs for middle managers: $800 to $1,200 per day
3. Senior management programs: $1,500 to $2,500 per day.
On boarding training for employees often is paid at a rate as low as $200 per day.
nstructional design rates are about $800 to $1,200, with the rule of thumb being that it
takes 4 to 6 hours of design for every 1 hour of finished classroom program.
4.7 0lvFRSlTY Au0lT
Keeping a watch on the complete diversity program is called diversity audit. t is basically
an evaluation process, the current level of institutional functioning in key areas, relative
to diversity programs.
Also, it is a process of evaluating the current level of functioning in the areas of diversity
through paper and pencil instruments.
The key areas:
1. Mission and vision of the company
2. Leadership
3. Policies and procedures
4. Climate and empowerment
5. Staffing (committee)
6. Retention of employees
7. Coaching and mentoring
8. HRD
9. Performance management
10. Compensation and benefits
11. Evaluation
There are two approaches:
1. Qualitative
2. Quantitative
4.8 C0tCluSl0tS
This part of the report concentrates mainly on the cultural dimensions and the evaluation
of diversity programs. The following points should be kept in mind while dealing with
diversity programs:
1. Develop cross-hierarchy, compatible systems and processes;
2. Develop linchpin managers: beyond specialization;
3. Career long management development;
4. Educate managers for trans-border leadership roles;
5. Ensure a variety of cross-border "stretching assignment;
6. Embrace diversity and corporate-wide management development efforts;
7. Select and monitor especially promising managers;
8. Empower three dimensional teams and leaders: beyond committees and
matrices;
9. Supporting teamwork with sufficient resources;
10. Support a shift to power sharing with systems that reward teamwork;
11. Provide team leaders with top-down and bottom-up support;
12. Thriving on multi-dimensional diversity and complexity, with well-led teams
providing coherent direction.
To conclude, the vital ingredient of managing multinational globalization is leadership: not only
transformational leadership to introduce and implement change, but also transnational
leadership to make the complex organization work. Leadership provides the catalytic magic
mobilizing the organizational dynamics essential for developing and implementing global
strategy.
The multinationals in the 21
st
century will embark on radical transformation. The mounting global
pressures will force them. Energetic multinationals will depend upon management leaders who
can clearly outline what needs to be done and who can mobilize others to help lead the way.
The more successful multinationals will be led by those who appreciate the merit of diversity
and the inevitability of complexity and thrive on change.
5.1 Flt0lt6S
1. Culture is "software of the mind, the way people think, act and perceive others
and it is shared by societies. Three primary components of culture, relevant to
international business are language, religion and attitudes.
2. Cultural diversity indicates the characteristics that may make an individual
culturally different from another. These differences may be:
a. Cultural differences involving patterns of life styles, values, beliefs, ideals
and practices.
b. Differences may include race, national origin, language, religion, age, etc.
c. Differences in views held about the world, codes of social behavior,
communication styles.
3. Cultural diversity is one of the major challenges facing global business
organizations, as it is important for success and vitality of the organization.
4. Management process is increasingly becoming cross cultural with opening of
ndian economy and globalization. t becomes necessary to have an
understanding of various cultures, and the ways to manage the cultural diversity
for achieving competitive advantage. This brings one of the major challenges for
the MNC's, exporters, tourists, sportsmen, entrepreneurs, artists, diplomats of
foreign service, financial experts, researchers, etc. who operate in diverse
cultures.
5. t has importance in all activities of life and more so in international business
operations such as
a. Cross cultural differences in communication can be source of problem
due to different meaning and tone of words to different people. So
awareness of certain characteristics of other culture reduces
misinterpretation and thus in improving communication in business
introductions, telephonic conversations and meetings is important.
6. t has implications in all the fields of management such as
a. nternational marketing practices
b. nternational advertising
c. nternational business negotiations
d. nternational HRM
e. nternational practices in R
f. nternational management functions
g. nternational developing strategies in global
h. nternational organization structure
i. nternational manager's role (MNC's) in global market.
7. Managers with awareness of national differences know that British protect their
privacy, so ndian's would avoid asking British personal questions. n contrast,
asking personal questions in ndia is acceptable. t is sign of showing interest.
8. Communication is often difficult with Japanese, Americans value directness.
Japanese are often subtle and view directness as not proper.
9. Further, Japanese believe in group consensus in decision making which does not
fit well with Americans who are used to making fast decisions.
10. n greetings Americans are smiling, firm handshake and eye contact, while
Japanese bowing, and exchange business cards.
11. n USA women in business have equal rights, opportunities and treated serious
seriously, while in Japan women are not considered for higher management
positions. n middle-east women stand to disadvantage.
12. The employee mix is changing day by day in the organizations.
13. Workforce is now multi-lingual, multi-racial which have life-styles, values, beliefs,
ideals and practices.
14. Even, language, religion, codes of social behavior, custom, festivals are diverse.
15. Workforce includes more women now, older persons. Women require protection
against gender discrimination, flexible work schedules and child care programs.
16. n addition, there are minority workers and disabled individuals.
17. Diverse workforce is more educated.
5.2 Su66FSTl0tS
1. Thus, there is a need for preparing managers for foreign assignments through
cross cultural training such as in history, culture, religions, values, political, legal,
economy of that country to overcome cultural shock.
2. To develop international business negotiations strategies such as positive
overtures, dealing problems and not personalities, emphasis on win-win
solutions, create an open and trusting climate, build lasting relationships.
3. To develop second generation organization structures which (in addition to
strategy and structure) take two other aspects:
a. Strategic flexibility
b. Management process.
4. Train transnational managers with competencies in understanding of
a. Global perspective of world market business environment.
b. Knowledge for cultural responsiveness.
c. Cross-cultural interaction skills with foreign clients.
d. Global strategist to identify unique business opportunities, technologies,
etc.
5. Avoiding discrimination in policies, to make a harmonious workplace, so that all
employees benefit from wider range of experiences and ideas. Discrimination
can be identified in practices of the organization, such as racial discrimination in
recruitment, employee training and career development opportunities. For e.g.
wearing of turban by Sikhs in UK was discriminated. Differences in job prospects
among England's ethnic minorities are now almost as big as differences between
them and the majority. White community, according to a cabinet office strategy
unit study published in March 2003. The report emphasizes that employers still
discriminate on the basis of ethnicity.
6. To develop policies on sexual harassment, grievance systems and for equal
opportunities.
7. Barrier in this change is the mind set. t has to be recognized that such as
prejudice against other cultural and racial groups, unknown fear of their
dominance, avoidance of contact, lack of integration, etc. to be eliminated.
8. n managing diversity, ethics programs are useful in acknowledging different
values and perspectives.
9. To develop organization culture for valuing differences.
10. HR management systems to be bias free.
11. Some other steps such as involvement of women, cultural differences knowledge
to be imparted and accepting for higher career assignments.
12. Education of employees for mind-set about diversity.
13. Groups of people from diverse backgrounds can be more creative and better at
problem-solving.
14. Companies which manage cultural diversity can develop favourable reputation of
good prospective employers of minorities such as Tata, HLL and many more.
15. Cultural diversity can get better customers which has a variety of people.
16. Organizations which handle multiculturalism well create cost advantages over
those who do not.
17. Ability to manage cultural diversity increases the adaptability and flexibility of
management to react to environment changes.
18. Belief that people of many different backgrounds can work together and lead to
coexistence is now University accepted. n nutshell, managers must take positive
steps to manage issues of cultural diversity.
n fact, successfully managing cultural diversity can lead to global business advantages.
ndian T sector, which are successful in their global operations, have to be careful in
developing cultural sensitivity and preemptive in understanding political and economic
environment of the host country.
5.3 C0tCluSl0tS
1. Organizations are increasingly becoming multicultural and it is one of its major
challenges to have competitive global advantage.
2. Management has to understand different cultures where they do business and
respect each other.
3. Organizations should not only adapt local culture but also they should design
practices to suit the culture of each country.
4. Prepare transnational managers for foreign assignments.
5. Develop HR policies and practices (bias free).
6. Avoid discrimination and provide equal opportunities.
lll06RAPHY
ARTCLES
1. Dr.Lalitha Sreenath, Dr.M.R.Sreenath: Harvard Business Review, October 2004
(Enhancement Of Human Capital Through Diversity: "VVE la Difference!)
2. Surendra Kumar Sia, Gopa Bhardwaj: Management and Labour Studies, Vol.28. No.1,
February 2003 (Understanding And Managing Workforce Diversity)
3. Aditya Khanna: Business World, April 2004 (Why ndian Firms Are Struggling With
Gender Diversity)
4. Patrick Low Kim Cheng: The cfai Journal of Organizational Behavior, Vol. V, No. 1,
2007 (A Kazakhstan Perspective On Diversity)
5. David.A.Thomas: Harvard Business Review, July 2005 (Diversity As Strategy)
6. Tarun Narayan, Govindkrishna Seshan and S Lakshmi Chopra: ndian Management,
August 2006 (Harmony n Diversity)
7. Dr.Neena Verma: Human Capital, May 2004 (Synergizing Diversity)
NEWS PAPERS
The Hindu (23
rd
Jan. 08, 04
th
Dec. 07), Hindustan Times (09
th
Aug. 07, 16
th
April 08), The
Financial Express (20
th
Nov. 07), Business Line (1
st
May, 08).
JOURNALS
ndian Journal of Training and Development, Business ndia, ndian Journal of ndustrial
Relations, HRM Review, Human Capital, Leadership etc.
WEBSTES
Wikipedia, www.findarticles.com, www.freearticles.com, www.oxfordjournals.org,
www.hrmguide.com, www.citehr.com etc.
BOOK
S.K.Bhatia, Poonam Chaudhary: Managing Cultural Diversity in Globalization
AttFXuRF 1
CULTURAL DVERSTY AND CLMATE ASSESSMENT SURVEY (SAMPLE)
1. n my work group everyone's opinion gets listened to.
(SA/A/UNDECDED/D/SDA)
2. Members of my workgroup vary widely in their skills and abilities.
(SA/A/UNDECDED/D/SDA)
3. Asians are hard workers but often lack the skills to be good managers.
(SA/A/UNDECDED/D/SDA)
4. Basically, people in my division are judged on how well they perform.
(SA/A/UNDECDED/D/SDA)
5. Blacks are too demanding in their push for equal rights.
(SA/A/UNDECDED/D/SDA)
6. feel free to tell people higher up what really think.
(SA/A/UNDECDED/D/SDA)
7. Hispanic's temperaments cause them to be poor managers.
(SA/A/UNDECDED/D/SDA)
8. would feel working closely with a lesbian woman.
(SA/A/UNDECDED/D/SDA)
9. When get ahead, 'm careful not to separate myself from other people of my
background.
(SA/A/UNDECDED/D/SDA)
10. When the pressure is on, tend to revert to older beliefs and want to make myself and
my culture right and others wrong.
(SA/A/UNDECDED/D/SDA)
11. t is easy to understand the anger of people who belong to minority groups in America.
(SA/A/UNDECDED/D/SDA)
12. am proud of and share with others, the special characteristics and accomplishments
of my own culture.
(SA/A/UNDECDED/D/SDA)
13. Women don't get the same opportunities for education and training that men do in the
organization.
(SA/A/UNDECDED/D/SDA)
14. My workgroup contains members with widely varying cultural backgrounds.
(SA/A/UNDECDED/D/SDA)
15. frequently make an effort to get to know people from different cultures and groups as
individuals.
(SA/A/UNDECDED/D/SDA)
16. My supervisor is biased on the basis of race.
(SA/A/UNDECDED/D/SDA)
17. Differences in race, ethnicity has no effect on a person's promotion within the agency.
(SA/A/UNDECDED/D/SDA)
18. The degree of people get from the people work depends on my doing the job well.
(SA/A/UNDECDED/D/SDA)
19. am usually able to attend the training programs in which 'm interested.
(SA/A/UNDECDED/D/SDA)
20. Racial differences are recognized and valued.
(SA/A/UNDECDED/D/SDA)