Module 3 - Trends and Cultural Diversity What's the benefit of studying this topic? Diversity interacts with economic opportunities as well as risks. As a manager you offer added value when you understand how to track macro-economic /population trends while also integrating knowledge of and respect for different cultures. Module 3 Global Demographic Trends and Cultural Differences INTRODUCTION: Recent globalization requires leaders and managers to consider cultural diversity as a part of their responsibilities. They are charged with creating work settings that promote knowledge and respect for not only their customers and clients, but also for their workers who produce the goods and services offered. At-A-Glance Definitions: Culture: Something that ties or links a group of people together as a society, tribe, or community. It is learned and shared by older members of a group who pass on beliefs to younger members. Culture is also revealed in traditions, celebrations, and social expectations (such as customs or habits, morals, or laws), which provides a structure or way of seeing and making sense of the world. Culture is a \"way of life\" for a group of people. Cultural intelligence: The ability to display intercultural competence within a given group through adaptability and knowledge. See Hofstede's Dimensions of Difference below. Diversity activities (diversity policies, programs/initiatives within business and professional settings): A term used to identify information dissemination and training in smaller and larger enterprises. Diversity activities recognize and respect differences among workers due to ethnicity, race, gender, age, and sexual orientation by gathering data, holding workshops and events, and establishing affinity groups. US Diversity programs began in response to government affirmative action policies and civil rights laws/court decisions banning discrimination in the 1960-70s. Globalization: The decrease of distance for trade and development of goods, services, as well as human interests. \"Globalization refers to the process of integration across societies and economies. The phenomenon encompasses the flow of products, services, labor, finance, information, and ideas moving across national borders (Encyclopedia of Management, 2009, p. 341). Homophily: The tendency of individuals to associate with others who are similar to them. Stereotypes: \"A form of categorization that organizes our experience and guides our behavior toward various groups within society. . . Stereotypes, like other forms of categories, can be helpful or harmful depending on how we use them\" (Adler, 2008, p. 76, 77). Global Complexities and Controversies Among people migrating, about 57% will seek to live in high income countries (such as North America, Europe, Japan and Australia). International migrants now make up 10% of the population of developed countries, with women accounting for half of those migrating. The US is number one for receiving immigrants with more than 1.9 million holding legal resident status, and approximately 11.9 million nonofficial immigrants in 2011. Trading blocs: Whether international trade is more focused on regional rather than global integration. Trading blocs, such as the North American Free Trade Agreement (NAFTA), the European Union (EU), the Asia-Pacific Economic Co-operation (APEC), and the Association of South East Asian Nations (ASEAN), support regional cooperation between geographical neighbors (Encyclopedia of Management, 2009) Impact on poorer countries Flow of capital Migration Diffusion of technology Sustainability Reconfiguration of culture Skill Profile of the Effective Global Manager (Encyclopedia of Management, 2009) The ability to envision and implement the strategy of thinking globally while acting locally Being able to manage change and transition Being able to manage cultural diversity The ability to design and function in flexible organizational structures Being able to deal with stress and ambiguity Having the skills required to work with othersespecially in team setting Being able to communicate well, and having a command of more than one language Having the ability to learn and transfer knowledge in an organization Entering into trusting alliances and operating with personal integrity and honesty Being able to turn ideas into action Having a stateless perception of the world Being able to take risks and to experiment Managing Organizational Diversity The Society for Human Resource Management recommends the following components for a successful diversity initiative: 1. Get executive commitment. Enlisting the visible support and commitment of your organization's CEO is fundamental to a successful diversity initiative. 2. Articulate the desired outcomes. Be explicit about how support and commitment are to be shown and from whom it is expected. 3. Assess the climate, needs, and issues at your organization. The use of focus groups can help clarify the obstacles. It will prove helpful to determine where your organization currently is on the diversity continuum before determining what interventions need to be taken. 4. Create and maintain open channels of communication with employees at the launch of your diversity initiative and throughout the process. Communication is crucial to the success of your diversity plan and should occur not only at the beginning of a diversity initiative, but also throughout the process. 5. Consider forming a diversity taskforce to widen your support base. This group can help analyze assessment data and make recommendations to top management. 6. Develop a mechanism for dealing with systemic changes and procedural problems. Once identified, obstacles and problems must be addressed. For example, your company may be committed to hiring persons outside of the dominant culture, but has difficulty promoting those same persons once they are with the organization. 7. Design relevant, interactive, applicable training. The purpose of good training is to not just increase awareness and understanding about diversity, but also to develop concrete skills that employees can use to deal with workplace diversity, its implications, and its effects. 8. Evaluate and measure each component of your diversity initiative (training, taskforce, mentoring initiative, employee networks, etc.). Set measurable criteria and determine what you would like to accomplish and how you will gather data. 9. Ensure integration and accountability. Integrate the concepts, skills and results of your diversity efforts into the fabric of the organization and hold management accountable for encouraging diversity throughout the organization. (Gale Virtual Reference Library, \"Diversity\" Encyclopedia of Management, 2009, p. 197-200) Economic Stability Is a Global Issue In spite of the global crisis, lower and middle income countries continued to develop. China led with a 7.4% expansion of GDP followed by India with almost 6%, 2011. High income economies continue to account for most of the manufactured goods and their export (approximately 73% of goods were manufactured in these countries during 2006), but Asian/Pacific countries improved their shares of manufactured products with China taking the lead. Investment correlates with rapid growth for many economies. Between 2000 and 2007, investment rates rose 6% in Asian/Pacific regions and more than 10% in SE Asia. Economies in Latin America and the Caribbean were lower, and high income areas had the least savings. Macroeconomic stability is a cornerstone of development; the 2008-09 economic crises generated renewed interest in sound fiscal policy among business and government leaders, which continues 2012 (World Bank). Gathering /Researching Demographic Trends: An ongoing task for managing in a diverse, global setting: Web-based resources provide snapshots of important trends. With data being widely available, there are increased expectations for managers to understand demographic and economic trends. Here's a suggested set of resources to help with tracking data. Organization World Bank Primary Mission To assist globally by paying particular attention to the advancement of less developed countries. World Economic To strive towards Forum global development emphasizing values along with rules. Work utilizes corporations/their leaders; governments and their leaders, as well as attention to a civil society. Types of reports Links for locating data Data and Research section of website compiles reports on populations, economic changes by year and by special interest (such as environment or technology) http://www.worldbank.org/ Offers an annual Global Competitiveness Report and ranking of countries, based on multiple factors and an extended review process. Also offers understanding about issues such as gender gap, and tourism impact. http://www.weforum.org WBSITE/EXTERNAL.DATASTATISTICS/ Google options using terms of country and population (Google and the World Bank have a partnership to provide specific data and information, which helps in organizing/retrieving from more than 65,000 documents. United Nations To govern internationally with the primary purpose of fostering peace. Offer population by age and country; see Organization for Economic Cooperation and Development (OCED); Other reports such as country loss and gains (Population Div; Statistics Div; IOM (Office on Migration) http://www.un.org Google OCED for several links to population data, these data banks can be tailored to provide profiles by country or across several countries. US Census Bureau, International Data Base To serve by offering Provides past, current and http://www.census.gov/ipc/www/idb/index.php quality data about forecasting information about people throughout the population changes world. World Trade Organization To negotiate agreements for reducing obstacles to international trade. Offers trade profiles, in which http://www.wto.org/ the user customizes various factors to make tailored select statistical data base comparisons Business Insights: Essentials NA Data profiles of companies by name, major brand, industry sector Available through UMUC online library Current Research for Understanding Cultural-Business Interactions Globalization continues to expand and it impacts cultures: With more than 800 studies and articles since 2005, business awareness of cultural influences on enterprise globalization has intensified. But the practical application of these ideas suggests questions rather than answers because there is now more need for specific, situational, and practical applications due to global interconnectivity. The questions include: Can professionals be screened for likely success in a diverse, multinational or global work setting? What priority should HR units give to cross-cultural skills and work performance? How should corporate strategy address both multi-national cultural values and company mission? What are the ethical issues and roles for corporate social responsibility? How does a manager decide priorities within local markets, while also implementing company priorities and values Hofstede Cultural Dimension Research (Launched in 1980) With sponsorship of IBM, one of the first multinational corporations, Dutch anthropologist Geert Hofstede designed a survey to use data from 100,000+ respondents in 50+ countries. Survey data continues to be added to the database. With a strict protocol to assure validity, Hofstede and his researchers identified five major categories in which cultures differ: power distance, individualism/collectivism, career success and quality of life, uncertainty avoidance, and shortlonger time orientation. Hofstede's five-dimension model is the most widely applied for distinguishing culturally driven values within diverse work groups for the purpose of cultural comparisons within large groups or countries. Power Distance: \"How willing are employees to accept that their boss has more power than they have? . . . Do employees do their work in a particular way because the boss wants it that way (high power distance) or because they personally believe that it is the best way to do it (low power distance)?\" (Adler, 2008, p. 54). On the Hofstede scale, the U.S. is low, France is high. Individualism/Collectivism: On the Hofstede scale, the U.S. is high, Mexico is low. Career Success and Quality of Life: On the Hofstede scale, the U.S. is high, France is low. Uncertainty Avoidance: On the Hofstede scale, the U.S. is low, Japan is high. Sort-Longer Time Orientation: On the Hofstede scale, the U.S. is low, Japan is medium. Later, Hofstede and his colleagues identified an additional dimension: Confucian dynamism. Confucian Dynamism: measures the employees' devotion to the work ethic and their respect for tradition. Hong Kong, Singapore, and Taiwan are typical examples of high ratings in this dimension. GLOBE Research (Began in 2004) Building on Hofstede's dimensions, House and his researchers aimed to identify appropriate leadership for assuring success in settings dominated by specific country cultures. In addition to the dimensions proposed by Hofstede, GLOBE researchers proposed several others, including In-Group Collectivism, Gender Egalitarianism, Assertiveness, Performance Orientation, and Humane Orientation. Six categories of leadership overlap the early culture categories identified by Hofstede. For instance, charismatic and autonomous leading can be effective when working with culture values for higher power distance; team leadership can be helpful when working within a collectivist culture; and selfprotective leader attributes can be useful when there's a higher awareness of uncertainty. GLOBE researchers further divided the data from their study in 62 countries into regional clusters: Anglo, Germanic Europe, Latin Europe, Sub-Saharan Africa, Eastern Europe, Middle East, Confucian Asia, Southern Asia, Latin America, and Nordic Europe (Northouse, 2013, p. 390). Module 4 - Cultural Synergy What's the benefit of studying this topic? In today's diverse workplaces, a manager must include different viewpoints for problem solving. Knowing more about the give and take needed in communication to achieve synergy will help you become a more effective manager and a leader. Module 4 Leadership to Achieve Cultural Synergy in Diverse Settings Introducing the use of synergy: Scenario 1: Harold Masterson is an internal consultant to a large accounting firm. He was transferred to Mexico City to work with the unit located there. Within the 1st week, his boss Xavier Manuel asked him to complete an accounting review, due at the end of the week. After Manuel had described what was needed in the review, Harold responded that the deadline was not workable and that starting the review with a 5-day turnaround was a waste of time. Surprised and angered by Harold's response, Manuel stated that the project would be done, stood and demanded that Harold get to work. This exchange suggests a schism between Manuel and Masterson. Behind the words, there was a significant difference likely caused by cultural values and expectations. USA-born Masterson may hold a high regard for his individual, professional expertise as an accountant (refer to Hofstede's Dimensions of Difference, in particular Individualism and Collectivism). Manuel, from Mexico, grew up expecting directive authority as a manager and appropriate respect for power distance between a leader and his staff (again, refer to Hofstede's Dimensions). Given the differences in cultural values, what communication between the two men would have been more helpful or informative? What can a leader like you do to manage more effectively the interactions between people who have different backgrounds? Scenario 2: A doctor at a major hospital in California realized that a Filipino nurse was improperly using a piece of equipment to treat a patient. He instructed the nurse on the proper procedure and asked if she understood. She said she did. Later the patient's condition continued to deteriorate, and the doctor again questioned the nurse who again affirmed that she understood. This exchange again demonstrates dimensions of difference. In her eyes the Filipino nurse could not tell the doctor that she did not understand without implying that he had not given her poor instructions. The doctor expected open communication; that the nurse would ask questions if she did not understand. How could this situation be better handled? Perhaps the doctor could ask the nurse to explain the procedure that she would follow. The nurse would then never be in a position to say \"no\" to a superior (Adler, p. 115). At-a-glance definitions: Synergy: the concept that the interaction of individual elements is greater than their sum; i.e. 2 + 2 = 5. \"The behavior of whole systems that cannot be predicted by the behavior of any parts taken separately\" (Adler, 2008, p. 109, quoting Fuller, B.). Cultural synergy: Capacity to identify and then use diverse resources for ideas, insights, strategy and problemsolving. The challenge to achieving cultural synergy is finding the appropriate balance among values, relationships and goals, a leadership skill and role. \"Our way and their way differ, but neither is inherently superior\" (Adler, 2008). Parochial: The belief that \"our way is the only way\" to manage. Ethnocentric: Recognizing diversity but only as a source of problems. The belief that \"our way is the best way\" to organize and work (Adler, 2008) Vision: Concepts, ideas and overall meaning for driving an organization forward into its future. Often it is easy to assume that the leader has primary responsibility for developing and communicating organizational vision. But as work units and companies need to work faster and perform better, there is the companion task to increase development of a shared vision so that managers and workers alike can put the power of that vision to work. Effective leading requires a compelling vision especially if you are managing a diverse work group, and/or working in multiple regions of the globe. Research Trends: What's being discovered to advance understanding of global leader skills? Major attention to globalization. Managers are now learning about different countries and societies as a means of being competitive professionally. Cultural competencies are value-added knowledge for leading a work unit or company. From 2005-12, approximately 400 articles were published in scholarly, peer-reviewed journals on the topic of leadership in a multi-national corporate setting. Important themes were: Need for increased attention to trust-building; understanding relational aspects of leader-staff; ethics of a multi-national business strategy. Global economic problems emphasized in recent articles. (125 studies reported). Writing escalated on ethics needed by global leaders, with emphasis on the social responsibility of managing multi-national projects or companies. Identified business responsibilities included: Ethical consumption and production; environmental "footprint" of trade practices; issues of worker rights, occurrence of sweat shops; practices towards local governance. Increased attention to use of emotional (as well as social and cultural) intelligences. More than 200 scholarly-mass audience articles were published on these topics, 2005-12. The articles suggested adding skills for self-awareness, understanding of the impact of one's own view and values (whether or not there's awareness of the dynamics of privilege), and how to develop deeper reflection methods for managing diversity issues. Relational aspects of global leadership. Research increased attention to Leader-Member Exchange theory, a model emphasizing the interactions between leaders and followers (75-plus articles published from 2005-12). While these research trends are not explicitly linked to diversity or globalization, the studies pointed to additional emphasis on relationships and its role within leader performance, and increased focus on surveys and assessments measuring qualities of leader relationships. Added interest about creativity factors within the Leader-Member-Exchange Theory. In 2009 a series of studies began exploring whether creativity or innovation could be enhanced if workers perceive choices for when to innovate. Although results were not overwhelming, there were valid associations between managers and staff if workers believed strongly that they were empowered or had autonomy to problem-solve. This research trend may impact start-ups and more entrepreneurial work units. Also interesting is bureaucracy workers perceived more options for problem-solving when a quality relationship was present between leaders and themselves (Business Source Premier Data Base, 2012). Making the Business Case for a Leader Using Cultural Synergy: an Overview Nancy Adler (2008, International Dimensions of Organizational Behavior) asks the rhetorical question: \"Do managers see culture?\" and answers \"No,\" and adds that perhaps it's simply ignored (p. 99). She goes on to point out that some may \"label managers who recognize diversity within their organization as prejudiced, racist, sexist, ethnocentric, and unprofessional\" (p. 100), and managers don't want to be viewed in this manner. \"Although people are not the same, we often inaccurately perceive them to be the same --- to have the same needs and aspiration. Cultural blindness is, therefore, both perceptual and conceptual: we neither see nor want to see differences. To effectively manage cross-culturally, a concentrated effort must be made to recognize cultural diversity without judging it --- to see difference where difference exists\" (Adler, p. 101). In the OER reading \"Harnessing Demographic Differences in Organizations,\" Guillaume et al. (2015) describe the \"double edged-nature of demographic workplace diversity.\" When it works the results are innovation, better decisions, larger talent pool, and a wider customer base. When it doesn't the results may lead to lower morale, more conflicts, poorer job performance. According to Adler, \"Managers who see the impacts of cultural diversity as potentially both positive and negative attempt to manage the impacts of cultural diversity rather than manage the diversity itself. Managers using this synergistic approach attempt to minimize potential problems posed by diversity, rather than minimize the diversity itself\" (p. 107). Examples of Diversity in Successful Companies Company PepsiCo Increase in Diverse Work Staff 2000 Business Advantage/Results 8% revenue growth, comparing 2000 to 2004 11 % of management were minorities 24% were women 2010 IBM 24 % of management were minorities 39% were women; 31% of executives were women 9% revenue growth in developing countries, 2011 1995-present From $10m to $300m, comparing 1995 to 2001, for women and 52% of the IBM worldwide management council, are minority- owned contractors, who provided services to IBM now minorities and women Harley Davidson 1995 5% minorities and women managers 24% of contracts awarded to minorities and women in 2004 2004 25% of management were minorities and women CEO of Harley Davidson becomes chair of minority supply chain group, representing Blacks, Hispanics and Asians, 2012 Culturally Synergistic Problem Solving (Adler. 2008, p.110-117) Step 1 Describe the Situation Step 2 Culturally Interpret the Situation Step 3 Increase Cultural Creativity Implementation Step 4 \"Westerners often see life as a series of problems to be solved, whereas non-Westerners frequently see life as a series of situations to be accepted.\" Be sensitive to Dimensions of Difference. \"All behavior is rational and understandable from the person behaving.\" Westerners may base evaluations on competence while nonWesterners may do so on friendship. Search for culturally appropriate ways to solve problems. Focus on \"learning transfer.\" 1) Develop cultural \"self-awareness\" of your own culture, as well as 2) \"Cross-cultural awareness\" of other cultures Achieving Cultural Synergy: Your Role in Leading Cultural synergy is an approach to managing, recognizing and working with the resources of cultural diversities among workers. The idea of cultural synergy can be framed into a step-by-step process which begins with having knowledge of various country-based cultural values and expectations. Then, using that information, you ask questions respectfully about values and expectations, as the relationships develop in the team or work unit. With those insights, you can rely on culturally-based information as a foundation for organizational strategies, plans and solutions to problems. The dynamics of cultural synergy supports the overall work goals and objectives you plan to achieve. Summary: Managers must assure performance and gain results. But today's diverse workforce demands a deeper attention to others, knowledge of multi-cultural research and applications, and having the appropriate relationship for more effective performance. Cultural synergy, an effective balance of different ideas, insights and values, can emerge with appropriate leadership as you manage. Increasingly, your role is to develop and use cultural synergy. Next Steps: As you take the next step in understanding the concepts of this module on leadership and cultural synergy, imagine yourself in a difficult conversation which has aspects of diversity and cultural values in conflict. What do you do? What information and skill can be useful to you, so that you effectively manage? Globalization http://ezproxy.umuc.edu/login?url=http://go.galegroup.com.ezproxy.umuc.edu/ps/i.do?id=GALE %7CCX3273100119&v=2.1&u=umd_umuc&it=r&p=GVRL&sw=w&asid=b75423fab96ff96157be7 4911ffdbeeb Hofstede's Five Dimensions of Culture http://sk.sagepub.com.ezproxy.umuc.edu/reference/businesstoday/n468.xml Becoming a Global Presence http://ezproxy.umuc.edu/login?url=http://go.galegroup.com.ezproxy.umuc.edu/ps/i.do? p=GVRL&sw=w&u=umd_umuc&v=2.1&it=r&id=GALE %7CCX3405300212&asid=75827286a4de3cf7453350cb6ee0bc16 Cross-Cultural Leadership http://sk.sagepub.com.ezproxy.umuc.edu/reference/leadership/n70.xml Culture and Leadership? http://2012books.lardbucket.org/books/cultural-intelligence-for-leaders/s04-12-culture-andleadership.html Synergy http://ezproxy.umuc.edu/login?url=http://go.galegroup.com/ps/i.do? p=GVRL&sw=w&u=umd_umuc&v=2.1&it=r&id=GALE %7CCX3273100291&asid=d7b1333778801efef41436078234ee97