B) Recruit and select talented nationals C) Hire or develop multicultural workers D) Research and assess potential markets
The advantages and disadvantages of globalization Depends upon the vantage point of an individual Advantage: An open economy spurs innovation with fresh ideas from abroad Disadvantage: To stay competitive in a global economy, many companies reduce wages
6: THE SCOPE, COMPETITIVE ADVANTAGE, AND POTENTIAL PROBLEMS OF MANAGING DIVERSITY Diversity: mixture of people with different group identities within the same work environment a) Demographic diversity: mix of group characteristics of the organizations welfare; includes age, sex, religion, physical status, and sexual orientation b) Cultural diversity: mix of cultures and subcultures to which the organizations workforce belongs
We study diversity in the workplace from 5 perspectives: 1) The scope of diversity 2) its competitive advantage 3) potential disadvantages 4) organizational practices for capitalizing on diversity 5) analysis of how the English language is used to unify people in business
1) The Scope of Diversity Improving cross-cultural relations includes appreciating the true meaning of diversity Valuing diversity means to respect and enjoy a wide range of cultural, demographic, and individual differences To embrace measurable differences The goal of a diverse organization is for persons of all cultural background to achieve their full potential, not restrained by group identification A diverse organization is inclusive, valuing, and appreciating the contributions of every employee Integrating generations: to have people of all ages working well together 2 extremes: a) Traditionalists/veterans (1992-1945): telephone and e-mail b) Millenials (1981-2000): text messages 2) The Competitive advantage of Diversity Making diversity a part of organizational strategy Potential competition (bottom-line) benefits: 1. Managing diversity well offers a marketing advantage, resulting in increased sales and profits. 2. Effective management of diversity can reduce costs. 3. Companies with a favourable record in managing diversity are at a distinct advantage in recruiting talented people. 4. Workforce diversity can provide a company with useful ideas for favourable publicity and advertising. 5. Workforce diversity, including the services of a culturally diverse advertising agency, can help reduce cultural bloopers and hidden biases. 6. Workforce heterogeneity may offer a company a creativity advantage. 3) Potential Problems associated with diversity Potential for conflict is high ( group members do not necessarily work harmoniously) Diverse groups may be less cohesive than those with a more homogeneous composition
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4) Organizational practices to encourage diversity 1) Corporate Policies favouring diversity Formulate policies that encourage and foster diversity 2) Employee Network groups: affiliate on the basis of group characteristics 3) Diversity training: attempts to bring about workplace harmony by teaching people how to get along better with diverse work associates
5) The English language as a force for unity English : official language of business Grammar is less complex Internet and information technology