Managing

Diversity
&
Managing in a
Global
M. Azkha Rinaldhy
Meila Rosanty R.
Environment
Managing Diversity
Diversity has traditionally been considered a
term used by human resources departments,
associated with fair hiring practices,
discrimination, and inequality.

➔ Workforce Diversity
People in an organization are different
form and not similar to one another.
Why Is Managing Workforce Diversity So Important?

People Management Organizational Performance Strategic

● Better use of employee ● Reduced costs ● Understanding of the

talent associated with high marketplace, improves
● Increased quality of turnover, absenteeism, ability to better market
team problem-solving and lawsuits to diverse consumers
efforts ● Enhanced ● Potential to improve
● Ability to attract and problem-solving ability sales growth and
retain employees of ● Improved system increase market share
diverse backgrounds flexibility ● Viewed as moral and
ethical; the “right” thing
to do
Case Study I
Apple Inc.
Types of Workplace Diversity

Age, Gender

Sexual
Race, Ethnicity
Orientation

Disabilities,
Religion
Abilities
 Apple making consistent progress.

● For the past five years, Apple continued to hire more women and
underrepresented minorities every year.
● Apple bring in new team members and support their growth and
highly encouraged that their workforce will become more
representative at all levels of the company.

53% of new hires in the U.S. are from

historically underrepresented groups in tech

Underrepresented groups include women and people who identify as Black, Hispanic, Native
American, or Native Hawaiian & Other Pacific Islander.
 Apple making consistent progress.
● Apple is a multigenerational company with employees from 18 to 87
● Apple proud that so many of their people choose to remain at Apple for a long
time.
● 45% of leaders under 30 are women, and 17% are underrepresented minorities.
Why Apple needs more diversity?
Tim Cook has been clear that he sees diversity as vital to
the future of Apple.

● 2013, he used an article in the Wall Street Journal to share his

belief that “people are more willing to give of themselves when
they feel that they selves are being fully recognised and
embraced”.

● 2015, he said that diversity “is the future of our company”.

Journal Review I

Managing and Leading a Diverse Workforce: One of the Main

Challenges in Management
Aya Shaban, Zayed University, Khalifa City, Abu Dhabi, P.O. Box 144534 United Arab of Emirates

➔ Abstract
1. More companies are getting to recognize that the best way to meet customer satisfaction, higher quality
products, and faster service challenges is through coordinated efforts of employees.
2. Managers have become more concerned with managing diversity in organizations.
3. Diversity offers both potential costs and benefits for the organization

➔ Purpose
How managers could manage more effectively diverse team whose members have different ages,
genders and nationalities or even belong to distinct ethnic or cultural groups
➔ Previous Research
1. Contradictory and mixed results (Azmat, Hartel& Fujimoto, 2013)
a. cognitive outcomes such as greater innovation, ideas and creativity that employees from distinct
social backgrounds could bring
b. adverse behavioral and affective outcomes such as less social cohesion, relational conflicts and
higher staff turnover due to employees’ perceived dissimilarity and adverse stereotypes about
dissimilar employees
2. Based on a previous study diversity was found to be reducing the organizations’ speed to respond and
act, which could lead to lower performance (Eisenhardt, 1989; Chen and MacMillan, 1992)
3. Social distance could be referred to as the degree of unwillingness to interact with other members in the
group (Chan and Goto, 2003).

➔ Methods
Qualitative data collection and analysis is used in this research through the collection of secondary data to
answer the research question
➔ Discussion and Findings
Steps in Managing Diverse
Workforce
Managers have to possess certain
values, skills and attitudes in order to
manage diversity effectively.
Empowering employees to challenge
discriminatory behaviors, actions,
and remarks.
All employees should be rewarded for
their contributions to the effective
management of diversity.
Leadership Theories to
manage Diverse Workforce
LMX Theory: Diverse teams could be
effectively managed and supported by
the leaders through applying the
leader-member exchange theory
The LMX theory is concerned with
what is known by the dyad, which is the
relationship between the leader and
each subordinate independently rather
than the relationship between the
leader and the whole team
(Lunenburg, 2010).
Conclusion
❏ Effective managers can better manage diversity
through providing training programs for the team
members. (Formal approaches for understanding
diversity problems).
❏ Managers should help the team members to
accept, and understand these individual
differences.
❏ Managers should maximize the potential of the
group by finding ways to capitalize on diverse
skills, viewpoints and backgrounds (Zenger et al.,
1994).
Case Study II
Diversity and Inclusiveness
Diverse perspectives combined with an inclusive
culture:
● Drive better decision-making
● Stimulate innovation
● Increase organizational agility
● Strengthen resilience to disruption.

Inclusive organizations:
● Maximize the power of all differences
● Realize the full potential of all of their
employees.
● Minimizes blind spots
● Encourages truly innovative thinking.

Creating and maintaining a culture of diversity and

inclusiveness can help your organization sustain
long-term success in today’s global marketplace.
Journal Review II

Workforce Diversity: A Key to Improve Productivity

Ankita Saxenaa, Anand Engg. College, Agra

➔ Abstract
1. Workforce diversity means similarities and differences among employees in terms of age, cultural
background, physical abilities and disabilities, race, religion, gender, and sexual orientation.
2. Employing diversified workforce is a necessity for every organization but to manage such diversified
workforce is also a big challenge for management

➔ Purpose
Analyses the workforce diversity and its impact on productivity of an organization
➔ Previous Research
Ashok Chanda, Dec
2006
HRM has to take care in
managing this diversity, there
is a lack of awareness
towards diversity
management approach
Sharbari Saha, Marie-Élène Roberge,
Dewpha Mukherjee
Patra, 2008
if the organization is not
employing the diversified
workforce then is not
competitive enough, the
managers should providing
them training.
Rolf van Dick, 2010
+ creativity, problem
solving, innovation
- increasing conflicts,
decreasing group
performance and
decreasing group
cohesiveness.
➔ Advantages of diversified workforce

1. Diversity stimulates innovation and productivity and creates a world class culture that can outperform the
competition.
2. In research-oriented and hi-tech industries, the broad base of talents generated by a gender-and
ethnicdiverse organization becomes a priceless advantage. “Creativity thrives on diversity” (Morgan, 1989).
3. Multicultural organizations are found to be better at problem solving, possess better ability to extract
expanded meanings, and are more likely to display multiple perspectives and interpretations in dealing
with complex issues.
4. Organizations employing a diverse workforce can supply a greater variety of solutions to problems in
service, sourcing, and allocation of resources.
5. Employees from diverse backgrounds bring individual talents and experiences in suggesting ideas that
are flexible in adapting to fluctuating markets and customer demands.
➔ Discussion and Findings
An organization’s major objective is
to earn profit and to enhance its
productivity, no doubt that almost all
the authors are saying that employing
diversified workforce is the very
essence in today’s scenario but to
manage such a diversified workforce
is a big challenge in front of the
management
Hiring diversified workforce will
definitely leads to improved
productivity, but may prove to disaster
if not managed properly.
Not only the management but
employees are also feeling some
problems like language problem,
attitude clashes, and difference in
perceptions, which is directly related to
human behavior which ultimately
affects the productivity of any
organization.
Conclusion
However, this problem can be solved by adopting
various policies like:
1. Encouraging the use of common language in
the organization among the employees
2. By conducting various motivational and
mentorship programs
3. By keeping the channels of communication
open among the employees and employers
4. By encouraging employee participation
Managing in a Global
Environment
What we’re gonna
learn today!
1. Join the Game from the Link
2. Insert your Name
3. Click Start 357 2415

Web : Managing in Global Environment Quiz

WHAT IS YOUR GLOBAL
PERSPECTIVE?
Parochialism — Viewing the world solely through
one’s own eyes and perspectives. People with a
parochial attitude ignore other’s values and customs
and rigidly apply an attitude of “ours is better than
theirs” to foreign cultures.

3 POSSIBLE GLOBAL ATTITUDE

➔ Ethnocentric attitude

➔ Polycentric attitude

➔ Geocentric attitude
Adopting a Global
Perspective
Ethnocentric Attitude
The parochialistic belief that
the best work approaches and
practices are those of the
home country.
Polycentric Attitude
The view that the managers in
the host country know the best
work approaches and practices
for running their business.
Geocentric Attitude
A world-oriented view that
focuses on using the best
approaches and people from
around the globe.

“What work at home, will work

here” [Guergana K.S. & Mujtaba,
2009]”
Regional Trading Alliances
Global competition and the global economy are shaped by regional trading
agreements, including:

North American Free Trade

The European Union (EU)
A union of 28 Democratic European
nations created as a unified
economic and trade entity.
Agreement (NAFTA) Association of Southeast Asian
Nations (ASEAN):
An agreement among the Mexican,
Canadian, and U.S. governments in A trading alliance of 10 Southeast
which barriers to trade have been Asian nations
eliminated.

OTHER LATIN AMERICAN OTHER TRADE ALLIANCES

Tip
1. The U.S.–Central American Free 1. The African Union (AU) “Geocentric Attitude is
Trade Agreement (CAFTA) 2. Five east African nations called the type of approach
2. Free Trade Area of the Americas the East African Community (EAC). successful managers
(FTAA). 3. The South Asian Association for will need in today’s
3. The Southern Common Market Regional Cooperation (SAARC) global environment. ”
(Mercosur)
Global organisation An organisation of 189 A group of very closely International economic
of 164 countries that countries that associated institutions organisation that helps
deals with the rules promotes international that provides financial its 34 member
monetary cooperation and technical countries achieve
of trade among
and provides advice, assistance to sustainable economic
nations loans, and technical developing countries. growth and
assistance employment.

Tip

“Global trade
systems ensure
that trade

Global Trade Mechanisms

continues
efficiently and
effectively.”
Different Types of
International
Organizations
Multinational corporation (MNC)
- Global company
- Multidomestic corporation
Indonesian
- Transnational or borderless Company going
Global
organisation 1. Polygon
2. Martha
Tilaar
3. Gojek
4. Sido Muncul
5. Indofood
How Organizations Go Global
Organization Go Global :
Case Study in Indonesian Market
Example Case Study 3: JD.ID

It took four years for JD.ID, to extend its delivery

service to over 90 percent of the 34 provinces in
Indonesia via its logistics network, which is
composed of over 69,000 square meters of
warehouses and over 16,000 square meters of
sorting facilities.

JD.ID is an e-commerce joint venture of

China’s largest retailer JD.com, in
partnership with Gojek and Provident
Capital.

“Only by storing products as close to customers

as possible can we ensure fast delivery,” said
Zhang Li, CEO of JD.ID and VP of JD.com. Zhang
has been working with JD.com for ten years and
was tasked to head JD.ID for its trial operations in
2015. JD.ID started official operations on March 28,
2016. Source: In-Depth Report: JD.ID CEO Zhang Li
 Example Case 4 : Go-Jek Indonesia

In 2018 in May, Xiaomi and Batam business entity held a Supplier

Investment Summit at Radisson Hotel Batam (HMSEditor, 2018).

The event aims to Increase Local Manufacturing Areas and encourage

“We believe the best way for us to expand internationally is by partnering
foreign investment with a potential investment of $ 315 million, into
with talented local teams who share our vision and know exactly what will
the smartphone manufacturing industry in Indonesia while creating
work best in their home countries. Our role will be to act as advisors, giving
10,000 jobs. Steven Shi, Head of Xiaomi South Pacific Region and Xiaomi
the new companies the benefit of our operational and development
Indonesia Country Manager, explained that Xiaomi would continue to
experience so they can take the spirit with which we created GO-JEK and find
collaborate with various layers of government in Indonesia, to create
the best way to achieve that locally”
similar activities in order to contribute more (HMSEditor, 2018).

-Nadiem Makarim (GO-JEK CEO and Founder) Example Case 5 :

Source: GO-JEK to Launch International Expansion
The Expansion of China’s MNC into Indonesia: A Case Study of
Xiaomi Investment in Indonesia
 MANAGING
IN GLOBAL ENVIRONMENT
What challenges will a manager face in a new
country?

❖ Political / Legal Environment

➢ Stability or instability of legal and
political systems
➢ Differences in the laws of various
nations
❖ Economic Environment
➢ Free Market Economy
➢ Planned Economy
❖ Cultural Environment
➢ National Culture
Other economic issues
managers need to
understand:
(1) currency exchange
rates,
(2) inflation rates.
(3) diverse tax policies.
 ➔ Case Study 6 on Political/ Legal
Environment:
Convenience Store 7-Eleven to
Close its Doors in Indonesia
It is assumed the government's ban on sales of alcohol in the
nation's smaller retail stores was a major setback for 7-Eleven. In
fact, this ban may have been the decisive factor. Through Trade
Regulation No. 06/M-DAG/PER/1/2015 on the Control and
Supervision of Procurement, Distribution, and Sale of Alcoholic
Beverages, implemented in April 2015, the Indonesian
government banned sales of alcohol in convenience stores (such
as 7-Eleven, Indomaret and Alfamart).

Considering sales of alcohol contributed about 10 percent to total

sales of the 7-Eleven stores, it implied a big blow for the
company. Moreover, those who purchase beers or other light
alcoholic beverages also tend to buy various snacks in the store,
therefore the company saw its overall sales decline from IDR 1.2
trillion in 2015 to IDR 891 billion in 2016.

Source: Convenience Store 7-Eleven to Close its Doors in Indonesia

 Global management in “Today’s World”

The Challenge of Openness: What Manager Need? Global Mind-Set:

● Increased threat of ● Cultural Intelligence:

terrorism cultural awareness
and sensitivity skills
● Economic
interdependence of ● Global Mind-Set:
trading countries attributes that allow a
leader to be effective
● Intense fundamental in cross-cultural
cultural differences environments
Hofstede’s Framework
for Assessing Cultures

Hofstede identified six categories that

define culture:

1. Power Distance
2. Collectivism vs. Individualism
3. Uncertainty Avoidance
4. Femininity vs. Masculinity
5. Short-Term vs. Long-Term
Orientation
6. Restraint vs. Indulgence
Global Leadership and Organisational
Behaviour Effectiveness (GLOBE)

Power Uncertainty An ongoing research program that

Assertiveness
Distance Avoidance extended Hofstede’s work by
investigating cross cultural leadership
behaviors and giving managers
additional information to help them
Humane Future Institutional identify and manage cultural
Orientation Orientation Collectivism differences.

The GLOBE studies confirm that

Hofstede’s dimensions are still valid and
Gender In-group Performance extend his research rather than replace
it. GLOBE’s added dimensions provide
Differentiation Collectivism Orientation
an expanded and updated measure of
countries’ cultural differences.
JOURNAL REVIEW III
Background:

Foreign multinationals, face greater difficulty in recruiting talent than

local companies do, partly because of the liability of foreignness
and the fierce competition among foreign multinationals in the local
country (Lewin and Massini, 2009; Newburry et al., 2014; Turban et
al., 2001). The study focussed on the cultural value fit between
potential jobseekers and the employing company and explored
those cultural values that influence the attractiveness of Japanese
employers in Malaysia.

Literature review and theory:

● Attractiveness of Malaysia and Japanese companies

● Employer attractiveness in recruiting talent
● Effects of individually held cultural values

Previous Research:

A recent investigation into cultural values across nations indicated

that people in Japan and Malaysia have clear differences in the five
cultural values (Hofstede et al., 2010). Thus, those who are low in
power distance and collectivism and high in masculinity, uncertainty
avoidance and long-term avoidance would see Japanese
companies as attractive future employers.
 Figure 1. Difference in cultural dimensions between Japan and Malaysia
Figure 2. Hypothesized research model.
Figure 1 shows the Japanese have a higher tendency than Malaysians in the cultural H3: Risk aversion positively influences organizational
values of masculinity, uncertainty avoidance and long-term avoidance, whereas
attractiveness and intention to work, such that those high in risk
Malaysians are higher in power distance.
aversion will be more attracted to Japanese companies.
H4: Masculinity positively influences organizational attractiveness
This yielded the following hypotheses:
and intention to work, such that those high in masculinity will be
more attracted to Japanese companies.
H1: Power distance negatively influences organizational attractiveness
H5: Long-term orientation positively influences organizational
and intention to work, such that those high in power distance will be
attractiveness and intention to work, such that those high in
less attracted to Japanese companies.
long-term orientation will be more attracted to Japanese
H2: Collectivism negatively influences organizational attractiveness and
companies.
intention to work, such that those high in collectivism will be less
attracted to Japanese companies.
Method:

The survey collection occurred over 3

months from January to March 2018, and
255 responses were collected. After
excluding responses with missing
information (13 incomplete responses;
around 5 per cent), 242 responses were
included in the final statistical analysis.

Simple statistics on the respondents’

demographic features revealed that their
average age was 24.17 years (standard
deviation [SD] 2.86) and their prior work
experience was 1.44 years (SD 3.07).
Regarding gender composition, there were
more male (56.2 per cent) than female (43.8
per cent) respondents.

Result :
Descriptive Analysis
1. Power distance was positively related to collectivism (r 0.32, p < 0.01), masculinity (r 0.28, p < 0.01) and long-term orientation (r 0.21, p < 0.01).
2. Collectivism was significantly correlated with risk aversion (r 0.40, p < 0.01), masculinity (r 0.28, p < 0.01) and long-term orientation (r 0.57, p < 0.01). R
3. Risk aversion was also positively related to masculinity (r 0.18, p < 0.01) and long-term orientation (r 0.52, p < 0.01).
4. Masculinity showed a significant correlation with long-term orientation (r 0.36, p < 0.01).
 Result :

Hypothesis testing
1. The regression results indicate that power
distance was negatively related to both
dependent variables for organizational
attractiveness. Thus, we found support for
Hypothesis 1.
2. The results for collectivism showed no
significance with both dependent variables,
leading to the rejection of Hypothesis 2.
3. Risk aversion showed a significantly positive
relationship with the dependent variables for
organizational attractiveness. Support for
Hypothesis 3.
4. The results for masculinity showed no
significance with the dependent variables there
was no support for Hypothesis 4,
5. Long-term orientation indicated significant
The results indicated that only academic year and acquaintance were significantly
positive influences on the dependent variables,
related to intention to work, suggesting that Malaysian potential job-seekers in supporting Hypothesis 5.
higher academic years, who have acquaintances in Japan, may have a stronger
intention to work for Japanese companies.
➔ Conclusion

◆ The results of this study reveal that individual cultural values

significantly influence the attractiveness of Japanese
companies for job seekers in Malaysia.
◆ The study clarifies that the difference in cultural values within
countries should be recognized and investigated separately
from generalized national cultural values.
◆ An individual cultural value fit with a foreign company’s COO
(Culture Of Origin) is an important factor for determining an
employer’s attractiveness.
◆ The study contributes to developing international HRM
research in the area of recruitment studies.
 Thank You!
M. Azkha Rinaldy
Meila Rosanty R.