Lecture 5 Flashcards
In a global economy, in order to conduct an effective short-term and long-term human resource management strategy, multinational and global corporations need to create a
rational management system that can motivate employees to be productive and feel associated with the organization they work for.
Multinational teams can be productive when individuals in a team are
wisely managed and can be motivated. Thus, business organizations should be able to create different teams based on the function and the level of internationalization.
Multicultural study is a useful tool that helps in managing diverse workforces in different levels of organizations. (4)
Domestic firms (employees working for local domestic customers)
International firms (employees working in domestic business operations for foreign markets)
Multinational firms (foreign and domestic employees working in various markets)
Global firms (managing global workforce)
Cultural orientations in four phases of organizations
Phase 1: The impact of multicultural-study on domestic organizations
Phase 2: The impact of multicultural study on multi-domestic markets
Phase 3: The impact of multi-cultural study on multinational organizations
Phase 4: The impact of multi-cultural studies on a global business organization
Phase 1 The impact of multicultural-study on domestic organizations:
In managing business operation of domestic organizations, there is a need for limited multiculturalism. Some nations that are being highly diversified might need more multicultural awareness than others where diversity is less visible. The US domestic market can be a good example of the former where as Poland with its homogeneous populations can be associated with the later case. In a less diversified society, it is natural to observe an HR strategy that can lean towards ethnocentric approach.
Today in countries like the US. multiculturalism has to be introduced for two main reasons:
a) The US workforce and consumers are multicultural.
b) For future expansion, countries such as USA, with their out-word looking for larger markets, need to prepare their future expatriates how to operate in a multicultural environment, ahead of time.
phase 1
Phase 2: The impact of multicultural study on multi-domestic markets
Managing business operation in multi-domestic market (cultural adaptation is required. But managers from headquarter are preferred to managers from the host countries). The main orientation of management in such organizations is region & ethno centric, although the region & ethno centricity is not as strong as it is in the domestic market as discussed in phase 1.
Phase 3: The impact of multi-cultural study on multinational organizations
Managing business operation in multinational organizations (less cultural intensity but multiculturalism is sought extensively).
General Motors, the US auto maker industry (multinational organization) operates slightly in varying degrees in different socioeconomic background countries.
The main cultural orientation of management in such organizations is
polycentric.
The inclusion of host countries’ nationals in management team is crucial for business success.
phase 3
Phase 4: The impact of multi-cultural studies on a global business organization
Managing business operation of global firms requires intensive knowledge of culture.
McDonald and KFC are good examples of such organizations, but one has to understand even such firms had to conduct few changes in order to survive). McDonald in India, France and Brazil had shown some changes that were dictated by the local specific cultural needs of food consumption.
The main orientation of management in such organizations is
geocentric.
phase 4
Types of Diversity in Teams
homogeneous groups
token groups
bicultural groups
multicultural teams
In order to create synergistic management system, in an organization, one has to accept
the negative and positive impact of diversity on organization.
One of the most important argument often discussed about diversity is
how to measure the impact of diversity
At a conceptual level, diverse team in the short term, tends to be associated with
low productivity and high cost
In the long run, given time and more tolerance, diversity within an organization will have a
positive impact.
Cultural diversity’s impact on group performance (theoretical model)
In industries where output can be quantifiable, one can measure the impact of diversity to a greater extent. The following expression explains the essence of the concept:
Productivity =F(fp1 , fp2)
F=function
fp1=faulty process without diversity
fp2=faulty process with diversity
Conditions of productivity
ap = pp-fp
ap = pp-(fp1+fp2), when fp1< fp2*
ap =pp-(fp1 + fp2), when fp1 > fp2**
ap=actual productivity,
pp=potential productivity
*Diversity wouldn’t be helpful for increasing productivity
**Diversity would be helpful for increasing productivity
Diverse groups are more __ than homogeneous groups.
mistrusting
Biases toward others, who seem to be different from the main street, in developing countries is __ than in most democratic countries.
greater
a saying from Middle-East explains well how diversity without appropriate management could be viewed negatively.
“My brother and myself against my cousin, my cousin and myself against a friend and myself and my friend against the outsider”
Stereotyping attitude is more common among __ groups than __ groups.
diverse
homogeneous
Stereotyping attitudes are attributed to
earlier group orientation about others
Diverse groups need more time to interact, to
communicate and work effectively
In a diverse group settings, objectives and goals of a project need to be
broad so that the mission can reflect the background of diversified team members.
In culturally diverse groups, the following facts are likely to take place during the process of communication:
Inaccuracy
Misunderstanding
Inefficiency
Advantages of Culturally Diverse Groups
diverse groups demonstrate high creativity (Watson, 1992)
beneficial for innovative tasks (Adler, 2004)
promoting numerous way of perception, interpretation and evaluation
development of divergence and convergence ideas which are conditions for organizational dynamics
Increases team efficiency and productivity
In order to take advantage of diversity, groups should be created by taking the nature of task and time framework into consideration:
according to task criteria
application in time
according to task criteria:
- diverse groups are more effective in innovative tasks
2. diverse groups are less effective in routine tasks
application in time:
It is natural for a group to be divergent in early stages and convergent in later stages
Diversity performance in innovative (mental) Vs. routine (physical) tasks
Low Productivity = Low Diversity
High Productivity = High Diversity
Team effectiveness in diversity
Early Stage = Divergence
Later Stage = Convergence
Strategy of managing culturally diverse groups
Members should be homogeneous in __ and heterogeneous in __.
ability
attitude
Strategy of managing culturally diverse groups
Group members should recognize
cultural differences
Strategy of managing culturally diverse groups
Diverse groups should agree on a
superordinate goal.
Strategy of managing culturally diverse groups
Equal participation of members should be
encouraged
Strategy of managing culturally diverse groups
Coordination of
interethnic interactive events
Strategy of managing culturally diverse groups
Providing positive feedback, specifically to
minorities within an organization is beneficial for integration
Diversity might have some visible problems that would manifest in the early stage of an organization, but given time and vision, one can conclude that
it is beneficial for any dynamic society.
Each of us has our own unique flaws. We’re all cracked pots. But…
it’s the cracks and flaws we each have that make our lives together so interesting and rewarding. You’ve just got to take each person for what they are, and look for the good in them. Blessed are the flexible, for they shall not be bent out of shape. Remember to appreciate all the different people in your life!
