Managing Demographic and Cultural Diversity PPT #3

Question 1

What is diversity?

Answer 1

Diversity: individual differences including factors such as culture, gender, age, ability, personality, religious affiliation, economic class, social status, military attachment, and sexual orientation

Deep Level: Values, Attitudes, Beliefs
Surface Level: Gender, Race, Age, Physical Disabilities

Question 2

Age Diversity

Answer 2

Silent Gen: 1930-45: Hard working, cautious

Baby Boomer: 1946-64: Individualism, risk-
taking, activist orientation

Gen X: 1965 - 1976: Entrepreneurial, work-life balance

Millennial: 1977 - late 90’s : Digital Native, Desire for feedback

Gen Z: Late 90’s onward: Desire to see result of efforts, entrepreneurial, yet desire for stability

Question 3

Age-related work stereotypes

Answer 3

Stereotypes don’t match reality:

Older workers are more likely to volunteer, perform discretionary behaviors (OCBs), less likely to get injured, etc.

Question 4

Ethnic and Racial Diversity:

Answer 4

Canada is very multicultural, with every province having a large spread of individuals all around

Question 5

People of color name change

Answer 5

Emily or Lakisha?

Callback odds: 9.65 vs 6.45

Better qualifications improved chances for Emily but not Lakisha (Same person changed name to white name to see if it made a difference)

Question 6

Gender Diversity

Answer 6

Women comprise 50% of workforce but only represent 4% of Canadian CEO’s and 10% of top executives

At the top they get 0.68 to the males $1
In the middle they get 0.86 to the males $1
Bottom they get 0.83 to the males $1

Question 7

Discrimination and struggles faced by Indigenous in Canada

Answer 7

Educational gaps: from 2006 to 2016
HS Completion rate gotten a bit better from 19.3 to 14.8 lower than non indigenous
Collage completion rate got way worse 0.4 to 2.6 lower than non indigenous
Uni rate got worse too, 17.1 to 18.3 lower

Often, need to move away from community

Direct or indirect exposure to trauma

Indigenous women 12-16x more likely to go
missing/be murdered

Experience gaps

Bullying and discrimination

Question 8

Other Forms of Diversity Existing in the Workplace

Answer 8

Religious diversity

Able-bodied vs. disabled

Sexual orientation

Socio-economic status

Question 9

Diversity’s Benefits and Problems

Answer 9

Benefits:
Better decision making
Better problem solving
Promotes innovation
Better understanding of customers
Attracts and retains the best

Outcomes:
Higher stock prices
Lower litigation expenses
Higher company performance

Challenges:
Lack of cohesiveness
Communication problems
Interpersonal conflicts
Slowed decision making

Reinforced by:
Similarity-attraction phenomenon (people tend to attract or be attracted to other people they find similar to them in things they consider important.)
Resistance to change
Faultlines (subgrouping)
Stereotypes

Question 10

Diversity Statistics From McKinsey

Answer 10

Gender diverse companies (top quartile) ->15% more likely to outperform

Ethnically diverse companies -> 35% more likely to outperform

In US, every 10% increase in racial and ethnic diversity on the senior-executive team, earnings before interest and taxes (EBIT) rise 0.8 percent

In UK, 10% increase in gender diversity -> 3.5% EBIT

Question 11

Managing diversity

Answer 11

Build a culture of respect:

Hold managers accountable
Diversity training
Affirmative action (refers to policies and practices designed to improve opportunities for historically marginalized groups)

As individuals in the minority:

Build relationships early on/find commonalities

Look for the best mentors, not just the ones you feel comfortable around

But also, look for groups you connect with

Know your rights

Question 12

cultural differences and work-related attitudes

Answer 12

Workplace customs vary widely:

Critical to understand cultural differences in:
National customs
Symbols
Legal requirements
Workplace attitudes

Question 13

Hofstede’s Dimensions of Cultural Differences

Answer 13

Individualism vs. Collectivism
High vs. Low Power Distance
High vs. Low Uncertainty Avoidance
Masculinity vs. Femininity
Long-term vs. Short-term Orientation

Question 14

Individualism versus Collectivism

Answer 14

Individualism: People belong to loose social frameworks; primary concern is for selves and families

Collectivism: People belong to tightly knit social frameworks; depend strongly on large extended families

Question 15

Power Distance

Answer 15

Power distance Inequality (PDI): Degree to which a culture accepts unequal distribution of power

High PDI: Inequality accepted (managers and employees see each other as fundamentally different types of people)

Low PDI: Inequality is minimized (managers and employees seen as equal)

Question 16

Uncertainty Avoidance

Answer 16

High UA: Concerned with security, dislike ambiguity and conflict, seek stability

Low UA: Tolerate ambiguity better, more risk-taking, see conflict as constructive

Question 17

Masculinity versus Femininity

Answer 17

Masculine: assertiveness, performance, materialism, winning

Feminine: relationships, concern for others, quality of life

Question 18

Time Orientation

Answer 18

Long-term: Values are oriented toward the future (e.g., persistence, thrift)

Short-term: Values are oriented toward the past (e.g., respect for tradition) and present (e.g., meeting social obligations)

Question 19

Indulgence vs. Restraint

Answer 19

Indulgence: Little effort focused on controlling desires and impulses

Restraint: Strong control over desires and impulses

Question 20

Importance of understanding the local culture when trying to do business

Answer 20

Examples
China: Guanxi
Japan: Ritual of gift-giving, punctuality
Mexico: Indirectness in saying no

Question 21

Key Points

Answer 21

In a globalized workforce, intercultural competence can be a strong asset

Work attitudes are influenced by national culture

Diverse workforces bring many benefits, but also some challenges