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CHAPTERCHAPTER
66
The Cultural and Multicultural Environment
The Cultural and Multicultural Environment
Copyright Copyright © by Houghton Mifflin Company.© by Houghton Mifflin Company.All rights reserved.All rights reserved.
PowerPoint PresentationPowerPoint Presentation by Charlie Cook by Charlie Cook
Copyright © by Houghton Mifflin Company. All rights reserved. 6–2
Learning ObjectivesLearning Objectives
After studying this chapter, you should be able to:– Describe the nature of organization and culture.– Discuss the importance and determinants of an
organization’s culture and how the culture can be managed.– Identify and describe the major trends and dimensions of
diversity and multiculturalism in organizations.– Discuss the primary effects of diversity and multiculturalism.– Describe individual and organizational strategies and
approaches to managing diversity and multiculturalism.– Discuss the six characteristics of the fully multicultural
organization.
After studying this chapter, you should be able to:– Describe the nature of organization and culture.– Discuss the importance and determinants of an
organization’s culture and how the culture can be managed.– Identify and describe the major trends and dimensions of
diversity and multiculturalism in organizations.– Discuss the primary effects of diversity and multiculturalism.– Describe individual and organizational strategies and
approaches to managing diversity and multiculturalism.– Discuss the six characteristics of the fully multicultural
organization.
Copyright © by Houghton Mifflin Company. All rights reserved. 6–3
Chapter OutlineChapter Outline• The Nature of Organization
and Social Culture– The Organization’s Culture– The Importance of
Organization Culture– Determinants of Organization
Culture– Managing Organization
Culture
• Diversity and Multiculturalism in Organizations– Trends in Diversity and
Multiculturalism– Dimensions of Diversity and
Multiculturalism
• The Nature of Organization and Social Culture– The Organization’s Culture– The Importance of
Organization Culture– Determinants of Organization
Culture– Managing Organization
Culture
• Diversity and Multiculturalism in Organizations– Trends in Diversity and
Multiculturalism– Dimensions of Diversity and
Multiculturalism
• Effects of Diversity and Multiculturalism in Organizations– Multiculturalism and
Competitive Advantage
– Multiculturalism and Conflict
• Managing Diversity and Multiculturalism in Organizations– Individual Strategies
– Organizational Approaches
• Toward the Multicultural Organization
• Effects of Diversity and Multiculturalism in Organizations– Multiculturalism and
Competitive Advantage
– Multiculturalism and Conflict
• Managing Diversity and Multiculturalism in Organizations– Individual Strategies
– Organizational Approaches
• Toward the Multicultural Organization
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The Organization and CultureThe Organization and Culture
• Organizational Culture– Values, beliefs, behaviors, customs, and attitudes that help
the members of the organization understand what it stands for, how it does things, and what it considers important.
• Multiculturalism– The broad issues associated with differences in values,
beliefs, behaviors, customs, and attitudes held by people in different cultures.
• Diversity– When members of a group differ from one another along
dimensions such as age, gender, or ethnicity.
• Organizational Culture– Values, beliefs, behaviors, customs, and attitudes that help
the members of the organization understand what it stands for, how it does things, and what it considers important.
• Multiculturalism– The broad issues associated with differences in values,
beliefs, behaviors, customs, and attitudes held by people in different cultures.
• Diversity– When members of a group differ from one another along
dimensions such as age, gender, or ethnicity.
Copyright © by Houghton Mifflin Company. All rights reserved. 6–5
The Organization’s CultureThe Organization’s Culture
• The Importance of Organization Culture– Culture determines the overall “feel” of the organization,
although it may vary across different segments of the organization.
– Culture is a powerful force that can shape the firm’s overall effectiveness and long-term success.
• Determinants of Organizational Culture– Organization’s founder (personal values and beliefs).– Symbols, stories, heroes, slogans, and ceremonies that
embody and personify the spirit of the organization.– Corporate success that strengthens the culture.– Shared experiences that bond organizational members
together.
• The Importance of Organization Culture– Culture determines the overall “feel” of the organization,
although it may vary across different segments of the organization.
– Culture is a powerful force that can shape the firm’s overall effectiveness and long-term success.
• Determinants of Organizational Culture– Organization’s founder (personal values and beliefs).– Symbols, stories, heroes, slogans, and ceremonies that
embody and personify the spirit of the organization.– Corporate success that strengthens the culture.– Shared experiences that bond organizational members
together.
Copyright © by Houghton Mifflin Company. All rights reserved. 6–6
Organizational CultureOrganizational Culture
• Managing Organizational Culture– Understand the current culture to understand whether to
maintain or change it.– Articulate the culture through slogans, ceremonies, and
shared experiences.– Reward and promote people whose behaviors are consistent
with desired cultural values.
• Changing Organizational Culture– Develop a clear idea of what kind of culture you want to
create.– Bring in outsiders to important managerial positions.– Adopt new slogans, stories, ceremonies, and purposely
break with tradition.
• Managing Organizational Culture– Understand the current culture to understand whether to
maintain or change it.– Articulate the culture through slogans, ceremonies, and
shared experiences.– Reward and promote people whose behaviors are consistent
with desired cultural values.
• Changing Organizational Culture– Develop a clear idea of what kind of culture you want to
create.– Bring in outsiders to important managerial positions.– Adopt new slogans, stories, ceremonies, and purposely
break with tradition.
Copyright © by Houghton Mifflin Company. All rights reserved. 6–7
Trends in Diversity and Trends in Diversity and MulticulturalismMulticulturalism
• Reasons for Increasing Diversity and Multiculturalism• Reasons for Increasing Diversity and Multiculturalism
Increasing diversity and multiculturalism in organizations
Increased aware-ness that diversityimproves the qualityof the workforce
The globalizationmovement
Legislation andlegal action
Changingdemographics inthe labor force
Figure 6.1
Copyright © by Houghton Mifflin Company. All rights reserved. 6–8
Dimensions of Diversity and Dimensions of Diversity and MulticulturalismMulticulturalism
• Age Distributions– Average age of the U.S. workforce is gradually increasing
and will continue to do so for the next several years.
• Gender– Females were 46% of the workforce in 1994. The gender gap
in the number of women in upper-management positions can be partially attributed to the discriminatory effect of the “glass ceiling” on female managers.
• Ethnicity– The ethnic composition of the U.S. workforce will change
most with the increasing number of Hispanic workers and the decline in white workers.
• Age Distributions– Average age of the U.S. workforce is gradually increasing
and will continue to do so for the next several years.
• Gender– Females were 46% of the workforce in 1994. The gender gap
in the number of women in upper-management positions can be partially attributed to the discriminatory effect of the “glass ceiling” on female managers.
• Ethnicity– The ethnic composition of the U.S. workforce will change
most with the increasing number of Hispanic workers and the decline in white workers.
Copyright © by Houghton Mifflin Company. All rights reserved. 6–9
Age DistributionsAge Distributions
1999 2025
Under15
15 to24
25 to34
35 to49
50 to64
65 orolder
21.4%
20.1%
13.9%
13.1%
14%
12.9%
23.5%
18.2%
14.6%
17.2%
12.7%
18.5%
By 2025, more than one-third of thepopulation will be over age 50:
1999 2005 2010 2015 2020 2025
40
The median age will climb to 38:
39
38
37
36
35
0
38
35.5
Figure 6.2
Copyright © by Houghton Mifflin Company. All rights reserved. 6–10
Dimensions of Diversity and Dimensions of Diversity and Multiculturalism (cont’d)Multiculturalism (cont’d)
• Other Dimensions of Diversity– More handicapped individuals are entering the workforce.– Workforce diversity is expected to increase due to diversity
in religious and political beliefs and viewpoints, lifestyles, and various other individual characteristics.
• Multicultural Differences– The increasing globalization of business and immigration
patterns will affect workforce diversity and present challenges to managers to successfully manage diversity.
• Other Dimensions of Diversity– More handicapped individuals are entering the workforce.– Workforce diversity is expected to increase due to diversity
in religious and political beliefs and viewpoints, lifestyles, and various other individual characteristics.
• Multicultural Differences– The increasing globalization of business and immigration
patterns will affect workforce diversity and present challenges to managers to successfully manage diversity.
Copyright © by Houghton Mifflin Company. All rights reserved. 6–11
Ethnicity Distribution Trends in the Ethnicity Distribution Trends in the U.S.U.S.
20251999
W hite
O ther racia l or e thnic group
37.6%
62.4%
28%
72%
Racial or ethnic breakdownHispanics 17.6%Blacks 13%Asians 6.2%Native Americans 0.8%
Racial or ethnic breakdownHispanics 11.5%Blacks 12.1%Asians 3.7%Native Americans 0.7%
By 2025, Hispanics will be the largest minority group in the United States. The share of the population of
each group now and projected in 2025
Figure 6.3
Copyright © by Houghton Mifflin Company. All rights reserved. 6–12
How Diversity and MulticulturalismHow Diversity and MulticulturalismPromote Competitive AdvantagePromote Competitive Advantage
Resourceacquisitionargument
Systemsflexibilityargument
Creativityargument
CompetitiveAdvantage
Costargument
Problem-solvingargument
Marketingargument
Figure 6.4
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Diversity and Competitive Diversity and Competitive AdvantageAdvantage
• Diversity promotes competitive advantage by:– increasing organizational systems’ flexibility.– bringing added creativity.– increasing the market scope of products.– broadening the resources acquisition basis.– adding a diversity of viewpoints to problem-
solving decision-making processes.– decreasing the cost of doing business.
• Diversity promotes competitive advantage by:– increasing organizational systems’ flexibility.– bringing added creativity.– increasing the market scope of products.– broadening the resources acquisition basis.– adding a diversity of viewpoints to problem-
solving decision-making processes.– decreasing the cost of doing business.
Copyright © by Houghton Mifflin Company. All rights reserved. 6–14
Multiculturalism and ConflictMulticulturalism and Conflict
• Sources of Conflict– Personnel actions being attributed to diversity
status.– Misunderstood, misinterpreted, or inappropriate
actions between people or groups.– Cultural differences in work hours, personal styles,
interpersonal relations, and conflict.– Fear, distrust, or individual prejudices.
• Sources of Conflict– Personnel actions being attributed to diversity
status.– Misunderstood, misinterpreted, or inappropriate
actions between people or groups.– Cultural differences in work hours, personal styles,
interpersonal relations, and conflict.– Fear, distrust, or individual prejudices.
Copyright © by Houghton Mifflin Company. All rights reserved. 6–15
America’s Best Companies for America’s Best Companies for MinoritiesMinorities
Number of Minorities Percentages that are Minorities
Rank 2000 (Rank 1999) Company’s 1999 Revenues (millions)
Board of Directors
Top Fifty Paid
Officials and Managers
Total Workforce
Asian, Black, Hispanic, Native American
Minorities as a Percentage of New Hires1
1 (6) Advantica Spartanburg, SC $1,735
4 of 11 8 33.4% 49.9% 4.3% 10.6% 34.7% 0.3%
69%
2 (•) Levi Strauss & Company San Francisco, CA
2 of 12 7 35.3% 58.0% 6.9% 9.2%
41.6% 0.3%
51%
3 (2) Fannie Mae Washington, DC $36,969
N.A. 8 27.6% 40.2% 9.6% 26.3% 4.0% 0.2%
46%
4 (4) Sempra Energy San Diego, CA $5.435
5 of 16 6 27.9% 47.1% 7.7% 11.0% 27.7%
45%
5 (•) Dole Food Westlake Village, CA $5,061 •Not on last year’s list 1New hires in 1999
1 of 7 17 36.6% 55.6% 38.9% 1.6%
14.7% 0.4%
71%
Table 6.1
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Managing Diversity and Managing Diversity and Multiculturalism in OrganizationsMulticulturalism in Organizations
• Individual Strategies– Understanding the nature and meaning of diversity
and multiculturalism.– Developing empathy in understanding the
perspective of others.– Developing tolerance of fundamental cultural
differences.– Having a willingness to communicate and discuss
diversity and multiculturalism issues.
• Individual Strategies– Understanding the nature and meaning of diversity
and multiculturalism.– Developing empathy in understanding the
perspective of others.– Developing tolerance of fundamental cultural
differences.– Having a willingness to communicate and discuss
diversity and multiculturalism issues.
Copyright © by Houghton Mifflin Company. All rights reserved. 6–17
Managing Diversity and Managing Diversity and Multiculturalism in Organizations Multiculturalism in Organizations
(cont’d)(cont’d)• Organizational Approaches
– Organizational Policies• Actively seek a diverse and varied workforce.
• Positive responses to diversity problems.
• Mission statement of commitment to diversity.
– Organizational Practices• Support networks, structured benefits packages, flexible working
hours, and diversity in work groups and teams.
– Diversity and Multicultural Training• Training that enables organization members to function in a diverse
and multicultural environment.
– Organizational Culture• Incorporating into a culture the valuation of diversity.
• Organizational Approaches– Organizational Policies
• Actively seek a diverse and varied workforce.
• Positive responses to diversity problems.
• Mission statement of commitment to diversity.
– Organizational Practices• Support networks, structured benefits packages, flexible working
hours, and diversity in work groups and teams.
– Diversity and Multicultural Training• Training that enables organization members to function in a diverse
and multicultural environment.
– Organizational Culture• Incorporating into a culture the valuation of diversity.
Copyright © by Houghton Mifflin Company. All rights reserved. 6–18
Toward The Multicultural Toward The Multicultural OrganizationOrganization
• Basic Characteristics– Pluralism in which every organizational group
works to understand every other group.– Full structural integration such that the makeup of
the organization reflects the external labor market.– Full integration of the informal network that
removes barriers to entry and participation in the organization.
– Absence of prejudice and discrimination.– No gap in organizational identification based on
cultural identity group.– Low levels of intergroup conflict.
• Basic Characteristics– Pluralism in which every organizational group
works to understand every other group.– Full structural integration such that the makeup of
the organization reflects the external labor market.– Full integration of the informal network that
removes barriers to entry and participation in the organization.
– Absence of prejudice and discrimination.– No gap in organizational identification based on
cultural identity group.– Low levels of intergroup conflict.
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Toward The Multicultural Organization Toward The Multicultural Organization (cont’d)(cont’d)
• The Multicultural Organization• The Multicultural Organization
Pluralism
Full structural integration
Full integration of the informal network
Absence of prejudice and discrimination
No gap in organizational identification
based on cultural identity group
Low levels of intergroup conflict
Source: Based on Taylor H. Cox, “ The Multicultural Organization,” Academy of Management Executive, May 1991, pp. 34–47. Reprinted with permission. Figure 6.5
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