Session 2 Foundations of Individual Behavior

Session 2

Foundations of Individual Behavior

Biographical CharacteristicsAgeGenderRaceAbilitySocial GroupsTenureReligionSexual Orientation

Workplace DiversityManagers need to recognize and

capitalize on the differences to get the most out of their employees.

Increases access to widest possible pool of skills, abilities and ideas.

Surface level diversity Deep level diversity

AbilityAbility refers to an Individual’s

capacity to perform the various tasks in a job.

2 sets of factors – Intellectual Abilities Physical Abilities

Cultural Diversity

Cultural diversity refers to dealing with different cultures

Cultural diversity is seen across states, nations

Ability DiversityIndividuals with disabilities are

underutilized human resource.Disabled people constitute 5% of

the population. Loco motor disability group

commonly employed.

Corporate Initiatives Wipro Technologies TCS ITC Hotels McDonald – McJobs IBM India

Gender DiversityDoes gender difference exists in

workplace behavior? Are there biases ? If yes real?Do these biases make a difference

to workplace attitudes and behaviors?

Do these biases make a difference to workplace outcomes? (Glass Ceiling, Attrition)

How to overcome the biases ? Is gender diversity required If

yes, then why? What are the organizational

initiatives?

Gender BiasGender bias is a result of cultural

system and this system influences the behavior of men and women.

Process of GenderingSocialization ProcessGender StereotypesPassing of 73rd and 74th

Constitutional Amendments in 1992; facilitated 33% women’s participation in local government

OutcomesUnder represented in governance and decision

making process. Women held less than 3% managerial positions

in India and Glass Ceiling exists.Increase in number of female employees is

concentrated only at the clerical level and their count at the top levels was significantly low.

Women in senior management positions in 2008◦ Global – (24%) ◦ Philippines (47%) ◦ Russia(42%) ◦ Thailand (38%).

Why Gender Diversity‘Women Matter’ study conducted

by Mckinsey, showed that companies where women are most strongly represented at board are also the companies that perform best.

Women are driving force behind more than 70% of purchasing decisions.

How to achieve Gender DiversityCreate transparency by

implementing gender diversity KPIs

Implement measures to facilitate the work-life balance

Adapt the human resources management process

Corporate India Initiatives Biocon – no. of women is 30%

ICICI Bank – 40% (managers) IBM IndiaFamily run Businesses Women holding senior positions in family

owned businesses – Ashni Biyani – Future Group’s director at age 24.

(Exception)Videocon International has underrated

women’s potential.

IT/BPO SectorBanking and Insurance Sector State Bank of India (SBI) has not

seen any women as a CEO

ICICI has provided conducive environment for women to excel and Glass Ceiling doesn’t exists.

IT/BPO SectorGender neutral, creating

flexibility in their policies (eg. Aricent, Accenture, Intelenet Global Services)

Nurturing women leaders is yet another area of focus

Diversity’s Benefits & Problems

BENEFITS PROBLEMS• Resistance to change• Lack of cohesiveness• Communication problems• Interpersonal conflicts• Slower decision making

•Attracts and retains the best talent• Improves marketing efforts• Promotes creativity and innovation•Results in better problem solving•Enhances organizational flexibility

ValuesValuesBasic convictions that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence.Value SystemA hierarchy based on a ranking of an individual’s values in terms of their intensity.

Importance of ValuesProvide understanding of the

attitudes, motivation, and behaviors of individuals and cultures.

Influence our perception of the world around us.

Represent interpretations of “right” and “wrong.”

Imply that some behaviors or outcomes are preferred over others.

Types of Values –- Rokeach Value Survey

Terminal ValuesDesirable end-states of existence; the goals that a person would like to achieve during his or her lifetime.

Instrumental ValuesPreferable modes of behavior or means of achieving one’s terminal values.

Values in the

RokeachSurvey

Source: M. Rokeach, The Nature of Human Values (New York: The Free Press, 1973).

Values in the

Rokeach Survey(cont’d)

Source: M. Rokeach, The Nature of Human Values (New York: The Free Press, 1973).

Values, Loyalty, and Ethical Behavior

Ethical Climate inthe Organization

Ethical Values and Behaviors of Leaders

Cultural ValuesCultural values: what is

good/beautiful/holy beautiful, and what are legitimate goals for life

Your Choice?You are riding in a car driven by a close friend.

S/He hits a pedestrian. You know s/he was going 80 kms per hour in an area of the city where the maximum allowed speed is 50 kms per hour. There are no witnesses. Her/His lawyer says that if you testify under oath that s/he was only driving only 50 kms per hour, it may save her/him from serious consequences.

What right has your friend to expect you to protect her/him?

What do you think you would do in view of the obligations of a sworn witness and the obligation to your friend?

Universalism vs. ParticularismPertain to how people treat each

other based on rules or personal relationships

Universalistic Particularistic

Right way is based on abstract principles such as rules, law, religion

Consistency Systems, standards &

rules Uniform procedures Demand clarity

• Each judgment represents unique situation that can be dealt with based on relationships

Flexibility Pragmatic Make exceptions “It depends” At ease with ambiguity

My Best Friend Vs. MoneyYou are walking to a critical business meeting at

which you are going to close a $100 mn deal. You will receive a fee of three million dollars if the contract is signed. However, some major details need to be discussed, and you are the only person capable of discussing them.

Suddenly, your best friend in the world – you have known him since childhood, rushes up to you and blurts out, “something terrible has happened, and I need your help immediately. You are the only person who can help me!”

What would you do?

Cultural ContextsCharacteristics of High-Context cultures

◦long lasting relationships Insiders and Outsiders are distinguished

◦communication is economical, fast and efficient Agreements between persons are spoken

rather than written◦wider range of communicative

expressions◦people in authority are personally

responsible for the actions of subordinates

◦Cultural patterns are ingrained and relatively slow to change

Cultural Contexts (contd..)Characteristics of Low-Context

Cultures◦shorter relationships

Insiders and Outsiders are less closely distinguished

◦messages are made explicit ◦agreements are written rather than

spoken ◦ authority is diffused◦Cultural patterns are relatively fast

to change

Specific vs. DiffuseExtent to which an individual’s life is involved in

workSpecific

◦ Business segregated from other parts of life◦ Contracts often delineate relationships◦ Prefer the freedom of direct speech ◦ Low context—specific to general ◦ Adaptable and flexible ◦ Criticism considered constructive

Diffuse◦ Business relationships encompassing/involving◦ Private and segregated space is small◦ Prefer indirect and implicit speech ◦ High context—general to specific ◦ Rich and subtle, yet resolute◦ Criticism often devastating

Achievement vs. AscriptionManner in which society gives

statusAchievement

◦People earn status based on performance and accomplishments

Ascription◦Characteristics or associations define

status◦e.g., status based on schools or

universities

Hofstede’s Framework for Assessing Cultures

Power DistanceThe extent to which a society accepts that power in institutions and organizations is distributed unequally.low distance: relatively equal distributionhigh distance: extremely unequal distribution

Hofstede’s Framework (cont’d)

Achievement (Masculinity)The extent to which societal values are characterized by assertiveness, materialism and competition.

Nurturing (Femininity)The extent to which societal values emphasize relationships and concern for others.

Masculinity / Career Success Vs. Femininity / Quality of Life

Hofstede’s Framework (cont’d) Collectivism

A tight social framework in which people expect others in groups of which they are a part to look after them and protect them.

IndividualismThe degree to which people prefer to act as individuals rather than a member of groups.

Hofstede’s Framework (cont’d)

Uncertainty AvoidanceThe extent to which a society feels threatened by uncertain and ambiguous situations and tries to avoid them.

Hofstede’s Framework (cont’d)Long-term Orientation

A national culture attribute that emphasizes the future, thrift, and persistence.

Short-term OrientationA national culture attribute that emphasizes the past and present, respect for tradition, and fulfilling social obligations.

The GLOBE

Framework for

Assessing Cultures

• Assertiveness• Future Orientation• Gender differentiation• Uncertainty avoidance• Power distance• Individual/collectivism• In-group collectivism• Performance orientation• Humane orientation

Source: M. Javidan and R. J. House, “Cultural Acumen for the Global Manager: Lessons from Project GLOBE,” Organizational Dynamics, Spring 2001, pp. 289–305.

EthicsEthics is guided by our value

systems.Policies and procedures should

align with your cultural values.

The Case of Daimler-ChryslerIn what way did the cultures of the two

companies differ? What do you think the terms innovation,

risk taking, change meant to Chrysler employees? To Daimler employees?

What were the underlying causes of conflict in these organizations? What concepts can these causes be related to?

What could have been done differently?