Global Work Force Diversity_CM 1 and 2

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    Global work force

    diversity-1-1 uses more recent data and -2 uses less recent data(Labour Forces)

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    Learning Objectives

    Identify forces beyond management

    control that affect the quantity and quality

    of labor Explain the reasons that cause people to

    leave their home countries to work abroad

    Discuss why some countries have guestworkers

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    Labor Quality and Quantity

    Quality, quantity, and composition of labor force are of

    great importance to an employer

    Labor Quality

    The skills, education, and attitudes of availableemployees

    Labor Quantity

    The number of available employees with the skills

    required to meet an employers business needs

    LO1

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    Worldwide Labor

    Conditions and Trends

    Overall size and sector of the work force

    International labor trends

    Aging of populations

    Rural to urban shift

    Unemployment

    Immigrant labor

    Child labor

    Forced labor Brain drain

    Guest workers

    LO1

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    Primary Occupation of National Labor Force

    LO1

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    Percentage of the Population

    aged 65 or More

    LO1

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    Unemployment

    3.1 billion workers in 2008 (per UN, ILO) 200 million overall are unemployed Middle East and North Africa (13.2%) Sub-Saharan Africa (9.7%)

    Central and Eastern Europe (9.7) Latin America and Caribbean (7.7) Developed economies (6.7%) Southeast Asia and the Pacific (6.1%) South Asia (4.7%)

    East Asia (3.8%) 45% of unemployed are between age 15 and 24

    LO1

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    Labor Mobility

    Labor Mobilityrefers to the movement of people from

    country to country or area to area to get jobs

    Immigration refers to the process of leaving ones home

    country to reside in another country

    Foreign-born

    Population comprises those immigrants whose move

    is permanent and may include taking citizenship

    Foreign

    Population who are guest workers

    LO2

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    Standard terms

    The North = Used to equate with the OECD,

    wealthy, industrialized countries usually

    found in the North

    The South = Used to equate with the Third

    World, poorer, less governable, source of

    many migrants

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    The international migrant

    For the purpose of estimating the

    international migrant stock, international

    migrants are equated either being foreignborn or being foreign citizens

    (Trends in International Migrant Stock: The2013 Revision)

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    International Migration

    Globally, there were 232 million

    international migrants in 2013

    Between 1990 and 2013 (mainly 2000-2010), the number of international migrants

    worldwide rose by over 77 million or by 50

    per cent.

    The developed regions gained 53million- the

    developing regions added 24million

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    Nations With the Highest

    Number of International Migrants

    LO2

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    International Migration

    In 2013,over 51 per cent of all internationalmigrants in the world were living in 10 countries. The

    top 6 were:

    1. USA 46m 20%

    2. Russia 11m

    3. Germany 10m

    4. Saudi 9m

    5. UAE 8m

    6. UK 8m

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    International migrants

    As can be seen, at 4.2million people,Pakistan has been the source of much

    international migration.

    Some migrants (from India or Iran) usePakistan as a transit point to move

    elsewhere

    Most migrants are from Afghanistan (i.e.:Afghani Hazaras in Quetta who came 30 years ago

    as refugees but havent returned)

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    Labor

    Child labor The labor of children below 16 years of age

    who are forced to work in production andusually receive little or no formaleducation

    Primarily found in developing nations Existent in developed countries

    70% are in agriculture

    Forced labor(27 million today) mostly in

    South and East Asia Northern and western Africa parts of Latin America

    LO2

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    Brain Drain

    Brain drain refers to the loss by a country of its mostintelligent and best-educated people

    Record numbers of immigrants are moving toOECD countries in search of jobs

    When skilled workers migrate from developingcountries they do so for professionalopportunities and economic reasons

    Reverse brain drainrefers to the growth of outsourcing andthe movement of highly educated, technologically skilled

    employees and research scientists to other countries

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    The following charts are on Tenmigrationcorridors with the

    largest number ofinternational migrants per year

    1990-2013 (thousands)

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    Migration corridors 1990-2000

    (thousands)

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    Brain Drain

    LO2

    F i B I di id l i th USA

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    Foreign-Born Individuals in the USA

    with Science or Engineering Ph.D.

    LO2

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    Guest Workers

    Guest workersare people who go to a foreign country legally

    to perform certain types of jobs

    Guest workers provide the labor host countries need

    Guest workers are desirable as long as the

    economies are growing

    When economies slow, fewer workers are needed

    and problems appear

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    Considerations in Employment Policies-1

    Social Status

    Important with respect to labor force, especially

    in some cultures

    Caste: the group to which people belong in a

    system under which peoples place or level in a

    multilevel society is established at birth as being

    the same level as that of their parents

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    Considerations in Employment Policies-2

    Sexismrefers to the acceptability of women as full and

    equal participants in the work force ranges widely

    Worldwide, 59% of all businesses include

    women in senior management positions

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    Ratio of Wages, Woman versus Men, Selected

    OECD Countries

    LO4

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    Racism

    Black and White conflict

    U.S., South Africa, Great Britain and elsewhere

    Arab-, Indian-, or Pakistani and Black conflict

    Africa

    Tamils and Sinhalese Conflict

    Sri Lanka

    LO4

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    Minorities

    Traditional Societies

    Tribal peoples before they turn toorganized agriculture or industry;traditional customs may linger after theeconomy changes

    Minorities

    A relatively smaller number of peopleidentified by race, religion, or national

    origin who live among a larger majority

    LO4

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    Employer-Employee Relationships

    The labor marketrefers to the pool of available potentialemployees with the necessary skills within commutingdistance from an employer

    A company must study the labor market when

    considering whether to invest in a country Sources include

    Foreign Labor Trends

    Handbook of Labor Statistics

    Yearbook of Labor Statistics

    LO5

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    Country Strike Rates Selected OECD Nations

    LO5

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    Labor Unions

    European labor

    Identified with political parties and socialistideology

    United States labor Laborers already have many civil rights

    Collective bargaining

    A union represents the interests of a

    bargaining unit (sometimes includes bothunion members and nonmembers) innegotiations with management

    LO5

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    Labor Unions

    Japanese unions are enterprise-based rather than industrywide

    Unions tend to identify strongly with company

    interests Research shows that of all developed country

    workers, Japanese workers are the leastsatisfied with their jobs

    LO5

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    Multinational Labor Activities

    Internationalization of companies creates opportunitiesfor them to escape the reach of unions

    In response, unions have begun to

    collect and disseminate information aboutcompanies

    consult with unions in other countries

    coordinate with those unions policies and

    tactics encourage international companies codes of

    conduct

    Multinational unionism is developing LO5

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    Multinational Labor Activities

    TheInternational Labor Organization(ILO) promotes socialjustice and recognizes human and labor rights worldwide

    The Trade Union Advisory Committeeto the OECDconsults on trade union issues in global markets

    LO5

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    Union Membership Across Countries

    LO5