Part 2 - M.barak Managing Diversity 2nd Edition Chapt 7-16

Chapter7o Yive la Diff6rence? Theoretical Perspectives on Diversity 165 hostilities among ethnic groups? The previous chapter reviewed major concepts describing the social psychological mechanisms that contribute to atti- tudes and behaviors toward diversity in the workplace. This chapter examines theories that address the following questions: How are differences irmong groups created and why? Why are people that are different from the "mainstream" more likely to be excluded from positions of power and influence Vive la Diff6rence? Theoretical Perspectives on Diversity and Exclusion in the Workplace in work organizations? Over the years of research and scholarly investigation, several theories have been generated that explain the nature of intergroup relations. This chapter begins with an examination of the concept of the inclusion-exclusion continuum and its relevance to todays diverse workforce. It explores research on organizational demography that points to the connection between diversity and exclusion tnd explores several social psychological theories on diversity and intergroup relations. The chapter elaborates on social identity theory concluding with its implications for explaining diversity and exclusion in a global context. Diversity and Exclusion: A Critical Workforce Problem I refuse to join any club that would have me -Croucho as a member' Marx, comedian and actor roucho Marx had a humoristic take on the sense of exclusion experienced by those who cannot belong to the inner circles of society. A similar sentiment of "us" and "them" is expressed in The House on Mango Street, Sandra Cisneros's (1984) depiction of a young girl growing up in a community of Mexican immigrants in Chicago: Those who don t know any better come into our neighborhood scared' They think we're dangerous. They think we will attack them with shiny knives. They are stupid people who are lost and go here by mistake. But we aren't afraid. We know the guy with the crooked eye is Davey the Baby's brother, and the tall one next to him in the straw brim, that's Rosa's Eddie V., and the big one that looks like a dumb grown man' he's Fat Boy' though het not fat anymore nor a boy. All brown all around, we are safe. But watch us drive into a neighborhood of another color and our knees go shakity-shake and our car windows get rolled up tight and our eyes look straight. Yeah. That is how it goes and goes' Why are people forming a strong sense of belonging to gioups? What dynamics dictate intergroup relations? How can we extrrlrtin eorrflicts and 164 "Diversity makes business sense." "People are our most precious commodity'' "We are gender and color blind." "We do not discriminate, we incorporate." These were some of the poster slogans that greeted me as I walked into the lobby of a large international high-tech company headquartered in Southern ()llifornia. I was there at the invitation of the CEO to evaluate the company's cliversity policies. As a first step, I interviewed employees, both men and women, lrom different levels in the organization and ofvarious backgrounds. Personal <lisclosures by interviewees underscored the company's challenge of moving bcyond its uplifting slogans to create a culture that is truly inclusive. Most White nlen expressed the belief that the company was "blind to ethnic and gender difll'rences," and therefore fair in its practices. Women and members of racial/ cthnic minority groups, however, reported different experiences: they primarily talked about lost job opportunities and missed promotions. The word most olien used by interviewees was exclusion. They felt left out of social and infortnational networks and barred from the organizationt decision-making l)rocess. One middle-aged minority manager, recalling the difficulty in rising to Ircr current position, told me that her promotion was initially blocked because he r supervisor expressed tlre belief'that she "did not possess the communication 166 SOCIAL PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERSITY I skills needed for a managerial job" because she came from a difFerent culture. .,That was nonsense;'she said. "I am very good at what I do, but I am a woman in a man's job. I am short, my skin is dark, and I have,a funny accent. The fact was that I just didn t fit in-and mdnagement's solution was to exclude me." One of the most significant problems facing today's diverse workforce is that of exclusion, both the reality experienced by many and the perception of even greater numbers of employees that they are not viewed by top management as an integral part of the organization (Hitlan, Cliffton, & DeSoto' 2006; Insch et a1.,2008; Kalev,2009; Kanter, 1992;Mror Barak' 2000b; Wood,2008)' The inclusion-exclusion continuumr is central to the discussion in this chapter and is defined below: Chapter 7 r Vive la Diffdrence? Theoretical Perspectives on Diversity 167 excluded from these discussions, her colleagues belittled her concerns saying there was no need to make a fuss over such a trivial matter. Though diversity distinction categories vary from one culture or country to the next, the common factor that seems to transcend national boundaries is the experience of exclusion, particularly in the workplace. Individuals and groups are implicitly or explicitly excluded from job opportunities, information networks, team membership, human resource investments, and the decision-making process because of their actual or perceived membership in a minority or disfavored identity group. Yet inclusion in organizational information networks and in decision-making processes has been linked to better job opportunities and career advancement in work organizations (O'Leary & lckovics, 1992; Cunningham,2007), as well as to job satisfaction, well-being (Mor Barak & Levin, 2002), job performance, and organizational commitment (Cho & Mor Barak, 2008; Findler, Wind, & Mor Barak, 2007), all of which are related to employees'intention to leave and actual turnover (Mor Barak, Levin, Nissly, & Lane, 2006). Some scholarly work, though clearly not enough, examined the interaction between diversity distinction categories, such as racel ethnicity and gender, pointing to the compounding complexity of under- The distinction between inclusion-exclusion and organizational involvement is that the latter's focus is on organizational activities that foster the development of policies and procedures aimed at creating an environment where individuals have better access to company knowledge and information channels (Lawler, I9g2,2008). The high-involvement approach to management focuses on moving power to lower levels in the organization so that workers could participate in important decisions about how work is done and take responsibility for their performance. Interestingly, the high-involvement approach seems to be easier to install in countries that have a democratic political tradition, perhaps because it places a greal emphasis on allowing workers to make decisions, giving them feedback about the effectiveness of their performance, and challenging them to develp and use their skills and abilities (Lawler, 2008). The concept of inclusion-exclusion, by contrast, is an indicator of the way employees experience and perceive their position in the organization relative to its "mainstream." Sometimes the experience of exclusion is blatant, such as when a Surinameborn Dutch project manager was not invited to a meeting of other project managers and was later told by his boss simply, "I didn't think you needed to be there." But more often, it is subtle and unintentional. A woman who served as a CFO of a large health care company (and the only woman among the company's top management) once told me that during breaks in the cornpany's topmanagement team meetings, the guys would continue thc cliscussitlns <ln the way to, and while in, the washrooln. Wren slre finnlly prgtested o1 being standing racial prejudice when entangled with sexism (Bell, 1990, L992,2004). l{esearch indicates that racial and ethnic minority women commonly believe they are excluded from the organizational power structure and have the least irccess to organizational resources from among disfavored groups (Kossek & 7,onia, 1993; Mor Barak, Cherin, & Berkman, 1998; Shorter-Gooden, 2004). In rrddition, ethnic minority women are often required to fit into the existing culture with respect to their behavior and appearance if theywant to penetrate rretworks of influence or be given opportunities for career development and advancement (Claringbould & Knoppers,2007; Kamenou & Fearfull, 2006). l,)rnployees' experience and sense of exclusion, therefore, may play a critical role in explaining both their lack of job opportunities and dissatisfaction with their jolls, respectively. Theoretical Underpinnings of the I nclusion-Exclusion Construct 'l'he universal human need to be included in social systems has its roots in the wiry people have traditionally satisfied their basic needs. Because human beings hirvc always depended on one another for their livelihood and needed to work togcther in order to get food, shelter, and clothing, social inclusion has had an irrrportant survival ltnction througlr the ages and across cultures (Baumeister & Lerary, I 995 ), Festirrger's socinl compnrison theory (Festinger, 1954; Mussweiler, Ruter, & Epstuele, 2006i (ireeutrerg, Ashton-lnmes, & Ashkanasy, I68 Chapter 7 o Vive la Diffdrence? Theoretical Perspectives on Diversity SOCIAL PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERSITY 2007; Guimond, 2006) and Mead's symbolic interaction theory (Appelrouth & Desfor Edles,2007; Denzin, 2007;Mead,1982) provide insights into the role of inclusion-exclusion experiences of individuals in social systems. The social comparison process, as delineated by Festinger, postulates that individuals have assess their relative standing within employee Peer group as a referent use their individuals groups. For this process, (Goodman & Haisley, 2007; Greenberg, Ashton-lames, & Ashkanazy, 2007)- L study of immigrant youth in Denmark illustrates the sense of exclusion that can result from the social comparison process. Hjarno-Knudsen's (2000) research documented a series of social processes that produced a sense of negative selfimage among these youth. For example, the teenagers could not fit into the mainstream of Danish society because they were not able to afford clothes and accessories similar to those of their classmates, and their school achievements did not measure up to those of their peers due to their poor command of the Danish language. The youths' cognitive process of social comparison to their peers left them frustrated and led to conflicts with their parents as well as with Danish authorities and institutions (Hjarno-Knudsen, 2000). The symbolic interaction process highlights the fact that individual interpretation and synthesis of symbols and objects in their environments drive both situational analysis and individual behavior. Mead (1982) describes this process as seeing oneself from the viewpoint of others in determining how one stands in the world. Together these social psychological theories provide us with the concept of the interior monologue-the internal evaluation process that individuals continuously engage in with regard to their social environment. Perceptions of inclusion or exclusion, therefore, are a form of an ongoing personal evaluation. These evaluations are the chief methodology that individuals utilize to assess their position within groups and organizations and the need to evaluate themselves and to are assumed to be universal, not culture specific. Both processes-assessing one's own standing relative to others (social comparison) and seeing oneself from the viewpoint of others in determining how one stands in the world (symbolic interaction)-are methods we all use to deal rationally with our work environments. These theories imply that the perception of group inclusion is an important continuous process in the individual's desire to secure positive group affiliations. Perceptions of inclusion or exclusion, therefore, are a form of an ongoing personal evaluation and serve as the chief methodology that individuals utilize to assess their position within groups and organizations. This process is important for individuals such as women, people with disabiliry and members of racial and ethnic minority groups who have traditionally been excluded from the mainstream's networks of influence in work organizations. A theoretical connection between worker inclusion-exclusion experiences and performance and satisfaction outcomes in organizatiotral soeial sy$tcnls can r69 from the "sociometer model" of self-esteem (Leary & Baumeister 2000; Leary & Downs, 1995). The authors posit that other peopleb reactions, particularly the degree to which they accept and include individuals or reject and exclude them, are vital to a person's physical and psychological well-being. Research demonstrates that social and physical pain share common physiological mechanisms and that social exclusion is painful because reactions to rejection are mediated by aspects of the physical pain system (Campbell et al., 2006; Zhong& Leonardellie,2008; MacDonald & Leary 2005). Because humans have always depended on others for their basic needs, they are motivated to maintain connections with significant people and social systems in their lives (Baumeister & Leary 1995). Leary and Baumeister (2000) be extrapolated note that "it basic need to is safe to conclude that the human organism is characterized by a belong-a fundamental motivation to form and maintain at least handful of meaningful social attachments. The power and importance of this motivation are sufficient to think that people might well possess an internal meter to monitor such relationships" (p. 11). This psychological gauge, or "sociometer," is the individual's self-esteem that acts as a personal indicator that allows people to monitor inclusion or exclusion reactions toward them from their environment (Leary, Schreindorfer, & Haupt, 1995; Leary & Baumeister,2000). Triggered by an environment that is exclusionary, threats to one's self-esteem produce behavioral outcomes that are aimed at rectifiing the situation by, for example, compensatory efforts to assimilate or by disengaging from the exclusionary system and linking with a more inclusive environment. Research thus indicates that individuals from diverse groups commonly find themselves excluded from networks of information and opportunity (Abrams, Hogg, & Marques,2004; Gray, Kurihara, Hommen, & Feldman,2007; Pettigrew & Martin, 1989; McGuire, 2000). The reasons are varied. First, overt or covert racism, sexism, ageism, as well as other forms of discrimination may be the motivation for exclusionary practices (Larkey, 1996). These behaviors rnay be in the form of unintentional racism, in which unconscious avoidance behavior is expressed toward an individual or a group, or in the form of blatant racism, in which certain people are consciously excluded from information networks and job opportunities (Bernstein & McRae, 1973; Bertrand (v Mullninathan, 2004; Gaertner & Dovidio, 1986). Second, economic selfinterest can be the motivation for preventing access to power and economic resources from certain individuals or groups (Larkey, 1996). Such behaviors result in the continued job segregation of women and minorities, as well as the exclusion of these groups from development and promotion opportunities (Becker, 1957; Feagin & Feagin, 1988; Gray, Kurihara, Hommen, & Feldman, 2007). And, third, prevalent stereotypical perceptions and general sense of discomfort with those that are perceived as different (e.g., women, members of minority group) cnn be the reason for their exclusion from important a I7O SOCIAL PSYCHOLOGICALPERSPECTIVES OFWORKFORCEDIVERSITY organizational processes and resources (Kalev, 2009). People tend to feel comfortable with others with whom they share important characteristics, fortiff- ing in-group/out-group perceptions and creating exclusionary behaviors (Abrams, Marques, 2004; & Hogg, Blau, 1977). Petception patterns of ingroup/out-group variability contribute to attitudes that close the door on opportunities for those who are different. People expect fewer variations from the stereotype in out-group members than they do in in-group members because they typically perceive out-groups as more homogeneous on negative stereotypical characteristics (Vonk &Van Knippenberg, 1995; Linville, Fischer, & Salovey, 1989; Rubin & Badea, 2007). An out-grouP is perceived as a single unit, not a collection of possibly different individuals, and the result is that those who are different are not given opportunities to demonstrate their unique and individual characteristics. They are treated according to precon- Chapter 7 r Vive la Diffdrence? Theoretical Perspectives on Diversity t7l Gonzalez & Denisi,2009; Tsui, Porter, & Egan,2002; Tsui & Gutek, I999;Wei, Lau, Young, & Wang, 2005). The study of organizational demography is, there- fore, useful for examining the relationship between diversity and exclusion in work organizations. Research on organizational demography indicates that being in the minority has significant effects on individuals' affective experiences in the workplace, including feelings of isolation and lack of identification in one-onone relationships (Ibarra, 1995; Mor Barak et al., 2006; Roscigno, Lopez, & Hodson, 2009). Milliken and Martins (1996) indicate a strong and consistent relationship between diversity in gender, ethnicity and age and exclusion from important workplace interactions. One of the most frequently reported problems faced by women and minorities in organizational settings is their limited access to, or exclusion from, vital and yet informal interaction networks (Gray, & Feldman, 2007; McDonald, Lin, & Ao, 2009; ceived notions and prejudices. Further, this perception of homogeneity among Kurihara, Hommen, out-group members is increased under conditions of competition (Corneille, Yzerbyt, Rogier, & Buidin, 2001; Sassenberg, Moskowitz, |acoby, & Hansen, 2007). The processes described above increase the likelihood of exclusion of those who are different (i.e., women, ethnic and racial minorities, and McPherson, Smith-Lovin, & Cook, 2001; Petersen, Saporta, & Seidel, 2000). Ella L. I. Edmondson Bell and Stella Nkomo discuss both African American women's and Caucasian women's experience of exclusion in their book, Our Separate Ways: Black and White Women and the StruggJe for Profexional Identity members of groups that may be stereotypically defined or labeled as different), especially in situations of competition that are common in the workplace, such as competition for jobs, salary increases, and promotions' (2001). Research on Organizational Demography Documenting Exclusion Organizational demography has been used as a conceptual framework for diversity research for more than two decades (Aparna, 2006; Choi, 2007;Ely, 1994; Tsui & Gutek, 1999; Wei, Lau, Young, & Wang, 2005; Gonzalez & Denisi, 2009). According to Tsui and Gutek (1999,p.l3),"Organizational demography focuses on the distribution of worker characteristics along dimensions studied by other demographers (i.e., sex, race' ethnicity, national origin, age, migration, and emigration)." However, whereas diversity research focuses primarily on minorities, women, and other disadvantaged groups in the workplace' research on organizational demography is broader, examining the effect of demographic distributions on everyone in the organization' More specifically, the research questions center on the impact of demographic differences between and among worker attitudes and behaviors and toward the organization as a whole. Its proponents claim that unlike diversity research, which often has a strong policy and practice implication and is action oriented, organiza- tional demography is geared to explaining the impact of organizational clemography on any group in the organization (Aparna, 2006i Choi' 2007; Another barrier experienced by Black women is limited access to informal and social networks in their organizations. The African American women we interviewed felt they had less access to these networks in their organizations than'vVhite men and White women. As a result, they felt cut off from important organizational information and less accepted as full members of the organization. Many of the women spoke of the critical importance of informal networks in career advancement. In most corporations, excellent performance is necessary for advancement but is not the sole criterion. Getting ahead also depends on access to informal networks and the relationships those networks can foster-mentorships, sponsorships, and help from colleagues. Building these relationships requires that the women be part of the social networks with the company. . . . Similarly, the White women managers also believed that exclusion from the "old-boy network" was one of the barriers to women's advancement. (pp. 152-153) Due to the duality of race and gender, African American women in managerial and executive positions are more likely to be excluded from informal social nebvorks (Combs, 2003). These networks allocate a variety of instrurnental resources that are critical for job effectiveness and career advancement, as well as expressive benefits such as social support and friendship. Information gleaned from informal social networks provides access to valuable job-related information, and cirn rrffect job statrility and better promotion prospects (Gra5 Kurilrara, Homntcn, & Felclntrtn, 2007; Ibarra, 1993). In the context of gender rclntions, nren's network colteniort witlr other mcn cfll'l prcverrt women from and Tucker's ( 1980) findings indicate that African American employees believe they do not receive as much important career information as their White counterparts. 1998. & Stromberg. Porter. Pfeffer. therefore. 1989.lbarca. women tend to have less access to a variety of measures of status in the organization. as well as ethnic minorities. Mclntyre. women in male-dominated organizations may attempt to assimilate--that is. and class lines with the more meaningful and prestigious jobs being held by men of the dominant group and of higher access to information. the less effective the supervisor perceives the subordinate to be (Goldberg. 1984. such as income. women can feel "out of the loop. from important information flows. (1994) concluded that this double standard is a subtle mechanism through which the status quo of gender inequality in the workplace is maintained. Tsui. 1996). Lad. 2006. to alter their thoughts. 1968. than do men (Alderfer. Some researchers have speculated that the extreme overrepresentation of White men in organizational positions of authority may have a negative impact on women and non-White subordinates (Ely. 2007. 1986. Kamenou & Fearfull. 1994. 1995). Gutek.2007. 1989. they are often examined under different frameworks and using different terminology.p. For example.200l). & Rogers. little or no attention has been paid to issues of exclusion in the workplace. and inter- group relations have been developed primarily in two locations. Although there are similarities in areas of research (e. Men can. Although women and members of minority groups have made some inroads into traditional nonminority male job domains. Thylor and Moghaddam (1994) echo the concern expressed by several authors before them (e. Being in the minority has significant ef[ects on individuals'affective experiences in the workplace.172 SOCIAL PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERSITY knowledge. Insch. Often interactions that take place informally have meaning that can be more consequential to labor market outcomes than formal decision-making processes. recent statistics indicate that women at the highest levels of business organizations are still rare. Kennedy Schrier. Potential advancement ladders are shorter for women and less frequently allow them to climb to executive or administrative levels (DiTomaso. McDonald.2008. social echelons (Beggs. Berlyrre. The Federal Glass Ceiling Commission in the United States has identified "information isolation. as one of the main barriers that blocks the career advancement of women." or the exclusion from information networks. & Feldman. The disproportionate representation of men over women in senior organizational positions may highlight for women their limited mobility and reinforce their perceptions of themselves as lower status than men (Ely. llctr exntnplc. Women. A number of studies have found that women who do make it to elite positions are often "outsiders on the inside"..Alderfer. 1995. 153)." or excluded. On a global scale. The more dissimilar the supervisor and subordinates are in terms of race and gender. The supervisor-subordinate relationship provides a key insight into the workings of intergroup relations in the organization. As a result. 1984. Beyond these two regions. often by devaluing the work that women do (DiTomaso. Tomaskovic-Devey. the performer's gender becomes relevant in making job-related decisions (Forschi. behaviors. that is. gender. 1986). Post.2009).2007. Sexton & Misiak. Lin.2}}7). 1993)' This isolation means that women are excluded from top networks and informal relationships that are necessary for further career advancement (Gray' Kurihara. and information. 1995). Kurihara. the research and scholarly work on individual and intergroup differences in the workplace has been disjointed. feelings. perhaps because jobs have been scarce for the dominant groups as well. and job opportunities and therefore contributes to exclusion of women in the workplace. Tsui & O'Reilly.. they are less integrated in informal discussion networks and outside the influential. Similarly. central circle of high-level contacts (Davies-Netzley. either do not hold that belief or do so to a lesser degree. Ely & Thomas. 2002). & ParksYancy. & Feldman. & Zhang. & Feldman. Post. Riordan. on the other hand. 1986. ttrcn Chapter 7 r Vive la Diff6renceS Theoretical Perspectives on Diversity 173 believe that gender is a cue to competence and that. For example. 2008. There is ample evidence of the differential treatment expcricncccl by racial/ethnic minorities and women in the workplacc. Gray. & Napier.7o/o of cotpo' rate offlcer positions at Fortune 500 companies are held by women. shape rules at work that would help them maintain their advantages over women and they can also change the rules if necessary to keep women in more subordinate positions. 1993). North America and Western Europe. & ParksYancy. Thus the informality of the promotion system can particularly disadvantage those without well-placed mentors with powerful social networks (Gray Kurihara. Forschi et aI. in the absence of any definite information to the contrary. 2009). gender and intergroup relationships). Ridgeway. Hommen. Fisher. 2OO7). including isolation in work groups and lack of identification in one-on-one relationships (Ibarra. Hommen. Alderfer. Social Psychological Theories on Diversity and lntergroup Relations Social psychological theories regarding diversiry social identity. |anuary 2. Taylor. and only 15. 1984) that theory clevclopment in Europe and in North America has occurred . & Egan. Because leadership and management qualities are defined mostly in masculine terms. Scriven. Tucker. & Sigerson. Larwood. Only 13 women serve as CEOs running the United States'largest 500 pub- licly traded companies (USA Today. and expectations at work to mirror those typically associated with men (Ely 1995. 1994). these barriers persist for women (Nkomo & Cox. & Ao. 1994). 1988).g.g. 2006. position. Hommen. particularly in the private sector (Federal Glass Ceiling Commission. organizational jobs remain largely structured along race. or gender (Tajfel. conflicts. The concept of intergroup relations refers to "any aspect of human interaction that involves individuals perceiving themselves as members of a social category. or being perceived by others as belonging to a social category" (Taylor & Moghadda m. 1966. and ethnic differences). 2007. ethnicity. and fairness paradigms. &Williams. In essence. Once others have been placed in those mental categories they are viewed as the embodiments of their identity groups and not as unique individuals (David. as well as legislation and social policies related to the workplace noted in the first part of this book. 1986. Tajfel & Turner. Pettigrew. THEORIES OF INTERCROUP RELATIONS: REALISTIC CONFLICT THEORY EQUITY THEORY RELATIVE DEPRIVATION THEORY AND INTECROUP CONTACT THEORY close examination of workplace miscommunications. Although North American scholars have often identified their work under the title of "workforce diversity.l. anger. 1978).g. 1982a. Brown & Hewstone.g. people categoize others into groups and configure internal representation of them to fit the prototype of the category (Hogg & Reid.g. in-group members will tnake an efftrrt to maintnin (. racial. outrage. lgg4. and gender work roles and the inherent social and emotional difficulties in integrating immigrants and women into each country's relatively stable social fabric and gender roles. The difference is much more than semantic preferences but seems to stem from different perspectives and worldviews. Stouffe6 Suchman. ]acoby. disputes. 1982a). North American researchers focus on diversity of the workforce (e. Crosby. law or custom) could reduce prejudice and integroup conflict (Allport.. and guest workers. which emanates from the region's historical role in absorbing immigrants and a value system rooted in equal employment oPPortunity antidiscrimination. theories of intergroup relations should provide us with a deeper understanding of why people create these diversity categories. & Hansen.r rr(rhievcr srrPcriority ovcr (ut ont-group in some . 2006).2006). and how they affect workplace A relationships. Through social comparisons between the in-group and out-group. Crisp. European research centers on immigration. Turner 1987). why they include or exclude members of other groups. 1998. 1978. 2009). Feldman & Turnley. Walster. 10)-the parallel tracks taken by theorists in these two regions-may have been the result of lack of awareness of each other's work or a general sense that theories developed in one region are not relevant to the other. which sees the root cause for conflict in lack of contact between groups. and this shapes the way individuals interact with others from their own identity group and from other groups (Tajfel. 2009. and even violence often reveals that they are the product of intergroup relations.174 SOCIAL PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERSITY with little mutual influence. and integroup contact theory. Star. social identity theory. As a result. Tirrner. The central proposition of the theory is that people desire to belong to groups that enioy distinct and positive identities (Tujf. and grievance) of oppression (DeVinney. Sherif. p. 1994). 2008... 6). What these authors have called the "isolationism" or "monocultural science" (p. Walstet & Berscheid. The next section describes as a social identifr theory and its usefulness as a tool for explaining exclusion in the workplace. The global trends of immigration and worker migration. 1978). The theory postulates that people tend to classifr themselves into social categories that have meaning for them. Sherif & Sherif. labor migration. Moskowitz. SOCIAL IDENTITY THEORY-EXPLAININC EXCLUSION Social identity theory is a cognitive social psychological theory that originated in Europe and gained popularity in North America and other regions of the world. 1954. equity theory emphasizes people's striving for justice and views perceptions of injustice as the cause for personal distress and intergroup conflict (Adams. gender. and holds that con- tact optimal conditions (e. A few theories are worth mentioning here: realistic conflict theory (RCT) is nn economic thcory that assumes that people act in self-interest and thnt conflict is caused Chapter 7o Yive Ia Diff6rence? Theoretical Perspectives on Diversity 175 by people's drive to maximize their own or their group's rewards to the detriment of other groups' interests (Sassenberg. A fifth theory that explains intergroup relations. 1949. & Rhiannon. It provides the connection between social structures and individual identity through the meanings people attach to their membership in identity groups such as those formed by race.2005. Given the definition of diversity presented in Chapter 6. underscore the need to examine theories generated in different parts of the world and to generate an integrated approach to understanding workforce diversity and intergroup relations. 1976). 2004. or contact under unfavorable conditions. an important way of a persont definition of self is through belonging to and membership in groups. integroup coalition and support of authorities. stands out megatheory with wide international appeal. 1965. There are several major theories of intergroup relations that are relevant beyond specific national contexts (Taylor & Moghaddam. relative deprivation theory foaxes on perceptions of inequality between one's own access to resources and that of others in the society resulting in intergroup conflict and emphasizes the emotional aspects (e. worker migration." European scholars and the few scholars from other countries who have published in this area usually identifo their work under titles such as gender studies. 1953). equal status between the groups. demography of the workforce. common goals. Bolino & Turnley. Pettigrew & Tropp. we'll look for another object in the same category of hard and heavy objects that can serve the same purpose. such as a brick or a stone.. gays. Haslam & Ellemers. for example. and their positive perception of their own group. as well as one's own group identification. Although categorization of both objects and people may serve to simplifr the world. Central Concepts and Propositions Several concepts serve as the building blocks of social identity theory and are central to its propositions. Or. therefore.'s (1958) research. 2000. The movement's emphasis was on giving the social aspects of social psychology relatively greater importance by focusing on the individual within the context of broad social structures (Thylor & Moghaddam. international perspective. social identity theory was developed in an attempt to explain relations between groups from a truly social psychological perspective. Muslims. As a megatheory. skin color. "the leader is a person who understands the needs of members of his group. . This section expands on two areas of the theory that are relevant to understanding intergroup relations: ( 1 ) social categofization and intergroup discrimination and (2) social identity and social comparison. in that it can explain the universal effects of social categorization and group membership regardless of the specific type of group. European social psychologists increasingly focused on concepts that reflected the discord and conflict present in society. Origin and Significance originally formulated by Henri Tajfel and |ohn Turner ( 1979. North America. Therefore. in itself. social identity has a wide appeal because it examines the connections between group membership and contextual social processes regardless of the specific type of group. 1986). but in a college-based experiment. Tajfel & Wilkes. Henri Tajfel was a central figure in a movement that took shape in the late 1960s to develop a distinctive European social psychology. 2001). those who belong to groups with higher perceived social status will accept and includepeople they consider to be like them. Cornelissen. made them more likely to exclude otlrers when group identification was ambiguous (see llox 7. 1986. Unlike their North American counterparts at the time who adopted models that described people as rational and living in cohesion. 1963) indicating that we categorize objects to help us function in the physical world. Blacks. or Belgium (Tajfel & Turner. 1986). Similarly. if we want to drive a nail to the wall and do not have a hammer. for example. For example. Over the years.1994. being fired or laid off from a previous job because of excessive absenteeism would typically count against an applicant's chances of being hired.g. people are more complex than objects. 1958)' Social identity theory was originally conceptualized as a megatheory. Allport. Hogg & Terry.I for a dese riptlon of lhe experiment). People tend to give members of their own group the benefit of the doubt in ambiguous situations that they would not give to members of other groups. teachers. 2005. The same principle is at work with social stimulicategorizing people (including ourselves) into groups with a perceived com- mon denominator helps us function in the social environment. 13-19) (e." and "understanding the point of view of another person promotes cooperation") and called for the development of models that are realistic and reflective of change and conflict at the intergroup level. also see Pettigrew. may influence social categorization and attitudes toward other. for example. The context for developing the theory is. such as a plastic bag or even a newspaper. 1957. 1986). and managers. as it is manifested in South Africa or the United States' or to the saliency of language in creating a separate identity in French Canada. 1994). (1) Social categorization and intergroup discriminatior. Social categories include groups such as Europeans. other regions of the world (Taylor & Moghaddam.176 SOCIAL PSYCHOLOGICAL PERSPECTIVES OFWORKFORCE DIVERSITY dimensions (Tajfel & Tirner. & Balmer. In a workplace recruitment situation. expressed discontent with the existing models of what he called the "social psychology of the nice person" (pp. in that values and norms. Social categorization is a cognitive tool that is used to "segment. social identity theory gained influence and served as an important impetus for social psychological research on intergroup relations and has inspired additional theoretical elevelopnrents in Chapter 7 r Vive la Diffdrence? Theoretical Perspectives on Diversity 177 Europe. It can. and. 2007). 1959. both Black and White individuals gave the benefit of the doubt to members of their own group and not to members of out-groups (Chatman &Von Hippel. women. and thus enable the individual to undertake many forms of social actions" (Tajfel & Turner. while excludingthose they perceive to be different from them (Tajfel & Turner. It is this all-embracing orientation of social identity theory that makes it relevant for the study of diversity from an. we would look for an object that could similarly protect us from the rain. an interesting example of intergroup relations-the intellectual relationship between North American and European social psychologists in the second half of the 20th century. Haslam. 15-16). Wales. & Barnett. 1986. pp. Moscovici (1972). be applied to intergroup relationships with regard to the salient attribute of. to a lesser degree. Early studies on categorization focused on nonsocial stimuli (Tajfel. people's social identification as Whites in Pettigrew et al. if we find ourselves without an umbrella on a rainy day. classifr and order the social environment. where he spent part of his childhood with his mother and Indonesian stepfather. solllc wcrc asking "lrr ()hurtrl ltlircl< linough?" clebalirrg his authenticity as a lilnck rnrrn in Amerirrr ((balen. and as a weakness by his opponents to paint him as detached from the common American experience. depicted Barack and Michelle Obama in Arab and terrorist attires bumping knucklcs irs a U. Others are more likely to categorize him as belonging to one race or nationality or the other.2008). prejudiced individuals may find it easier to categorize criminal-looking Moroccan faces as Moroccan than to categorize innocent-looking Moroccan faces as Moroccan. Their findings indicate that the more prejudiced people are. Halberstadt. Their studies examined people's attitudes toward Moroccans.S. In a famous incident in a town hall meeting with Obama's opponent Senator McCain. on the cover of the New Yorker magazine. and Van Knippenberg.I7lll SoC]IAL PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERSITY Chapter 7 o Vive Ia Diffdrence? Theoretical Perspectives on Diversity 179 Later studies replicated the findings in the United States with similar results for racial/ethnic categories relevant to that culture (Lent. l(l(17). flag is burning in the fireplace of the White l-f<ruse Oval ()l'licc ('l'|rc Naw Vrrker c<wer. and misconceptions surrounding Obama's background. the son of a U. Fazendeiro. mother born in Kansas and an African father born in Kenya with roots in three continents-America. & Catty. a woman said that she "could not trust Obama because he was an Arab" (McCain refuted the claim) (Blumiller. . A prominent example is the U. Langner. 1997).S. His multicultural heritage was touted as strength byhis campaign to highlight his openness to different life experiences. a man born to a British immigrant from Liberia and a ryVhite British woman may see himself as both White and Black and both European and African.S. Langner. Wye6 Swart. 2008). a highly stigmatized immigrant group in the Netherlands. bigotry. A controversial cartoon intended to mock the stereotypes. there is a growing awareness that racial and ethnic identification often does not fall along the lines used by social institutions in the past. Dotsch. the more criminalrlooking their prototype of Moroccan faces is. & Kibler. For example. and Van Knippenberg (2008) examined whether prejudiced people also have more negatively stereotyped mental representations of faces of people in the out-group. fuly 28. Africa. where he was born and raised. Wigboldus. Because more prototypical exemplars are processed more fluently (Winkielman. 1970) and demonstrated that prejudiced individuals were more cautious in assigning racial categories in a presumed effort to preserve in-group and out-group distinctions (Blasovich. Many issues of categorization related to President Obama's identity have emerged during his presidential campaign in a way that has never been experienced in the United States (or in most other countries for that matter) before. Wigboldus. and Asia. On the other hand. president Barack Obama. With the increased interracial and interethnic marriages in recent decades. depending on his dominant features. The authors suggest that this process may also function as a stereotype-maintaining device (Dotsch. 2006). 2008).In a series of studies in the Netherlands. his father's ancestry. Theirstudiesshowedthateveninaminimalgroupsituattn. Pacific Islander. African American. were who students White hi.orrhi. Asian American' American tnii".peopletendedtodiscriminateagainstmembersof out-groups simpty t. the categories chosen by the and Pettigrew to similar survey participant's own racial or ethnic category. individuals who self-identified with multiple races group. of non-White students were more attuned to the complexity of classify the images they saw and used more racial groups to more accurately the photograPhs.ugrr"s'-findings. the mere categorization of individuals' either voluntary outand assigned.u.. Tajfeiand his colleagues were also interested in the impact of social group categorization on discrimination.Is0soCIALPSYCHoLoGICALPERSPECTIVESoFwoRKFoRCEDIVERSITY AWeb-basedsurveyofaprobabilitysampleattheUniversityof in the United states asked students to categorize a set of pho- Michigan tograpis as White.. membership to be alloand criteria for social categoization was not linked to rewards be associcated among the groups.Igg4). An interesting caveat is that .t rooted in competition for resources ated with Moghaddam.oil.. they belonged to a different social category' or Therefore. racial one only with participants to be identified by survey lit "ty to the related were participants survey Further. Latino. is all that is necessary to create in-group favoritism group discrimination.oo*-ui". thus eliminating conditions that may (Taylor & realistic .*pJri. in which none of the conditions associated with realistic conflict shouldbeoperating. see Box 7'2)'The groups used in their were ranexperiments were designed to be "minimal.nrr" were designed to examine (for a description of these studies." in that individuals anonymous' was domly assigned to experimental conditions.r. and their now classic "minimal relations intergroup of aspect that . or other (Harris.2001)' The researcher found a sig- the subnificant discrepancy between the responses of the people who were photographs and those by the survey participants' More jects in the were more specifically. .. Chapter 7 r Vive la Diff6rence? Theoretical Perspectives on Diversity 181 .rr. it cannot account for the heightened significance of race. l98l). such as race. and histories are forgotten. and that foster stereotypical perceptions of self and others (Ashforth & Mael. Thjfel. however. It therefore downplays the consequences of other groups defining individuals and affecting their sense of inclusion or exclusion. and class in many cultures and nations due to their deep historical roots in both the Western world and in previously colonized countries. The differences between these individuals who come from very different countries. and particularly the second-generation immigrants. gender. However. and nationality (Ashforth & Mael. (2) Sociat identity and social comparison.ldentity. Social identity stems from the categorization of individuals. group categorization and value attaehment. Social comparison is the process that people use to evaluate themselves by comparing their group's membership with other groups. yet if they don't act as group rnembers. Thylor & Moghaddam. Sometimes. 1989. Hogg & Terry. p. individuals act as group members. together with some emotional and value significance to him or her of the group membership (Tajfel. Because the theory places all tyryes of categorization as equal. individuals who emigrate from countries such as Korea. 1986). social identification leads to activities that are congruent with the group's collective identity. this perception of oneness is the result of being categorizedby the larger society as members of a particular group. Tajfel & Turner. 2000). 1982a). the theory explains it by claiming that social identity is not salient) (Abrams. Cornelissen. . despite their distinct cultural heritage and complex historical relationships. 1989). the salience of out-groups. China. physical. Finally. 1986). has two components: a personal component derived from idiosyn- cratic characteristics-such as personality. and the factors that traditionally are associated with group formation. 2001). The aim of differentiation is to maintain or achieve superiority over an out-group on some relevant dimension. and |apan are "lumped" into one group known as "Asian" when they live in North America or Europe (choi. sex. as well as the consequence of this discrimination). 1992. individuals'from these countries. class. constitute social iclentity (Thrner & Giles. have developed a sense of identity that is tied to being Asian Americans or Asian Europeans. Social identity is definecl as tlrc LIMITATION OF SOCIAL IDENTITY THEORY IN UNDERSTANDINC DIVERSITY AND EXCLUSION One criticism of social identity theory is that it has tautological elements in its conceptualization: The first is the link betrveen self-esteem and discrimination (self-esteem is described as the motive for discriminating against outgroup members.2007. that support institutions that embody their identity. irnd eve ry person rcprecentc a nunrber ttf these groupfl wlren dealing with other .The basic hypothesis is that pressures to positively evaluate one's own group through in-group/out-group comparisons lead social groups to attempt to differentiate themselves from each other (Tajfel. 1989. along with of value to the particular an social category (Pettigrew. and most relevant to the present discussion. Social identity involves a Process attachment of self-categorization. 1978. Togetheq these two elements. 1988. Social identity is a perception of oneness with a group of persons (Ashforth & Mael. 2005. 1996). Haslam & Ellemers. The second is in defining social identity (the theory claims that when social identity is salient. IMPLICATIONS OF SOCIAL IDENTITY THEORY TO DIVERSITY AND EXCLUSION Every society ancl every orgnnizrttion consists of n large number of groups. Another criticism lies in the theory's very broad and rather generic view of social categories. Haslam. with any uniqueness misunderstood at best (Fowler.according to social identity theory. social identity theory conceptualizes identity primarily as self-defined. 1994). 63). For example. over the years. backgrounds. I97 8. ltbrams & Hogg. Most important.182 SOCIAL PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERSITY Chapter 7o Yive la Diffdrence? Theoretical Perspectives on Diversity 183 individual's knowledge that he or she belongs to certain social groups. & Balmer. the distinctiveness and prestige of the group. The minimal group experiments. and intellectual traits-and a social component derived from salient commonalities of group memberships. and this last study in particulaq are powerful demonstrations of prejudice and discrimination that can be generated even by the very minimal conditions. For example. 199a)' As social identity theory has demonstrated.ff6rpn. it reflects the group's position on some evaluative dimensions relative to relevant comparison groups (Tajfel & Turner. ." Following from that. asPects of features they deem as superior' As not welcomed by other g'ot'p'' ot they seek 2006). Tajfel and Turner (1986) conceptualize group as"a collection ofindividuals who perceive themselves to be members of the same social category. p' 62):"any behavior displayed by one or more actors towards one or more others that is based on the actors' identification of themselves and others as belonging to different social categories. Group members may seek posGrottP mobility througfu "social creativ." When a social group's status position is perceived to be low' it affects the social identity of g.tp members.ofnon-nnglish.* *a #di. ott -uy thoo'" the creativity involves selecting new eleminorities. hard worl(. 1982).rp identity (Schmitt' Branscombe' Jti"g such comparisons so Spears' that previously elemens for an alternative referent comparirois btto'it positive. such as: (a) seeking new eleThylor.g"ii".p? SOCIAL PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERSITY people (Alderfer & Smith.o. (b) redefining anotherexample.First. It is particularly relevant when membership in an identity group is associated with exclusion from employment opportunity and job mobility.ministeroflndiafromlg66tolgTTandto number of women who have risen again from 1980 to 1984) and despite the stereopositions in Indian organizations' women are @ically iJf -utug.xclurion within '. chaiging the values negative are now perceived as positive so that comparisons that wlre"previously "Black is beautiful") (Tajfel & (such as the slogan used by Riiican Americans. less able to meet the demands of the job' less com- than men to get the same and ii general halve to work much harder results" (Nath.^ l^ n. immigrants who feel that their social identity is devalued by the host society because most of the members of their ethnic group hold low status or menial labor jobs could choose to distance themselves from their co-ethnic peers though individual mobility (Shinnar' 2008). The researchers found terbalance their sense Jf . perceptions.d to individual 2002)' This could take .lemonstrated thnt this new grouP identity .itdemonstratedthatbeingperceivedbyothersasa it grouP identity.I84 ^r . such as gender and racial/ethnic affiliation.*ti"ity includes strategies oneself to an outpercomparing ments for intergroup comparisons.. ttt.orrrpur. 1986). such a strategy JU ttua to a ferenceinthegroup'sstatus. shape applicant and worker experiences.tt and leadership' lespite having a woman as Gandhiwaselectedandservedasprim. A grouP's stutusis the outcome of the social comparison process described earlier. or luck one can move from an Theoretical Perspectives on DivefSity lBt (Turner & Thjfel' 1986)' When suc' undesirable group to a more desirable one personal solution but will not make a difcessfi. members' This research was tively predicted improved"self-esteem for the insightfulintwoways. Low subjective status does not promote intergroup competition directly but rather indirectly through its impact on members' social identity' When faced with negative or threaiened social identiry individuals may utilize 9ne of the following strategies: o Individual mobility. the way we perceive our social reality is signifi- cantly determined by our grouP memberships."i io. Demographic characteristics of organizations. by.. of comparing one's group grJ. Social .y are stili perceived as incompetent andminister (Indira prime Lunug"-.re*. and (c) selecting ".u.otonrythatthestudents. share some emotional involvement in this common definition of themselves.Aninterestingexampleis. and behaviors in diffeient employrnent settings. their definition of intergroup behavior is identical to that of Sherif (1966. urtun1ption that the society is flexible and perme- able and that through talent.. and achieve some degree of social consensus about the evaluation of their group and of their membership in it.t . and'.irr".second' group was all that was treecled to create a new gave them a more positive sense .non-European'internationaluniversitystudentsfrom32countrieswasstudiedtodeterminewhether theirsenseofbelongingtoaninternationalstudentidentitygroupwouldcounthe university.u*"pl. Although women have long had access not suitable for p"ft. It follows that individual experiences vis-ir-vis work organizations and their perceptions of organizational actions and policies will be affected by their identlty group memberships. This social psychological perspective is useful to the current discussion because it indicates how identity grorrp. 2000).ii.rl.women'ssocialstatusin to powerful professions such as in India.\/:'. tft" gro.? . can Silvia' Garcia' & positivJly o. such as race and sex distributions. such as be identity enhancing because it reflects forming in-group -"t"bt'. It is based o1 ih. by redefining This coping mechanism is more psychocomparative situations (Shinnar..Individuals will attempt to pass from a lower-status to a higher-status group by disassociating themselves psychologically and behavioraffiom their iow-itatus group.ity'" or altering theelements of the itive status for the group as J*not. iositilr.rp a whiih one's in-g'oupis compared-instead referenent group from other to the dominutt *ujo. Group mobiliiy througtr social to a more favorable evaluation' ments for intergroup compuri'ol"s leading their group to justifr the features Individuals search for .groupidentificationincreasedbutalsothatitposi.---.2008)' mobility and involves altering onet perlogical in natur. #.i"g "less intelligent.for example. low-status group members are often willing to choose individual upward mobility over a cqllective action. rather than taking direct action (Wright & Tiopp' attributes of the group assigned to the il. 1986).speaking..r.-ent afpJ"t U. when the opportunities for upward mobility exist. help to shape the meanings people attach to their identity group memberships at work (Ely. This challenge. Belonging to such groups is central to individuals' identity and their sense of worth. It is within this framcworlf that diversity becomes a development question that must be cnrefully lnonagerl. they may try to reverse their position relative to the other groups. Further. lf wcll managed. intercultural encounters among groups do not automatically breed mutual understanding. Chapter 7 r Vive la Diffdrence? Theoretical Perspectives on Diversity 187 Summary and Conclusion This chapter examines theories that address the following questions: How are differences among groups created and why? Why are people that are different from the "mainstream" more likely to be excluded from positions of power and influence in work organizations? Over the years of research and scholarly investigation. Martin. and this shapes the way individuals interact with others from their own identity group and from other groups. In the case of Mexican Americans. an example for social action to promote a more positive group identity is the Chicano movement of the 1960's. Isaac Olawale Albert2 ("NigeriaWatchdog Goes Back to School. In this system. Other people's reactions-particularly the degree to which they accept and include individuals or reject and exclude them-are vital to a person's physical and psychological well-being. Geert Hofstede (1997) warns that contrary to popular belief. making it impossible or very difficult for individuals. 1999) proposing that although perceived prejudice has psychological costs. these theories tell . and a general perception that one's life has meaning.2003). such contacts. positive identities. 1995). Therefore. Deaux. introduced in this chapter. o Social competition. usually confirm each group's pre- vious perceptions of the other group. Therefore. as individuals. tal<ett togelher. The central proposition of the theory is that people desire to belong to groups that enjoy distinct and. is linked to important psychological processes such as self-esteem. Though one needs to be swnre oF the inhc'rent conrpetitive nature of identity groups. individuals interact with one another based on their respective group memberships and not as individuals. may generate conflict and antagonism be&veen the subordinate and the dominant groups. The assumption underlying the social competition coping mechanism is that "the nature and structure of the relations between social groups in the society is characterized by marked stratification. depression." 2002). & Branscombe. ethniciry or gender. & Harvey. Social identity theory provides the connection between social structures and individual identity through the meanings people attach to their membership in identity groups such as those formed by race. in that it involves redistribution of scarce resources and a reassignment of power. unless they are prolonged and allow individuals from each group to really get to know individuals from another.I85 SOCIAL PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERSITY about themselves as foreign students (Schmitt. compensatory efforts to assimilate or by disengaging from the exclusionary system and linking with a more inclusive environment. Spears. Tiiggered by an environment that is exclusionary. The need to belong to social groups appears to be universal. commenting on the situation in Africa where tribal conflicts are a common occurrence. This study provides support to the rejection-identification model (Branscombe' Schmitt. p. underprivileged. 1986. particularly when the economy is down and jobs are scarce. In fact. concurs: When "diverse peoples" meet. anxiety. and Bikmen (2006) found that immigrants of color who have been in the United States for more than eight years were more likely to reject social inequality and engage in collection action to improve the conditions of their group. to divest themselves of an unsatisfactory. several theories have been generated that explain the nature of intergroup relations. however. individuals seek to belong to groups that are associated with higher status and prestige in society. those who belong to groups with higher perceived social status will accept and includepeople they consider to be like them. A theoretical connection between worker inclusion-exclusion experiences and performance and satisfaction outcomes in organization social systems can be extrapolated from the "sociometer model" of self-esteem (Leary & Downs. This is particularly relevant for members of disadvantaged or stigmatized groups who may suffer the psychological consequences of being excluded. those costs are suppressed by increased identification with one's minority group. Members of a group may seek to improve their sta- tus by direct competition with the higher-status group. threats to one's self-esteem produce behavioral outcomes that are aimed at rectifring the situation by. diversity could be a major a$$et to cociety. wh:de excludingthose they perceive to be different from them (Tajfel. for example. This coping mechanism refers to engagement in social action in order to promote change in the status quo and improve social comparisons that are unfavorable to one's own group. Although it is commonly believed that the antidote to categorizations that breed exclusion is more social contact between individuals from different groups. The theories discussed in this chapter demonstrate that people are motivated to seek inclusion and avoid exclusion and that this basic human need transcends cultural and national boundaries. I982a)The inclusion-exclusion continuum. The theory postulates that people tend to classifr themselves into social categories that have meaning for them. this need to be included in soci4l groups is a strong motivator in human behavior. To achieve positive distinctiveness. 9). or stigmatized group membership" (Tajfel & Turner. most especially as a result of social and geographical contacts. A prime example of this conflict is the use of affirmative action policies to give disadvantaged groups better opportunities and the debate over reversing those policies. what one gains in Btatul the rtther tniry lose. Ried. a culture shock is produced. lsaac Olawale Albert' of the Nigeria' of lbadan' t.188 soclAl psvcuor'oc a more loyal.S.r. University 2..ican Studies.inHongKong.".-rutional. and committed may gain us that work organizations inclusive' workforce by becoming more Notes l. satisfied. These cultural values and quite stable between societies. They also need to be sensitive to these communication' in cross-cultural which can contribute to their effectiveness the values and l{uman behavior and interpersonal interactions are reflective of norms differ behavioral norms of specific societies.. she or he relations' umong focieties and their meaning in business are associated with that societies . they have been considered been changing within societies. but until recently. Culture and Communication in the Global WorkPlace The lack Welch of the future cannot be me' I spent my entire career inthelJnitedStates'ThenextheadofCeneralElectricwillbesomebodywhospenttimeinBombay.r. In ti0n and worker migration on national cultures (see chapters cultural differences totlay's global business world. a manager has to understand In addition.-based Ceneral Electric in a speech to GE employeest -Jack To . *unug. however. In this chapter.rrtit-ot.Forresearchscalesthatassessthisconstructinthecontextofdiversity'seethe Appendix' n.d in managing a workforce that is increasingly diverse and multiI .ecls-to be senSitive to cultural nuances within cultural context in the rhe diversity of ihot society.inBuenosAires'We havetosendourbestand.--^ ^-r /-^-ni. In recent decades. CEO of U.r srrrdies Programmt Prosramme in the Conflict Studies Peace and Dr. this perception has itsscholarsbecamemoreawareoftheimpactoftheglobaltrendsofimmigra4 and 5). J nf.rJ ne-ed knowledge about cultural differences and simi- differences' larities among nations. we examine 189 .brightestoverseasandmakesurethey who will have the training that witt allow them to be gtobat leaders make CE flourish in the future' Welch. l"loflstede (1980. 1990. and the arts.000 questionnaires collected in 1967 and 1973 from employees working in IBM subsidiaries in 40 different countries. In other words. the essential core of culture consists of traditional (historically derived and selected) ideas and especially their attached values. In his initial book. It is important to note from the outset that Hofstede's research (e. If culture is the sum of the learned and shared pattcrn$ of thought and behaviors that are characteristic of a given peoPle' how are lr. and the second are the strongly held values that inform us about aspirations and direction that cultures wish to develop (Javidan et al. explained more of the differences in work-related valucs and attitudes than did position within the organization.1991. professiorr. therefore. Culture's Consequences (1980).g. femininity-the tendency toward assertiveness in contrast to modesty.g. we refer to the broader meaning of the word culture as used by social scientists.. uncertainty avoidance. 1980. 2001..2004).g. be considered as products of action.. & Gibson. literature. it does delineate the expectations. particularly through education. culture systems may' on the one hand. individualism-collectivism. we devote the following sections to discussing the strengths of the work as well as its limitations.2001.ltiollfll cultures around the world different from one anothcr? To answer this tlttestitltt.-\ I90 SOCIAL PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERSITY Chapter 8 r Culture and Communication in the Global Workplace 191 the global workplace and analyze communication patterns that facilitate or block effective cross-cultural communication' embarked on a multinational study examining national cultures. n llutclt socirrl scielrtist' CULTU RAL VALUE DIMENSIONS Social anthropologists have long agreed that all societies face the same basic problems-they differ only in their answers to the problems. Hofstede & Hofstede (2005) call culture "software of the mind. 2005). (p. explicit or implicit.3 Hofstede (1980). Lowe. of and for behavior acquired and transmitted by symbols. individualism vs. There are many definitions of culture in the social psychological and anthropological literature. and avoidance of uncertainty-the control of aggression and expressions of emotions. Hofstede & Hofstedc." noting that the patterns of thinking' feeling. McSwe eney. Interestingly. and a set of formal or informal practices to support the values" (Javidan & House. In this book. constituting the distinctive achievements of human groups. although the common everyday use of the word refers to refinement.2 but the most widely accepted definition is the one proposed in the mid-2Oth century by Kroeber and Kluckhohn (1952) after analyzing 160 definitions of the concept of culture and synthesizing the following definition: culture consists of patterns. or gcncler. Geert Hofstede presented a statistical analysis of about 117. examined culture in the different countries along four axesi power distance-the relationship with authority and social inequality. ngc. 4)' Although culture does not determine the exact behavior for human beings the way programs dictate how computers function.yet it was criticized for its lack of scientific rigor and even outright cultural bias (e. 2006. and acting embedded in a culture are like "mental programs. the researchers assumed that being employed by the same organization (IBM) has created a common organizational culture and. 1991). 2002) . Hofstede (2001) . Ailon. masculinity vs. Kirkman. the members of one group or category of people from another" (p. L994). Hofstede (1980) found that national culture.2001) was widely lauded for its breakthrough contribution to the study of culture (e.p'292)'Understanding societal culture can be complex because it includes tlvo sets of elements at once: the first are the ongoing cultural practices that inform us about the current perceptions of specific cultures. collectivism-the relationship between the individual and the group. whatever differences in values and norms would be evident between employees who worked in different countries would be the result of national cultural differences. and masculinity/femininity. and behaviors within a specific social context. The most important result of this analysis was a theoretical formulation of four value dimensions for representing differences among national cultures: power distance. 181) Using the analogy of computer programming. Sondergaard. 1997. actual or anticipated. Following the discovery and writeup of the four originol cultural tliurensiono ctnted above. based on an earlier framework developed by Inkeles and Levinson (1969). This allowed the researchers to focus on the differences in the participants' responses as indicative of national cultural differences.. A fifth dimension-long versus short-term orientation-was added a decade later What is culture? The Latin origin of the word refers to the tilling of the soil. Because of its enduring and widespread influence." They deftne cultureas "the collective programming of the mind which distinguishes (Hofstede. including their embodiments in artifacts. Others define cultureas a "set of beliefs and values about what is desirable and undesirable in a community of people. 2008. The Cultural Context for the Global Workplace Studying individuals who worked for the same organization was assumed to provide the researchers with a good environment for studying national cultures because all the employees were thought to share the same organizational culture and environment. on the other as conditioning elements of fur- ther action. as measured along these axes. The fifth dimension was long. Below is n descrigrtiotr of the culttrral diffcrenccs in expected and acceptable behsvlorc in the workplaec. in Long-term orientation: China. short-term orientation 8o Culture and Communication in the Global Avoidance of uncertainty refers to the extent to which the members of a culture feel threatened by uncertain or Workplace Weak uncertainty avoidance: Greece. perseverance and Short-term orientation: thrift." and fulfilling social obligations. Table 8. Canada. Guatemala. Zimbabwe. preservation of "face. Strong uncertainty Long-term orientation refers to the fostering of virtues oriented toward future rewards. to be authoritative and give clear instructions that they will closely follow or whether they expect to operate independently and have egalitarian relationships with their supervisors depends to a large. |apan. Taiwan. Belgium unknown situations-the extent to which they need predictability in the form of written and unwritten rules.1 provides the definitions for each dimension with some country- Chapter Avoidance of uncertainty specific examples. 5 1. These five dimensions have clear implications for individual and group expectations related to acceptable behaviors in the workplace. Korea particular. and I 13. Denmark. in particular. Portugal. Short-term orientation refers to the fostering ofvirtues related to the past and present. 82. 1980. 1997 . respect for tradition. lamaica. Definitions for the four cultural dimensions are drawn from Hofstede (1997). Sweden.2001. This dimension was based on the answers of student samples from 23 countries to the chinese value Survey (CVS). pages 28. Whether employees expect their supervisor. respectively. SOURCE: Adapted from Hofstede. etctcnt on the cultural perception of power distance in their society.r'192 SOCIAL PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERSITY decided to add a fifth dimension to his model. Philippines. and the fifth cultural dimension is drawn from Hofstede (2001 )' pages 356 and 359. 2. for example. Country-specific identifications in this table and throughout the chapter are based on Hofstede's study among IBM employees worldwide and Michael Bond's CVS study among students. 193 avoidance: Singapore. Uruguay. Hong Kong Pakistan NOTES: t. long-term vs. The study's instrument was developed by Michael Harris Bond in Hong Kong based on values suggested by chinese schorars and seemed was to reflect confucian teachings in both of its poles. Hong Kong.versus short-term orientation-the tendency for thrift and perseverance and respect for tradition and fulfilling social obligations. Scores and rankings for the more than 60 ciiuntries included in the original study on each of the four cultural dimensions can be found in Hofstede (1980. Nigeria. 1997) and those for 23 countries included in the CVS study on the fifth dimension can be found in Hofstede (2001). uccorcling to l-{oFstedc's five axes' . like France and Spain). in the collectivist-individualist leanings. not on group loyalty but on complementing self-interests' are expected to be based Employers' decisions"related to hiring and promotions are strongly disnepotism and on skills. COLLECTIVISM The individualism/collectivism dimension refers to the extent to which people see themselves as an integral part of a social group with primary alliance to the group or as separate individuals with primary responsibility for themfamily only. often totheworkorganization(Robertson. Subordinates expect to be told what to do. The ideal boss is "a resourceful. For example. Even risk idue to familiarity r. Joiner (2001) found that managers in Greece.' 2007). as well as in between. In large power distance societies. There are many supervisors and many layers of management with large salary differentials between people at the top and at the bottom.lrres us existentially unequal. There is evidence that congruence between managers' societal values of power distance and the culture of the organization in which the manager works can reduce job-related stress. The hierarchical strata in the organizations are considered permeable. superiors are entitled to special privileges. ethics work in participatory mitment anrd belief Atypical.collectivist employees. This reality is evident ship between the employer and the emPloyees in the organization is seen as a family relationship. Great Britain. *h.TheyfoundthatemployeesintheUnitedStates supervisor' clearly delineated between three types of support providers:.&Wind. \ employeesinthetwosocieties. There are mutual obligations with strong loyalty on the part of the employee connected to an employer's commitment for protection and security in return.2005.Usingthestatisticalmethodoffactor clusters of relationships analysis. and friends. In collectivist societies.fe. likely view his oi her employer as rewarding individual is more likely to say society) *h.Findler. tt . the lines between supervisors. first to The assumption underlying members of the organizatio-n and then to others. Applying this principle to the workplace. 55). p. Employee loyalty in this context refers to an unwritten contract that between variables. is a benevolent autocrat or'good father"' (p. iavoritism society collectivist in a couraged.GreatBritain.2003).. Hofstede & Hofstede (2005) note that. living in a. In a strong collectivist-oriented context. were comfortable with the so-called Eiffel Tower organizational culture. . and Denmark.(Umiker' according to expectations' and do the best relatives of high-ranking lgg5).seofthefamilyloyaltyvalue.ilJ emphasize working together and will view the individualist in the importanithan the task.-ploy.Australia. 56).andCanada'peopleareexpectedtoactontheir employers is based' own interests.suchastheUnited States. subordinates and supervisors consider themselves as existentially equal. there is a clear pref- (MorBarak.their. In approaching work assignments' employees more as relationships wo. and that the congruence between this type of organizational culture and the Greek culture contributed translates into commitment such as in many countries in the Middle East.ence is given to relatives. For the Israeli networks family/friends and society. "The ideal boss.i. and can still expect to hold onto when employees do not perform to expectation' they theirjobsb.Gra Ig4 Chapter SOCIAL PSYCHOLOGICAL PERSPECTIVES OFWORKFORCE DIVERSITY 3o Qulture utd Co--'"itutiot it th l95 requiresemployeestobefaithfultotheirduties'totheirmanagersandcowork- POWER DISTANCE ers. such as many as Arab-speaking countries' People are born well as countries Latin American which continue to protect them in in-groups. & Hofstede.Astrongcollectivistorientation. which allowed the researchers to identiff for the researchers examined the sources of social support selves and their very immediate erence for group-oriented human resource management Practices (Aycan et al. comparing INDIVIDUALISM VS. 2002). The relationship between employees and therefore..andsuPportprovidersfromoutsidetheworkenvironment- The Israeli employees did their spouses/partners. a typical Korean employee (collectivist rather than together that his company rewards collaboration and working alone(|avidan&House'2001). achievements' and merit. In contrast.Itmeansthattheywillfolloworders'behave job they know how t9 do. into extended families or other in the workplace where the relationexchange for loyalty.Ji*.. new hires) and increases s.r. or supervisor for been a friend or a family luclllber' . biurr.ot *uk sucir disti^ctions. Canada. a country characterized by a large power distance..ca. Hlring p. coworkers' also have could matter' that *. and supervisors are expected to be accessible to subordinates. as well as Asian and African countries. theircoworkers.Al-Khatib'&Al-Habib'2002)'Lstudyof provides support for the 365 employees from Saudi Arabia' Kuwait' and Oman a strong group comproposition that a collectivist orientation is associated with (Robertson et al. that of employees with company u U'S'-based in social support of employet' that are rooted differences significant found in its former subsidiary in Israel two societies these of respectively.Inindividualistsocieties. the reverse will be true to reduced levels of stress among the managers. iamity m"muers. in small power distance societies. such as the United States. such as Latin countries (Latin American and Latin European. providing the possibility for both subordinates and supervisors to move up or down the ladder.and effort. democrat" (Hofstede.. characterized by centralization and formalizations.inttreUnitedStates(individualistsociety)wouldmost initiative-.u.". A study society where the task *ill prevail over the relationship. and therefore respected. supervisors and subordinates consider them- thispracticeisthathiringrelativesofemployeesreducesthecompany'sbusiness employee loyalty. in the subordinates' eyes..andtotheirorganization. the hierarchical system in society is considered existential.cl because o au*o'kt'.u. in high power distance societies.. In contrast. in particular' Perseverance and thrift.Or short-ternr pole. thcrc are many rules thnt govcrn the behavior. Norway. the mother typically takes care of the children. there is a preference for solving work-related conflicts by compromise and negotiation. Life is hurried. preservation of "facel' nd fulfilling social obligations. In masculine societies. and care for quality of life in general.196 Chapter SOCIAL PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERSITY MASCULINITY VS. such as fapan and South Korea. In contrast. In some countries. Asian countries scored toward the leing-ternr pole while the rest of the countries scored at the trleclium. In fact. AVOI DANCE OF U NCERTAI NTY Avoidance of uncertainty is a dimension that refers to the extent to which people in a society feel anxious about ambiguous situations and the steps that they are willing to take to create stability through formalizatiolr <lf rules and regulations. Bncl Korea (Hrlfstecle. assertiveness. Mexico. Jamaica. ambition.2007). and Denmark. Hong Kong. and job stability and lifetime employment are more common and cherished in societies with high uncertainty avoidance. and the United States. whereas managers in masculine societies are expected to be assertive and decisive. In contrast. employees who show modesty. Britain is. Designed by Chinese scholars and rcflecting confucian principles. such as Iapan. but not something one is constantly watching. fapan. fapan. gender-role differences between men as hunters. there are fewer regulations and a general belief that there should not be more rules than are strictly necessary. 1988). care for others. such as Relgiunr. of course. respect for tradition.ld u . On the continuum of long. irrg entrepreneurial of capital the availability to leading all hierarchy. The long-term pole on the continuum is associated with persistence. competition. the Netherlands..term-oriented cultures. and providers and women as caretakers and nurturers of the family. Hofstede (1980. In long. Time is a framework to orient oneself in. universal. and 33o/o of fathers in Finland take paternity leave. 1997. attributes associated with masculine qualities. and care for others are valued more in feminine societies such as Sweden. In the Scandinavian countries (identified as feminine societies). half of those in Denmark take leave. In feminine societies. Hofstede & Bond.2005) justifies anchoring these qualities in the gender-related terminology of the ancient. FEMININITY The masculinity/femininity dimension refers to the extent to which dominant values in the society emphasize assertiveness. 183) I-ONG. In a review of paternity leave statistics in the EU. of enrployees as well 8 o Culture and Communication in the Global Workplace 197 the work process. in masculine societies. the short-term orientation places great cmphasis on personal steadiness and stability. (p.versus short-term orientation is the fifth dimension that was irdded after the introduction of the original four dimensions to address differences in East-West cultural orientations.VERSUS SHORT-TERM ORI ENTATION The long. fathers often take time out from work to take care of a young or sick child. in low uncertainly avoidance societies such as ( ireat Britain. or at least to be always busy. Hofstede and Hofstede rrs (2005) note the importance of the anxiety component of uncertainty avoidirnce and its impact on time orientation in the work context: In strong uncertainty avoidance societies people like'to work hard.2007. as compared with feminine qualities such as relationships among people. and the father is expected to continue with his work as usual. and time is money. was born May 2000.versus short-term orientation. Leo. \vVhen Britaint prime minister Tony Blair limited his schedule but continued to work when his fourth child. the two seem to support each other and therefore family enterprises are very common. They like to relax. solidarity. the traditional cultural expectation was that women retire completely from the workforce once they had their first child and devote full time to raising their children. with u. fighters. In weak uncertainty avoidance societies people are quite able to work hard if there is a need for it. 'l'hc top long-term scorcrs wcre China. power struggles and direct confrontation may be more common in conflict resolution.. in particular. whereas in masculine societies. No Westerrr countries scored . the chinese value survey (cvS) provided the initial evidence for this dimension among students in 23 different countries (Hofstede. Long-term orientation refers to the lostering ofvirtues oriented toward future rewards. Italy. of comfort enterprise' work or close-knit a family illld to a stable work relationship within rrnd tenacity in pursuit of goals and this value orientation is seen At the other end of the continuum.'Iaiwan. perseverance' rr as supportof thrift values the paired with values are These initiatives. and material achievements. High job mobility is prevalent and expected in societies with low uncertainty avoiditnce. Dermott (2001) reported that almost all fathers in Sweden take some leave. and South Africa. near the masculine end of the scale. but they are not driven by an inner urge towards constant activity. Managers in feminine societies take into consideration their employees'needs and strive for consensus. a public debate ensued about the justification of such an action with some criticizing his action as irresponsible and others hailing it as an example for paternal responsibility. The balance between work and family is also very different in both types ofsocieties. Short-term orientation refers to the fostering ofvirtues related to tlre past and present.rrr. which could suppress risk-seeking bclraviors that are required to support entrepreneurial activities. ancl Fruncc. and competitiveness are expected and rewarded in the work context. In high uncertainty avoidance societies. a person's responsibility for family and for work are not separate and not viewed as in competition. Finally. Robinson. and Canada scored in the short-term orientation range. The typology that Hofstede put forth in his work has been widely applied and has become exceptionally influential (e. or uncertain. McSweeney. in some of the countries the samples were very small (e. the book promoted sensitivity to cultural diversity in the workplace at the very time that global businesses were expanding.2002. as national cultures become rnore diverse with an influx of immigrants. "Hofstede. The work was criticized because it seemed to identifl' culture with nations and because it has operated under the assumption that within each nation there was a uniformed culture. despite his explicit efforts to remain "culturally neutrali'the book's specific Western cultural lens is evident throughout the chapters. 2002. 65) and could be measured. p. & Gibson.The book itself.. Ailon. 7994.2002. 2008. p. 2003. and the migration of businesses (painstakingly demonstrated in the first part of this book)' it is important to pay attention to diversity within national cultures' Any manager who attempts to shortcut her or his learning process by looking for broad brush characterizations of "uniform" national cultures may be doing a disservice to her. Ailon finds several inconsistencies in both theory and methodology irnd cautions against an uncritical reading of Hofstede's cultural dimensions. McSweeney (2002) notes that "If the aim is understanding then we need to know more about the richness and diversity of national practices and institutions-rather than merely assuming their'uniformity' and that they hrve an already known national cultural cause" (p. its less than rigorous methodology. Hofstede's (1991) claim that the sample sizes were sufficient within national samples is highly questionable because the basic premise of homogeneous national cultures cannot be substantiated (McSweeney. an interesting analysis by Ailon (2008) uses a mirroring technique to deconstruct Hofstede's book Culture's ()onsequences (1980) using the book's own assumptions and logic. and a demonstration of the significance of national cultures to management theory and practice. As a result. between but . The large number in and of itself does not ensure representativeness. It has been the premise of this book all along that in today's increasingly diverse workforce.or himself. 58 in Sirrgapore and Chapter 8 r Culture and Communication in the Global Workplace 199 37 in Pakistan).223). Kitayama. 1999. The authors note that long-term orientation is identified as a major explanation for the explosive growth of the East Asian economies during that period. as did countries of Africa. This notion of a unified national culture is particularly problematic in light of the increased diversity within nations.g. and he did so impressively. The author because to the homogeneity of values tlcmonstrates that. it should be rcmembered. One glaring example from Hofstede's (1980) initial study was the use of an all-White sample (because of the apartheid regime of the time) to represent the totality of the South African national culture. sen- sitivity for. (p.. 901). Hofstede's work has been criticized on several levels. p.2002). High scores on the long-term dimension were strongly correlaled with the countries' economic success in the last quarter of the 20th century (Hofstede & Hofstede. 2004. For crxample. It is important to remember that the cultural dimensions offered by l'lofstede's work were in many respects the first attempt to scientifically charrrcterize the very broad concept of culture in a multinational context. thus expressing low UA value" (1980. but it was also criticized for its less than rigorous theoretical framework and less than perfect research methods (e. The strengths of the work included an ambitious effort to measure and quantifr the values that distinguish one c.. |udging lly the numerous researchers who found this conceptual framework useful. A central concern among all of Hofstede's critics is the author's central premise that national cultures are unifurm and therefore could be represented by relatively small samples (198i. 2002. the nuthor's contribution has been enormous. 112). McSweeney.2004). Bhagat. 1983. at least in so far as the popularity of Culture's Consequences indicated" (p. it manifests very high UA.g. and graphed quite precisely on the continuum of each of the five climensions. 1994. quantified.qlture from another.along five unified dimensions. and its inherent Western cultural bias (e. compared. Tiiandis. Lowe. see also Kirkman. In other words. 423). with respect to the uncertainty avoidance (UA) dimension Ailon with the claim that company rules should notes. Chandy & Williams. including its limited conceptualization of culture.000-this number includes both waves of the questionnaire that were administered in 1968-69 and again in l97l-73. "Hofstede strongly disagrees rrot be broken. 1990). It also undermined the assumption that management knowledge that originated in the United States could be universally applied and emphasized the need to learn different cultures and adapt management practices to local values and norms.g. and ptotlciency in the cultural differences not only within national culturea lc esaentlal. worked within the discursive limits of the 1970's. Sondergaard. a more nuanced understanding of. 2003. Yet. Harrison & McKinnon. even though the total number of questionnaires was very large-l17. Irowever. For example. Eckhardt. Baskerville. migrant workers.2002).g. the United States. 2005.1999. CRITIQUE OF HOFSTEDE'S FRAMEWORK Hofstedeb original work received wide acclaim for its pioneer nature and has since been cited and usedin many research projects around the world. highlighting Hofstede's pioneering work on the backdrop of the period of his initial research. 893). Singh. In fact. Bing.. Baskerville. 2006. manifests what appears to be a very high intolerance for the unpre- clictable ambiguous. Britain. Another stream of criticism related to the validity and reliability of the study's measures as well as the limited research methodology. Ailon (2008) sums up lrer criticism with a positive note.198 SOCIAL PSYCHOLOGICAL P/ERSPECTIVES OF WORKFORCE pTVERSITY more than medium term.Hart. The researchers collected data from over 17. Javidan. or group relies on social norms. 15). Army's l0lst Airborne Division was unable to use language to communicate his nonaggressivc intentions to the Arabic-speaking crowd. organizational culture. arrogant.. generous' caring. GLOBE is a multiyear program of cross-cultural research designed to examine the relationship between societal culture. in masculine societies an effective manager is one who communicates directly. team oriented. & De Luque' 2006). and procedures to alleviate unpredictability of future events. House. dcrnonstrates one leader's bold and effective use of nonverbal. GLOBE has several distinguishing features. and point their weapons to the ground." On the other hand. A Swedish manager readirrg a help-wanted advertisement for a salesperson in the United States might be taken aback by the requirement that the qualified candidate be "aggressive. This vulnerable yet friendly posture was clearly understood by the crowd that responded likewise by smiling and sitting on the ground. and enable others to contribute toward the effectiveness and success of the organizations of which they are members" (House. altruistic. The project was conceived by Robert ). . First. and even aggressively. The principal outcome of the study was the development of six universally shared dimensions of leadership: charismatic/value based. The study authors focused on leadership. For example. p. organization. llusiness communication can be interpreted very differently depending on the cultural orientation of a particular country.2004. and aggressive in their relationships with others Future Orientation: The extent to which individuals engage in future-oriented behaviors such as delaying gratification. self-protective. assertively. and kind to others Institutional Collectivism: The degree to -which organizational and societal institutional practices encourage and reward collective distribution of resources and collective action In-Group Collectivism: The degree to which individuals express pride. British managers may interpret a Chinese managert modcsty and humility in stating his qualifications as a weakness. loyalty' and cohesiveness in their organizations or familiey Gender Egalitarianism: The degree to which a'collectivc rrinirniTes gender inecluality Chapter r r 8 r Culture and Communication in the Global Workplace 201 Power Distance: The degree to which members of a collective expect power to be distributed equally Uncertainty Avoidance: The extent to which a society. The authors derived nine cultural dimensions from the literature and measured them both as practices (the way things are) and values (the way things should be) (Javidan. it is truly a cross-cultural research program. |avidan. conceptualized.S. Hangers. et aI. participative. and organizational leadership effectiveness (House. and operationalized by the multicultural team of researchers. The constructs were defined. and telecommunications. rules. Unable to speak Arabic and with no interpreter on site. the industries were selected through a polling of the country investigators. Second..000 middle managers in three industries: financial services. and investing in the future Human Orientation: The degree to which a collective encourages and rewards individuals for being fair. humane oriented. food processing. the commander of the U. and the instruments were designed with the full participation of the researchers representing the different cultures. In a spur-of-the-moment decision. which they defined through a of cross-cultural discussions as "the ability of an individual to influence. smile. Those from feminine-leaning societies may interpret such behavior as unfriendly. cross-cultural communication that probably saved many lives that day. House from the Wharton School at the University of Pennsylvania in 1991 who assembled a team of approximately 170 social scientists and management scholars from 61 countries rePresenting major geographic regions throughout the world to collaborate on the study. An incident in the city of Najaf during the 2003 war in Iraq (see Box 8. the nonverbal body language was sufficiently universal to convey the pencel'ul intenti<lns of the soldiers and to prevcnt what could lrave been n cleudly ineident. Finally. Dorfrnan. process Cross-Cultural Communication Bffective interactions in today's global business world depend to a great extent on the ability to convey a clear message that people in different cultures can comprehend in the way the communicator intended them to understand it. Luckily. The nine cul- tural attributes that were described in the study were: o o r r e r r Performance Orientation: The degree to which a collective encourages and rewards group members for performance improvement and excellence Assertiveness: The degree to which individuals are assertive. confrontational. planning. in thc Nrrjof incidcnt. Javidan.2004. motivate. eta1. Dorfrnan. 2006). and even rude. Hangers. Hangers. as well as archival measures of country economic prosperity and the physical and psychological well-being of the cultures studied. & House. De Luque. he instructed his soldiers to kneel on one knee.2oo SocIAL psvc1rordclcAl pERSpEcTIVES oF woRKFoRCE DIVERSITY THE CLOBE STUDY A different attempt to identifr cultural dimensions in an international context is the Global Leadership and Otganizational Behavior Effectiveness research program (GLOBE).1). and autonomous. the data in each country were collected by investigators who were either natives of the cultures studied or had extensive knowledge and experience in that culture. An American businesswoman might perceive the exact same behavior as inappropriate and rnily even interpret it as sexual harassment.g. When people use symbols that elicit meaning in another person. they are still comn.. gestures.e rts wottLl hc s rrrrlive l. Often the message that is received may be different from the one that was intended because of cultural barriers on the part of receivers and transmitters. V[RBAL COMMUNICATION The use of different languages often creates a barrier to communicabecause one or botlr sides are not as articulate as they could be in their nirtive tongues. 1975. and identity management (e. tone of voice. L979. Broadly defined. Thke. grammar. Cross-cultr. in its most basic form. Effective Cross-Cultural Communication Communication. is the use of symbols to convey meaning. Articulating her lion Although in the business world the stakes do not oftcn involve human lives. A man may perceive a woman's behavior as flirtatious when her rlriginal intent was simply courteous and entirely nonsexual. and it is more likely to occur hctween participants who belong to different cultures. For cxirrrrplc. communication is multidimensional (Neuliep. relational goals (e. or use of objects (artifacts). performing tasks).g.g. Add to that the cultural layer when. it is cntirely acceptable and chivalrous for a French businessman to compliment a woman colleague on her dress in the French cultural context. negotiating conflicts). for example. whatever the original intent was.r'errclr speirl<er.Clark& Delia.202 SOCIALPSYCHOLOGICALPERSPECTIVES Chapter OFWORKFORCEDIVERSITY 8o Culture and Communication in the Global Workplace 203 could be detrimental to the financial and economic well-being of individuals and organizations. for example. conveying a desired self-image) (Bernstein. rr l)rrlclr pct'son whn speaks Flemish but is also llrrcrtt in French nllty not hr ns firrrriliirr witlr thc vocirhulary.rritl tttiscotttrtttttticatiotr cln rcsult in krst opportunitics-suclr irs losing u job or it ltttsittcss tlcal-thrt . Conversely. gender differences in perceptions of sexual rtreanings. and itliouts of tlrc Inrtgurtg. 2008) and relates to three types of goals: instrumental goals (e.. Cross-cultural communication is particularly challenging and involves sevcral potential barriers to communication that are related to the use of verbal and nonverbal methods to convey meanings that may or may not be the same in the cultures of origin of the participants (see Figure 8. te78).Halliday. Symbols can include words.runicating. leading to severe rnisunderstandings. or even without conscious intent. effective cross-cultural communication can open up employment and business opportunities that may not be otherwise available to the participants. Miscommunication occurs when lhc original intent of the person transmitting the message is different from the rrrcaning that is received by the other person. they do involve people's livelihoocl.1 for illustration).. or Portuguese (McCall. The original biblical Hebrew text describes Moses coming down Mount Sinai after meeting God "with his face radiating" iirliterallywith rays of light coming out of his face (Exodus 34:29)." Eventually the French spelling was adopted (Arnold. Managing a workforce that does not share a common language can present a major challcrrge to both employees and management. Kennedy gave his famous speech Cultural Barriers == Verbal Vocabulary Grammar ldioms Volume Nonverbal voice contact Accent Tone of Enunciation Emphasis in sentence Eye Bodylanguage Emotions Clothes/artifacts Proximity Gesturing thoughts (encoding) would be more difficult for het and the end message may not be exactly what she intended to convey. wherever they may live. Adler (1991) describes an example of a business rusing this perceptual characteristic to its advantage: the Canadian National Itailway gives reports writtcn in English to bilingual francophone employees to proofread Bnd'feportfl written in French to bilingual anglophones for proofreading. the ofiicial lnnguage of Guinea (Auclair. whereas the British stolidly referred to it as "Concord.s Similarly. A classic example of such mistaken translation rcsulted in a horned Moses holding the Ten Commandments in the famous Michelangelo statue (circa 1513). It is a choice of whether to signify national pride on the one hand. once commented. Afrikaans. "If I'm selling to you. when Bill Clinton spoke at the funeral of Yitzhak Rabin. & Mbebe. Foreign leaders often speak their own language and communicate through an interpreter. On the other hand. For example. Linguistic diversity is an important aspect of global diversity. wny. 2003). F. when the supersonic plane the Concorde was designed. When conducting international business. one's own or the host country's language) is more than a practical matter. misunderstandings occur when one person is not familiar with all ilspects of the other's language. the Hebrew word for ray is the same as the word for horn-keren. in everyday phrases. "All free men. a large segment of the population barely speak French. and. Although most of the discussion related to the use offoreign languages in business refers to international orgarrizations with business partners or subsidiaries in different countries. relying on ]erome's vulgate translation of the Old Testament. he began his English speech by saying two words in llcbrew. Michelangelo. dann mussen Sie Deutch spechen" (then you must npeak German) (Nurden. as a free man. sometimes the use of a foreign language can add a different dimension to the discussion because people who are not native speakers can pick up errors that rrative speakers will not see. . lhcrefore. 1997. If I am buying.. the choice of which language to use (e. or to demonstrate respect for the host country's culture on the other.204 SOCIAL PSYCHOLOGICALPERSPECTIVES OFWORKFORCEDIVERSITY Chapter 8o Culture and Communication in the Global Workplace 205 euch as "hello" or "good evening. enunciation. and emphasis in sentence intonation (the "music" of the language) may make it difficult for the listener to clearly comprehend what she was saying and to be distracted from the message. When J. more than a million West Berliners responded with a roar of approval. and in South Africa's metropolitan area of Alexandra. 1992). "Shalom Chaver"-"Goodbye (also doubles as Peace) My Friend. the forrncr German chancellor. saying r l'ew words. even when they are fluent in the host country's language.Howcver. perhaps reflecting the age-old rivalry and animosity between the two countries. 1997). are citizens of Berlin.a At one po{11.'Ich bin ein Beilinef" (l am n llerliner). her accent. 39). nine major Bantu languages are claimed as home language. work was halted after the French insisted that the plane should have a Gallic final letter "e" in its name." in the host country's language can go a long in front of the Berlin town hall and said." The people of Israel were so touched by this gesture that these words later appeared irr poems. On the other hand. I speak your lnnguage. verbal cornmunication may also present a challenge within countries. lhc prime minister of Israel who was assassinated because of his work toward peace in the Middle East. sculpted the famous statue of Moses with two horns protruding from his head. Ngeva. which apparently confused the two meanings. and rnany residents also speak some English. p. In addition. there was a bitter argument between the French and the British who collaborated on the project. for example.g. Often. Willy Brandt. to show a sense of national pride. I take pride in the words. and on bumper stickers. In Guinea. . and even seasons (e. although they are related. When doing busirress irr a f. language fluency and cultural fluency are not the same.g. to send and receive messages in a way that assures that the meanings of the messages of both the sender and receiver regularly match (Glazier. National Public Radio News. The supBorters also noted that the bow a typical Asian form of greeting. legal aliens who committed a crime may be deported to their home country. Obama's defenders attributed the bow to his multicultural background and worldly awareness. the United States began enforcing its immigration laws more vigorously and more immigrants who committed crimes were deported. socioeconontic: stntus. otte ollert lnces tlrc rluestiorr ol'wlrcther to wear the husincss rrttire tltnt lc eonutrott itt one'n owrr eultul'e ur irr thc host ccluntry. mourning clothes).S. After the 9/l I terrorist attack in 2001. it is clcar that this one nonverbal gesture spol(e voluures nnrl wns rliscttssed trrorc Clothing has long been used to communicate rank (e. was also accompanied by a very Western firm handshake. Some interpreted the bow as a culturally sensitive sign of respect. was a gesture of extreme deference and sr. the cardinal robes irnd the queen's crown). Tiust and respectare often conveyed through nonverbal rather than verbal communication. weddirrg outfits in different cultures). although they may speak the language fluently. president (MSNBC News. Cultural fluenry refers to the ability to identi$2. depending on the time of year). .6 NONVERBAL COMMU N Chapter 8 r Culture and Communication in the Global Workplace 207 than any of the speeches the president and his hosts gave during the tour. although they were fluent in Khmel these deportees experienced great difficulties adjusting to the Cambodian way of life and culture.g.S. the geisha's seasonal l<imono colors or light and clark business attire in the West.g. laws. while the critics noted that the very low bow. practically a ninetydegree angel. agc.2009. but others noted that this is an indication of subservience that is unbefitting a U..206 SOCIAL PSYCHOLOGICAL PERSPECTIVES OFWORKFORCE DIVERSITY LANCUACE FLUENCY AND CULTURAL FLUENCY When dealing with foreign languages and different cultures. occasion (e. A case in point is con- troversy in the U. Molinsky. according to U. 2003.S. As a result. it is the ability to go back and forth between two cultures. artifacts can also be used to transfer important inforrnation and those too need to be understood and interpreted in their specific cultural and national context (see Box 8. and postures-as well as the use of artifacts such as personal adornments and the physical setting. Language fluency refers to the possession of linguistic skills that allow one to function much like a native speaker of the language.. and apply the communicative behaviors of members of the other group. while his critics thought it was a sign of his naivet6 and a behavior unbefitting the presidency citing a tradition that the U.g. l-'litlrer way. Children of immigrants who grew up speaking the language of their parents at home. 2005. Among the deportees was a large group of Cambodian nationals who grew up in the United States and were highly acculturated to the American culture. but without connection to their broader cultural heritage. ICATION Nonverbal barriers to cross-cultural communication include body languagemovements.tbordination. gestures. media ignited by President Obama's bow to the |apanese emperor during his Asian tour in November of 2009. 2009). For example.<rreign country. 1999). president bows to no one. understand. they did not teach them about their cultural heritage because they wanted to forget the horrors of the Khmer Rouge and the Pol Pot regime. Although their parents spoke Khmer at home. Scott. In addition to body gestures. Clothes ilre ilrr cxterl$ion of the body and closely relate to the persorr's gender.2 for an example of the use of the physical setting to convey respect in different cultures)..S. mood (e. and national origirr. are facing great difficulties when returning to their homeland. paradigm.'llritl tost lltc cotttpittty grcirtly-all nrirrritgerrrcrrl wns urtalrlt'lrr e1r1r. Arrny's policy of "strongly encouraging" army servicewomen to conform to Saudi rules and wear abayas while serving in Saudi Arabia has long been 66n11sysrsial. or lcitr of losing face. such as the Muslim attire of abaya. will members of collectivist cultures become more direct and task oriented in their se'plnication with members of individualist cultures? Will members of individualist cultures become more concerned with the needs of others and in preserUng harmony in the transaction? Or will one or both grouPs become msls sntrenched in their own communication style? plausible to assume that adapting to the other's communication style will generate a perception of similarity and familiarity that will contribute to (e. this behavior could have a toll both in Irunran relatiorrslrips irnrl irr liuancial outcomes..p.calitncl support$ llte sttrtly torrrluctcd in New Ir)94). wore just aloincloth during his visit to England in 1931. she found a middle-ground solution. & l)ctrtsch Salanron. but Ghandi was sending a clear message of independence and defiance as well as respect for Indian culture and traditions: "It was a rejection not only of the material products of Europe. the U. Western clothes may be perceived as inappropri- atelv revealing by many cultures.crl sttik.n'al ignorancc. 1996. Byrne's l97l creating a positive atmosphere in cross-cultural encounters 2001). secretary of state during the Clinton presidency. Utilizing the theoretical perspective presented earlier. CROSS-CU LTU RAL COMMU N ICATION STYLES A question that is very relevant for any business transaction is whether and to what extent members of a particular cultural group will alter their preferred cornmunication style when interacting with members from another cul- tural group. She also donned a widebrimmed hat. In contrast. On the other hand. visited Egypt and Saudi Arabia in 1999. thus walking the fine line between conveying respect for her hosts.l). it is not the same for women.8 \Nhen Madeleine Albright. attraction similarity and procreate uncertainly encounters hand. llr .1lcly because tottttttttttititlc witlt its workers.20n socrAL PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERSITY Chapter 8o Culture and Communication in the Global Workplace 209 Although in modern times the Western business suit goes a long way for men. l9tt4. or hiinb.T may be seen as confining or even degrading by Western women. Mahatma Ghandi.75).'lhc. Foley et a1.wearing a traditional outfit.S. On Lee & Gudykunst. Laurent. she wore dresses and skirts that were longer than the ones she wore in Washington.4 11 1s The tendency to resort to the familiarity of one's own cultural norms may lre cven stronger when facing a conflict.culture and her own. burqah. Sometimes due to misunderstanding. because cross-cultural the other thcir own cultural the familiarity of participants may resort to voke anxiety. The British media interpreted his attire as "primitive" and disrespectful. Mangaliso (2001) describes an irrciclcrrt in it Sorrlh Ali'itirn nrirring c()rrlpiury that nrushroomed into a labor tlisputc itttrl it pt'olottlq. ctrltr. Although she did not wear the traditional Muslim attire that is eXpected from women in that country.S.irrtt.irrr.2006.g'.rrrl i. but also of the European value system with its crilerje_ of decency" (Tarlo. l.. cotttltttttticittiort stylcs normalivc normsarrd even more strongly exhibit their lilitrrcis' & Wnlls' (l. lrtllct T. and wearing them might be interpreted as disrespectful to the host culture and be perceived as offensive. The U. (sre lkrx ll. shocking the conservative British society.200tt. the father of modern India and the leader of its liberation movement from Great Britain. for example. ! Javidan and House (2001). p. self-protective. 7. the workers invited top management to address them on the issue in a public forum. covers the face so thnt only the eyer nte exposcd. ()ctobcr 23). led by Robert I. October 23). collectivism (cohesion and loyalty to the group) . One of the employee representatives was reported to have said. end tltltonotnous.uk/2/hi/europel 3022166stm. individualism vs. even when corrducted within the same cultural framework. Marin.K. managers need to understand cultural differences and to become competent in cross-cultural communication. 2003.2001.the Korean'chaeboel. Margaret Mead (2001) and Ruth Benedict (1989). "The only thing that employees wanted was for top management to come and address us. Iune 26. Whether employees expect to be rewarded. team oriented. however. Frustrated and humiliated. Just to speak to us" (Mangaliso. Management denied their request. The World. see Erez and Earley ( le93). (2003. sonrelinrer behind a netlike fabric. See. CNN [television broadcast]. consideration for compassion and community-similar to the Chinese concept of quanxi. The interesting historical/political context to the inception of the concorde plrject: The project was designed in response to the space race between the united States and the Soviet Union in the 1960s. the transaction can result in a misunderstandirrg. National Public Radio [radio broadcast]. (2001. 6. This was the impetus for France and England to put aside thcir historical animosity and work collaboratively on this project. when one partner to a business communication misreads the cultural clues encoded irr the other person's message. Its goal was to demonstrate the technological rrbilities of western Europe as a center of world power. appropriate manner. Retrieved May 23. Often. conveying respect. management's impersonal and taskoriented communication was entirely inappropriate. 1984).co. 2004. rurrd eventually securing mutually beneficial business deals. for example. hijab is a tlaclitional Murllm hecel scsrfl . 2. |uly 5). participative. the beginning of the labor dispute. is not fluent or articulate in the language used for the business transrletion.2007. humane oriented. In the high-context collectivist culture of the South African workers. and the Spanish simpatia (mentioned in Chapter 9) all indicating a cultural emphasis on relationships (Sanchez-Burks & Lee. (2003. edition. & Betancourt. independent from the united states and the soviet union. Abaya is a head-b-ttle. lr t t p://news. For a summary table of key definitions of culture. and other business partners presents a serious challenge. 8 Notes l. for individual excellence or for a team effort depends to a large extent on the cultural perception ofindividualism versus collectivism in their society. customers. 4. in addiliotr. Research on cultural dimensions and the wealth of research inspired by Geert Hofstede's pioneering work provide an important context for understanding cross-cultural interactions in the workplace. The GLOBE project. This chapter examines the cultural context of the global workplace and analyzes communication Patterns that facilitate or block effective cross-cultural communication.23). The challenge is compounded wlren communication involves two or more diverse cultural contexts. the workers began a strike that lasted for more than 2 weeks and resulted in several hundreds of employees being fired and several million dollars of company losses. lightweight lntrric that has two laycrui burqah olnrilnrly provides cover fronr head to toe and. examined nine cultural dimensions of leadership worldwide through a longitudinal study in 62 world cultures. U.ln retrospect the strike and its costly consequences could have been avoided if management understood the cultural context of its workers and was able to communicate with them in an Effective communication with employees. 3. Summary and Conclusion To succeed in managing a workforce that is increasingly diverse and multinational. or miscommunicates or misreads nonverbal communication such as rnovement or gestures. On the other Irand. Lisansky. House. and it is more likely to occur between participants who belong to different cultures. National Public Radio [radio broadcast].bbc. Cross-cultural commurrication involves several potential barriers that are related to the use ofverbal encl nonverbal methods to convey meanings that may or may not be the same in the cultures of origin of the participants. "Text: Kennedy's Berlin speech. p. meaning humaneness. His four axes of power distance (authority and social inequality). regu- lrrtors. conflicts. 5. Miscommunication occurs when the original intent of the person transmitting the message is different from the nrcaning that is received by the other person. It failed to take into consideration the South African concept of ubuntu. traditionol Muslinr dress made from black.ZLO Chapter SOCIAL PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERSITY r Culture and Communication in the Global Workplace 2ll Defined as the use of symbols to convey meaning. Triandis. Sources: History of tlrc supersonic airliner. making the effort to understand other cultures and to communicate cllbctively within them can go a long way in fostering trust." BBC News. and lost business opportunities. hurt emotions. and responded instead by sending messages through envoys and written statements posted on bulletin boards. misunderrtandings occur when one person is not familiar with all aspects of the other's lu rrguage. masculinity vs. The principal outcome of the study was the development of six universally shared dimensions of leadership: charismatic/vnltte bilsed. femininity (competition in contrast to care for others) and avoidance ofuncertainty (tolerance for ambiguity) have clear implications for individual and grouP expectations related to acceptable behaviors in the workplace. shareholders. The World. communication in today's global environment has become largely cross-cultural.289. He worried that the new team would experience little harmony and much interpersonal conflict. despite the high level of collective talent. Source: Congressman Langevin (2002. their unfriendliness would not work well with the rest of the team. rr. travel in the rear seats of vehicles in accordance with local custom. Mor Barak First day back from vacation. l{oss S!lurol i. Lieutenant Col. Martha McSally has led a long struggle to end this policy by the Pentagon. that made the team productive and successful. Upon hearing the request. age. However. was stationed in saudi Arabia where she was forced to wear the abaya and. lnterpersonal Relationships in a Global Work Context Ieffrey Sanchez-Burkt and Michdlle E. Diego glanced at the names of the other people assigned to the team. lrhllr h an ArrQt.S.lnle ltilleaaor ol'Mrnagente rrl rrnd Organizations at the tif llttrllteiq rtt the lllriverrlly ul-Mlthlgen' Steplrerr M.gov/apps/list/press/ri02 langevi nl }5}B}2abayaamend. from what he had heard about their previous assignments. who was the first woman U. For Markus. In previous assignments' Diegot teams had enjoyed a friendly atmosphere (they would go out for drinks together' sometimes inviting each other to their homes on the weekends). The automotive plant's assignments typically lasted 6 to 8 months and involved highly interdependent multifunctional teams that worked under intense deadlines. service member to fly in combat. received his next project assignment. and therefore Diego's concern for the team's procluctivity wnr trn lirtrrrtletl. the German project coordinator. May 8) [press release]. the issue was straightforward: the new people were cxccllcnt trrrofcssiotrals who would help the team produce better outcomes witlr n slrortcl tinrc schccltrlc. and culture to control for possible effects of these variables on the outcome variable of communica- 9." Langevin seeks to author legislation to ban forced wearing of the abaya by American servicewomen in Saudi Arabia. tion style. Markus. would impede the team's ability to succeed on their core objectives.212 SOCIALPSYCHOLOGICALPERSPECTIVES OFWORKFORCEDIVERSITY 8. Diego decided to ask for another assignment fearing the lack of interpersonal harmony. he worried that their exclusive and impersonal focus to tasks and time schedules and.htm) The study used a 2 x 2 (ctlture x condition) design. and in assignment to the two experimental conditions. McSally. the researchers used blocks by gender." saying that "Women make first-class soldiers and should not be treated like second-class citizens. With trepidation. frankly.house. was surprised about Diego's concern. He had heard that they were all highly regarded for their skills in their areas of expertise. In Diego's opinion. Diego. It was not usual that the members would be unfamiliar with one another. a Mexican engineering specialist working for a large multinational corporation based in Germany. lellrcy SrrntJtee-llutks. 213 . but Diego recognized the names of three new team members. (www. Congressman Langevin joined McSallyt fight and called the Army's requirement "gender discrimination. or nationality..2007. and behavior in such situations reflect deep-seated beliefs about the nature of interpersonal work relationships. saldwin * l)andeneau. we discuss how this diversity shapes communication styles and the challenges this cultural variation presents to creating a worldwide inclusive workplace. ethnic preferences and prejudices can affect dynamics between a fapanese sales representative and a Peruvian distributor discussing logistics in Lima.namics. ethnicity. cultural mental models allowpeople to coordinate thought and action by creating shared expectations about how a social interaction should unfold. l95g) is credited with first proposing the concept of a relational mental model. The relational mental model used in Latin cultures places priority on the relutionship in the present moment. 2005. These categories are important to the extent that a person's identity and others'perceptions ofthem are influenced by these social categories. this level of cultural diversity can derail what might otherwise be a promising intercultural partnership. choi. l9g7) have demonstrated the importance of mental models in understanding culturally related variation i' cognition. 1996).. Baldwin & Dandeneau.2009). what behaviors are appropriate. We describe how cultural mental models influence people's emotiolldl itrvolvement or chapter 9 o Interpersonal Relationships in a Global work context 21s dctachment with coworkers and business partners and beliefs about the imporlir'ce of interpersonal harmony and conflict. 1996). the appropriate way to convey bad news. culture refers to shared understandings made manifest in act and artifact about what is true. Sanchez-Burks &Lee. Sanchez-Burks. As a rcsult of a cognitive bias social psychologists refer to as naive realism (Ross & ward. & Blount. Nisbett & Miyamoto. it may be seen as less consequential in another. &Ybarra. Finally. This variation is revealed in how members of two cultures make sense of a situation. Nisbett. for example. which he referred to as a mental model. such as "Japanese" and "Peruvian. He suggested that participants' use of preexisting mental models to understand the story shaped their interpretation and subsequent recall of the stories' details. and relational styles. Fiske & Haslam. Bartlett's work. one's perceptions. Whereas interpersonal harmony may be regarded as essential to task success in one society. people from different cultures often bring very different sets of assumptions about appropriate ways to coordinate and communicate in business relationships. and which elements of an interaction are important to notice (Baldwin. Knight & Nisbett." Indeed. This can be contrasted with thefeldti. and efficient (Redfield. this bias often . as described in Chapter 6. Bartel.2000.onal mental rnodels found in European American or swiss cultures where proper nocial rnteractlonc involve stiict adherence to . Although the markers of diversity at this level can be difficult to observe directly. In many Latin American societies." can facilitate or sabotage business relations depending on one's beliefs (see Chapter 7 for a discussion of social categorization's impact on intergroup and interpersonal relationships)' The other. such as in Germany. also see Chapter 6 for an expanded discussion on culture). Relational mental models influence our perceptions and the way we comrnunicate and relate to others.unprofesleads us to devalue others' relational work style as "incorrect" and sional. values. the particular cultural contexts in which people are raised and begin their careers create culturally unique rerational mentafmoders. He arrived at the concept from studies of memory he conducted in which participants misremembered details of stories that were not actually i' the original stories. Nirb. As we will discuss in this chapter. Some levels are more obvious to the observer than others. it is inappropriate to abruptly end one business meeting in order to avoid Leing late to another appointment.200l. Relational mental models refer specifically to cognitions about interpersonal relationships in specific situations (Baldwin. tgiz. and the extent to which one should or should not mix business and personal matters with colleagues and business partners. provides insights into how mental models serve as a framework for encoding. Later studies (e.g. To understand and manage these differences requires understanding the nature of cultural diversity and how it influences relational and communication styles.2005). There are different levels of cultural diversity. as illustrated in the opening example (SanchezBurks. replicated and elaborated in subse_ cluent social cognition studies. & Norenzayan. 1941. zoos. 1992. communicative. Cultural Styles and Relational Mental Models 'l'here is no such thing as an interpersonal style that is culture neutral. Culture infuses meaning into the social situation. As a result. Even when we become aware of cultural differences. understanding. good.tt. and remembering information. These shared understandings about proper relational styles found within cultures create particular challenges for intercultural business that have less to do with differences in ethnicity and much to do with deep-seated cultural variation between groups.214 SOCIAL PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERSITY As demonstrated by this incident.2007. we mistakenly assume that what is considered in our immediate environment to be appropriate and proper forms of behaving and communicating reflect the natural way things should be and are therefore universally correct. The most salient level of diversity to workers and scholars alike is demographic differences such as gender. they nonetheless exert a Powerful influence on people's preferences and team dy. This chapter begins by describing how culture shapes the mental models people use to coordinate and communicate thought and action' We then discuss an organizing framework for these diverse cultural mental ntoclels. Peng. such as in Mexico. For example. Bartlett (1932. euinn & Holland. The mere perception of differences in demographic category. more implicit level of difference that people encounter in a global marketplace entails cultural variation in cognitive. Broadly. compared with a mental model in which the focus ir. 1984). the Mexican is likely to interpret his European American colleague's abrupt ending of the meeting according to the minute hand on the clock as "rude" and impersonal. k'irtt lirtwitrtl whelt lhc irppliearrt lcaned forwarcl) irrrtl rrot rrrirror llrc gcslrur. 2000. SanclrczBurks. structures business relationships to reflect both work and personal features. (x)9." Both are interested in successful business relationships. Tiiandis. In contrast.. When people are "out of sync" in their nonverbal gestures as a result of diversity in relational menlrrl nroclels. Y. 'l'he influence of relational mental models is revealed in numerous interper- lrrrll dynamics of business relationships.1997) in which one is expected to attend carefully to the interconnections among business colleagues and partners. Y. Mexican business relationships reflect a simpatia mental model (Diaz-Guerrero. the relational mental models they bring to the table influence their specific approach toward achieving this goal. Sanchez-Burks. when to end one meeting and begin the next.s ol llrc ollrct lrrrll. for example. in wlrich it li. 2005)) maintains a sharp distinction between the rclational nrcntal rnodels used at work and outside worl<. Vitlcolllr<'tl tlcotrlittgs of the irltcr- st. it can increase levels of anxiety and can actually reduce one's perforrrrrutce in the sitr. Itclational mental models characterized as broad cultural dimensions iirtlrrtlc independence-interdependence. 1996).rrsc vit'ws wct'c sltttwtt lrl t'tlte'll5 tvl!o t'v. highilow context. and individualism& Hostede 2005. The distinction between irrrlt'pcndent and interdependent self-construals. relutional mental models facilitate interpersonal harmony by providing shared cxpectations about..firriri:i (c.. 2002. Both culture-specific and these lrrrndcr-level mental models serve as the foundation for how people from differ. or company familism. however. emotions. scc llox (). and approach interpersonal relationships.ir l irurs t rr rtlt'r' irrsl lrrcl iorts to subtly rnirror the nonverbal gestures ol'ltirll'rll'thc lp. tlrc attentive observer is likely to do the same.. there is a culture-specific mental model based on quanxi (Tsui & Farh. For example' if one of the par| tics to a conversation is speaking softly and not using hand gestures. which places importance on proactively creating rapport and personal connections.ctin.ttropcittt American interviewed a pool of European A rrrcricans antl l . relational mental models influence the degree of nonverbal coordination between Researchers have documented relational mental models that are unique to a particular culture and mental models that reflect broad cultural dimensions..2.) two people interacting.tII cgltures interpret. Likewise.. however.) Within each society. (For an illustration of attempts to alter relationel rncrrtirl rnodels for punctuality norms. and behavior are focused on tlrc inclividual in the situation. which will increase the first person s of comfort and create more harmony in the relationship. Problems arise.1. Van Swol. for example. focuses on a relatiorrrrl rnental model in which perceptions.. In Korea. for example.ratiorr. 2002..g. People attentive to relational concerns tend to unconrt iously mirror the gestures and posture of their counterparts in a social interaction and as a consequence increase interpersonal rapport (Chartrand & Bargh. 1967.irrrr rrrt. In China.216 Clrapter S(X]IAL PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERSI'I'Y 9 r Interpersonal Relationships in a Global Work Context 217 pun(:(uality and schedules. Sanchez-Burks et a1. (For an cxantplc ol'lrow tlillcrcnccs in Iltrropean Anrcrican and Mcxicart rclirliortirl nrcrrlirl rrrotlcls lcirtl lo rlil'lt'rclrl tttctttotics ol'"wltirl jtrst haPPcnctl" irr ir lt.llttitlrtl tlrc rrt'lottrlilll(('()l'thc itpplicirlrts . 2003). a mental model reflecting chaebol (Kim. communicate. 1988). the European American will perceive his Mexican colleague's lack <lf respect for punctuality as "unprofessional. after a while.'l'his was demonstrated in a study conducted in a Fortune 5(X) conrpany. For example.Triandis et al. during intercultural encounters when people are guided by different relational mental models. the influence of Protestant relational ideology in European American culture (Sanchez-Br"rrks. see Box 9. llrc connection relationships within the group. ollce rivism (Hofstede r. At the micro level. In sum. That is. a manager will coordinate her groupb efforts to llc productive while closely managing interpersonal harmony. steps are being taken to meet trpcoming deadlines. & Ashford. Markus & Kitayama. 1997. Podolny.. llcsearch has prirvidei ili$. lior example. "It is a death wish to talk about personal matters or get errnotional at work. The study found that interview performance was contingent on level ofnonverbal coordination for the Latino applicants but significantly less so for the European American men and women (Sanchez-Burks. rrnd Middle Eastern societies (Ayman & Chemers. the notion of culturally grounded relational mental models provides a foundation for understanding what people from different societies "bring to the table" in diverse organizations and international business ventures. At work. a desire to work hard because of one's personal interest in the project rather than for financial rewards or threats of punishment) is more likely to be noticed by Iapanese and Mexican managers than European American managers. Thus subtle cultural differences in relational mental models between interviewer and applicant can sabotage the success of intercultural workplace interactions.o. In turn.. communication.9. & Baker. and thus an important competitive advantage in the marketplace. The influence of relational mental models on attention can also affect managers' perceptions of what motivates their subordinates. managers work hard to maintain a sharp divide between one's work and personal life. DeVoe and Iyengar (2004) report in a study on employees of a multinational retail bank that the intrinsic motivation of subordinates (e. Bartel. workers preserve harmony passively by not "rocking the boat. that there is no sharp distinction between the two areas and that they rrre intertwined. As one manrrger with a strong differentiated style reported in an interview on the meaning of professionalism. It does mean. and other issues related more to the job than the people involved. Such findings illustrate how important understanding cultural diversity in relational mental models can be for individuals and the organization. people guided solely by social-emotional mental models will focus their attention and effort on emotional and interpersonal concerns. Workers in these societies are more likely to mingle work and personal issues. go out with their coworkers on the weekend. even to strangers. such as whether progress on the agenda is being made. people operate with an irnplicit understanding to put personal matters aside and to avoid emotions irnd other concerns believed to harm one's image of the polite but impersonal professional (Heaphy. Together. Irowever. people proactively create harmony through open displays of warmth and graciousness. and behavior in social situations. 2009.an. In East Asian societies. they must manage such implicit cultural diversity. Dual attenlion does not necessary mean equal attention at all times. These differences can be complex. 1983. & Blount. 1991). blurring the lines between culture and nationality. Sanchez-Burks. In the next section..218 SOCIAL PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERSITY under these two conditions. Earley &Erez. thrrt l.2008). including East Asian. Smooth team d. Morris. experience and socialization within different cultural contexts create culturally unique relational mental models. Sanchez-Burks.2009). & Sulliv. For example. these relational mental models shape a variety of dynamics. interdepcndent styles are common in much of the world. the United States). In organizations. we discuss specific organizing frameworks for understanding cultural diversity in relational mental models. Latin." whereas in Latin societies. these relational mental models provide specific templates that guide our perceptions. These mental models also influence managers' perceptions of what motivates their subordinates and their accuracy vis-ir-vis subordinates' actual interests and motivations. pcople maintain a dual focus on task and interpersonal concerns.1993.g.ntinos (lroth Mcxicnns and Mexican Arnericans) are guided lty e eoneern witlr noeioemotionul fl$pects of workforce . When people are guided solely by a task-focused mental model. In contrast. Despite disparate ways of fostering social-emotional ties. For organizations to sustain effective recruiting and selection efforts. including what people notice and take away from business meetings and the degree to which they coordinate their nonverbal behaviors and are affected by the overall level of coordination. immigrants and members of ethnic groups whose culture of orig." There is tremendous cultural variation in the form and content of socialcmotional mental models. they focus exclusively on elements of the situation directly related to the task. In cultures where these concerns are combined. As shown in Figure 9.in used the interdependent culturerl mental model are highly likely to use it even when living irr atlifferentirrtecl cultural context (e. proper networking strategies. presumably because the latter are guided by relational mental models that are less sensitive to such personal information. and beliefs about harmony and conflict.mamics are managed by maintaining a strict focus on the task at hand. Here. These frameworks provide away to understand how cultural mental models produce variation in beliefs about notions of professionalism. Diversity in lnterpersonat Relationships EMOTIONAL D ETACH M ENT VERSU S EMOTIONAL I NVOLVEME NT Cultural divides that challenge intercultural relationships often sterrr from the way individuals integrate or clifferentiate two types of relationnl rnental Chapter 9o Interpersonal Relationships in a Global Work Context Zl9 tttodels: task-focused mental models and social-emotional mental models.1. and have a preference to work with their family rrnd friends (Kacperczyk. llirmpden-Turner & Trompenaars. At the other end of the continuum are societies with more diflcrentiated relational styles. emphasis on rclational concerns relative to task concerns and vice versa can vary from one t:ulture to the next and between individuals in the same culture.2009). the level of integration of these two mental modvaries els along a continuum. the network structure was highly interconnected (no factors emerged in the confirmatory factor analysis). 1997. 2003.g. 1990).Yamaguchi. General Social Survey (GSS) shows that this trend is becoming stronger for Americans over time (Kacperczyk et al. Choi. in the workplace. Americans were significantly less likely to show such overlap (see differentiated style). Sullivan. are expected to be cool and emotionally detached in order to project professional competence (Mann. 1985). hold a clifferentiated style and make a clear distinction between support provided by people from their work context and those from outside the work context (Mor Barak et al. They found a striking difference: in the United States. At this point. for example.. physicians. Israelis. research suggests that gender differences can be quite inconsistent. women have been found to be more attentive than men to social-emotional aspects of work relationships and therefore more likely to use the interdependent relational style. as well as jobs such as lawyers..Zhao. depressed. which tend to foster psychologicrrl distregs\ (Belleh.. and the United States.S. and nurses. either positive or negative. 1999).. M€clsetr. 2003). positions having less customer contact. in contrast to cultural differences. and family/friends). Moreover. professional emotionality is prescribed in tlrese culture$ where emotions. Here. Variation in how social and task concerns are structured appears also at the social network level. emerging in some studies but not others (Holtgraves. the prescribed job-related emotional script typical in the differentiated cultural context requires workers to put effort into acting out emotions they do not feel or to suppress emotions they do feel in order to meet the emotional scripts of their jobs. Employees may be expected to display "scripted" emotions such as the "Have a nice day''script for many jobs in the service sector in which workers are required to be at all times cheerful and helpful to customers to encourage a positive experience and repeat service (e. utilize a combined style and are more likely to interact with their coworkers after work. 1999 relations to a far greater degree than are Anglo-Americans. whereas in Israel. 2009). Interpersonal Relationships in a Global Work Context 221 employees are expected to be courteous in a friendly way and not display strong Task-Focused Social-Emotional Relationships Relationships Business Partners Task-Focused Relationships Customers Business Partners Colleagues Social-Emotional Relationships Family Friends Significant Others SOURCE: Adapted from Sanchez-Burks. Choi. & Jasook.g. Kim.1995). In fact. Lee. by contrast. For example. In either of these cases. Thnnen. &Yuki.220 SOCIAL PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERSITY Chapter 9 . being sad. Other organizationd. such as in North America (Reardon. Whereas the Spaniards and |apanese indicated it was quite common to interact with the same people inside and outside work (see combined style later in this chapter). Mor Barak and her colleagues (2003) compared the support network structure between employees of high-tech companies in Israel and in the United States. ancl not letting interpersonal issues stand in the way-the "emotional overcoot" theory (Mann. Sanchez-Burks. Gelfand. particularly European Americans. 1999). However. Bringing authentic emotionality to the workplace (e. The Americans. they made no distinction between support provided by their supervisor and coworkers and their family and friends. Previous studies point kr the fact that cultures of interdependence prorrrote wcll-being in e\tttract to cultures of indepcnclencc. For example.. acting "professional" means suppressing authentic displays of social emotionality. or overly happy) is frowned on and considered unprofessional behavior. although American women may have more interdependent self-construals than American men. Nisbett. even in cultural contexts in which the differentiated style is more prevalent. & Tipton. 1995). Morris and his colleagues (2008) investigated the overlap between work and social ties among Citibank employees in Spain. . and the relationship holds true even when the Latinos reside in a differentiated culture such as the United States (Sanchez-Burks et a1. China. the support network structure was very distinct and segregated by type of provider (three clear factors emerged: supervisor. They asked bank branch employees how niuch they interact with coworkers during their time off. There can also be gender differences in interpersonal style. maintaining a divide between one's work and personal life. As a result. coworkers. on the weekend. it appears that differences in relational styles that may exist between men and women are exhibited within a particular culture. data from the U. Swieller. Ggrmany. training programs for telemarketers teach them how to speak on the phone with a smile in their voice so the smile will be obvious to the person on the other end of the phone line). like the fapanese and the Spaniards in the previous study.2000). An exception in this general tendency toward interdependent relational styles is the United States. appearing to be smaller in magnitude relative to differences between cultures. they are less interdependent than Japanese men and more independent than japanese women (Kashima. see Jehn & Bendersky. surprising only in that research demonstrates that under certain circumstances it may provide a source of synergy and remedy to groupthink (for reviews. and if and when to attempt an exit from the team will all reflect these beliefs about how much interpersonal harrnony and relationship conflict affect a team's ability to succeed in their mission. how nice. collaboration. The implication of these different beliefs about relationship conflict is that when conflict does arise in cross-cultural relationships (as it often does whenever people must work closely in interdependent tasks). In sum. and Ybarra (2004). and these different reactions may trigger a spiral downward in dynamics that extends far beyond the initial conflict. In every culture. consider the following conversation between an American plant manager (Patrick) and his Mexican supervisor (Francisco): Patrick: It looks like we're going to have to keep the production line run- ning on Saturday. Social institutions in independent cultures. . CONFLICT AND HARMONY Relational sryles influence one's beliefs about conflict and its consequences (e. The result is a more fragmented support network with less communication between its various parts and gaps in support that reduce its positive impact on well-being. in contrast.. task. if at all (see Figure 9. or partnership without interpersonal harmony can rarely be productive (see Diego's alarm at the team's composition in the case vignette at the beginning of this chapter). support individual autonomy and personal fulfillment with the expectation that the individual will take care of his or her own needs. Neuman and his colleagues (2004) asked managers and business students to what extent task and relationship conflict were a roadblock to success. My family is going to have a big party for him. Patrick. I hope that everyone has a wonderful time. According to Neuman. 2004). lqterpersonal Relationships and Cross-Cultural Communication Successful cross-cultural communication relies on many shared understandings about emotional displays.g. Putrick: \ OK. For example.trick: Oh. Thus. only the European Americans. The more that social-emotional elements are removed from one's workplace rela- tional mental model (see differentiated style). beliefs about relationship conflict rather than actual effects of relationship conflict may pose the more serious threat to cross-cultural working relationships. people's reactions will differ likewise. had a different belief about the effects of relationship conflict-as one manager stated. do not perceive it necessarily to be a limiting factor for a team's success (Markus's attitude to the team's com- position in the case vignette demonstrates this approach). Virtually all of the managers believed that task-related conflict was a barrier to success. However. so s\e you on Saturday. Can you make it on Saturday? I\'ancisco: Oh. people's internalized cultural norms and values inform the way they communicate with other people and may explain some difficulties in crosscultural communication that cannot be explained by the use of different languages alone. and expectations about blending or differentiated work and non- work social worlds. In contrast.g. understanding the degree to which an individual's relational mental models reflect a combined versus differentiated style provides a basis for anticipating the challenges that will arise when people from cultures using these two styles attempt to work together. the American is less likely to ruminate over the issue and prefers to "let bygones be bygones" rather than continue to focus on interpersonal difficulties over task-specific issues. 2008). These challenges include coordinating differences in the beliefs about the importance of social-emotional elements of work relations. China. I knew that you would understand. managers in differentiated cultures. fehn. managers in combined-style cultures interpret conflict as an inherent barrier to success: a team. whether relationship conflict in a team is a threat to task success). Sanchez-Burks. For example. "It [relationship conflict] is unfortunate but not devastating. Goh. yes. and face. In a survey conducted in the United States. Itrancisco: Thank you.222 SOCIAL PSYCHOLOGICAL PERSPECTIVES OFWORKFORCE DIVERSITY Cultures of interdependence are composed of social structures that promote the good of the collective and the group's responsibility for taking care of its own. and Korea. On the other hand. their role in defining appropriate and professional behavior. . indirect cues. who to invite. the less vulnerable the team is perceived to be to social-emotional disruptions. I\t. a Korean manager may become anxious that the team's ability to succeed may be limited because of the interpersonal conflict and. & Mannix. although not enjoying interpersonal discord. relationship) over time nrny be linrited when Chapter 9o Interpersonal Relationships in a Global Work Context 223 members are able to resolve their process conflicts at the start of their time together (Greer. hence.2). ltrancisco: I Patrick: see.." Research also demonstrates that the negative effect of proce$s conflict on the other type$ of corrflict (e. Decisions about which teams to join. .r to name a few. try to exit the team or work hard to restore interpersonal harmony. did I tell you that my son's birthday is this Saturday. particularly men. members of low-context cultures. In contrast. we describe how culture shapes one's communication style and the implications of this diversity for cross-cultural communication in a global marketplace. All business transactions. motivating. I992). 2003) (see Chapter 8). In collectivist societies such as many Latin American countries. Prefer detailed. to see employees leaving work to settle family matters and to be absent for a couple of days to mourn relatives in remote villages (Auclair.In societies steeped in individualism such aste United States. people are expected to\eet eeeorcling to their self-interests rather than those of . we describe how these cultural continuums create communication contexts that differ in their orientation toward face and relational concerns versus inslrutnental concerns and preferences for direct versus indirect communicntion. with only minimal information explicitly derived from a literal interpretation of the transmitted rnessage itself. Tiiandis. In Guinean culture. people are born into extended families or other groups that are structured to rernain highly interdependent and loyal to one another in all spheres oflife. 2008). Hofstede & Hofstede. 2004. Mexico. 2005. These terms are part of a broad theoretical formulation to differentiate cultures across the globe (Hofstede. These cues are essential for understanding in high-context cultures and substantially less important in low-context cultures. high. whether within the same culture or across different cultures. 1996. 1980.. and negotiating (Adler & Gundersen. countries in Africa. exchange information lhrough transactions that are the opposite: most of the information is conveyed within the transmitted message itself. and Arab-speaking countries. and the receiver needs to fill in the gaps based on understanding of the context and of the speaker. suffice it to say that individualist cultures are those that value autonomy and independence whereas collectivist cultures are those that value reciprocal obligations and interdependence. In such communications. 1976). Great Britain. such as fapan. the words convey only a small part of the message. decision making.and low-context cultures differ in the degree to which one must attend to interpersonal and contextual cues in the situation in order to understand what is taking place and what is being communicated. Prefer flexible creative approach but wary that arguments may become personal. 1959). Australia. In the following sections. The actual words rather than the context codtain the intended meaning (Hall. Thus. such as the United States. and Chile. A second theoretical distinction between cultures that is relevant to comrnunication is the continuum of collectivist to individualist cultures. Prefer flexible creative approach with a strong task focus. emotional issues aside. and Canada. China. Australia. and Germany. the deep sense of commitment to the extended family intertwines in subtle and complex ways with the working life. as is the case in most of Africa. Task Conllict lsa Roadblock to Success Strongly Disagree 2 Strongly Disagree 4 Strongly Agree Relationship Conflict ls a Roadblock to Success SOURCE: Neuman et al. An important theoretical construct used to differentiate among cultural communication styles involves the continuum of low-context to high-confexf cultures (Hall. involve communication. We begin by discussing communication patterns that reflect different points along the cultural continuums of high/low context and individualism-collectivism. At this point. for example. therefore. Next. structured task while putting relational. PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERSITY Chapter 9e Interpersonal Relationships in a Global Work Context 225 Theoretical Perspectives on lnterpersonal Cross-Cultural Communication Strongly Agree Prefer detailed. structured task with attention to maintaining interpersonal harmony. Will Francisco show up on Saturday? Would Patrick be justified in being upset ifhis supervisor does not show up? Culture and context rather than language per se are necessary to explain the likely miscommunication between Patrick and Francisco. Business-related communication includes activities such as exchanging information and ideas. exchange inforrnation using a communication style in which the content and meaning of the iuformation is derived from contextual cues in the setting. It is not uncommon. Members of high-context cultures.SOCIAI. 2007). the group is primary. 1985. Javidan & House. 1978. High-context collectivists tend to exhibit a combined relational style (blending task and social-emotional ties). 1988. 1997). Research reveals links between the cultural context continuum of low to high context and the cultural value continuum of individualism and collectivism. 1988' 2007). and it is based on both morality defined in a social structure as well as a socially constructed representation by others" (Earley. Ting-Toomey. and individuals are derived from their social relationships and group memberships. and social affiliations are proprieties of the individual. Other-face concern Self-face concern Relationship vs. & Chua. Instead. whereas individualist cultures (with an emphasis on "I" rather than "we") are often more low con- text in nature (Gudykunst. the cultural patterns described earlier as having differentiated versus combined relational sryles also tend to covary with these dimensions. cultures that have a collectivist value system (with an emphasis on "we" rather than "I") also tend to have a high-context orientation.The roots of this focus on thg other-face in the Asian cultures can be found in the Confucian principle that one needs to continually deepen and broaden one's awareness of the presence ofthe other in one's self-cultivation (Tir. In collectivist societies. Harmony.. Moreover. everyone has a concept of face that influences his or her behavior and action. is the process through which face is regulated in a particular cultural context (Earley. As described earlier. RELATIONSH I P VERSUS TASK ORI ENTATION AND HARMONY ORIENTATION The concept of "face" refers to "the public self-image that every member of a society wants to claim for him/herself" (Brown & Levinson. the group as a whole should be praised when things go well (Foster.1). Cultures often cluster along the cultural continuums described thus far.p. for example. 2001).p.In contrast. 1997. 1988. In their communication with others. 1998). In collectivist. Indirect lndirect communication Direct conrmunication Face Orientation . it is the individual that is primary. That is. Thsk Relationship oriented Thsk oriented Direct vs. 1985). Here we discuss the impact of these relational mental models on cross-cultural communication. members of low-context individualist cultures are more likely to be concerned with self-face and have a preference for congruence between their private self-image ("authentic self") and their public selfimage ("social self"). 1967. which too has been mistakenly attributed to only Asian cultures. (b) relationship versus task orientation. the Mexican value placed on simpatiasimilarly emphasizes the importance of interpersonal and group harmony (Diaz-Guerrero. Although the concept of face may manifest itself differently in various cultures and has been mistakenly attributed as primarily an Asian culture preoccupation.226 SOCIALPSYCHOLOGICAL PERSPECTIVES OFWORKFORCEDIVERSITY the collective and are not viewed as an inextricable part of alarget social group (Bellah et al. In individualist societies. it would be inappropriate for a manager to praise individuals too highly in front of their peers. 1984). each person having a unique collection of memberships and relationships (Wagneg2002). and (c) direct versus indi- rect communication (see Table 9. How does the cultural context affect communication styles? We examine this question according to three interrelated dimensions: (a) face and harmony orientation..14). 199)' Earley (L997) defines it more broadly: "Face refers to both internal and external As indicated earlier in the chapteS different cultures use relational mental models that emphasize by varying degree either instrumental goals or relational goals. members of high-context collectivist cultures are more likely to be concerned with other-face in their interpersonal communication and negotiations (Ting-Toomey. high-context cultures such as in Indonesia.2007). Communication in the combined task/ relationship mental model or the differentiated mental model focus on either achieving a task or the relationship as it relates to the task (see Box 9. Ting-Toomey. Tiiandis et al. whereas low-context individualists more often show a differentiated relational style (Sanchez-Burks &Lee. FACE Chapter 9 r Interpersonal Relationships in a Global Work Context 227 presentations of oneself.3). ltr olgrrrriraliurrs. Indirect communication refers to the difference between the literal meaning of what one says (semantic meaning) and the intended meaning (see Figure 9. you have not hurt your coworker's feelings and allowed her or him to save face. you might say. On the morning of the last day of the visit. DIRECT VERSUS INDIRECT COMMU NICATION The most universal communication strategy used to preserve face and harmony. people use face-saving communication strategies such as indirectness to avoid conflict and preserve status structures. straightforward words. indirect communication that is focused on shared experiences developed over time (context) utilizing indirect and nonverbal meaning. In this chapter. during the tea ceremony. Unbeknownst to her. Thus. arrangements were made by one of the hosts for a car that would take her to the airport on time for her flight. is the use of indirectness (Brown & Levinson. Members of collectivist. we focused on a continuum of relational mental models that help explain different tlpes of relationships and communication patterns in different cultures. An American professor was invited to give a series of lectures in several universities in China. Indirectness is an important communicative sffategy that varies according to cultural context. with her flight scheduled for noon. irnd significant others. and relational styles. low-context cultures exchange information primarily on the basis of direct. In contrast. An example that demonstrates the discrepanry between the Western differentiated task orientation and the Eastern combined relationship/task orientation is the following incident. "It sounds interesting" (indirect communication) in order to avoid saying what you really think: "It's a half-baked idea" (direct communication).3 for an example of public displays of indirectness). At one end of the spectrum is the dffirentiated relational mental model where there is a clear division between task-focusedref ationslrips in the business environment and the social-emotional relationships with lirrnily. tlrc r'olrlriltl rtlttlirttrtl rttcttlal modelwhere both task-focused arrcl social-crrrolionirl relrrtinrnlrips nt'c itrterlwirtctl irt lrotlr the work and the lirmily arcnas. At the other end of the spectrunr i. she reflected that a typical American host would have bccn nr(lre ('orrc(lrrrccl with getting her to her plane on time (differerrtiatecl tasl< oricrr lir I iorr ) llrir rr spcnclirrg Summary and Conclusion There is no such thing as an interpersonal style that is culture neutral. her hosts insisted on showing her a traditional tea ceremony. Relational mental models are the mental models that structure our Perceptions and the way we communicate and relate to others. highcontext cultures exchange information primarily on the basis of implicit. Although she appreciated their gracious hospitality and the great effort they had made to find a teahouse that would agree to perform the tea ceremony in the morning rather than the typical afternoon/evening time. liicntls. when a coworker proposes an alternative marketing approach that you do not think is particularly well thought out. For example. tlterte t'clirtiottitl ttte ltlitl Ittorlcls shapc a variety . People hold assumptions and beliefs about the nature of interpersonal work relationships that are rooted in their cultural context. members of individualist. Her hosts exhibited the very warm hospitality that the Chinese people are known for by lavishly wining and dining her. particularly when conveying bad news. she was anxious about the risk of missing her flight. explicit communication that is focused on precise. Relaxing on the plane (that she did not miss after all). 1978). individualism-collectivism. In cultures where face and harmony are important.l 228 SOCIAL PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERSITY Chapter 9 r Interpersonal Relationships in a Global Work Context 229 additional time in developing the relationship in a social atmosphere (interdependent relationship/task orientation). In contrast. relationship versus task. Add to thlt the layers of cultural expectations and beliefs. we examined communication patterns and the impact of communication styles on cross-cultural interactions in the global workplace. and st'll'-interest). liSince We Flave Broad Road. rrcs in the setting. and rrirtional loyalties. and the SameMessagc. We expand on this concept l. We presented an organizing theoretical model that utilizes the r oncepts of other-face versus self-face. and the possibilities for misunderstanding and conflict drarrratically increase. the actual words rather than the context contain the intended meaning.Z3O SOCIAL PSYCHOLOGICAL PERSPECTIVES OF WORKFORCE DIVERS]'I'Y 'lKgep Off the. gender relations..rlcr in the chapter. Stated Indiiect$. The concept of "face" refers to "self-definition in the context of social or "self-definition in one's social system" (Earley.Grassj'ltated Directly (U. In conclusion. misunderstandings are not uncommon. even when the parties communicating share a language and lrclong to the same culture." includes all aspects concerning how we present ourselves and how others perceive us rrnrl. with only minimal information explicitly derived from a litt'r'al interpretation of the transmitted message itself.rntl in collectivist versus individualist cultures (where emphasis is placed on n'eiprocal obligations and interdependence within the extended family and tornmunity as compared with an emphasis on autonomy. . independence. pp.). Finally. \{'hy Should We Open Small Paths" (China) Chapter 9 r Interpersonal Relationships in a Global Work Context 231 We then examined cross-cultural communication in low-context versus lrigh-context cultures (where information is received primarily in the message rtsclIas compared with from sources such as the settings and the relationships) . Note l. and indirect vt'rsus direct communication in conjunction with high/low and collectivist/ i rrrl ividualist cultures.34).S. serves as a basis for self-evaluation. 1997. at the same time. members of low-context cultures exchange information through transactions that are the opposite: most of the information is conveyed within the transmitted message itsclf. Face rrlrservers. including what people noticc ancl tal<e away fronr busirrcss nrcctings and the degree to which they coorclirrirtc their nonvcrbirl lrchaviors iurtl irrr: affccted by thc ovcrall levcl o1'crtot'tlittitIiotr. Members ol high-context cultures exchange information using a communication style in wlrich the content and meaning of the information is derived from contextual . I of dynamics. /' PART III Managing a Diverse Workforce in the Global Context The I ncl usive Workplace . g. examine its historical context. Sylvester McMonkey McBean with his "very peculiar tnachine" that could put stars on the Plain-Belly Sneetches. Palmi. . But because they had stars. Palmer. 2004. Seuss demonstrates how an irrelevant characteristic such as having or not having a small star on their bellies created two camps of Sneetches and affected their relationship with one ahother. corrtributing And whenever they met some. "We're the best kind of Sneetch on the beaches. North African immi- Had bellies with stars.2002. "We'll have nothing to do with the Plain-Belly sort!" They'd hike right on past them without even talking. This story is often used in diversity-training prograrns because its moral teachings apply to adult situations as well as children s. we examine diversity management programs and policies. 2001). they asked Sylvester McMonkey 234 to and benefiting from their involvement in the workplace. this tale has ahappy ending with the Sneetches realizing that "Sueetches are Sneetches and no kind of Sneetch is the best on the beaches" $. Those stars weren't so big. Nyambegerc. .. policies and programs are designed to create a welcommanagement l)ivcrsity iug organizational environment to those groups that. \{hite ttten in the United States. Just as the privileged groups may vary firrrn one country to the next (e. Rationale. or women in Korea). 2004. and Key Elements Defining Diversity Management Now the Star-Belly Sneetches Irr response to the growing diversity in the workforce around the world. Hays'l'lrornas. The Sneetches and Other Storiesl n his classic children's story about imaginary creatures named Sneetches. and conclude by identiffing its key characleristics and limitations. 2a). urban men of Han descent in China. the lower castes in India. The story goes on to introduce Mr.Like any good ehildren's story. when they were out walking. Kaiser & Prange. and retention of employees who are different liurr the privileged echelons of society.g. in general. inclusion. Once the Star-Belly Sneetches realized that they could no longer tell the difference. in the past and through lhe present. 2t). they would sniff and they'd snort. have not had access to employment. . in particular.g. so too do the dimdvantaged groups (e. Ozbilgin & Tatli. Below is a brief definition of the term: l)iversity management refers to the voluntary organizational actions that are dcsigned to creatc gleuter inclusion of employees from various backgrounds into the fornrul $ncl infirrnrnl urganizational structures through deliberate policics rnd progratna. and to more lucralive jobs." T'he term diversity management originated in North America but has shrwly taken hold in other regions and countries of the world (e. -Dr. In this chapter. Although equal rights legislation and allirrnative/positive action policies have helped disadvantaged groups obtain acccss to a variety of jobs not previously open to them. in France.7 Chapter l0 r DiversityManagement 235 Mcllean to remove their stars! And so it went with one group going through the machine to put stars on their bellies while the other was going through it to remove their stars. promotion. The Plain-Belly Sneetches Had none upon thars. all the Star-Belly Sneetches With their snoots in the air.. or Protestant men in Northern Ireland). many cross-cultural conflicts do not have such an enlightened and happy ending. many eornpanies have instituted specific policies and programs to enhance recruitnrent. define the concept. They were really so small You might think such a thing wouldn't matter at all.. l(X)U. it is their exclusion li'om circles of influence in work organizations that has kept them from fully grnnts Would brag. I I Seuss. analyze two prominent We pnradigms for diversity management. Dr. 2003. Diversity Management Paradigms. or that one was this one" (p. "Until neither the Plain nor the Star Bellies knew whether this one was that one . Unfortunately. 236 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT With the globalizing economy and the increase in multinational corporations, diversity management no longer refers solely to the heterogeneity of the workforce within one nation but often refers also to the workforce composition across nations. The first typte, intranational diversity managemenf, refers to managing a diverse workforce of citizens or immigrants within a single national organizational context. An example would be a German company instituting policies and training programs for its employees to improve sensitivity and provide emplopnent opportunities to members of minority groups and recent immigrants in its worKorce. The second type, cross-national diversity management, refers to managing a worKorce composed of citizens and immigrants in different countries (e.g., a Korean company with branches in fapan, China, and Malaysia establishing diversity policies and trainings that will be applicable in its headquarters and also in its subsidiaries in these countries). Each of these types of diversity management presents different challenges and dilemmas, and each requires a different set of policies and programs. In addition to practicing within the laws and social norms of its home country, cross-national diversity management requires employers to take into consideration the legislative and cultural context in other countries, depending on where their workforce resides. For example, a company based in South Africa has to abide by the South African equal rights legislation, which compels it to treat men and women equally. If the same company has a branch in Saudi Arabia, however, it will have to treat its employees according to the laws of that country, which are inspired by the shari'ah and follow the Islamic tradition of prescribed gender roles. In South Korea, as another example, the cultural norms dictate that married women with young children leave their careers and devote their time to their families. Therefore, while a U.S. company is likely to provide training and promotion opportunities to young women (in compliance with antidiscrimination legislation), its Korean subsidiary may view such policies as a waste of time, considering the Korean cultural norms (Lee, 1997; Park, 2008). Cox (2001) notes, "The challenge of diversity is not simply to have it but to create conditions in which its potential to be a performance barrier is minimized and its potential to enhance performance is maximized" (p. 16). Diversity management refers not only to those groups that have been discriminated against or that are different from the dominant or privileged groups, but to "the mixture of differences, similarities and tensions that can exist among the elements of a pluralistic mixture" (Thomas, 2005, p. 93). Using a jar of jelly beans (colorful candy) as a metaphor, Thomas (1996) emphasizes that diversity management is dealing with the collective mixture of all workers, not just the recent additions to the organizational workforce: To highlight this notion of mixture, consider a jar of red jelly beons and assume that you will add some green and purple jelly beans, Mrtny would believe that the green and purple jelly beons represent dlveruity, I ruggest tlut Chapter l0 r DiversityManagement 237 diversity, instead, is represented by the resultant mixture of red, green and purple jelly beans. When faced with a collection of diverse jelly beans, most managers have not been addressing diversity but, instead, have been addressing how to handle the last jelly beans added to the mixture. . . . The true meaning of diversity suggests that if you are concerned about racism, you include all races; ifyou're concerned about gender, you include both genders; or ifyou're concerned about age issues, you include all age groups. In other words, the mixture is all inclusive. (pp. U64a7) Further, diversity management can create a competitive advantage in areas such as marketing, problem solving, and resource acquisition (Cox, 2001). Therefore, diversity management is not the sole domain of the human resource function in the organization (as has been the case with afiirmative or positive action initiatives) primarily aimed at compliance with legal requirements. It is a systematic organization-wide effort based on the premise that for organizations to survive and thrive there is an inherent value in diversity (Cox, 2001; Kreitz, 2008; Orlando, 2000). However, it is important to note that careful research in a global context suggests that diversity management can have both positive and negative consequences as well as no change at all and that a more nuanced approach to the link between diversity management and organizational outcomes is in order (Kochan, Bezrukova, Ely, Jackson, & foshi, 2003; |ackson, |oshi, & Erhardt; 2003; Thomas,2005). From Equal Rights Laws, to Affirmative/Positive Action, to Diversity Management The current business focus on diversity is quite different from equal rights legislation and from affirmative/positive action programs. The latter are about trying to achieve equality of opportunities by focusing on specific groups and righting past wrongs. Diversity efforts focus on managing and handling the diverse workforce to give the company a competitive advantage. All these may be viewed as a continuum: equal employment opportunity (EEO) legislation means that it is against the law to discriminate; affirmative action programs mean that companies need to take positive steps to ensure equal opportunities; and diversity management is proactive and aimed at promoting a diverse and heterogeneous worKorce. The emphasis of the latter is on the business advantage that it can provide to organizations. More and more companies are realizing that there could be a business benefit for having diversity management programs or, at the very least, to including language about it in their public relations materials. For example, IBM's chairnlun nnd CEO Sam Palmisano points to the link between diversity managemcnt snd the crlre business at IBM. Highlighting IBM's long involvement with etluel opporlullily rrnd eliversity initintives, Palmisano notes 238 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT that "diversity policies lie as close to IBM's core as they have throughout our heritage. Today, we're building a workforce in keeping with the global' diverse marketplace, to better serve our customers and capture a greater share of the on demand opportunity'' (IBM Web page,2009). The importance of diversity management programs for global companies is a recurrent theme in the statements of many executives (for a sample of statements in speeches by senior officers of Nikkeiren, |apan's Business Federation, see Ozbilgin and Thtli, 2008, pp. 52-56), Emphasizing the global angle of diversity management, Tiane Mitchell Gordon, senior vice president for diversity and inclusion at American On Line (AOL), notes that diversity management has a strategic role: "It really is about looking at how we can influence and impact our business from a different lens to understand how as a global company, we have to be more culturally aware" (Schoeff' 2009). Cox (2001) notes that "the globalization of business is a trend that makes diversity competenry crucial for many organizations" (p. nD because both large and small companies increasingly derive a significant portion of their revenues from other countries in the world. An interesting explanation for the difference between equal opportunity legislation and diversity management comes from Australia and uses the analogy of wild animals in the zoo.2 Imagine your organisation is a giraffe house. Equal opportunity has been very effective widening the door of the giraffe house to let the elephant in, but home won't be best for the elephant unless a number of major modifications are made to the inside of the house. Without these changes the house will remain designed for giraffes and the elephant will not "feel at home." (Krautil, 1995,p.22) i \. In the United States, where the term diversity managementoriginated, there was a gradual progression over the years from Title VII of the 1964 Civil Rights Act that mandated equal employment opportunity (EEO), to President Lyndon |ohnson's lg72B,xecutive Order 11246 that outlined affirmative action, and culminating in diversity management policies and programs developed in the 1990s and the 2000s. In Australia, the same progressive development took place with antidiscrimination legislation and affirmative action policies requiring the removal of barriers and the implementation of policies that encourage full employrnent of groups defined by personal characteristics such as gender, race, physical abiliry ethnic heritage, and family responsibilities (Ituamar, 1998)' There, too, diversity management has been seen as the natural next step for effective management in the future competitive business environment (Burton, 1995; De Cieri, 2003),3 and many of Australia's most profitable companies have adopted productive diversity policies in different ways (Pyke, 2007). The EU as a whole has developed a strong commitment to cquality and positive uction policies. Across Europe, there is n trencl ttt ntrettgthelt lcgislation Chapter 10 r DiversityManagement 239 against discrimination as indicated by directives on equal treatment of people irrespective of their race and ethnic backgrounds and on the equal treatment of persons in the labor market, adopted by the EU Council of Ministers in 2004 (EU Directive 20001431F,C Art 13).4 Different countries within the union, however, have implemented varying levels of protections and initiatives, and some have adopted affirmative or positive action programs while others have not.s Accordingly, companies in different countries may or may not institute, or even aspire to implement, diversity management policies and programs, and those that have been developed will vary in scope and organizational commitment. In a series of comparative studies, the International Labour Organization (ILO) evaluated antidiscrimination and diversity-training initiatives in different countries in the EU (Wrench,2007). The studies indicated that Spain, for example, was one of the few industrialized migrant-receiving countries that at the time of the study had not introduced antidiscrimination legislation to protect nonnational workers; and in general, there was very little or no awareness of the potential problem of ethnic or racial discrimination. Therefore, although there were some labor initiatives coming from local government organizations, trade unions, NGOs, and some multinational companies, the trainings were aimed at antidiscrimination, not at diversity management (Angel de Prada, Pereda, & Actis, 1997). Even in countries that have already instituted equal rights laws and public policies that promote diversity, the general organizational culture may not have been ready for the next step of diversity management. In the United Kingdom, for example, diversity management was perceived as pre- mature during the 1990s in several cases unless it followed antiracism and equality trainings (Taylor, Powell, & Wrench, 1997).lt is important to remember that the prerequisite for diversitymanagement is having a diverse workforce. Although recruitment of diverse employees can be a goal of diversity management, if there is little diversity in the organization, the focus should be on recruitment strategies and not on diversity management per se. In the Netherlands, for example, a heterogeneous worKorce is still more of an exception than a rule. Although the demographics have changed quite dramatically in the last fivo decades, the workforce is still quite segregated. Most business diversity efforts are focused on recruiting customers, not employees. Therefore, companies need to focus on applying positive action policies in workforce recruitment before they can exercise diversity management (Abell, Havelaar, & Dankoor, 1997; Tsogas & Subeliani,2005). In some countries such as South Africa where a nonracial, democratic constitution came into effect in 1996, equal rights legislation was implemented at just about the saure time as its affirmative action policies, and many of its cornpanies have lrcerr tr"ying to illurost sinrultaneously design and implement diversity managcmenl prograRls, 'l'he results of both equrrl rights laws and the affirrnative action ;rolieles iu South Afi'ien nre nlreacly eviclent in the increased 240 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT proportion of Black managers, though these rates are still far from their representation in the wider society. As the racial and cultural profile of South African organizations continues to change, the process of managing diversity is becoming more important (Horwitz, 2002). The situation in Brazil is quite similar to that of South Africa, with both legislation and government measures to combat employment discrimination taking place relatively recently.6 Brazil, however, is quite different because it has long been a heterogeneous sociery the product of several migration flows relatively early in its development. As a result, Brazilians take pride in their tradition of nonprejudicial national ideology. Nevertheless, inequalities do exist, and the concern of Brazilian companies with the practice of managing cultural diversity is quite recent and relatively limited. Although the population in Brazil is rather diverse, those companies that have developed programs are primarily subsidiaries of U.S enterprises (Fleury, 1999 ; Perez-Floriano & Gonzalez, 2007 ). As is evident from this brief review, equal rights legislation and affirmative/positive action policies are prerequisites for the development of diversity management because they create the social, legal, and organizational environment on which diversity management initiatives can be based. In some countries, the development was sequential and took decades, whereas in others, the development was rapid and almost co-occurring. Diversity Management Paradigms In recent years, several paradigms have been offered for diversity management that underscore its unique characteristics and purpose. This section highlights two of the prominent approaches-the human resource (HR) paradigm and the multicultural organization (MO) paradigm. THE HUMAN RESOURCE PARADICM IN DIVERSITY MANACEMENT Conventional HR practices tend to produce and perpetuate homogeneity as a result of the A-S-A (attraction-selection-attrition) cycle (Schneider, 1987; Schneider, Smith, & Paul, 2001). Typically, individuals are attractedto organizations that appear to have members with values similar to their own. In turn, organizations select new members that are similar to their existing members because their hiring continues to make everyone feel comfortable (Garcia, Posthuma, & Colella, 2008). Recruiting practices often emphasize hiring people from sources that have historically been reliable and selecting candidates whose characteristics are similar to those employees that have been successful in the past, As a result, employees who dcl not fit in well in the workforce Chapter l0 o DiversityManagement 241 with the dominant organizational culture eventually leave or are fired, creating attrition process that supports and maintains a workforce that is homogeneous (Schneider, Smith, & Paul, 2001). In the long run, this trend is unhealthy for organizations in that it limits their talent pool, their long-term growth and renewal, and their ability to adapt to environmental changes and tr selective tnp into new markets. In recent decades, human resource managers have recognized the need to ntlopt effective diversity management practices in order to overcome barriers for diversity and reap the rewards of a diverse workforce. Kossek and Lobel (1996) summarize the three prevailing HR approaches to diversity managerrrent and offer an original approach of their own. The authors later expanded on the model and made the connection between human resource management practices, workforce diversity, and individual, group, and organizational outcomes (Kossek, Lobel, & Brown,2006). The four approaches are presented in 'lhble 10.1 and elaborated below. Diversity enlargement. This approach focuses on increasing the representation ofindividuals ofdifferent ethnic and cultural backgrounds in the organization. 'l'he goal is to change the organizational culture by changing the demographic composition of the workforce. For example, the Norwegian government llacked a draft law that would oblige companies to appoint women to at least 40% of their directorships ("Oslo Pushj'2003). The assumption is that the new employees will conform to existing practices and that no additional intervention will be needed. The mere presence of increasing numbers of employees from different backgrounds will result in a culture change that will bring the desired results. Often this approach is motivated by compliance to laws and public expectations of political correctness rather than a deep understanding ofthe business need for diversity(Kossek & Lobel, 1996). l)iversity sensitivity. This approach recognizes the potential difficulties introcluced by bringing together individuals from diverse backgrounds and cultures in the workplace. It attempts to overcome these difficulties through diversity training that is aimed at sensitizing employees to stereotyping and discrimination while also promoting communication collaboration. The assumption cmbedded in this approach is that increased sensitivity to differences will improve performance. Although this is sometimes the case, in other instances, particularly when the training is not linked to, corporate goals and initiatives and not supported by its long-term policies, it can create more harm than good. Emphasizing differences can backfire by reinforcing stereotypes and highlighting intergroup diffurences rather than improving communication through understsndint 6trd cornnron interests (Kossek & Lobel, 1996). (See tlox 10,1 for an exantple of a clivcrsity training gone flwry.) 242 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT @ trta rr,eA 1i tu, Gsal, $,trategf Diversity Change Recruit Enlargement organizational culture through changing the employees from diverse backgrounds composition of the workforce Sensitivity r Diversity Management 243 niv*@*i6*",'o HR"Approc$ Diversity Chapter 10 New hires will change the culture by their mere presence-no need for additional intervention Tiain to increase Increased sensitivity to differences will promote sensitivity and improve productive communication Overcome adversity and affect performance communication and collaboration Cultural Audit Identifu obstacles faced by employees Audit current Problems are caused practices by the dominant cultural group in the organization and need to be addressed by that group of diverse through surveys backgrounds and modifu company and focus groups and practices generate changes to address these deficiencies accordingly Strategy for Achieving Organizational Outcomes Achieve organizational goals through diversity management SOURCE: Based on Kossek and Lobel, 1996. Integrate diversity management with HR policy areas and other company strategic choices Diversiry management practices have to be linked to desired individual and organizational outcomes Cubural audit. This approach aims at identi$.ing the obstacles that limit the progress of employees from diverse backgrounds and that block collaboration among groups in the organizalion. The audit is usually performed by outside corlsultants who obtain data from surveys and focus groups and then identifi nreas in which employees who are different from the dominant group feel that they are blocked from performing to the best of their ability. Although this is a customized approach that is tailored to specific organizational cultures, the rccommendations for change are typically based on the notion that the source of the problem is in the dominant cultural group (typically, in North America, White male) and that the change must come from within that group (Kossek & Lobel, 1996). An example of a cultural audit is Ford Motor Company's global crrrployee satisfaction survey. The survey, called PULSE, is distributed annually ilrnong all of the company's salaried employees (in 2002,71o/o of employees participated in the survey). Employee satisfaction with diversity is one of the l2 dimensions assessed by the survey, and the results are used to assess Ford's commitment and performance in achieving a diverse workforce (Ford Motor ()ompany,2002). for udticvittg otg(utizntionol outcomes. This approach, proposed by l,ollel (1g(rn) rrs ir c()illplchcusive franreworl< for HR diversity rnrlnilgcln(rt1t, lirctrger orr rlivrt'sily nlrulirljcnlcnt "its it lttcittts for achieving Slrotegy Kossel< arrd because one cultural group manages the organization almost exclusively. Although women and members of minority groups are represented in larger numbers. The MO has full integration. the plural organization. The multicultural organization (MO) is characterized by a culture that fosters and values cultural differences-truly and equally incorporates all members of the organization via pluralism as an acculturation process. THE MULTICULTURAL ORCANIZATION PARADICM IN DIVERSITY MANACEMENT Cox ( 1994. 2003). not as an end in itself" (p. monolithic from a gender perspective because there are many women in the companies. primarily in today's global economy. thanks to the above charncterietiea that result Irom effective ma. however. particularly top management. Cox (1994. This-is an organizalion that has a heterogeneous workfbrce. 2001) presents a diversity management paradigm that includes three types: the monolithic organization. and the mul- ticultural organization. most Chinese companies are monolithic from a cultural and ethnic perspective. India. 4). and the legal and governmental pressures. and its homogeneity will become more difficult to maintain given the influx of women and members of minority groups into the workfiorce around the world. structurally and informally. In other words. Women. They are not. are more likely to be found in diverse work teams. Given the globalizing economy. Although there is greater structural and formal integration in the plural organization. Organizational strategic choices are viewed in the context of environmental drivers such as the changing labor market composition. both men and women. if innovation is a business strategy for the company. is free <lf bias and favoritisrg toward one group as compared with others. of the organization. 1994.2007). the shift to a service econ- omy. relative to the monolithic organization. A monolithic organization in North America or Europe will have a majority of White men and relatively few women and members of ethnic and racial minorities.A monolithic organization will have a culture that will perpetuate the homogeneity of its workforce through its hiring and promotion practices. are men (Powell & Graves. 2001) attributes the increased intergroup conflict in plural organizations in the United States to the backlash against affirmative action programs and the resulting sense among majority group members that they are being discriminated against because of no fault of their own. according to this paradigm. managers have to identify the link between diversity management objectives and desired individual and organizational outcomes. Australia. This is more an ideal than an actual type because very rarely do companies achieve this level of integration. and are still expected to assimilate into the majority culture. However. rather than as an end resulting in assimilation.2001) indicates that it is important to understand this type and use it to create a vision for effective diversity management. and typically makes efforts to The conform to laws and public policies that demand and expect workplace equality. women and racial/ethnic members of minority groups. it is in its best interest to cultivate multicultural diverse teams because creativity and responsiveness to new markets. but this organizational type is also prevalent in other areas of the world such as Europe. . It will take active steps to prevent discrimination in the workplace such as audits that assure equality of compensation systems and manager trainings on equal opportunity issues and sexual harassment. Cox ( 1994. This is an organization that is demographically and culturally homogeneous. intergroup l0 r Diversity Management 245 conflict is expected to be minimal in such an organization because it is basically homogeneous and is composed of one dominant cultural group.244 Chapter MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT organizational ends. both the practices and policies of a monolithic organization are biased in favor of the majority group. The monolithic organizatioru. Not surprisingly. they make up only a small percent of the management. For example. nncl has only a nrinimal intergr/up cotrllict. though. plural organization. Cox ( 1994) identifies the plural organization as the most prevalent type in the North American business environment. primarily because the increased presence of women and members of ethnic and racial minority groups is not accompanied by serious efforts to make them a truly integral part of the organization. Using this strategy. particularly at the top levels. The multicultural organization. should strive to create multicultural organizations in which members of all sociocultural backgrounds can contributeand achieve their full potential. Diversity management.\dEl€lnent o1' tliversity. will be segregated in low-status jobs such as receptionists and maintenance people that do not have a significant impact on organizational policies and practices (Cox. the global economy. For example. and South Africa. There will be an expectation that members of diverse groups will assimilate into the culture of the majority with minimal degrees of structural and formal integration. Typically. institutional bias is rather prevalent and intergroup con- flict is significant. Alalyzing environmental drivers can help the organization determine the specific benefits it expects to gain from its diversity management and how those are linked to its overall business strategy. a monolithic organization will be at a competitive clisadvantage. as the overwhelming majority of their employees are ethnically Han Chinese. are more commonly employed at the lower levels whereas most of the managers. Examples of plural organizations include companies in which members of minority groups constitute a sizable proportion of the workforce but only a small percent of the managerial positions. and the one that followed it. Lobel. business sense. demonstrating that the global economy contributes to increased diversity in practically every region of the world. it is useful for other countries as well because diversity of the workforce is increasingly central.2): l. 2002). 2006).. race. and sexual orientation.d. At the heart of this argument is the trotion of equal opportunities regardless of individual characteristics such as gender. (About thc ltirm.or genderbalanced businesses are given preference. Iudy & D'Amico. "Diversity is a reality that is here to stay''Businesses have to adapt to the new realities of an increasingly diverse workforce. "Our goal is to have a workplace that is fully inclusive." Diversity management can provide businesses with a competitive advantage. Kossek. 1992. "Diversity is a reality here to stay'' The pool of current and future employees is becoming more diverse. it was the report by the Hudson Institute. including (a) cost reductions due to lower absenteeism and turnover.2005). Elements of this three-pronged rationale for adopting diversity management are evident in the mission statement and corporate ethos of many companies." This is the moral and ethical reasoning for diversity management. women. 2005). Here the logic is that by managing diversity.246 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT Coxt (1994) typology of the monolithic-multicultural organizational continuum presents "pure" types that are rarely found in reality but are useful from an analytic standpoint. Rising.. Another ethical principle. This principle suggests that society has an obligation to overcome historical discrimination against specific groups of people to compensate those who have been intentionally and unjustly wronged (Kellough. Workforce 2020. and businesses have no choice but to adapt to this new reality. particularly the extremes. (b) advantages in the competition for talent in the workforce (Thomas. president of Automatic Data Processing (ADP). gendqr and cultural diversity of our people antl our success in hiring. retaining andpromoting women nnd ethnle nrlnorltler. is the foundation of lffirmative action programs (Kellough. Cox's typology is helpful in providing work organizations with a vision of the model they need to strive for in designing their diversity management strategies. work organizations have a social obligation to participate in compensating groups that have been wronged in the past-Blacks in South Africa or Catholics in Northern Ireland. companies have much to gain (Cox. In the United States. which generates public goodwill. While our people make a positive difference for our clients.2003). "Diversity makes good Diversity management can give companies a competitive advantage in the globnl cconolny.. compensatory justice. 1997). Kochan et a1. "Diversity management is the right thing to do. describing in compelling statistical detail the future trends of the workforce (fohnston & Packer. Our greatest asset is our people.8 (c) reduced risk of discrimination lawsuits due to a more just and nondiscriminating environment. and the mission statement of Hanes and Boone (one of the largest law firms in the United States) indicates.). 2006). they do the same for their local communities by dedicating substqntial personal time and funds to pro bono work and community servicc. Velasquez. For example. even in traditionally homogeneous societies. 2006. "Diversity management is the right thing to do. Workforce 2000." Chapter l0 o DiversityManagement 247 2. and (g) improved corporate image. crnployees with equal access 3. More will be said about benefits to companies in the next chapter. n. & Brown. Therefore. One of their central predictions was that the workforce will grow slowly and the proportion of older adults. 2001. and members of minority groups will continue to increase. states." Companies have an obligation to promote social justice and implement principles of compensatory justice through their policies and programs. (f) government contracts for which minority. Earlier chapters in this book described diversity trends in other countries as well. (d) more effective marketing to diverse customer pools (Kossek. that served as a wake-up call to businesses.Pradhan. tg87.Iuy C. each with its own slogan (Table 10. 2006. Lobel. 2002-2003) . The lmpetus for lmplementing Diversity Management Why do companies implement diversity management strategies? There are three types of arguments in favor of diversity management. one that enables us to leverage the talents of a multi-cultural organization" (Automatic Data Processing [ADP]. We nre equally proud of the ethnic. They make Halmes and Boone a special firm by embracing core values that foster a healthy work environment. This includes providing all potential to jobs in the organization and providing current employees with comparable pay for jobs of comparable worth (Velasquez. "Diversity makes good business sense. a commitment to being the best and an attitude of service to others. By outlining these types. et al. & Brown. Although it was generated primarily for the North American context. (e) increased creativity and innovation through diverse work teams (Weiss. 1989). racelethnicity or gender) were labeled as unqualified by managers if they did not conform to values and norms of the majority. the diversity statement of Woolworths Holdings.g. Similarly. an undergraduate scholarship program aimed at encouraging more women to The goal of diversity management is to transform the organizational culture from a majority-oriented to a heterogeneous-pluralistic culture in which different value systems are heard and thus equally affect the wor( environment. companies that implement diversity management often use broad and open definitions of diversity. One of the reasons for this broad and often vague definition is that they make diversity programs inclusive and reduce potential objections from members of the majority group. and affirmative/positive action policies are enforced through incentives (government contracts). (AstraZeneca United Kingdom. Across the business. Since 2000. diversity management has three key components: l. 2008. diversity is high on the agenda and continuous improvement is at the heart ofour approach. Though these key components of diversity management-being voluntary.. realizing that attracting women as customers is imperative for its future growth. the second is increasing productivity and profitability through organizational transformation (e. Thomas. And we have a clear focus on the future-an aspiration to become a true culture of diversity. where advancement depends solely on ability. As a result of that program. 2008. a South African-based retail group. The concern here is that if forced to make a choice among competing expenelitures. using a broad definition of diversiry and providing tangible benefits to the company-represent strength in the current business context..248 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT Chapter 10 These tlpes of mission statements have been adopted by companies outside the United States as well.g. diversity programs may be cut back o[ eliminated . in 2002. Our definition of diversity includes all our different personal skills and qualities as well as race and gender. they can potentially bring the demise of the concept in the long run.g. Cox. specific castes in India or Blacks in South Africa). 2005). Telstra Corporation Limited recruited employees who could speak up to seven different languages to staff its multilingual customer service centers. Diversity management is voluntary.-based pharmaceutical company. but diversity management is self-initiated by the companies themselves. For example. Accordingly. a leading U.700 calls each month with increasingly positive feedback from customers who prefer explaining their telecommunication problems in their native tongues. These multilingual sales consultants take an average of about 2. (Woolworths Holdings Limited.K. Whereas both equal rights legislation and affirmative or positive action policies specifr the groups that are to benefit from the laws or public policies (e. Ozbilgin & Tatli. The logic of diversity management is that it allows every member of the organization to bring to the workplace his or her unique perspective. Diversity management is seen as a business strategy aimed at tapping into the full potential of all employees in the company in order to give the company a competitive advantage. The group has demonstrated its commitment to employment equity by adopting a diversity statement forming the basis for implementation. performance and good teamwork.. 2004) Characteristics and Limitations of Diversity Management r DiversityManagement 249 2. benefiting the organization as a whole. 3. women had increased to a 43o/o share of the company's total university gradu- ate intake. It is not enforced or coerced but is entirely voluntary. pronounces. 2002). better products-because diversity of opinions leads to creativity. 2004) Similarly. sought to increase the proportion of women among its workforce. employees of different backgrounds (e. Ford Australia has funded the Ford of Australia Women in Engineering Scholarship Program. We encourage our people to share their knowledge and ideas across boundaries-to build high performance teams that recognise and value our differences-teams that celebrate diversity but which also embrace common goals. Diversity management uses a broad definition of diversity. whereas in the past. Diversity management has a dual focus: the first is enhancing social justice by creating an organizational environment in which no one is privileged or disadvantaged due to characteristics such as race or gender. Diversity management aims at providing tangible benefits to the company. the voluntary nature of diversity management means that it may not survive during difficult economic times. in order to attract diverse clients. Equal rights legislation is enforced through sanctions (monetary fines or incarceration). the corporate statement about diversity from AstraZeneca. and improved sales-because diverse employees better understand the needs of diverse clients (Cox. for example. 200I.. First. 2001. Ozbilgin & Tatli. enter the field of automotive engineering. Woolworths believes in a diverse workforce and embraces the principles of employment equity to achieve an appropriate balance for the group. Thomas et al. Ford Australia. Expected benefits of diversity management include such outcomes as broad appeal to diverse clients-because diverse employees communicate better with diverse clients. proclaims. 8. and gaining a competitive advantage. 7. The challenge of diversity management is to break the harmful cycle that equates cultural difference with social/economic disadvantages. agement has three main characteristics: Finally. doing the right and moral thing. France has long had a policy that implies (when translated) that "diversity statistics" are illegal to compile. and women-may not receive the protection they deserve because resources will be spread across many groups. NewYork: Random House. achieved-in both the pri- 6. which included several recommendations associated with promoting equality and diversity. it will disappear. pp. T. therefore. Diversity management. 2. And. [Dr.4bout a Girffi and an Elephant Offers New Strategies for Today\ Workforce. It is.34. compared with its predecessors (equal opportunity legislation and affirmative action programs). finally. equality. essential that diversity management will be based not only on the principle of providing tangible benefits to the companies but also on a strong moral and ethical commitment to diversity. Diversity management refers to the voluntary organizational actions that are designed to create through deliberate policies and programs greater inclusion of employees from various backgrounds into the formal and informal organizational structures. is proactive and aimed at creating an organization in which all members can contribute and achieve to their full potential. implementing diversitymanagement can give companies a competitive advantage in areas such as problem solving. and nondiscrimination are being vate and the public sector. (1999) has used a similar metaphor as the theme for his book Building a House for Diversity: How a Fable. although the emphasis on the business advantage of diversity management is probably a good motivator for companies to enact diversity programs. it uses a broad definition of diversity. including the ILO I I I convention on employment discrimination. Chapter Notes L Geisel. 5. and it aims at providing tangible benefits to the company.21-24). The concern here is that the slogan "Everyone is diverse" dilutes the implications of historical injustices and discrimination that have denied certain groups access to opportunities and resources. l0 r DiversityManagement 251 See Chapter 2 on international legislation. The reasons for implementing diversity management include having to adapt to the new reality of a worHorce that is increasingly diverse. countries like Canada.250 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT altogether because their benefits often take a long time to materialize. The Australian Commonwealth Government established the Industry Task Force on Leadership and Management Skills. See a quote from Thomas (1996). Germany. the broad definitions of diversity mean that the most vulnerable groups in society-racial minority groups. . S. To overcome these potential limitations. it is difftcult to know for certain whether the goals of diversity. social. Summary and Conclusion The globalizing economy and the increase in the number of multinational corporations make diversity management a necessity for companies that want not only to survive but thrive during this time of economic. The Brazilian National Program of Human Rights was created in 1996 to irnplement international human rights declarations. 109-210. Hence. earlier in the chapter referring to the jelly bean image with respect to diversity management. Burton's (1995) article demonstrates that diversity management is consistent with the Karpin Report's recommendations for effective management. diversity management has to focus on both enhancing profitability and fostering social justice. during the high-tech boom ofthe 1990s. 3. corporate image. and the United Kingdom revised their immigration policies to attract skilled workers from other countries like China and India in order to supply the much-needed workforce for their computer and high-tech industries. Seuss] (1961). 4. Diversity man- it is voluntary. and cultural changes. though the latter was ratified by the Brazilian government earlier in 1965 (Fleury 1999). For example. and marketing. the emphasis on the practical benefits suggests that once diversity management is no longer perceived as beneficial to companies. The task force published a report in 1995 known as the Karpin Report. Roosvelt Thomas lr. For example. Therefore. people with disabilities. The sneetches and other stories (pp. One has to be carefi:l about broad generalizations with respect to EU countries because legislation and public policies may vary greatly from one country to another. it does not mean that moral and ethical missions should be neglected or overlooked. Second. Some of the barriers to the model's Inrplementation include suspicions and mistrust of those who are different. a broad vision for diversity mannge rnent has a potential for generating important benefits. and the working poor. In order to avoid the pitfalls and reap the benefits of a diverse workforce.'l'ltc pr<lcess tllt 1l r An Overview of the Inclusive Workplace Model 253 nlrplying such policies and programs presents several problems and obstacles (Mor Barak. advantages to the tonlpany in recruitment and in the competition for talent. . a vision that includes not only the organization itself but also its surrounding community and its national and international context. -Percy Barnevick. The legislative and social policy initiatives taken by individual countrieg and by international organizations mitigate potential harmful effects and define "the rules of the game" for work organizations. .rirtes across cultural and national boundaries with a focus on global mutual itrlcrests (see Box 11. social. though. not born. It is important to understand. employers need to adopt a broader vision of incluslon. they also define the scope of what companies need to consider as their domain when they design diversity policies and programs. gerrcrational misconceptions (Wong. cross-cultural misunderstandings. that these trends are not only a backdrop or context for organi' zations to consider. Mor Barak. Winfeld. . participates in state and federal programs to include populnlion groups such as immigrants. and demographic trends described earlier in the book create an environment that is a fertile ground for intergroup conflicts.2008). organizational uniformity of thoughts and ideas (Barbosa & Cabral-Cardoso. such as a better work errvironment for workers and their families (Bond. The conceptual model for the inclusive workplace introduced here and elaborated in the next chapters includes both the value base and the practice applications that foster inclusion. not only within the orllarrization itself but also with the larger systems that constitute its envirotttrterttl.2007. 2008). positive corporate t'eputation (Thiederman.2005) that in trrrrr will contribute to a more productive and loyal worKorce. . women.2005).Chapter An Overview of the lnclusive Workplace Model Managing the Clobalized Workforce Diversity Global managers have exceptionally open minds. and they have the imagination to appreciate why they do them that way. including customers and stakeholders.2000b. and improvement in the public's goodwill loward the company. At the same time. CEO of Swedish-Based Asea Brown Boveril he economic. Diversity Management and the lnclusive Workplace 'l'lrc concept of the inclusive workplace refers to a work organizationthat is not orrly accepting and utilizing the diversity of its own workforce but is also active in the community.1 for the definition of the inclusive workplace). l(X)8). They respect how different countries do things. Clobal managers are made. and short-term goals. and collab(. for disadvantaged groups' such the organization is inclusive domestic violence victims.g chapters introduce each level of the model' identifr its value make the workplnce more inclubase. bar individuals from typically that of a combination of diversity characteristics having a job at all' Finally' from jobs or even applying for certain classes of international collaborarespectful through fat una culturally sensitive and that may go beyond diversity tion'lhe organization is inclusive of cultural of not only to the recipients national boundaries. toward their shareresponsibility to conduct their business with integrity and to add another fundabusinesses holders.oiolut..tt ethnic (Smith' 2008)' sexual' 200s. or recent immigrants. p. 292. At the same time. The barriers and benefits nssocintcel with 1l r An Overview of the Inclusive Workplace Model 255 itre presented. ih.. . the less enough for companies longer no is it and unethical behavior. Each chapter concludes with a case illustration that describes the organizational context and the circumstances that motivate companies to initiate inclusive policies. it helps . and practices that inrplementing thetic' programs sive. *lunteering to teach at not be represented in its own ntay tion is inclusive of diversity gronpt that the education and job Prepaworkforce. Syed & Murray. 2008).o-mrrnity residents acquire it helps the community as and jobs. It slmthesizes otganizations with what within I. and e*a-ine polli. ration that wifl jive them access to better with state and collaborations a whole improrr! its living conditions' Through former recipients' as welfare national progru-. the pubtic expectations for been redefined' The more the behaviors have not only increased but have also faulty procedures that result public hears of corporate greed. follo*i.r. The globalized public now expects (Schwartz 1999)' The & Gibb' mental quality-integration with society with society via expanding inclusive workplace offers a model for integration organization's own workforce as circles of inclusion: through inclusion of the state level or across national the well as programs with the community-at groups that may not diversity of inclusive borders. Note l. The inclusive workplace emphasizes a cohesive framework the into geting a wider scope of diversity.. These practices are beneficial organization itself' the to the additional services and programs but also corporate "good citizenship" In recent decades.. and people orientaiion the same ideas but is tar' with disabilities. corruption' and for corporate indifference has it patience in exploitation und dirast.ihe organization can be be represented in its own workforce. scene. Through programs *ittt alocal high school' the organizashops or . and religious-minority groups.-ioy. They illustrate some mistakes that were made and clemonstrate interesting and creative programs and initiatives that promote a nrore inclusive organizational environment.. Questions for further analysis and discussion follow each case. Javidan and House (2001).d body of knowledge on diversity responsibility and involvement we have learned in recent years about business on the global with the community along with the projected developments as job preparation worksuch communiry ttt.2007). The more workforce' improving the programs have targeted the organization's own (e'g" Bilimoria et al" opporiunities of such groups as women "-ioy-. It also has policy anJ practice applications traditional diversity policies and levels from the micro to thetacro..254 Chapter MANAGINGADIvERSEwoRKFoRcEINTHEGLoBALCONTEXT manifested at each of the systems The model has a strong value base that is that are unique to each of the levels. members of racial' (Colgan et a1. today in Cermany I am called a German man of science and in England I am represented as a Swiss lew. during which they will be introduced to expectations regarding norms and behaviors in the company ("this is how we do things around here").2001. coevolving and Conlormity to preestablished organizational culture Within Organizations organlzational values that keeps changing to and norms that reflect reflect diversity of values and norms the "majorlty" or lndividuals Groups "malnitroam" . the inclusive workplace is based on a pluralistic value frame that relies on mutual respect and equal contributions of different cultural perspectives to the organization's values and norms (Cox.I illustrates the value base for level I of the inclusive workplace model and idenlifies the values on either side of the inclusion-exclusion continuum. What distinguishes an inclusive workplace from an rlrganization that merely implements diversity initiatives is the comprehensive rrpproach to diversity that is part of an overall organizational strategy. lnclusion and Diverqity Within Work Organizations ees 255 Value Frame System Level Exclusion lnclusion Pluralistic. The lnclusive Workplace: Level I lnclusive Policies and Practices A variety of policies and practices constitute inclusion at level Inclusion Through Diversity Within the Work Organization By application of the theory of relativity to the taste of the reader. For example.2008). relates to the organization's internal relations with its own employand reflects the "micro" system level. that of individuals and groups within the organization.Chapter 12 o The Inclusive Workplace: Level | 257 Io learn of its employees' concerns and expectations. diversity within work organizaI tions. An inclusive workplace. Figure 12. This rupproach includes an organization-wide diversity evaluation. such as open management-employee meetings and open e-nrnil communications. It will constantly strive to rnodi$r its values and norms to reflect the diversity of its workforce. that should lead to goals that are tailored to the organization's unique culture and will result in implementing appropriate diversity policies and practices. will utilize continuous. Whereas an exclusionary workplace is based on the perception that all workers need to conform to preestablished organizational values and norms (determined by its "mainstream"). to cultural audit and linking diversity practices to strategic goals. & Sanchez-Burks. Based on this assessment. on the other hand. diversity goals are then set lbrth. and I shall become a Swiss lew for the Cerman and a Cerman for the English. with the general purpose of creating a more inclusive work environment irnd as a strategy for achieving organizqtional outcomes (see Chapter 10 for more Tn. lf I come to be regarded as a "BOte noire" the desuiption will be reversed. first level of the inclusive workplace. multiway communication methods. The e ultural audit is usually performed by outside consultants who obtain data liom surveys and focus groups to identif areas in which employees who are different from the dominant group feel that they are blocked from performing to the best of their ability. 19191 l-from recruit- rnent through mentorship and training. November 28. an exclusionary workplace will hold a l-day orientation for new employees. Plaut. Einstein in a letter to the -Albert London limes. Few would be at either extreme. Note that rnost organizations will be somewhere along this continuum. or audit. Stevens. S. not only for organizations that will benefit from improved relations and better teamwork among their employees but also for individuals who will benefit from improved career trajectories. (d) work-life balanceoffering flexible work arrangements such as telecommuting. ageism. that is. diversity trainings vary from 1-hour lectures to a series of ongoing seminars. 2005. with more than half (560/o) of all U. Wentling & Palma-Rivas. Thomas argues that "individuals also have a personal responsibility to manage diversity effectively. In fact. 2001). These diversity initiatives typically cover five principal areas and included (a) management leadership-senior management taking the leadership in major diversity projects such as using consultants to conduct needs assessment and designing diversity trainings and programs. They typically use experiential. He further notes that individuals need to develop diversity maturity. working at home. and others. corporate diversity trainings are quite popular. Although most diversity efforts in work organizations focus on management initiatives and on developing managerial diversity skills. not only in the United States but also internationally (Ferner. Wentling. unless they do so. valuing diversity. a combination of knowledge about diversity and a comfort with the dynamics of diversity relationships. 2006. 2006). wisdom. Kalev. Investing in the development of advanced diversity skills is important. & Colling. and evaluating a large number and variety of diversity initiatives. Thomas (2005) points out that it is just as important to develop the awareness and skills of individual employees at all otganizational levels. . Lynch. Most of the companies surveyed had diversity statements in their mission as well as their annual reports and regularly communicated their diversity initiatives to their employees. and part-time work assignments to accommodate diverse needs and lifestyles of employees.2006). emotional. In this section. Surveys of diversity initiatives in selected multinational corporations indicate that these companies are planning. implementing. However. (b) education and training-conducting seminars and workshops to increase diversity awareness and skill building and to help employees understand the need for. heterosexism. and (e) career development and planning-establishing career development and planning initiatives for women and members of underrepresented groups to ensure fair promotion opportunities for high-potential employees and to increase diversity representation in managerial-level jobs. job sharing.1). Dobbin. In the United States. the benefits include an increased familiarity and reduced bias against members of out-groups. the organization as a whole cannot be effective with diversity" (2005. p. In addition to actively recruiting members of diverse groups. Dobbin. Often triggered by lawsuits. 2004. 2000). racism. Chapter 12 o The Inclusive Workplace: Level I 259 Other efForts to promote diversity and inclusion within organizations include initiatives aimed at (a) establishing organizational responsibility such as appointing a corporate officer to oversee the company's diversity efforts and appointing/electing diversity committees comprised of employees from various departments and levels within the organization. the most common approach to diversity within work organizations is providing sensitivity training and workshops to employees. He advocates that individual employees learn how to become effective diversity respondents-people who act with confidence. (c) performance and accountability-developing diversity action plans to meet the goals of specific business units and the organization as a whole and holding managers accountable to these goals by linking diversity performance to compensation. 1994. often employees resent these diversity-training sessions because they are seen as forced. and (c) empowering employees of diverse backgrounds through networking and mentorship programs (Kalev. & Kelly. It is clearly in the best interest of organizations to elevate their employees'diversity skills while at the same time creating an organizational environment that allows all qualified employees to perform at peak effectiveness (see Box 12. & Kelly. (b) encouraging managers' responsibility for diversity through such mechanisms as evaluating managers on their diversity performances. short-term affairs with no clear connection to the organization's strategic goals (Henderson. for example. companies providing diversity training to the ir cnrployees (Paluck. and meaning of. Almond. 90). When the training is long term and well conceptualized. and sometimes confrontational techniques to raise awareness about personal harm caused by the "isms": sexism. and effectiveness when interacting with others who may be significantly different from them. we discuss a variety of diversity policies and practices that an organization can implement to create an inclusive work environment.258 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT details on both cultural audit and diversity management as a strategy fof achieving organizational outcomes). customers. Specifically. In today's "politically correct" environment.2 provides a summary illustration of the main barriers and benefits of implementing the inclusive workplace at level I. 2003). marginalized status. less absenteeism) Positive image with emplqyeeS. and ll nanclbllnstltutio ns . either overt or covert. security Benefits lndividuals Organization r Access to o Business growth and advancement and lob promotions r Cost savings (e. Hyun. people may be embarrassed to show their ignorance about other cultures. Konrad. The barriers traditionally suffered by women. Executives interviewed about the challenges of implementing diversity initiatives reported encountering difficulties in changing attitudes about diversity throughout the workforce. In 1999. and changing attitudes or raising diversity competency among managers (Marquis et al.9. particularly in management positions. older adults. Sanlam developed an employment equity policy as required by the country's 1996 Employrnent Equity Act. may not want to invest time and energy in learning about those cultures.2006. r lmproved lncome and bsnelltg Mors daolclon.2008). Figure 12. 2008. a financial services company headquartered in Bellville. and ethnic/racial minorities were typically the result of competitive relationships between identity groups in the workplace and often confounded by cross-cultural misunderstandings.260 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT Chapter 12 r The Inclusive Workplace: Level I 261 BARRIERS The main barriers have to do with managers'and employees'attitudes and behavior. An example of a company taking steps to identify and overcome barriers to inclusion is the experience of Sanlam. These barriers include lack of support in career planning. South Africa. failure to give nontraditional employees the breadth of experience required for job advancement. the Barriers Barriers and Benefits of lmplementing the lnclusive Approach at Level I Discrimination Prejudice Perception of threat to job Organizations that implement inclusive policies and practices may need to overcome barriers on several fronts. lower . or may perceive diversity initiatives as a threat to their job security. maklng pow€r productivity r turnover. but they will be able to reap the benefits. making management more diverse. social isolation. prejudice (biased views) and discrimination (biased behaviors). are at the core of the barriers for implementing inclusive policies at the workplace. and an unsupportive working environment (Fassinger... both for individual employees and for the organization ns n whole. the literature suggests that diversity initiatives can help companies increase the skill base and range of talent among crnployees.S. 2008). the employment barriers traditionally suffered by women and minorities can be overcome. Kentucky. and work group performance. managers. In 2001. and that people of color saw benefits from diversity management above and beyond those experienced by White employees (Pitts.g.. Such policies open the doors to job advancement and promotions that have clear monetary benefits to individual employees and their families. & IGoll' 1995). The study employed event study irethodology that is commonly . A third study in this category is a survey of U. The initiative. This is significant considering that turnover costs an average of $89.5 million. an example for benefit (c) above.63 net benefit for every dollar spent on the diversity training (Kirkpatrick.. 2000). federal employees that investigated the relationship between diversity management. Werbel. Nextel figured its saving as a $1. Much of the "case for diversity" during that time was built on ideological and deductive reasoning. 2009. In general.. & Phillips. as indicated by Ted Childs. 1995). such as marketing more effectively to minority communities or to senior citizens (e. They also open up channels of communication and enhance employees'decisionmaking power. Pitts. and (c) the positive effect that dfversity management has on the company's image and stock prices (Robinson & Dechant. was. job satisfaction. An example for benefit (a) above. More epecifically. based on an impact assessment using the cost of diversity training. More research into the benefits of diversity practices has been generated since then. Hiller. is provided by a study that examined the impact of exemplary versus firulty corporate diversity practices on companies' stock prices (Wright ct irl. Research into the benefits of diversity for organizations was relatively scarce in the 1980s and early 1990s. 2008). "A consistent heritage of diversity translates into a slrong reputation that helps us attract and keep talented employees"(Alsop. that of the connection between diversity and business growth and productivity. thus affecting the organization's bottom line (Marquis et al. was not supported. Another study investigated the relationship between demographic diversity of the executive board of directors and organizational performance. 2003. focusing on more clearly defining and measuring diversity and on examining the causal connection between diversity management and organizational outcomes. 1997. called the 'All-Inclusive Workplace.I 262 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT company surveyed its employees and compiled an in-depth report of the barriers to equity within the company.2o/o or 371 individuals.000 per employee. the training was responsible for 36 people continuing to work at Nextel. The results showed that roughly l0o/o of the improvement in retention was due to the training.2001). and improved productivity and winning the competition for talent by being more attractive to women and membe.. In part. & Shrader.. its second hypothesis. the decision was made to link managers'performance bonuses to their diversity management performance (United Nations Global Compact. 2009). thus apprearing to have an impact on the overall organizational performance (Erhardt. (b) cost savings due to lower turnover. Nextel focused its attention on ascertaining the impact of its diversity trainings.2003). Ferris. The results indicated that board of directors' diversity was positively associated with both return on investment and return on assets. the overall decrease in turnover was 2." tracked changes in employee retention and corporate financial benefits that could be attributed to diversity training. The study's sample included 63 banks from three states in the United States-California. To put it simply. IBM certainly benefited from its cliversity initiatives. 158-159). There is now accumulating evidence that the benefits of inclusive diversity practices center around three areas: (a) the opportunity to drive business growth and productivityby leveraging the many facets of diversity. Richard. 2004. Wright.s of minority groups (Marquis et al. Erhardt. less absenteeism. which makes the total savings for the company approximately $3. IBM's former vice president lilr workforce diversity. pp. and North Carolina-and was based on a combination of financial information (obtained from quarterly reports to the Federal Reserve) and a questionnaire to solicit human resource information on racial composition (obtained from human resource managers in the companies). When it was later decided that the com' pany's diversity management initiatives were not progressing quickly enough.2000). An example for benefit (b) above. Finally. is the experience of Nextel Communications. 2003). Phillips. and it was negatively related to performance when the company pursued a downsizing strategy. Although the study's first hypothesis' that racial diversity was positively associated with a company's performance. that this relationship wus moderated by the organization's business strategy. this may be because comparties that recruit from a wider pool ofcandidates have access to and are able to hire alarger number of exceptional personnel. that of cost savings that may result from diversity management initiatives. is a study conducted in the banking industry that documented an association between racial diversity and improved performance (Richard. BEN EFITS By enacting policies that facilitate inclusion of all employees. Werbel. The findings indicated that diversity management was strongly linked to both work group performance andjob satisfaction. improved company image and stock price. & Shrader. lrigher racial L Chapter 12 r The Inclusive Workplace: Level I 263 diversity was positively related to a company's performance when a company pursued a growth strategy. and executives. Accordingly. Finally the Thompsons left Denny's without having eaten. . The Thompsons' experience is just one of many such accounts from African Americans who visited Denny's in the 1990s (Riesch & Kleiner. generating immense negative publicity for denying service to African Americans at several of its restaurants across the united states. Most famous for its "Original Grand Slam Breakfast. Denny's purchased no supplies from minorities and had few minorities in its management. 1995). 1991. Customers from diverse backgrounds expect the workforce to look like them and are more likely to do business with a company that has a positive image with respect to diversity. must show a commitment to equal employment opportunity with demonstrated results. L)enny's has grown into the largest fullservice. In addition to discriminating against its minority customers. which Rachel promptly presented. ll rruw operuteshgeven cour. Denny's. including Fortune magazine's choice as the number one place for minorities to work. After waiting what seemed like an inordinate amount of time to be seated. became infamous for its discrimination. Denny's became an internatinnul conrpapy in l9(r9 when it opened a restaurant in Acapulco. Despite all of these changes. Companies included in both data sets represented a variety of industries and different sizes. Instead. 2000). The waitress ignored the request and the baptismal certificate that the Thompsons presented as proof of their daughter's age. the event chosen as an indicator of exemplary diversity practices was the announcement of the annual Exemplary Voluntary Efforts Award by the U.264 research.2000). The results indicated that announcements of companies receiving awards for high-quality. Denpy's still faces a negative public image and continual lawsuits for discrimination. It wasn't the celebration they had anticipated. The happy occasion was shattered for both Rachel and the entire Thompson family (story recounted from Adamson. lnc.S. Denny's has undergone a major transformation to change the level of diversity within the company as well as improve the way employees treat customers." Denny's offers a variety of breakfast. . Nominees for the award must be free of problems with compliance with the Equal Employment Opportunity Commission. Data for this portion of the study came from the Wall Street Journal Index and the Dow Jones News Retrieval and included 34 companies whose announcements came out during the same 7 years as the award-winning announcements (1986-L992). family-style restaurant chuin in the unitecl statcs with over 1. investors (Alsop. diversity initiatives and a progressive corporate image can make the stock appealing to socially responsible I 265 On December 11. At that point. the manager rejected the proof. Department of Labor. this study demonstrates that high-quality diversity efforts contribute to sustaining a competitive advantage and are valued in the marketplace (Wright et al. and must show a desire to go beyond "business as usual" practices. Again. the Thompsons. We need to recognize that. -Rachcllc t Hrxrd-Phil lips. 2005). Data for this portion of the study included 34 award-winning companies over 7 years. Similarly. which Mrs. all traded on the New York or American Stock Exchange during the period ofthe study. HOMOCENOUS HISTORY Case lllustration: Level l-lnclusion Through Diversity Within Work Organizations-Denny's. starting in 1953 as a donut shop named Danny's Donuts. The manager asked for proof of Rachel's age but rejected the baptismal certificate. unfortunately. All human beings have differences. lnc. Thompson of throwing things at him and started yelling at her. Instead. The event chosen as an indicator of faulty diversity practices was the announcement of major settlements by companies found to be guilty of labor discrimination. Their efforts have been rewarded with widespread praise and numerous awards. "Denny's has gone from worst to first" (Adamson. Thompson slid over to the manager. In the words of Denny's former CEO Iim Adamson. and dinner menu options. After paying $54 million to settle a pair of class-action lawsuits. Though the association was limited to the days immediately following those announcements. . including thc United States. the manager did not offer a better remedy. Chicf Diversity Officer. once famous for its breakfast menu. Creatiyg a hospitable environment for all employees and building a reputation of aiompany with a diverse workforce can go a long way to improve a company's bottom line. 2004). In this study. Mcxico. He asked for the baptismal certificate again. . indicating used I Chapter 12 o fhg InclusiveWorkplace: Level MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT in financial economics either exemplary or faulty diversity practices. Denny's. they told their waitress that it was Rachel's birthday so she was entitled to a free meal under Denny's popular birthday promotion. he said he would accept a school ID card. went to Denny's to celebrate Rachel Thompson's thirteenth birthday. the manager accused Mrs.ics.000 locations. an African American family. lunch. she went to get her manager. This procedure was used to determine if there was a significant change in the price of a company's stock on the days immediately surrounding the announcement of an event of interest.rlr. voluntary diversity programs were associated with positive and significant stock price changes for those companies and that announcements that convey that companies were guilty of discriminatory practices were associated with negative and significant stock returns for those companies.. Despite these efforts. This was the case for the Thompson family who were denied a birthday meal for their daughter on her thirteenth birthday. during which time the number of African American patrons was limited. Initially. lawsuits. Flagstar) of repeated civil rights violations. the CEO of Denny's parent company.S. In addition to having to pay $54 million to settle the class-action Iawsuits from 1993. Adamson has a history of reversing bad company positions. Under the consent decree from the settlement. Develop and administer a nondiscrimination training program. Denny's employees would then claim the customer was being hostile and order his or her removal. with of without a blackout period. The training had to be approved by the monitor. claiming that the restaurant was too full. Hood-Phillips had spent her career successfullybuilding and managing diversity at Fortune 500 companies. The cases accused Denny's (and Denny's parent company at the time. Inc. Denny's sometimes forced the removal of African Americans from its restaurants. employees told customers that other African Americans had left without paylng. Although not every Denny's restaurant or employee was guilty of discrimination. The consent decree mandated the percentage of various ethnicities that were required in Denny's advertisements. either by the security guard or by the police (U. other later-arriving. "Blackout" periods were instituted at some restaurants. When he was a child. the evidence continued to mount. He publicly warned that he would fire any employee or franchise owner who discriminated or challenged the diversity changes he implemented. Denny's denied complimentary "birthday meals" for African Americans or in some cases required burdensome proof of a child's age. the problem was systemic. Adamson also possessed a unique diversity perspective. with specific rules for counting the seconds of face time for various ethnicities in television commercials. To accomplish this. Inc. As Adarnson concedes. as evidenced by other practices. The monitor was responsible for investigating any new discrimination claims arising after the settlement. He agreed to hire more minorities and increase the number of purchases from minority-owned businesses. Dennyt parent company. 2000). hired a new CEO. a person experienced with the monitoring and enforcement of civil rights.266 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT A major stain appeared on Denny's history after two class-action lawsuitl for discrimination were filed in 1993 (Ridgeway v. in 1995. l)enrry's. THE NEW FACE OF DENNY'S Denny's was faced with the daunting task of changing its behavior and image. This frequently occurred after a customer claimed that he or she was not being treated properly. with whom he worked at Burger King. DIVERSITY CHANGES Together. In addition to creating this new position. Dennyt losses from the lawsuits and widespread negative publicity were significant. primarily against African Americans. to fill the role. Department of |ustice . many customers refused to patronize Denny's. Jim Adamson. No. Department of lustice. When challenged. service was refused to African Americans. He recruited Rachelle Hood-Phillips. Adamson has developed a deep appreciation for diversity and considers it important from a business perspective (Adamson. Flagstar. denied and fought the charges filed in the lawsuits.1994 (U. Denny's had only one African American franchisee and had no minority suppliers in the early 1990s. Flagstar Corporation anil Denny's. Some claimed that Denny's required African Americans to pay for meals prior to consumption.S. As a result of his experiences in those countries. the consent decree initinted sonre of the prnetices. In a 1996 survey. No. Adamson lived in lapan and Europe because of his father's military travels. including helping Revco emerge from bankruptcy and improving Burger King's financial woes (Thlaski. Flngstar Corporation and Denny's. Adamson denounced discrimination at employee meetings and other events. Frequently during the delay. 2001). 1993). starting May 24. Tiaining was mandatory for every employee of Denny's and Denny's franchises. Civ. 2002). 2000). so prepayment was required. One of Adamson's first steps was to create a chief diversity officer position. Civ.'trcwevel added many . eventually causing Denny's to settle the Chapter 12 r The Inclusive Workplace: Level | 267 Additionally. 93-20202-JW and United States of America v. Richardson signed a pact with the NAACP in 1993 to help solve the company's problems. Denny's employees would simply deny or delay seating. Denny's found that 660/o of African American customers refused to eat at the chain's restaurants (Henderson. Flagstar. Hood-Phillips and Adamson implemented many changes to improve Denny's diversity (Adamson. non-African American customers were seated or served. Notifi' the public that Denny's will operate in a nondiscriminatory manner. Some African American customers were charged a cover charge prior to being served. Jerry Richardson. l)enny's was required to perform the following activities for 7 yearc. Denny's had to absorb operational expenses associated with its class-action settlement. 1993): Retain a civil rights monitor. 93*2020S-IW). Faced with growing negative publicity. Test franchise and company-owned restaurants to ensure compliance with the consent decree. Denny's board of directors consisted almost exclusively of \{hite men. In many cases. the board comprised primarily White men. 2000). employees are taught how to reflect their empathy back to the customer and show their concern about a problem. This point is demonstrated with videos that show various scenarios in which misinterpretations lead to disaster when mishandled.According in Chapter 12 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT situations and monitoring of certain to Adamson. In the early 1990s. However. 25o/o of the senior management team's incentive bonus was tied to the advancement of women and minorities. Denny's initiated a 3-year fund-raising campaign to promote human and civil rights. Because the franchisees. regardless ofthe reason. Most employees. Dennyt has provided funding to help minority owners get started. The campaign illustrated the changes at f)enny's. own more than one restaurant." 2008). however. which represents 460/o of all Dennyt restaurants. It teaches employees how to empathize with customers. with a second session within 270 days. and respond to situations only when instructed by the store manager. especially the increased number of minority franchise owners and suppliers. Security guards are taught to be more sensitive to customers. the company has also made substantial improvements in the diversity contposition of its r The InclusiveWorkplace: Level I 269 workforce. Three campaigns in particular have been a large focus of Denny's efforts. Further. For example. not just for African Americans. from top management to servers and cooks. Denny's spent several million dollars on an ad campaign targeting minority customers. the change in diversity is evident-S4o/o of senior managers are women and/or minorities. Denny's has been active with philanthropic activities. Denny's started with its board of directors. Denny's has pledged $250. Denny's raised $1. It has strict discipline standards for dealing with employees who discriminate or repeatedly perform questionable actions. Throughout all levels of the organization. on average. Every employee must attend diversity training' The consent decree mandates that an employee attend a diversity session within 90 days of joining Denny's. Tiaining teaches sensitivity for every culture.of minority franchise owners from r in the early 1990s to I20 in 2002. . Dennyt has increased its purchases from minority-owned suppliers from $0 in 1992 to $90 millionin2002. Adamson devised a creative financ- ing arrangement that loaned money monthly to keep the business operating. Hood-Phillips developed methods to effectively measure and track diversity at the company. For example. In 2008r Dennyt launched a new initiative in partnership with rhe Tom foyner Foundation called The Denny's Single Parent Student Scholarship. I)enny's delivered rnure tlrrrn wrrs required. Although this ncw campaign was a fqlfillment of the consent decree. Denny's teaches the guards that such actions may actually create more problems than they prevent. Many of the security guards are off-duty police officers who believe that early intervention customers will prevent problems. Dennyt targeted a $l million donation to the King Center. four times the national average. The business sold items to Denny's and then repaid the loan monthly after receiving payment for the goods. As with its minority franchisees. without making guests feel uncomfortable.respectively. a security guard follows a patron who doesn't stop at the register to pay. Denny's continues to investigate every incident or claim of discrimination. the minority franchisees own a total of 472 restaurants. More important. Denny's spends several million dollars each year on compliance and training (Adamson. but it also has increased the number. Denny's tightened those requirements to 75 days andzzs. supporting numerous human and civil rights organizations. In fact. However. as the video later shows. Security guards are trained to watch the restaurant generally.2 million for the National Civil Rights Museum. the patron left his money on the table before leaving. To let the public know about all of the changes and recapture some of its lost customer base. In 2003. atlend the sessions much sooner than the deadlines. The guard confronts the patron. The schol- arship program is aimed at helping single-parent students attending Historically Black Colleges and Universities (HBCUs) meet the challenges of raising a family while earning a postsecondary education ("Denny's promotes Diversity Leader. one of Denny's suppliers was on the verge of bankruptcy. In addition to all of the training that Denny's is providing. 29o/o of nonsenior managers are minorities. In addition to changing its business practices. now 50% of board members are women and/or minorities. and 47o/o of all Denny's employees are minorities. Denny's has helped fund some of the businesses. employees are taught that it is inappropriate to ask a Hispanic customer to show a green card. any customer that discriminates or uses racial slurs is asked to leave the restaurant immediately. in one scene. In many cases. ln2002. The diversitytraining that Denny's uses has a substantial price tag. Denny's partnered with the Hispanic College Fund to initiate Denny's Scholastic Stars Sweepstakes. In the first year.000 to provide scholarships to Hispanic students over a 3-year period. Her work enabled Adamson to tie diversity to managers' bonuses. the training has been so effective that Denny's was released from the oversight of its civil rights monitor at the end of 1999./ 268 additional activities. A toll-free number is posted in every restaurant to help Denny's identifi and investigate problems' Denny's policy is not to tolerate any discrimination. representing l5o/o of Denny's annual purchases. Despite being released from oversight. For example. For example.. c o o In 2002. Denny's has not only increased the number of minority employees. ayear earlier than mandated by the consent decree (Adamson' 2000). which leads to a bad situation. \. Denny's diversity training may represent some of the company's best efforts to correct its diversity issues. Dennyt civil rights monitor recommended the dismissal of one of the employees invorved in the incident. "Tiooper to eat and work.' 2003)." The officer filed a discrimination lawsuit (Riesch & Kleiner." Denny's has also been selected to the 2006 and 2007 Black Enterprise 40 Best Companies for Diversity. Asian Enterprise magazine. 2000). thars what you are. ra^cial slurs." 2003). Although that number is still significant. and the Center for Responsible Business. legal troubre persists. the most significant awards that recognize Denny's achievements are from Fortune magazine and the NAACP. Another case in lanuary of 1999 involved two Muslim men who went to a Denny's in Montana for lunch and requested that the cooks use a separate skillet so as not to contaminate their meals with pork. 2005). an Afiican American couple claimed theywere ignored for nearly an hour while only white customers were seatecl and served. The Anne Arundel (Maryland) branch of the NAACP named Denny's "Corporation of the Year" for 1996. who threw a punch at the students. senior management. 1999. Additionally. (c) whether minorities are promoted into management at the same rates as nonminority employees. Denny's went on to rank number one for 2000 and 2001. the story was not only disturbirg but also believable. sues. Equal Employment Opportunity Commission.000 publicly traded companies and the 50 leading global companies with significant U. In selecting the top 40. (g) the use of minority-owned underwriters or pension-management firms. it is substantially lower than the findings from 1996. However. They were offered new meals after complaining to the manager only to find bacon within the new meals as well. BE's corporate diversity survey focuses primarily on activities related to the participation of African Americans and other ethnic minority groups in four key areas: supplier diversity. when the meals arrived. In 1998. In addition to the awards.rray through their meals they discovered pork hidden in their food. and (h) the portion of charity going to minoritybenefiting programs ("Best Companies for Minorities. Halfi. The students claimed that they were then beaten by the security guarJand a mob 10 white customers. considering Denny's past. customers reported of that the students were obnoxious and intoxicated. his response was. (e) how successfully people of color have been integrated into succession plans. The plaintiffs ranged from students. Denny's had a videotnpe of the irrciclerrt thirt showccl lhe couple was in the restaurant not for nn hour but jurt l() nrirrutes. he determined that the students orchestrated the entire string of events from beginning to end. The 2-year change in attitude represents an additional t million African American customers for Denny's (Adamson. For many. to a police officer. remaining in the top l0 consistently since 1998. A Montana Human Rights Bureau investigator concluded that the Denny's employees deliberately placed the pork in the Muslim customers. The students refused to cooperate with police who arrived at the restaurant (Tuchman. Latina Style magazine. Denny's has won awards for being a friendly place for women and minorities Despite the changes made at Denny's. when the cook was asked about the incident.270 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT Chapter 12 o The Inclusive Workplace: Level I 271 AWARDS AND IMPACT CONTINUED LECAL TROUBLE The efforts at Denny's have been noticed by numerous organizations. mears. 2002). Another case of blatant discrimination occurred in September of 2003when an African American Florida Highway patrol officer. In 1998. a black pig. 1997). operations. and other discrimination practices. Numerous lawsuits have been filed against the company since the 1993 class-action cases (Riesch & Kleiner (2005). They claimed that in 1997 they were refused service and then kicked out of the restaurant by one of the security guards. 2001).. Fortune ranked Denny's as the second-best place for minorities to work. The scuffle outside involved only one other customer. he agreed to terminate the employee. however. (f) the strength of purchasing programs with minority-owned businesses. threw out the case. "well. In 1997. Denny's efforts have resulted in increased business. However. Denny's has also faced sexual harassment and dis_ crimination charges from at least one employee (U. In a 1999 lawsuit. However. upon reviewing the evidence. AAciitiumllX the videotape . The franchise owner protested. using profanity directed toward employees. one case involved a group of chinese and African American students from S1'racuse university. when 660lo of African Americans refused to eat at Denny's (Henderson. Fortune ranks companies based on a comprehensive list of diversity factors including (a) how well minorities are represented in the general workforce. mistreatment. Hood-Phillips conducted a follow-up survey and found that 39o/o of African Americans would not eat at Denny's. Texas civil Rights project.S. officer Levy discovered a small plastic pig on her plate. the NAACP presented Denny's with the Fair Share Corporate Signatory Award for Minority Business Development. the National Association for Female Executives. (d) whether managers are held financially accountable for meeting diversity goals. (b) how many are among the most senior officials and highest-paid employees. Barbara Levy." 2009). in 1996.S. board involvement. and employee base ("Denny's Named Among Top Performers. to a reverend. the NAACP named Iim Adamson "CEO of the Year. Awards have come from Family Digestmagazine. claiming no discrimination had occurred. receiving high honors as Most Improved Company. BE conducts a comprehensive outreach effort to the CEOs and diversity executives of the top-grossing 1. The district attorney. The claims were familiar: denial of service. went to Dennyt with five other uniformed officers during her lunch break. God\ Equation: Einstein. less absenteeism. as well as the barriers and benefits to implementing Why do you think Dennyt is facing continuing discrimination lawsuits? Do thc lawsuits indicate that Denny's policies and practices are not working? Are therc other explanations? If you were a consultant. persecuted in Germany. What distinguishes an inclusive workplace from an otganizacies and practices constitute inclusion at level tion that merely implements diversity initiatives is the comprehensive strategy' organizational approach to diversity that is part of an overall Diversity initiatives typically cover five principal areas and include (a) management leadership. Relntivity and the Expanding IJniverse. such as marketing more effectively to minority communities or to senior citizens. It also illustrates some of the practices that make the company more inclusive. "I wish we could have been faster and more efficient. Batu noire is French for "black beast" and refers to something or dreaded or hated. and improved productivity and winning the competition for talent by being more attractive to women and members of minority groups. (b) cost savings due to lower turnover. . it is just as important to develop the awareness and skills of individual employees at all organizational levels. Einstein's statement is quoted in D. It relates to the organization'S internal relations with individuals and groups of employees. the most common approach to diversity within the work organization is providing sensitivity training and workshops to employees. Could Dennyt have managed their diversity issues better? Why or why not? The main barriers to implementing inclusive policies at this level are attitudes and behaviols of prejudice and discrimination within the company. Although most diversity efforts in work organizations focus on management. Jim Adamson stated that he would fire anyone who discriminated or challenged his new policies. (c) performance and accountability. These barriers include lack of support in career planning. Was Jim Adamson effective in improving Denny's diversity and public image? Why or why not? 273 1. through mentoring and training. l2l. What message did this statement send to the employees? What impact do you think it had on employee morale and customer relations? Note 4. Note the context of this statement-between someone world war t and world war II when tensions were mounting between Germany and England and |ews were Summary and Conclusion This chapter presents level I of the inclusive workplace model inclusion through diversity within the work organization." 2000). and a lonely and unsupportive working environment. A variety of poli- I-from recruitment. Responding to one of the discrimination lawsuits. with only four filed in the first half of 2001 ("Family Sues Denny's"' 2001).The Dennyt case provides an opportunity to examine the impact of diversity lawsuits on a company's image and financial stability." She noted that the number of dig. (b) education and training. and (e) career development and planning. But let's not confUgC the delay of service with discrimination.272 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT Chapter 12 o The Inclusive Workplace: Level I showed several African American and Hispanic customers being seated during the l0 minutes ("Denny's Catches Phony Discrimination Claim. (d) work-life balance. Rachelle Hood-Phillipr said. p. and (c) the positive effect that diversity management has on the company's image and stock price. crimination lawsuits against Denny's has declined steadily since 1993. Aczel (lg9g). to cultural audit and linking diversity practices to strategic goals. what would you advise the com' pany to do at this point? such policies. In addition to actively recruiting members of diverse groups. Questions for Discussion and Further Analysis 1. failure to give non- traditional employees the breadth of experience required for job advancement. The main benefits of inclusive policies at this level include (a) the opportunity to drive business growth and productivityby leveraging the many facets of diversity. Because of the change in the social context. support.2000) that The lnclusive Workplace: Level ll ncl u sion Th rough CorporateCom m u n ity Col I aboratio n s I We support the communities where we do business because we draw our employees. They apply to a whole host of rrctivities that are socially and environmentally beneficial and. The most well-known criticism of corporate social responsibility came from llre Nobel Prize winner economist Milton Friedman (1970). currently used as one of the criteria to assess Fortune 500's most-admired companies. they were considered to have integrity. An inclusive workplace. [ruglrreesei recognize their . an exclusionary organization will view any volunteer work its employees engage in as a private matter that is part of their after-work activities. second level of the inclusive workplace. customerc. Greening & Thrban. nrc relevant to levels III and rv of the model as well. recognizes the economic and noneCO' nomic consequences of its presence in the community. on close observation. Rowley & Berman. public cxpectations from corporations were limited and employees and consumers alike were not as socially aware and sawy about their power to influence corporate citizenship behavior as they are today. corporations today do rrot have the luxury of waitirrg fcrr government instructions and regulations tlrirt would force them into action. In the past. Both constructs stem from lhc recognition that economic actions of business entities have noneconomic cousequences and that business organizations have an impact on other institutions of society above and beyond their economic sphere. The constructs of corporate social performance and corporate social T6. However. and finance activities such as teaching computers to elementary school students or mentoring inner-city youth (see Figure 13. nnd the corporation ln expcctcd to cngnge voluntarlly in ectlvltles thet bene$t igycommunity (jolrnson. Werther & Chandler. It acknowledges the responsibility it has to ameliorate the adverse effects of this presence and to make a positive contribution to the community's well-being. For example. It is important to note that both of which corporate social performance and corporate social responsibility focus on a direct business-related role for companies vis-i-vis the community with an emphasis on the strategic and bottomJine implications of socially rcsponsible corporate practices (Heal.who proclaimed in his New York Times Magazine article on September 13. An exclusionary workplace sees minimal or no connection to its community. as the public is aware of businesses' obligation to society and expects therl to have a strategy in place to fulfill this obligation.1 for an illustration of the value base for level II of the model)' An emerging construct in the business literature is that of corporate social performance (CSP). both are essential for making a profit. inclusion and corporateLo*^urity collaborations. The other commonly used term is corporate social rcsponsibility include more than just the corporate-community collaborations rcfbrred to in this level of the inclusive workplace. Both terms expand a company's responsibilities its traditional economic shareholders to that of multiple stakeholders./' Chapter 13 o The Inclusive Workplace: Level II responsibility (CSR). Friedman's comment may not be in such a contradiction to CSR as it may seem. It reflects the"mezzo" system level of organizations and communities. corporations need to contribute to the welfare olt their communities to create goodwill among their customers and to attract tllented employees. in some respects. 2006). 2009. the primary role of the corporntion as an econolnic in. 2000). ln this eontext. that "the social responsibility of business is to increase its profit. the public expects them to be active and proactive in responding to the needs of the community (Schwartz & Gibb." It is important to place l:rriedman's comment in the context of the time in which it was said. €learly. ing the community (Greening & Turban. this is no longer e ttough.2008. when businesses abided by the law and exercised fair and honc$t practices. 2000) caroll (1979) developed one of the earlier versions of a comprehensive view of corporate social performance and has reiterated his opinion (caroll. whereas an inclusive workplace will encourage. 2000. 1970.relates to the organization's sense of being a part of its surrounding community and the reciprocity embedded in this relation' ship. and suppliers from those communities' -A corPorate diversitY manager in a large multinational corporationl social performance review should include a comprehensive assessment of actions related to most social issues and stakeholders. 1999. on the other hand.Werther & Chandlen 2006).qtittrtlon is necepted trs a given. 276 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT Chapter 13 r The Inclusive Workplace: Level II 277 For example. The academy opened in February 1993 to provide high school students in the Los Angeles Unified School District with postsecondary career opportunities and training. a connection that has been termed "doing well by doing good" (see. 2000). the Joint Educational Project-sending 1. eleventh. such as supporting educational or cultural institutions in the community. sponsorship of local school programs' and participation of comPany leaders on boards of minority organizations in thc conrmunity. These programs included the Family of Five Schools-a public-private partnership that provides special educational. teaching assistants. effective communication. and especially minority entrepreneurs. tnclusive Policies and Practices Given their economic power. 2004). the University of Southern California (USC). providing mentorship to youth. Another example is the U. there is also accu' mulating research documenting the connection befiveen a company's social and ethical policies and its financial performance. Field. n.S. 2004). Snider. located in the Los Angeles downtown area that is home to diverse. Shell Intensive 'lraining Programme. and developmental vate employer lnclusion and Corporate-Community Collaborations Value Frame System Level Exclusion organizations.d.1 for a case example). Two similar programs were opened in Chicago rrnd Oakland with more than a thousand students taking advantage of them since their inception. Benioff & Southwick. 2007. At the same time. and 43 international companies in a qualitative analysis of corporations' social responsibility (CSR) messages.and twelfth-grade students attend halfclny classes at the SYTA academy for one semester. initiated a series of community outreach programs in the early 1990s as part of its strategic plan (Strategic Plan for the University of Southern California. A wide range of activities falls under the title of corporate social performance. and mostly clisadvantaged communities. 2004. and Martin (2003) explored the community initiatives described on Web sites of 50 U. the largest priin the city of Los Angeles. These activities included mentor programs for minority students. and global settings. duty to not only protect their physical and social environment but to also contribute to the welfare of their community. or tutoring children in local schools (see Box 13. assessment of llcrsonal interests and aptitude. The program covers consttmer service occupations.). has launched several community-oriented programs.200 mentors. partly immigrant. Hill. for example. corporations can step in and offer to groups and communities essential resources that would not otherwise be provided by governmental agencies. The university. The SYTAs and the SITP's goal is nlso to provide Shell with access to a larger talent pool of prospective employees in the local community (Shell Youth Tiaining. interpersonal skills. stakeholdersaswell. organizational focus is Commurlities intrinsic with exclusive responsibility to lncluslon Dual intrinsic and extrinsic focus with recognition of community systems as financialstakeholders. Similarly.S. both sponsored by the Royal Dutch/Shell Corporation. Once accepted (based on a 2. rtnd other elements of successful career development.-based Shell Youth Thaining Academy (SYTA) rtnd the similar Nigerian Shell Intensive Training Programme (SITP). career planning. 2009). student intern' ships. and mini-teams into the local schools and agencies. . The companies investigated declared and high' lighted a variety of CSR initiatives in both U. to establish businesses in the immediate vicinity of the university's campuses (USC Civic and Community Relations.S. a global group of ener gy and petrochemical companies. cultural. for approximately 8. job search skills.2 grade point average and lcacher recommendations). a survey of eight multinational corporations revealed that the majority were actively involved with community initiatives aimed at improving the lives of the residents in their communities (Wentling & Palma-Rivas.000 children who live close to USC's University Park campus. and opportunities Civic and Community Relations-encouraging more entrepreneurs. people who command iruthority and respect in the organization and who can initiate and maintain these activities. 2002. Figure 13. Orlitzky.1) lirrrlrtl l Posilivc tot'relrtliutt lrt'lwi'i'tt ru!t!lrrnricr'rirrr irrl lrcrlirrrrrirrrce antl . Frooman. Research and scholarly articles are typically focused more on tangible bcnefits such as advantages in recruitment. and improved corporate image (e. specifically organizational policies that are aimed at preventing lawsuits (e. 1997).irndRynes (2(X). it is difficult lirr managers to justify the allocation of resources necessary for commitments to social causes that may yield results only in the long run. 2005. McElhaney.278 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT Chapter 13 r The Inclusive Workplace: Level II 279 Barriers and Benefits of lmplementing the lnclusive Approach at Level ll I]ARRIERS AT LEVEL II The main obstacle for initiating and maintaining activities that benefit the company's social environment is economic pressure to demonstrate profitability on a short-term basis (e. even when a commitment has been made and money allocated for a social cause. p.. Martin. & Rynes. quarterly). When comPanies are under pressure to demonstrate short-term profitability.2008. 2000. A secondary but important barrier is that of finding the right leaders to be champions of such programs..g. Schrnidt.t)rlitzky. Often.. irr a rneta-analysis ttl'52tlttatttitirtivcsttttlicsovcr. They view the costs incurred from socially responsible irctions as an economic disadvantage compared with other business activities ((ireening & Turban.rrrrplc. IJENEFITS In addition to the moral and ethical value of socially responsible corporate policies and programs. accumulating research provides evidence that companies draw tangible benefits from such activities. Early examinations of corpo- rate social responsibility actions focused on damage control. 2008.95). there is no steady leadership to sustain such an cffort beyond the initial stages of excitement and self-congratulations. Griffin & Mahon. creating goodwill among consumers.g.2000. 2005.Heal. Businesses often perceive the relationship between social responsibility and financial perfornlance as a trade-off. 2003.2003. Vrgel.g. which makes it difftcult to allocate tlre money necessary for long-term commitments to social goals.l(lycursul lcseirrrlr.2 provides a summary illustration of the benefits and the obstacles of implementing the inclusive workplace at level II of the model. Werther & Chandler. (ireening & Turban. many suppliers believe that addressing CSR issues makes them less competitive (Vogel. lirl cx.sl evitlenec filr thc linl< between corporate srlcinl pcrlirrrrtntrcc rtttrl littitttriitl pct'lirrntittrcc. 2006)" 'l'hcrc is accurrtulittitrg t'rrrpiri!'. Simpson & Kohers. 2006). increased employee loyalty. For example.scltrnitlt. 1997. Werlhcr & ( )hlntllcr. Social programs generate goodwill from employees and customers alike that may result in fewer labor problems and a more favorable customer view of the company's products. 1997. which creates a self-perpetuating cyclc' of simultaneously superior performance in both areas (Waddock & Graves. which owns many gas stations in the Los Angeles downtown area. This recognition boosted the universityt image. mentioned earlier for its community-oriented programs. Their outcome measure of financial performance was the banks' rates of return on assets and loan losses to total loans. A firmt demonstrated social concern is an important dimension of its reputation in the long run because publics judge a company's concern for the wider society and its ability to achieve mutual relationships with groups in its environment. job training Mentorship lmproved services to the community focused) Lack of leadership to champion and sustain efforts . Among the company's direct benefits are its improved reputation in the local community and its access to talented and well-trained young people in the local neighborhood who often choose to work at shell upon graduation (Shell Youth Tiaining. and Gdana have introduced palnr plnntatiernc to lmprove their eeononry. govemrrlentB aul'h [r Maloysiu. The Time/princeton editors noted that the award was given primarily because of the university's comprehensive community outreach program that created an exceptional learning environment for students. shell's management realized.s many businesses in the university's vicinity were devastated. More specifically. after the fact. -Antony all aspects of business in a Burgmans and Niall FitzGerald. investors.Vogel.a All results were statistically significant. Examining the application of this line of research to the banking industry. reaped the benefits of its community collabo- it was named college of the year by the Time/Princeton Review college Guide. Chairmen. The University of southern california. but the campus itself was spared. shell. and government officials. The company reports that most of the program participants find employment upon graduation. as a cash cow The clernrrnd ftrr pnlnr <lil is ever increasing. In contrast. One of the most interesting theoretical explanations offered for the connection between social and financial performance is that of the "virtuous cycle"-financially successful businesses have slack resources that can be devoted to social performance as a result of their financial performance. favorable consequences because they enable companies to improve their standing by charging premium prices and by enhancing their access to capital markets. and its uses are widespread.280 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT Chapter 13 r The Inclusive Workplace: Level II 281 community-oriented programs may bring additional economic benefits by improving the company's standing with important constituencies such as bankers. or riots. the return on assets for the high social performers was almost twice the return on assets of the low social performers. was not so lucky. A fewyears earlier. presumably because of its ration efforts when in 2000 good relationships and positive image in the local community. r lmproved corporate image and reputation Advantage in recruitment and in labor disputes o lncreased employee . loyalty Strong connection between social performance and economic performance their financial performance. from ftlod to ursrrretics nnrl sotrp.3 The results indicated a strong relationship between social and financial performance. Reputations have potentially Barriers lndividuals . Simpson and Kohers's (2002) research supports the link between social and financial performance. Most of its stations were burned to the ground. during the 1992 Los Angeles urban uprising. lndorresia.2005). its student applications and enrollments have increased in the years since the award. They measured corporate social performance using two categories from the rating system mandated by the Community Reinvestment Act'z (CRA)-indicating high versus low social performance. which produce palm oil. and although it is difficult to distinguish between the awardt impact and other changes that have affected USC's reputation. o Economic pressures to demonstrate profitability Limited company vision (shortsighted and internally . Fneecl with heavy forqign debt and poor econonrics. and the loan losses experienced by the high performers was almost half of that experienced by the low social performers. hut it cloesn't always il . Case lllustration: Level ll-lnclusion Through Corporate-Community Collaboration-Uni lever Companies have a duty to manage responsible and sustainable way. that their lack of involvement in local programs put them in disfavor with the community. Organization Employment. Unilever Many governments irrouncl the world sce palm plantations.2004). This realization was the impetus for establishing the shell Youth Academy mentioned earlier. cosmetics. Unilever specializes in food well as home and personal care products. several families share a bucket as their toilet. 2009). unilever each year buys over I million tons of palm oil. The water is frequently contaminated by the chemicals and effluent found on the plantations. Bertolli. to providc proper working conditions (Ramachandran & Shanmugam. Palm oil offers two major benefits to manufacturers and growers. are already running out of expansion room. Lipton. and children can bc found using open drains around the house as a toilet. 2002). Ben & ferry's. indigerrous pcrplc have been rgloto make room firr pluntations.6 billion in2002. When the bucket is full. however. some countries. trre rocnl pe. seeorrrl. India. The resultant lower price of soap led to William Levert entry into the soap business. Dove. derived from the fruit and seeds of the oil palm tree. In Malaysia. 60/o to 8% of the total world production.K. 1995). the United Kingdom repealed a tax on soap.tlihough the palm oil industry originated in Africa. trading separately on the stock market but acting as one company with a single board The Oil Palm Tree tndustry Palm oil is one of the world's most rapidly increasing crops and more palm oil is produced than any other vegetable oil. of directors. Ramachandran & Shanmugam.-/een cated affected ccorronrically. Slim-Fast. Lever Brothers started looking for palm oil sources in Africa in the early 1900s. . such as Malaysia. et al. Therefore. used to produce palm oil. The expectation is that plantations will double in acreage within 20 years. 1995). I. not the government. Unilever's search for in oil paln plnntati. producing ioolo of the world's supply (over 16 million acres of trees). commonly. second. Palm oil is found in soap. In the 1950s. margarine. oil palm trees. which had been pre- viously considered a luxury item. In 1930. Sanitation facilities are fat from satisfactory..-based company known as Lever Brothers merged with Margarine Unie. Pond's. Such practices are illegal in Malaysia. running water and electricity. Global palm oi1 production is increasing by 9o/o every year. many governments are encouraging the growth of palm plantations in order to increase the country's income and reduce its debt. rrrirrry c. a Dutch margarine producer. workers have been faced with low wages and poor living conditions (Hassan.ple have. the properties of palm oil allow for its use with less processing. Lever's U. snack foods.'innlly. Plantations do not fall under any category for which thc Malaysian government has planners.r areas have fclt the impact of the numerou!i wityri. are available for only short periods of time during the day. sales in over 150 countries. cooking oils. and china.) and Unilever NV (Netherlands). and other products.282 work MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT as Chapter 13 planned. Today. Despite the 1930 merger. and revenue of $45. . Morel. IMPACT OF PALM PLANTATIONS lmportance of Palm Oil Palm oil. struebig. owning such widely recognized as brand names as Hellmann's. Unilever is still a joint venture between Unilever PLC (U. fonowed by Indonesia with 30% of the world's production (nearly 10 million acres). If a worker is lucky enough to have a flush toilet. Frequently. if available at all. to form the Unilever Group. has ignored the plight of the plantation workers. south America.rrvirolrrrrcrrtnl influences have People living industry in clirectly affected the krcnl people. Because of the ubiquitous use of palm oil. Asia now dominates world production. tiirsl. The reason is a matter of definition. Malaysia is the world's largest grower of oil palms. prompted largely by expanding biofuel markets in the European union and by food demand in Indonesia. Unilever began operating its own oil palm plantations in Malaysia to complement its African plantations. UNILEVER AND PALM OIL In 1850. he will frequently find that the waste drains frofi r The Inclusive Workplace: Level II 2g3 a large. saving both time and money.. 2O04. grow best in wet tropical conditions (Fitzherbert. and Wisk. As a result. Hance. the government has claimed that it is the responsibility of the plantations. constant supply has a long history. The plight of the palm oil plantation workers has been documented by global advocacy and conservation organizations (e. the septic tank directly into the water supply. and southeast Asia (Sustainable Agriculture Initiative [sAI]. Unilever has evolved into one of the world's largest consumer goods companies with operations in approximately 100 countries. As a result. commeicial plantations are usually found in countries within l0 degrees of the equator. The government that promised a better way of life via palm plantations. First. CURRENT TRENDS oil palm trees are viewed as a cash crop by governments with large foreign debts or struggling economies.K.g. building a company to massproduce soap. people use the surrounding bushes. primarily in west Africa. is one of the more common raw ingredients that Unilever uses throughout its product line. the yield of palm oil is higher than that of any other edible vegetable oil source. Knorr. 2008). The main reason for this is the expatriation of earnings. most of the palm plantations are owned by companies based in Kuala Lumpur. to . and social assets. 2000). 20. rising supplywill likely lead to further price reductions.789 acres of Indonesian forest were about to be approved for conversion to palm plantations (Manurung. rain forests have been converted into palm plantations. and yields. as well. Primarily ethnic minorities were forced to work for no pay. leading to a reduction in palm oil prices. j The same philosophy gulded Unllever to *eate an unusuql_1#rtnership with Oxfarn." 2003). For example. machinery chemicals. water. Unlike some crops. so expropriation does not require indemnification by the state (World Rainforest Movement. palm plantations are usually fully harvested. 2003). In 1997. |an-Kees Vis and Hans Broekhoff. for at least 13 years prior to their report. In 1998. then.284 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT Environmental The environments that support palm plantations typically support rain forests as well. Unilever commissioned two studies on sustainable development. In many countries. governments and plantation investors increase production even further to maintain their necessary income levels. were working to translate sustainable development into terms that related to LJnilever's business. Negative environmental impacts on soil. according to Cameroonian law. Finally. It is therefore common knowledge that the estate business is engaged in random forest tree felling and forced control of communal land" (Bider. in Malaysia.200l). In Mexico. The impact of such forest conversion includes a rise in pests. spurring a higher demand for the product. often exceeds demand. 'l'he studies revealed a complex set of criteria for sustainable agriculture. r Agriculture must offer an attractive livelihood to workers (Vis & Standish. . the benefits rarely make it to the indigenous people. o . As demand increases. Chapter 13 The entry of large plantations has often triggered conflict between local communities and estate investors. but the same cannot be said for other countries. the number of polluted rivers had increased from 7 in 1990 to 12 in 2001.2000). Guatemalan workers have frequently been unpaid f_or their work. weather. and biodiversity must be minimized. The strategies now guide Unilever'a worldwide opcrntions. farm supplies. Eventually. changes in the flow of ground surface water. the army was involved in seizing minorities for work. requiring intervention by the Guatemalan government to recover wages. Economic Despite governmental desire to encourage palm plantation growth because of the financial opportunities. Some countries. Vis and Broekhoff developed the concept of the triple bot- tom line to show that Unilever depended on economic. denying wages to local workers. resulting in consistently low wages for the workers. are con- verting degraded land (such as rubber plantations or mining land) to palm plantations. & Werhane. This rycle keeps constant pressure on prices. Unpaid wages are common in other countries. peasants do not have customary rights to land. in Indonesia. with the opening of more land for palm plantations being cited as the reason for the increased pollution ("More fuvers. Additionally. Changing consumer demands must be met. Quality and safety of products must be guaranteed. the minister of forests and estate crop development reported that 815. n global eharlty orgenlz€tlon to fight poverty und injustice. 2003)' The InclusiveWorkplace: Level II 285 typically being determined by several factors: world prices for palm oil.273. Vis lrrd Ilroekhoff developecl 0 set of strntegics to preserve the three assets. Unilever's Sustainable Agriculture Mission Statement was formally adopted in 1998.With the increasing acreage of palm plantations. there was widespread use of forced labor (Ramachandran & Shanmugam. From these criteria. estate investors usually use whatever means necessary. In Indonesia. Amnesty International reported that in Burma. For example. They used this concept to show why Unilever needed to preserve tltese assets (Standish. especially as a substitute for more expensive vegetable oils." 2002). increased land erosion. Mehnlik. 1998). many of the companies import supplies such as food. two Unilever employees. Profitability must be competitive with other industry sectors. In Malaysia. Malaysian officials claim that no forests have been converted to palm plantations. size of the fruit. Production. 1995). Large nonlocal companies are noted for failing to promote the local economy. which included the following principles: r o Output must be high enough to meet demand. In many cases. environmental.. and fertilizers clirectly from their home offices in other countries ("Plantation Giants. and pollution of rivers and drinking water due to the use of fertilizers and pesticides. "to secure the vast area needed. many of the companies hire foreign laborers to harvest the palm fruit. For example. Gorman. nonlocal companies typically pay an oil palm sales tax but little else. UN Social r I LEVER'S SUSTAI NABI LITY DEVELOPMENT In 1995. air. The exact number of converted acres is hard to determine and rather controversial.000 acres of forest were being converted to palm plantations annually (Gautam et al. Wages for palm plantation workers are notoriously low (Rhattacharjee. 2002). such as Sri Lanka and Ghana. Steep hillsides were left as natural forest. 2003). ects included a donation to UNICEF to reopen 900 health centers that had been closed when public funding was cut for supportive efforts to reduce water pollution in the Brantas River (Clay. using them as mulch helped reduce air pollution.1). environment.286 Chapter 13 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT engage in a research project that explored links between international business and poverty reduction and use Unilever as a case study. Indonesia: River cleanup-Unilever organized a community-wide effort to clean the badly polluted Brantas River in fava. nnd reduce soil loss dlrring Helping Chana Crow Oil Palm Plantations Unilever has a long-standing relationship with Ghana. The study examined critically Unilevert impact on its environment and demonstrated. In addition to Unilever's agricultural programs. These proj. Vietnam: Building Partnerships With Suppliers-Unilever offered financial support and education to help develop quality long-term relationships in Vietnam." 200. among other things. investing in the country's economy and skills of its employees. tomatoes.5t11. . In December 2002. Owls were used to control rats. This reduced the amount of synthetic nutrients needed. Sri Lanka: Unilever Cultural Tiust Fund-Started in 1979. likc nrnny other countries." 2002). Unilever has also been active with numerous community activities such as implementing the Unilever lioundation for Education and Development. this fund was designed to protect indigenous work in Sri Lanka. South Africa: Nelson Mandela Scholarships-The scholarships aim to improve the leadership in South Africa by helping those from disadvantaged backgrounds. Unilever employees were involved in the formation of the Roundtable on Sustainable Palm Oil designed to address issues specific to the palm oil industry. 1. Bangladesh: Improving health care-Lever Brothers Bangladesh provided an initial $135 million to the Friendship Association to convert an old oil tanker into a hospital and provide operating income. and black tea (Vis & Standish. Like Unilever's sustainable development plan.000i acres of of clegrndecl nrinittg )cgraclcrl I M ining Luncls. the company is divesting all noncore businesses such as its oil palm plantations. and Fortune magazine listed Unilever among Fortunds 50 Worldt Most Admired Companies ("World's Most Admired Companies i 2009). In addition to SAI. 2005). They started with five of their strategically important crops: palm oil. and society (SAI. In addition to the fclunclation. This provided some nutrients (especially potassium) ond helped to curb weed growth. the company has undertaken numerous social programs (Unilever. Unilever (2003b) employed the following sustainable practices: r r Liquid effluent from the mills was used as irrigation and fertilizer for the trees. spinach. The organization hosted an industrpvide roundtable discussion in Kuala Lumpur in August 2003 to outline the problems of the palm industry for further exploration and improvement. rcstrict beetle pe$ts. sees a large cconornic lrenclit in prlur plantutiotts. As a result. peas. get the triple bottom line: economics. which launched in 1999. IMPLEMENTATION OF THE SUSTAINABLE DEVELOPMENT PLAN Unilever introduced pilot projects to test its sustainable development plan. fix nitrogen. which provided a wildlife refuge. The pilot program for palm oil was in Malaysia at the Unilever palm plantation (which they have since sold).000 rrcrcs lsnd into polnr phntntionf"Ghana: . The foundation. the mutual benefits to the community and to the company that were derived from the company's sponsored community projects. SAI's initiatives tar. and encourage beneficial insects that are natural predators of tree pests. They were one of the three founding companies of the Sustainable Agriculture Initiative (SAI). Unilever sold its Malaysian palm plantations that account for over 50.'l'lrey wrrnt to convcrt 56S. Dow Jones ranked Unilever number four on its Sustainability Index (Hartman & SAM Research. Palm fronds and empty fruit bunches from the mills were left to decompose naturally under the trees. Unilever's sustainable development plan has led to several honors. 2000). contributes to education to help Ghana reach its goal of being a middleincome economy by 2020. SAI was created to actively support the development and communication of sustainable agriculture practices worldwide.000 acres. r The Inclusive Workplace: Level II 287 rain. 2002). Leguminous ground cover was grown to prevent soil loss. UNILEVER'S CURRENT INVOLVEMENT IN PALM OIL Divesti ng of Pl antations Unilever has undertaken a refocusing of its business with the intention of focusing solely on promoting its core brands. 2003a): India: Indian School of Business-Unilever is taking a leading role in developing a world-class business school. Industry practice had been to burn the empty bunches. [ihunn. Hunting was not permitted. Unilever recently pledged its expertise to hclp the Ghana governrncnt itnplcnrent its oil palm tree initiative ("Ghana: Llnilcver llcaciy to Assist. SUSTAI NABLE AC RICU LTU RE I N ITIATIVE Unilever used its sustainable development commitment and experience to facilitate a broader impact. p. try? Why or why not? Summary and Conclusion This chapter describes the second level of the inclusive workplace. tance of such actions. Chapter 13 o The Inclusive Workplace: Level MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT How can Unilever use its influence over the government of Ghana to improva worldwide conditions? Should Unilever encourage or discourage Ghana frortl entering the oil palm industry? What are the impacts of Unilever's divesting itself of oil palm plantations? Wll Unilever still have influence over the triple bottom line of the oil palm indur. nomic consequences and that business organizations have an impact on othcf institutions of society above and beyond their economic sphere. mal or no connection to its community. A wide range of activities falls under the title of corporate social perfor' mance. The benefits includc advantages in recruitment. The ratio of loan losses to loans is another important measure of success because loan losses can be a major expense for nies. who was already lying on the ground without any visible signs ofresistance. respectively. The Community Reinvestment Act of 1997 mandated that commercial banks serve their r. the policemen were seen repeatcclly beating Rodney King. munity. compared with 0. The quote is from one of the interviewees for a study of multinational compawith company diversity directors (Wentling & Palma-Rivas . What can Unilever do to improve the wages and living conditions of the oll palm workers worldwide? What impact would such actions have on the triplf bottom line of Unilever's sustainable development plan? Notes Questions for Discussion and Further Analysis l. including the community.2000. On the video. It steml from the recognition that economic actions of business entities have nonecQ. itability on a short-term basis. The survey was based on semistructured interviews banks. inclusiotl and corporate-community collaborations. and the mean for loan losses was 0. and 1. II 289 What was Unilever's motivation to undertake such ambitious programs fo! consideration. Some scholars use the term "urban uprising" rather than "riots" because the protesters and looters were members of' the city's disadvantaged minority communities and their reaction was not only a sJ)ontaneous outrage at the unjust verdict but a communal response to a much larger sct of social-power issues. Return on assets (ROA) measures the ability of bank managers to acquire deposits at a reasonable cost. which relates to the organizationl sense of being a part of its surrounding community and to the reciprocity embedded in this relationship. an inclusive workplace recognizes th€ economic and noneconomic consequences of its presence there. With all this to take into l. 2. an African American motorist who had led them on a car chase rrfter they tried to stop him for speeding. or tutoring children in local schoolt. invest these funds in profitable loans and investments.812olo. recent research provides evidence that companies draw tangible benefits from socially responsible activities.ommunities by providing private funding for local housing needs and economic development. Under this act.300 injured. a jury in the Los Angeles suburb of Simi Valley acquitted the lbur White Los Angeles police officers who had been caught on home video repeatedly clubbing Rodney King. On April 29. such as supporting educational or cultural institutions in the corn.100 buildings destroyed. goodwill from employees and customers alikel and improved corporate image. The riots that began that rtliernoon became one of the nation's bloodiest. . banks are mandated to meet the credit needs of low-income customers. and profitably perform the daily operations of the bank. In addition to the moral and ethical impor. corporations today do not have the luxury ofwaiting for government instructions and regulations that would force them into action.984% of those ranked as needing improvernent. tnore than 2. and lack of leaderl who could champion and sustain such initiatives. holders to that of multiple stakeholders. rate social performance. Whereas an exclusionary workplace sees minl. The verdict outraged much ofthe city. providing mentorship to youth. Relevant to level II of the inclusive workplace model is the term "corpo.750olo. and all hell broke loose on the streets of Los Angeles barely an hour after the jury came back.288 2. ending 3 days later with 55 people dead. 4. 5." an emerging construct in the business literature thtt expands a company's responsibilities beyond its traditional economic sharQ.478olo compared with 0. the public expects them to be active and proactive in responding to the needs of sustainability development? the community. The mean return on assets for corporations that were ranked with outstanding social performance was 1. a4). The main obstacles for initiating and maintaining activities that benefit thc company's social environment are economic pressures to demonstrate prof. 3. limited corporate vision. 1992. on the other hand. 1997. Scein. The reduction of the Domestic Purposes Benefit. or disability. Welfare reform ended 60 years of public assistance programs in which the sole criterion for continued aid was dependenry. single mothers into the workforce. high-paying. low pay. lt is much more difficult to make the case for hiring workers from disadvantagcd groupa during periods of economic4l downturn. age. domestic vio' lence victims. 1995).2001). & Lerner. Kossek. job skills. New Zealand. domestic violence survivors. give companies ilccess to untapped human resources. for example. Hildebrandt. the working poor. Besides the ethical and moral value of such actions. social and legislative changes such as the welfare-to-work reform could be conceptualized as an opportunity to. and youth in distress. The inclusive workplace perceives wel' fare recipients seeking work. 1997. more and more individuals with welfare histories have had to enter the labor force.. has facilitated and/or forced the entry of poor. Kossek. A key component of the program was the expectation that benefit recipients would find jobs by the time their benefits were terminated. 2003. 2003). following the enactment of welfare reform in the United States (the 1996 Personal Responsibility and Work Opportunity Reconciliation Act. a welfare state with universal entitlements to health care and education coverage. such as the global recession sf that began lu the eccond halftif the first .. For example. Corporate sponsorship and support of former welfare recipients could help these disadvantaged groups overcome the difficulties they face in this transition. whereas the exclu' sionary organization will more readily dispose of these workers or not hirc them in the first place.Chapter 14 The Inclusive Workplace: Level I lll ncl usion Through State/ N ational Collaborations Oneness amongst men. and problems at work such as poor working conditions.1). Kossek et al. and youth in distress (see Figure 14. & Lerner. 2002. Therefore. Huber. 2009. & Lerner. access to potential job seekers may be particularly important in tight job markets like the one experienced in )apan in the 1980s (1. 2003)' As a result. Ovwigho et al. The main focus here is on social class with the confounding iesues of gcnder and race r The Inclusive Workplace: Level III 291 because women and people of color are disproportionately represented in the lower social echelons of society. Huber' he Yoder Castellino. which was designed to support single parents with dependent children. and the first Asian person to be awarded the Nobel Prize for Literature (1913) third level.. P. invest in on-the-job training and evening educational classes for these groups. consistent. composer of ")ana Cana Mana. and labor market situation.35 advertised jobs for each person seeking work) and in the 1990s in several other countries around the world. inclusion of disadvantaged groups through state/national col' laborations. Michalopoulos et al.. -Rabindranath Tagore (1 861 -1 9 41 ). refers to the values that drive organizational policies with regard to disadvantaged populations such as welfare recipients. the advancement of unity in diversity-this has been the core religion of lndia. make the workplace more inclusive with respect to social class and. on the one hand. Barriers to employment of former welfare recipients (the majority of whom are single mothers) included finding reliable. Traditionally. The exclusionary workplace views such populations as in the sole domain of wel' fare agencies or charity organizations. Kossek. which terminated welfare benefits after a maximum of 60 months. most of the working poor remain at or near poverty level. poverty. 2003. lndian freedom fighter. the inclusive workplace will be more likely to. This third level refers to companies'involvement with prtlgrams aimed at helping disadvantaged groups obtain jobs or move on to better jobs. Huber. education." lndia's national anthem. even when employed full-time. health problems. family issues such as domestic violence and substance abuse. domestic violence survivors. L. and job location (Blumenberg. and affordable childcare and transportation. if corporations take appropriate initiative with respect to disadvantaged groups. Huber. 1997. and youth in distress as a potentially stable and upwardly mobile workforce (e'g. employers have had very limited involvement or interest in welfare recipients or in other disadvantaged groups and have not viewed the working poor as an element in organizational life worth substantial investment (Kossek et al. Populations in need could include former welfare recipients. It reflects the "mezzolmacro. and benefits-rich jobs. 2008.. Lacking the skill to land stable. 104-193). Kossek. underwent a somewhat similar welfare reform in 1996 (Kingfisher & Goldsmith. & Lerner." national' system level of the state or the federal government where appropriate. 2004). domestic violence victims. domestic violence survivors. Viewing disadvantaged of and charity organizations and treating them as disposable labor groups as the domain welfare agencies lnclusion Treating disadvantaged groups as potentially stable. lack of firms' interest in involvement with government programs. a subsidy to employers who hire new workers from certain disadvantaged groups.2008). Employment programs to assist the working poor and other socially dis' advantaged groups often require a private public recourse partnership to make lnclusion Through State/National Collaborations Value Frame System Level Exclusion Federal Government State. and health care expenses. upwardly mobile employees and investing in their education and training III 293 them successful. In Thailand. such as welfare recipients. a group of 14 of the country's successful businesses formed The PIan Group. The second is the Welfareto-Work Tax Credit (WtW). Companies often focus on only the immediate needs and objectives of the company rather than consider the bigger picture that includes moral and ethical values as well as labor force trends and the larger organizational environment. One workers.2 provides a summary of barriers and benefits to implementing level III policies and practices. Supplemental Security Income (SSI) recipients. These Programs focus on removing barriers to employment faced by mothers of young children. youth food stamp recipients. Operring u. and against women and people ofcolor in general (Hancock. two forms of public incentives have been offered to private employers to improve employment rates among former welfare recipients.2003)' They also provide on' the-job training to allow them to improve their job skills and increase their wages and benefits. 2009). for example. In the United States. Barriers and Benefits of lmplementing the lnclusive Approach at Level lll BARRIERS The main obstacle to implementing such programs is a limited corporate vision. a program that applies specifically to long-term welfare recipients (with at least l8 months of continuous welfare receipt at the time of hire) and provides a larger subsidy. poor veterans.2008. housing. The other obstacles are stereotypes and prejudices held by management and workers against disadvantaged populations.292 Chapter 14 o The Inclusive Workplace: Level MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT are characterizedby high unemploy' could make the argument. their umbrella organization emerged out of their resolve to make a difference in their country through the implementation of extensive community and national projects (Schwartz & Gibb' 1999). The four founders of the group were students in the 1970s who saw fellow students killed on the street by the security forces of the country's military government. decade in the 21st century. I]ENEFITS Including the working poor. the author notes that firms'partici- pation in this subsidy program was surprisingly low.r enrploynrent rlnd nclvaneement opportunities for these trropulations nray increoee their ehaneea of obteinirrg higher-payi\-jobs . for example. arrd those with welfare lristorics in hunran resource planning and poliry initiatives of work organizations ean trenefit companies as well as individuals and their families. perhaps because of worker stigma (Hamersma. The relatively low participation rates could be attributed to lack of information among firms. The first is Work Opportunity Tbx Credit (WOTC). high transaction costs relative to benefits. Although these programs assisted former welfare recipients receive and maintain jobs. Research demonstrated modest success of these two programs. youth in need. such as welfare recipients. an umbrella organization that initiates inno' vative programs to help disadvantaged grouPs in their country. Michalopoulos et a1. howevef. who con' stitute the majority of welfare recipients and poor families (Hildebrandt.. Oncc they became successfrrl businessmen. of skilled ment and a surplus options once the recession ig have other that high-skilled workers who may over would be less likely to stay with the company compared to workers who may not have other options and would be more likely to stay and provide con' tinuity and stability to the organization. or difficulty in identifying qualified workers. and youth in distress. Such periods They assist former welfare recipients with childcare. and low-income ex-felons. Figure L4. transportation. which are the main barriers to employment faced by this group (Hamersma. An inclusive workplace sponsors and supports projects that help former welfare recipients overcome barriers to employment. youth from disadvantaged geographic areas. r krrrg-ovt'rrluc .rtittt tlrrrs inl'lktul tnt. Advancement opportunities .rttrl tlrgyttl.rli.t. Atrslr. the problems in Australia pale in significance.1 for the story of a company that partnered with the government to improve the lot of disadvantaged groups). Australia (1 996-2003) f:or lhe irxligrity.. The economic benefits for companies include gaining a more loyal workforce that is committed to the organization (and has lower turnover rates as a result). . prejudice. . Case lllustration: Level lll-lnclusion of Disadvantaged Groups at the National/State level-Eurest If we are comparing [Australia's record] with arbitrary arrests and executions and having your arms chopped off. having a more attractive.t 1>xnttt < ttllttu'.y Cicneral Daryl Williams. benefits o Job training .t Stroud people arttt . Employment.t lit'virr l{rrrLl irr. lllirrr. 1997i Kossek.J .iry I t. A by-product will be an increase in the pool of consumers with discretionary income. lmproved job prospects Chapter 14 r The Inclusive Workplace: Level III 295 Expanded potential employee pool . wt' t. 2003) (see Box 14. & Lerner.)(X)ll I. expanding employee pools.rlrolnpy hr llre Alrori6irrt-. and increasing the pool of consumers with discretionary income (Kossek er al. -Atl<trnc.t1t so1 1y. Huber. value-based corporate image that is more appealing to both customers and investors.rrr l'r irrre MirriElr. improving customer relations through better treatment of low-wage employees who are often frontline workers.294 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT Limited company vision (shortsighted and internally focused) Stereotypes. and discrimination against disadvantaged population groups Individuals Organization . lmproved customer relations o A more attractive valuebased corporate image with better benefits that will release them from the vicious cycle of low-paying jobs that barely suffice for basic needs. lncreased employee loyalty . Despite the controversy surrounding the forced separattltion of families and the stripping of land rights.000 and 100. HISTORY OF THE ABORICINALS Britain first colonized Australia in 1788 when the native population Australia. Therefore.2000. Australia's native inhabitants. and had deva:-c-stating and lasting elil'cts on the Aboriginal population. -hallenge who by British definition could not swear an oath. 2000).2008).families to protect lhe rlrildrcn (Cox. As a result disease and warfare with the settlers. lt further gnve the govcrnor th€ o The Inclusive Work=-:place: Level III 297 to determine the care. the Aborigines were unable to these laws for two reasons: First. Though the local government admitted that the aggression originated with the settlers.000 by 1820. These polil'ies created dependence. r to determine their own future. the courts rejected any evidence of wrongdoing (Kiernan. drugs.200 soldiers. Aboriginals were not considered British t jects. For gcnerations. This law resulted in the removal of beeetween 50.-ove circumstances ttltvc been relatively unsuccessful as there has been little ackr:rnowledgement and ttttrlcrstanding of the historical context. The destruction and r o devastation caused lry colonization has resulted in the breakdown of social str:::-tuctures and tradillonal values across many generations. and convicts stretching across southeastern Tasmania to flush out Aboriginals. Thr o erefore. Young. Instead. injustices conti For example. which were written to protect British subjectol not protect the Aboriginal people from crimes such as murder (Kiernan' ln 1837. and economic iltrlclrcnclsnss.Young. Prior to the black line incident. essentially leaving no way for the Aborigines to challenge laws or ev-en to testiSr about crimes committed against them. proteclion. by 1335 less than 400 Aborigines remained alive of the estimated 1. a practice emerged in which children of mix. referred to as half-castes. no settler was ever charged for such crimes. Aboriginal people were forced to live under s. The black line was a human chain of 2. & Bairrrslirthcr-Scott. such as the forced separation of . Aboriginal Protection Act of 1869 gave Victoria's governor the right to provisions for the Aboriginals.000 initial Thsmanian Aboriginals. and education of Aboriginaff I children (Kiernan.tlia's granting citizenship to Allorigines in l9fr7. it would require no ordinary on the part of the British. -ildren. 2008). caused great pain. theyw. & rrrsfhtlrer-Scott. and children. which caused a decrease of the population to 2.500 who lived in Tasmania in 1824 (Madley. it gave the governor the decide where any Aboriginal could live. Attempts to impr-. theywere not citizens. Akrrorigirrals were not . many Aboriginal people were left without h-p. when the island was first colonized. some BritiEh jects were convicted of murdering Aboriginals. and crime to survive (Cox. police. Often. Building on the 1869 Aboriginal Protection Act. Madle --:y. Since the time of that statement. The legacy of past injustice persists in the Aboriginall I people today. were removed from their parents and raisedl H by non-Aboriginal "White" parents.296 Chapter 14 MANAGING A DIVERSEWORKFORCE IN THE GLOBAL CONTEXT On October 7. the laws. In particular. e egregation. 2000). the Aboriginal population dwindled fewer than 50. The atonement mentioned by the House of Commons began wl& passing of several laws ostensibly designed to protect the Aboriginclr. Additionally. relationships and marriage. The fragmentation of family relationrltilts and the learned helplessness has had a crippling effect on successive generrtlions. in1824 the gov' ernment permitted Thsmanian settlers to shoot Aboriginals and in 1830 offered a bounty for each captured Aboriginal adult and child (Kiernan' Madley. However. and the relnoval of Aboriginal children from parents and family meembers. by 1356 it was common practice to punish Aboriginals tively for crimes committed by individuals in their ethnic group' an act now considered genocide by international laws (Kiernan. educatiqFrn. 2000). and assimilation policies and were denied the freedom . 1830. Northern Territory ordinance provided for the protection of Aboriginal chi. How"-ever. created more pnrhletrrs than they solved. 2009).000 by 1901 (Madley. the control of en :::ployment. totaled approximately 750. Aboriginals were stripped their land rights.-o-ed descent. the settlers would chase a mother through the bushes until shg had to leave her children behind. a provision that controversially remained in effect L r rntil the 1970s. the British House of Commons Select Committee on acknowledged some of the killings and further stated that if atonement be made to the remaining Aboriginals. custody. As a result of massive murderous attacks on Aborigine men. the "black line" formed in Tasmania. settlers would shoot on sight at the 4. which were designed to protect the Aborigiiines. Second. starting ih the mld:19(X)s. AIIs IITALII(S PLAN TO MEND THE INJUSTICES Nrw Laws Prtst lrws.2009).-c-ere non-Christians. The extent of intrusion was wide-ranging and irrrrcluded restrictions ott movement. The children were then used for labor. Although Britain did not sanction attacks on the Aboriginals. Deprived of adequate health care. known as Aboriginals. 2008). freemen. trrugilllc progress in tlre lnws trergtru.ivhich *as Attstr. They would kill the men and take the children from the mothers.000 Aboriginal children over the course of the century OO (Kiernan. As with the Victorian law. and some have ittrttccl ha i to a life of alcohol.000. the ntost si}€u{uificant o{. women.2008). a 1918 . the ities passed numerous laws that put the native population at a disadvantQ For example. the Aboriginal population had rebounded to 5 17. mentoring. 2004). specifically.1997).000 indigenous people participated in training and were placed in jobs. cross-cultural training. the world's largest hotel and tourism service company.2006. r r o r Corporate Leaders for Indigenous Employment-a partnership between comPanies and the government with the goal of hiring more indigenous people. In l992. e Community Development Employment Projects Placement Incentive- . similar to interns in other parts of the world. 2004). . Eurest was one of the first businesses to begin working with the Australian government to promote employment opportunities for Australia's indigenous population (Eurest. but they were also allowed to vote (Zan.200' representing 2. work during vacation breaks from their school and are usually employed by the sponsoring company. According to the Australian Bureau of Statistics (2007).5o/o of the total Australian population of 20 million people (Australian Bureau of Statistics.050 people at more than 500 sites. I III of participation in the previous indigenous programs (Department of Eurest is the largest food service company in Australia. In the first 2 years of the 299 policy. 2007). The government allotted AU$63 million (US$49 million) to reunitc families and provide counseling ('Australian Government. thc Australian government enacted a plan to help families that were forcibly separated. 1997). and Accor. L6o/o of indigenous people were unem. include the following: ( o A dedicated ITEP manager employed by Eurest o Aboriginal community consultation r o r r Structured and accreditecl preemployment training A gradual exposure to the workplace Mentor support ond on on-site budcly system Cross-cultural training for norr. Sofitel. while the government was busy developing this program' Eurest was busy developing its own-the Indigenous Training and Employment Program (ITEP) (Eurest. and other appropriate exPenses. which was com. employing 7. EUREST nd i geno u s Em pl oyment Pol icy As of ]une 30. In line with the policy focus of the program.Aboriginnl employees According to F. meaning the land had belonged to no one before settlement.Inaddition to the reversal of the land rights. Some of their businesses include catering and managing concession stands and cafeterias across a broad array of industries (e. 2001). such as preemployment training. Eurest's ITEP supports the government's goals of indigenous employment. Au Bon pain. ITEp teaches new work skills integrated with consultation and mutual understanding of local communities (Eurest. Voluntary Service to Indigenous Communities-matches skilled volunteero with the needs of indigenous communities. caffe Ritazza. 2001) that Eurest integrates into the various applications of its plan . Wage assistance-compensates employers up to AU$4. Australia granted some limited indigenous land rights to thc Employment and Workplace Relations. lenge laws. provides a bonus for each placement of an individual into the general workforce. Thc government will fund some of the hiring expenses. as of 2001. Eureat lncrersecl its indige_ nous workforce by 203 people wlthln !g monthc ofi initiatirrg ITEp." 2001). some of the parent company brands include Upper crust. Aboriginal people (Zan. health care facilities. However.urest publiched llgures (2001).406) over 26 weeks for providing long-term employment to indigenous workers. compared with 5olo for the general population. It also funds individuals with good business ideas. sporting venues.298 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT Chapter 14 r The Inclusive Workplace: Level level As a result. National Indigenous Cadetship Program-supports companies that sponsor indigenous people as cadets. around 12. theJas been a strong shift toward private sector companies'participation compared with only granted citizenship. Additionally. which meant they could now testifr in court and chal. posed of several key areas (Australian Employment Services. the Aborigines represented a of the unemployed. 2001): significantly higher proportion . 2003). and Red Roof Inns. ployed. Australia's Indigenous Employment Policy was born. lndigenous Training and Employment program In 1998. and airports). the Australian federal government implemented the Indigenous Employment Policy in 1999. armed forces. ing training programs for indigenous people. Naples 45. Cadets. Fueled by the indigenous population's high unemployment rate and higher than average population growth rate. An evaluation of the policy showed that progress has been made ln increasing opportunities for indigenous job seekers. Harry Ramsden's.two legal cases led to Australia's reversal of its claim that Australia was terra nullius. The key elements (Northern and central Land councils. A year rater.. the world's leading food service organization. Structured training and employment projects-compensates employers offer. Indigenous Small Business Fund-funds indigenous organizations that train indigenous people about business practices. they have operations in New Zealand and Papua New Guinea. schools. Motel 6.g. Eurest was formed in 1997 as a joint venture between compass Group.400 (US$3. (from the State Tiaining Board/Department of Training) thc Tiaining Excellence Award-Employer of the Year Finalist. what impact might the government's subsidization of Aborigines'employment have in the short term? long term? the fact that Eurest receives money for training and hiring indigenous employees affect the perceived value of Eurest's action? Why or why not? 2. The prime minister apologized to all Aborigines for laws and policies that "inflicted profound grief. 2002). l"or example. retail. three partners were dedicated to employing as many indigenous people as sible. Eurest has worked to develop joint venture projects designed for employment of indigenous people.rr. (from the Compass Group in the Community Award) the Gold Award. Eurest's ITEP includes inate these two elements? Why? CONTIN UING CONTROVERSY Controversy continues for Australia regarding the governmerlt's interac- tions with the Aboriginal people. III 301 $clieved that the money allocated to help seParat€d fcmlliet wEB llot enough. the Aboriginal pcopl. 'l'hey recommended compensating families that had been forcilrly mpnruted. (from the Compass Group in the Community Award) the Global Silver Award. lf during a press interview Eurest were asked for their position regarding the continuing Aboriginal controversies. which was expected to last 2 years. Eurest helped a dozen students enhance their prospects via a prevocational retail hospitality training course e Eurest and Mission Employment (Ellis. Does 3. ruling unanimously that the separations were not an (Zan. Australia's Human Rights rrncl Equal Opportunity Commission called the forced removal of Aboriginal children an act of genocide. and (c) in2002 (from the Corperate Leaders for Indigenous Employment Awards) Finalist in the Outstanding Organization Category and the 2003 Prime Minister's Employer of the Year Award. In a speech to the Australian Parliament and to the nation.cl. how would you recommend that they resporrcl? What inipact rnight your recommendation have on Eurest's employces. Part of the reason for the controversy surrounding the family-sep&retign issue is a matter of definition. Although exact employment figures for the project were not available. and required skills that are familiar to (Northern and Central Land Councils. Questions for Discussion and Further Analysis t.1997)' gcnocide Regardless of the various laws and definitions of events. however.d. 2001). An example of this is joint venture with the Northern and Central Land Councils.In a 1997 report. why do you think Euresqrdded these If elements? What benefits might they offer? What problems might thly-create? elinrkeep or they that recommend you would you were consulting for Eurest. How might Eurest's Aborigines Employment Plan affect customer perceptions of Eurest? How might it affect employee morale? two key elements not specifically addressed in the govintroduction of indigenous employees to the workgradual plan: the ernment. Southern Europe and Development Division. They ruled on a suit filed by several Aboriginals who had been separated from their families act of rrs children. (b) in 2000 (from the Department for Employment' Workplace Relations and Small Business) the NAIDOC Award. ha.t' 3OO MANAGING A DIVERSE WORKFORCE IN THE GLOBAL Additionally. but also the receipt of many accolades fot the company (Eurest. 4.. each of the land councils had cers dedicated to maximizing Aboriginal participation Chapter 14 o The Inelurlve Workplace: Level CONTEXT in the (Northern and Central Land Councils. gardening. the Australian government formally rejected that reeotllnlenclation in 2001 ('Australian Government. February 13. had one basic request that for many years went unanswered: that i6e Australian federal government issue an apology.as. The arr was to create extensive Aboriginal employment utilizing the Alice to railway construction project (Northern and Central Land Councils. customers. the High court of Australia disagreed. Awards The result of Eurest's efforts is not only greater employment opportunitltt for Australia's indigenous population." 2001). ancl brtliness nnd government partners? . The railway ect was ideal for Aboriginal people because it ran through remote areas. 2004): (a) in 1999 (from the Australian National Training Authority) the Australian Tiaining Award (winner in the industry category fot hospitality). llowever. canteen. 2001). their rcquest was finally answered. Two months after that report was .2008. is where many Aboriginals live.2001). Eurest secured a $10-12 million contract to supply catering. 2008). suffering and loss" (BBC News. and general maintenance for construction during the railway project. Prime Minister Kevin Rudd made a formal apology saying that the Australian government was sorry for the past wrongs caused by successive govcrnrnents on the indigenous Aboriginal population. the Australian Parliantcnt 5. In addition to Eurest's ITEP manager.s place and a dedicated ITEP manager. In addition to increasing indigenous employment within its existing ness units. (from the Partners in Employrnent and Training State Summit and Awards) the Aboriginal Programt Industry Excellence Award. access to potential job seekers may be particularly important in tight job markets. Opening up employment and advancement opportunities for these populations may increase thelf chances of obtaining higher-paying jobs with better benefits. make the workplace more inclusive with respect to social class and. inclusion through international collaborations. whereas the inclusive workplace will hire local mlnagers and give autonomy to its international branches. on the other hand. and youth in distress. but to earn them in such a way as to make a real and permanieht contribution to the well being of the people and to the development of South Africa.1). will send local employees on international assignments to strictly enforce a company's values and norms overseas. Of the 1. The inclusive workplace sees value in collaborating across national borders. including these population groups in human resource planning and in policy initiatives of work organizations can beneftt companies as well as individuals and their families. domestic violence victims. improving customer relations. The lnclusive Workplace: level lV I nclusion Through I nternational Collaborations It is the duty of the corporation to make profits for its sharqholders. Besides the ethical and moral value of such actions. which will release them from the vicious cycle of low-paying jobs that barely suffice for basic needs. If corporations take appropriate initiative with respect to disadvantaged groups. The exclusionary workplace operates from a framework that is ethnocentric. The other obstacles are stereotyPeg and prejudices held by management and workers against disadvantaged popu. and focused on narrowly defined financial and national interests (see Figure 15. The economic benefits for companies include gaining a more loyal workforce.000 largest industrial companies in the United States. . \ The combination of business internationalization. 700 expect their growth abroud to elcecd their domestic growth in the next 5 years. value-based corporate image. General Electric. Multinational companies such as IBM. on the one hand. give companies access to untapped human resources. the inclu. British Petroleum. Although the exclusionary workplace views disadvantaged populations as in the sole domain of welfare agencies and charity organizations. -Sir Ernest Openheimer. competition-based. lations. It reflects the "macro" system level of international relations. worker migrationlrnd workforce diversity creates a challenge for companies engaged in international business. and identi$'ing global mutual interests. Siemens. The main obstacle to implementing such programs is a limited corporate vision that is focused on short-term goals. sive workplace perceives them as a potentially stable and upwardly mobilc workforce. for example. On the other hand. founder of Anglo American in 19171 evel IV. being pluralistic. The exclusionary organizalion. expanding employee pools. and Eastman Kodak each do business in more than 50 countries.302 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT Summary and Conclusion Inclusion of disadvantaged groups through state/national collaborations refers to the values that drive organizational policies with regard to disadvantaged pop. refers to the organization's positions and practices related to the fair exchange of economic goods and services and the respectful cultural relationship with individuals and groups in other countries. and having a more attractive. ulations such as welfare recipients. social and legislative changes such as the welfare-to-work reform can be conceptualized as an opportunity to. ::.pp.173. companies need to conduct their business in a fair and ethical way while respecting other cultures.lBals. 1 ). The increasingly more open economic markets create opportunities for countries with surplus workforce and underdeveloped economies to come together with countries that can finance economic endeavors and provide jobs. and countries acquire wealth has undergone major changes in recent decades because of the internationalization of capital markets and advances in technology.inlhriida . However. If they wish to survive and succeed in today's changing market conditions. see Box 15. out of business necessity.l lv€. In L975.p. being poverty stricken.lil:mtul. the company was almost forced to close its dairy in Etah.Sf !!i1ogg\ Gtobal Cplllloistions iw. companies must develop intelligent systems of human resource management and open up opportunities for a diverse workforce across national boundaries (for a case example of such policies and programs... they were unable to properly feed their livestock.:::: . Global lnclusion Exclusion Culture-specific Pluralistic Ethnocentric Collaboration-based lntranational focus Focus on global mutual interests Chapter 15 r The InclusiveWorkplace: Level IV 305 levels of the local people have improved considerably. to spend 2 months living and working with the villagers in Etah to get to know them better and to make actual contributions to their community (|ones.fprr. the dairy has been oper- ating at full capacity. the Indian division of Unilevet which. not because the villagers did not have enough cows but because.:. 2005. . In order to compete in this changing environment.rySce1. The management of Hindustan Lever decided to invest efforts and financial resources in its "integrated rural development initiative. and the villagers are now loyal consumers of Hindustan Lever products. . Further.87-88). 1999. the company now requires its managers. the health and income Ihe. who qpically live in India's cities. lnclusive Policies and Practices: Inclusion Through Global Collaborations Value Frame System Level lnternational... companies. developed an innovative international initiative.. these conditions also open up opportunities for exploitation by companies who take advantage of workers'desperation in poor regions by employing them in abhorrent conditions and subminimal payment. As a result of the program. An interesting example of inclusive practices is that of Hindustan Lever Ltd.304 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT The process through which people. ." helping some 600 villagers reach self-sufficiency.f . : : :.. Schwartz & Gibb.:. (2) formulating a vision and core corporate values. diversity and nondiscrimination policies applied to international business con- tacts are crucial. Chiquita lJrtnd. specifically. ln 1992. . viding the technical assistance that was needed to bring the distributorship up to the requisite professional level (Alperson. which wao the main irfrpetus for implementing its socially oriented organizational change2 (Werre. Panama. although there was not yet a democratically elected government in place. The company established its South Africa social investment fund (with an annual budget of about $350. Wicki & Vnn der Kaaij. race. Chiquita Brands International (mentioned earlier) counts amqng its program's employee benefits (a) the adjustment of payment and bene\s to rnany of its employees to make their compensation fairer and (b) the impro'v=rnent of health and safety conditions in its farms.2007).The rural areas from which Chiquita sources bananas struggle to various degrees with poverty. Barriers and Benefits to lmplementing the lnclusive Approach at Level lV BARRIERS Another example is the corporate social-responsibility program imple' mented by Chiquita Brands International. including those as prede' cessor companies United Fruit and United Brands. 2003.306 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT Chapter 15 r The Inclusive Workplace: Level IV 307 it formed a partnership with the only non-white software distributorship and invested time and resources in proenhance Black businesses. 2007). access to health care. literacy. including reducecl work disruptions caused by strikes und atoppages (Werr.000 employees in more than I27 banana farms in five countries in Latin America: Guatemala. including training Black South Africans to assume managerial posi' tions. (3) changing organizational behavior. and other basic social and irllrastructure needs. and improved indurtriel relntions. The second BENEFITS Companies today can reap the benefits of an increasingly global marketplace by employing workers from different nationalities in or outside their native countries. reduced health insurance costs because of lowel uccident rates. tage. and improved market understanding are only a few of the more obvious business reasons. Among the benefits to the company. The company went through four stages in the process: (1) raising top-management awareness. and (4) anchoring the change. improved environmental protection. Chiquita's banana division accounts fof more than half of the company's revenues and employs some 20. In addition to the fund and the training opportunities' Lotus also made efforts to conduct its busitress dcalirrgs in the country in n way that will There are several obstacles related to applying the principles of the inclusive workplace to international collaborations. a producer. Lotus reversed its previous policy not to do business in South Africa and launched a visionary initiative with the purpose of assisting in the development of the Black business community. distributor. From a business point of view. companies exploit uneducated people who live in poor nations with the purpose of gaining economic advan- barrier is discrimination. underutilized customer potential. including international job opportunities. which motivates companies to go beyond a fair economic exchange and take advantage of employees or resources in the host country. which leads to a forced implementation of the values and norms that are not appropriate for the host country. Inc.e. and marketer of fresh and processed foods. The company created an internship program for Black programming trainees in fohannesburg and brought a group of Black computer instructors to Lotus's Massachusetts headquarters for advanced training. Through much of its 100-year history. or other personal characteristics with respect to the hiring and employrnent conditions of both local employees and expatriates (employees who move from one country to the other to do their jobs). gender.s lnternational credits the program with improved sales in Europe as a result ol'the company's improved image. Costa Rica. Skill shortages. for these companies'employees. 2003). Lotus Corporation. 1995). the company has been fiercely competitive and suffered from a less than stellar reputation. This expansion creates new jobs. 1993. The primary barrier is greed. Makower..000) and has charged its newly hired manager with a mandate to work directly with Black-run infor' mation technology projects. developed its international inclusive initiative out of ideological conviction. and Colombia (Wicki & Van der Kaaij. or inappropriate consideration of age. And the third is lack of respect for other national cultures. on the other hand. Honduras. These global ventures and international collaborations allow companies to expand their geographical markets and to increase their economic activities. with very healthy profits for the company (Schwartz & Gibb. Given that products and services reach a growing number of men and women in countries throughout the world. and tasty food provided by the factory cafeteria. the wages and benefits fall short of legal levels.2 provides a summary illustration of the benefits and the barriers of implementing the inclusive workplace at level IV of the model. and the village cooperatives owned and managed the factories. leisure time. they have received only a few cents extra per day. That may be quite an understatement. The company currently provides employment to almost 500 people in Buri Ram' and this investment has boosted the province's economy and helped in the development of many villages in the area' These small rural factories turned out some of the highest-quality shoes of any Bata factory in the world. one olficirrl cluirncd the "troublemakers" left of their own accord. if the workers'claims are a fair indication. is very different. Case lllustration: Level lV-lnclusion Through Global Collaborations-The Fair Trade Company If fair trade clothes followed the trends and were designed by the right designer. With foreign production currently accounting for more than 25o/o of their domestic production. It sounds like an ideal situation.edition of the Neill YorkTimes. commissioning editor at Vogue Opening the newspaper and seeing stories about sweatshops and child labor violations in developing countries has become a common occurrence' In the December 7.2004). These "official" working conditions are outlined on paper and given to workers just prior to inspections so that they know what to tell inspectors. a Chinese factory that makes items such as Etch A Sketch. if workers are asked for a copy of their work contract or other documents. Additionally. work contracts.2003. however.'[he employees who led the protests are no longer with the compflny. United Nations Global Impact. investing the profits back into their communities. Although international businesses have existed for centuries.308 MANAGINGA DIVERSEWORKFORCE IN THE GLOBAL CONTEXT Chapter 15 r The Inclusive Workplace: Level IV 30g Another example comes from Bata International. pensions. high wnlls surrounding the lirctory' and ehleken wlre on the tiornrrtory wlndowg(Knhn. They can also become more aware of specific needs of their internationally based customers. one that some workers in industrialized countries might envy.7 days per week) without the benefit of overtime pay as\. workers at the Kin Ki plant claim to earn 24 cents per hour below the legal minimum of. multinational companies have a great stake in the international scene. Kin Ki Industrial. respectable hours without night or weekend work. the world has clearly entered an era of unprecedented global economic activiry including worldwide production. a popular toy in the United States. The company provided the training in manufacturing and business skills. However. As one Kin Ki official admits. 33 cents per hour. and rice. .3 When Bata decided to expand its operations in Thailand. medical benefits. rrlthclugh sometimes it may be lrard to tell baged on tlre grrerrlecl J'ront entrnnce. 2003). the paper instructs them to intentionally waste time and then say that they can't find the paperwork. the workers are required to work g4-hour weekq (12 hours per day. 2001. -Alice Fisher. they would sell as well as any others. and-in increasingly large numbersglobal strategic alliances. which can enable them to create valued products and services (United Nations Global Compact. That rnay be true beedrr$e Kin Ki is not a prison.1999). it worked with development experts from the Thai Business Initiative in Rural Development to set up small shoe factories in poor villages of the northeastern province of Buri Ram. required by law workers are fed an uninspiring diet of boiled vegetables.Joseph Kahn reported on the sweatshop conditions in one plant. The story begins by illustrating the "officiar" working conditions at Kin Ki: good salary. with no improvements in thc tbod. a maker of shoes.. with meat served twice per month. distribution. Figure 15. beans. Despite protests by ihe workers for more pay and morc meat. sales organizations and supplier communities can improve their access to people with talent by increasing the diversity of their workforce. The reality of the working conditions. 31 per pound (lb cents above prevailing market rates). which were not previously available. The demand for fair trade products has spread across approximately 58 countries as of 2007 including Europe to the United States. New fair trade products are regularly introduced around the world. not only through laws or trade penalties but through positive trading relations. as illustrated by the coffee market. and |apan) in late 1998 Fair Tiade Association of Australia and New Zealand (2003) Several ofthe organizations. 2002). for the first time in the United States in 2004 (Horovitz.) in 1992 Fair Tiade Federation (U. invest in their businesses. Fair trade coffee was introduced in Europe in 1990 and. known as fair trade. Wild Oats Markets offered fair trade bananas. pineapples. fair trade Austria introduced organic fair trade mangos. Oxfam. Although the prices paid by importers are n()t tnuch tnore than the prevailing market rates. In some cases. rugs. however. chocolate. Now in the United States. and fapan (The Fair Trade Foundation. bugs of fair uade eeffee beans (mlld blenel) l'or $ I t. coffee. and other items (Fair Tiade Federation. 2003). jewelry. toys. fair trade practices have emerged to ensure that producers. Fair trade originated in the late 1950s when a U. the costs can often be kept relatively close to the price. offcrs I -lb. Fair trade flowers were made available in ltaly. clothing. 2008). charity. For example. large-scale food manufacturers are beginning to offer fair trade coffee for the first time. r r r IV 3l I MARKET EXPANSION Fair Trade History r Chapter 15 o The Inclusive Workplace: Level MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT The creation ofopportunities for economically disadvantaged producers Gender equity-particularly making sure that women are properly paid for their work and empowered within their organizations Transparency and accountability-including transParent management and open dialogues between importers and producers Capacity building-promoting sustainable business practices by producers and providing management-skill development and financial and technical assistance Payment of a fair price-as agreed through dialogue between the importer and producer Improved working conditions Environmentalsustainability Promoting fairer trade by eclucoting consumers about thc inrportance of ptrrchasing fairly tradecl products The fair trade market has grown considerably since its start with craft items in the United Kingdom.K.2006. started selling crafts made by Chinese refugees (Aaronson & Zimmerman.2002). How dpes that translate inter cust difTerentials for the end cousunrer? Stlrbuekc. 2003). Consumers can now buy a wide array of fair trade products including produce. however. adding a certification to product packaging such as the Fairtrade Foundation's "fairtrade marlC' in the United Kingdom. EXAMPLE OF THE COSTS OF FAIR TRADE COODS How much extra do fair trade products cost? That varies by product and company. had grown to $300 million in sales with over 150 brands in over 35.. More than any other product. furniture. tea. Canada. as of 2001. 2002). 2004). More often the new products are an expansion into a new country. The number and types offair trade products.S.45 pe r pound . In 2008. Canada. Several organizations have formed with the sole focus of promoting and monitoring fair trade practices. and avocadoes. As a result. as defined by the Fair Tiade Federation (2008). otl€ of ihe lergeet ceft'ee ch*rina in the tJnite'cl States. PRINCIPLES OF FAIR TRADE The key principles of fair trade. Ram. Procter & Gamble has introduced a fair trade coffee line available via the Internet. This practice helped bolster Oxfam's organizational goal of offering a lasting solution to poverty There has been a and suffering around the world. sold in Europe for years. 2007). the worldt first fair trade mangoes purchased from farmers in Ecuador became available in Europe in 2002 (Ram.310 growing movement to eliminate poor working conditions' as experienced at Kin Ki. are as follows: r o . New Zealand. Since that time.K. Kraft is introducing a fair trade coffee line. coffee is experiencing strong growth worldwide (Fair Trade Federation.) in 1964 The International Federation ofAlternative Trade (Netherlands) in 1989 The Fairtrade Foundation (U.S. 2002). coffee importers buy directly from growers at 91. and farmers are paid a price that not only covers their costs but also allows them to support their families. 2002). including the following: o o r r r r The Alternative Thading Organization (U. and invest in social and economic improvements (Ram. the grower receives a higher price tlron the 40 cents per pound thrrt they received via middlemen (Bojarski. such as the Fairtrade Foundation and Transfair USA. paper products. and Sweden (The Fair Trade Foundation. or $1. with expected increases ranging from 23o/o in the United States to 80% in fapan in 2003. varies from country to country.of non-fair trade products.K.51 per pound (20 cents above market rates) for organic coffee (TransFair USA. According \to TransFair.2003). laborers. focusing on distribution via their food service division (Turcsik. the United States. For example. the products are new to the world.2008). Australia. certifr that consumer products meet fair trade guidelines. the monies go directly to the growers instend of to rniddlemen.) in 1994 Thansfair (U.000 supermarkets (Bojarski. . Minney added that Japanb customers are only concerned about how something is produced if it lools good first (Trapp. Fair Trade Company formed relationships with underprivileged people from around the world to use indigenous resources to produce clothing and of 2002. some people may be concerned about the quality of the clothing. NEED FOROPTIONS IN JAPAN Regardless of these hurdles. 2001). Canada.000 (Trapp.2002).2002). Soon they launched a small catalog. a natural outgrowth of Global Village. Fair Trade Company branched into the United Kingdom market in September 2000. The image isn't really sexy. Whereas Global Village was formed to show consumers where to find socially friendly products.312 Chapter 15 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT r The InclusiveWorkplace: Level lV 313 difference. Minney explains that product quality was the key to her success in Japan. Fair Trade Company was formed to actually provide such products to consumers in fapan. For example. Minney started distributing pamphlets that indicated where it was possible to buy organic foods and to recycle (Davis. 2003). the catalog had 20. There is general agreement that the certifications are having a profound effect on the industry and will become more common in the coming years (Fair Tiade Federation. Tiansfair is working to expand their certifications beyond a few labeled products in the United States. As a result. Despite efforts to keep costs down through hard work. nearly 8lo/o of all products sold in Europe feature a certification on the packaging that assures consumers that proper principles were followed (Krien 2001). . People are not interested unless a product is decently designed and of a certain quality. Minney explains. Fair Trade Company's T-shirts sell for about 50% more than a consumer would typically pay for a non-fair trade Global Village and the Fair Trade Company shirt (Davis. .4 million. According to the European Fair Tiade Association. "If people do have an impression . Lfter 2 years of sales in the United Kingdom with little more than word-of-mouth promotion. Ms. a product in a higfr'ty competitive and price-conscious market. By the end compared with $9. she found that fapan s culture was filled with excess packaging and a lack of concern for environmental and human rights issues (People Tiee. Fair Trade Company primarily sells clothing. Minney formed Fair Tiade Company. and Japan. 2003). "Japan is very design led. led Fair Trade Company to annual sales of sales $7. After gaining success in Japan. they think they're oatmeal and miserable and made of string. a nongovernmental organization with the goal of providing information sources for |apanese consumers to rerycle and to purchase environmentally and socially friendly products. In 1995. and japan (Fair Trade Federation. the total workforce population (excluding supermarkets) in the United States.200l). Safia Minney moved from Britain to lapan because of her husband's work. volunteers make up 680/o of. The company's solution to k'eeping their prices down is to "work hard" (Trapp. Canada.2002). sales have climbed to $460. 2001). Not only did Fair Tiade Company have to deal with such negative imageo of fair trade clothes. 2001). where lowering workforce costs is viewed as the means to competitive pricing. Certified fair trade products are common in Europe. Ms. Ms. To earn this designution. naming the company People Tree after its catalog. a l57o In 1990.95 per pound for comparable non-fair trade beans. she became dismayed with her options for organic foods and recycling. The European Union and the FAIR TRADE PRODUCT CERTIFICATIONS . That method is a common one among fair trade companies. Fair Trade Company experienced 40o/o to 50% growth per year over their first several years. Fair Trade Future handicrafts. l city must prove that shops and suppliers are comrrritted to selling l'oir trcde ptoducts (["lart. which by 1999 developed into a 100-page catalog called "People Tree. While there. But the clothing looks and feels great" (Davis. In Europe. which.'Ms. combined with to about 500 japanese stores.000 customers in fapan. From this effort grew Global Village. Additionally. As Ms. but they also had to deal with higher prices." listing Fair Tiade Company's products (People Tree. FORMULA FOR SUCCESS FAIR TRADE CITIES Naturally. a growing trend is to have cities certified as a "fair trade city'' The Fairtrade Fclundation determines the criteria and awards the designation. 2003) and 98o/o in Europe (Krier. 2003). All of the producers were paid a price-approximately 30olo above the prevailing market prices-that would allow them to sustain a living for their families and to invest in their businesses (People Tree. 2003).2003). applpng fair trade principles can improve a company's public image and its standing with customers and stockowners alike. Anglo American is South Africat largest company and the world's number one in the mining industry. some are suggesting that Wales may become the first fair trade country in the world. 2009). and focused on narrowly defined financial and national interests. companies must develop intelligent systems of human resource management and open up opportunities for a diverse worKorce across national boundaries. competition-based. inclusion through international collaborations. what would you suggest to help them increase their sales? this company? How would you tie the company's diversity management Practices to its newly initiated fair trade practices? How would you use both to improve the company's image internally (with its employees) and externally (with customers. If they wish to survive and succeed in todays changing market conditions. These conditions. p. From a business point of vieq diversity and nondiscrimination applied to international business contacts are crucial. Notes l. Swansea and Cardiff have moved close to the designation (Hart. lrut fnrnllles of clvlllaus hlllerl by plramilitaries havc faulted the company for . 'l'hc' comparry said it did so to protect its employees thcre. \ 2. Which method do you think would work better for improving worldwide working conditions: voluntary methods via fair trade products or laws mandating fair working conditions for imports? What would be the benefit and drawbacks of each approach? 2. The combination of business internationalization. how would you use the experience of People Tree to assist were consulting for People Tree. and workforce diversity creates a challenge for companies engaged in international business. financial institutions. Overcoming skill shortages and underutilized customer potential and improving market understanding of foreign markets are only a few of the more obyi- ous business reasons. What impact do you think Fair Tiade Company's higher prices have on sales? What might be some of the reasons that Fair Trade Company is paying a higher premium to producers than that paid by importers of fair trade coffee? 3. Questions for Discussion and Further Analysis l. What are your opinions on the topic? Is this a fair analogy? Why or why not? Summary and Conclusion The fourth level. If you were consulting for another clothing company that wants to implement fair trade practices. Finally. and stockowners)? 5. In 2008. Some might claim that the use of a high percentage of volunteers in the fair trade industry is trading one group of low-wage workers for another. If you 4. implementing inclusive workplace principles can help companies reap the benefits of an increasingly global marketplace by employing workers from different nationalities in their native countries. However. refers to the organization's positions and practices related to the fair exchange of economic goods and services and the respectful cultural relationship with individuals and groups in other countries. Ammanford became Wales's first fair trade city h July 2002' Since then. 1999. Wales is leading the pack in the battle for fair trade city designations and has been declared the first Fairtrade nation in the world (The Fairtrade Towns in Europe Project." 2003). The primary barrier is greed. being pluralistic. also open up opportunities for exploitation by companies who take advantage of workers'desperation in poor regions by employing them in abhorrent conditions and subminimal payment. The exclusionary workplnce oPerates from a IV 315 framework that is ethnocentric. the idea is so new that the Fairtrade Foundation has not yet determined criteria for such a designation ("Wales in the Fast Lane. and Wrexham is aiming to be the first fair trade county borough in the United Kingdom. 2009). In order to compete in this changing environment. which leads to a forced implementation of the values and norms that are not appropriate for the host country. worker migration. There are several obstacles related to applying the principles of the inclusive workplace to international collaborations. The quote was provided by Anglo American maneger Margie Keeton (Schwartz & Gibb. On the other hand. Other barriers include discrimination in hiring and employment conditions and lack of respect for other national cultures. The increasingly more open economic markets create opportunities for the countries with surplus workforce and underdeveloped economies to come together with countries that can finance economic endeavors and provide jobs. but the inclusive workplace sees value in collaborating across national borders.Chapter 15 o The InclusiveWorkplace: Level MANAGINGA DIVERSEWORKFORCE IN THE GLOBAL CONTEXT 3t4 Fairtrade Foundation have launched an international Fairtrade Town Web site in |uly of 2009 and there are currently almost 700 Fairtrade Towns/Cities in l8 countries worldwide (The Fairtrade Towns in Europe Project.88). and identifying global mutual interests. which motivates companies to go beyon d a fair economic exchange and to take advantage of employees or resources of a host country. Chicluita Brands International admitted it had paid nearly $Z *illiott in protection moncy to n rnurclcrous paramilitary group in Colombia that has killed or massacred thouaands ol'pcople. companies need to conduct their business in a fair and ethical way while respecting other cultures. With all of the fair trade growth in Wales. 2003). however. ii. tt a'ao-purry has grown to over 40. we put the different aspects of the inclusive workplace together and examine the implications for a broader vision of managing global diversity. and culminate with international collaborations. is in today. like a person's behavior. and the barriers and benefits of implementing each system level of the inclusive workplace.allegations have tarnislred the company. tUi"rri rr".i.s czech The company is a retailer.shtml).o"u"oi.2009. The companyt admission and the victims.000 employees and over 5. are informed by its values.. and distributor of commerciar fash_ l:o:otir lon tootwear and accessories' over -unuru. these levels begin with inclusion within the organization.r...itf iTffi.. .i.000stores. organizations need to evaluate their eurlent values and norms and initiate new policies and programs that cun lrrstltute needed chnnge..rarce in over 50 countries and runs 33 production facilities across 22. An organization's actions. the practice applications.. Retrieved December 60minutes/main4O 3' t.316 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT eontributing to their death. From the micro to the macro.com/ stories/ 1998/ 07 ?fu?: g0920. proceed through corporate-community relations and collaborations with state/national initiatives. whether explicit or implicit. / 08 / Bata International. he previous chapters described the value basis."""1"i in any new markets it enters. In order to become inclusive.cbsnews...The price of Bananas. 9th-century lndian poet and writer. -Pampa. In this chaptpr. Toward a Clobally lnclusive Workplace Putting the Pieces Together There is only one caste-humanity.s image (CBS A irgust 9. our discussion in the previoue eheptere hlghllghted the v$lues that elrive thc exclusionary 3t7 . It manages a r"tuil p.. than a multinational enterprise and makes it a priority to contribute . Bata shoe organization has tra_ ditionally regarded itself as a "multidomJ." .... ltor the sake of clarity.ur. The Value Base for the lnclusive Workplace The inclusive workplace is guided by a set of values that propels its policies and practices. founded in rg94 by Tomri$ Ba"a in zlim.rl the years. The third level. . and organizations in other counlths. the inclusive workplace is based on a dynamic. being plufllhric. as mo$organizations will be somewhere on the continuum. The inglulive workplace sees value in collaborating across national borders.= (sc E* o c q) E' (l)c Nf tL= P5 Oo EB aA CF dF OO j (d . recognizes the economic and noneconomic consequences of it:presence in the community. referc to the organization's positions and practiceo !€lnied to the fair exchange of economic goods and services'and the respectfttl €ultural relationship with individuals.E lmplementation of the lnclusive Workplace Implementing the inclusive workplace can have substontld ltenefits to the organization and to its employees but will present considerebhlilrriers in the EFFEFfiEE$EE process (see Figure 16. o G EF= tr o .I €iE E EE $EE g€E EE*6 : E o of. inclusion through elnltlnational collaborations.u F. C/r P: o i= o o C" . relates to thmganization's sense of being a part of its surrounding community and fie reciprocity embedded in that relationship. inclusion throughglilnl collabora' tions. and iden- tifying global mutual interests. The exclusionaryworkplace operates from a framework that is ethnoeenticand focused on narrowly defined financial and national interests.. '6Eo o'Eor q) ne oo ilg frE :'' extremes of the inclusion-exclusion continuum (the horizontghaxis).EEggsF o E G lI.SE i. diversity within work organizations.318 MANAGINGA DIVERSEWORKFORCE IN THE GLOBAL CO\ITEXT workplace on the one hand. 'EE:i-E$ifEfi* F$FEEgf. and youth in distress as a potentially ctablcund upwardly mobile workforce. groups.EF*'g'*Eu g. The model examines tkorganization's value frame on each of the four system levels (the vertical 7-axh)and at the two e ia Fg tr o o Ht J E c + Hfi. (d pl ge e6 E 2* o. The first level. refers to the values that drive organizational polieluwith regard to disadvantaged populations such as welfare recipients. and those that drive the inclusive vorkPlace on the other. It acknowledges the responsibility it lros to aneliorating the adverse effects of this presence and to making a positive egilribution to the community's well-being.9 = iXFi= c E = A --e E. An exclusionary workplace s€flminimal or no connection to its community. the fourth Ievel.o co a)7.2). The exclusionary workplace vi€$these populations as being in the sole domain of welfare agencies and charltyorganizations. Tlrsecond level.1 provides a summary illustration of the value schemes presented earljerlor each of the system levels of the inclusive workplace. on thc ofier hand. An inclusive workplace. The chart presented inligure 16.. oE-c 5=re d. domestic violence survivors. 0nevolving value frame that relies on mutual respect and equal contributiona of different cultural perspectives to the organization's values and norms. relatestothe organiza' tion's internal relations with its own employees. 319 . d€mestic violence victims. Whereas ln exclusionary workplace is based on the perception that all workers need toconform to preestablished organizational values and norms (determined by its "mainstream"). In realiry rarely do we find these extreme cases. and youth in distress.9 E x ul es gp*f . inclusion and corporate-community collaborations. *i*. Finally. o (. The inclusive workplace perceives welfare recipients seekingllork. At level Ill-inclusion through state/national collaborations-companies are extending services through programs and policies aimed at assisting disadvantaged groups in society. which can translate into advantages in recruitment and avoid or mitigate the potentially negative results of labor disputes. and improve customer relations.sive townrd itr cntlrc wrlrkfrlrce. :6e'E o . r.goo '=s Ae) E ecE 6E. Benefits to individuals often include job training that may lead to employment with the company or improved job prospects with other employers. HE '.! :=-g .FE€ E€EE $frcI .6t EB8 s?.l i i rr' o .:d9 sgic" E gBEre)!C i -. particularly among the disadvantaged groups but also among other clients who care about social issues.1 i o> .t:. and greater appeal to clients of diverse backgrounds.= o 'gggggguEeggeeggggEHEa!EeEEfi c oo Eb E 't.. -ftB :FE EEPp:r .f. and people's perceptions of group competition for access to power within the organization. iia.9 e '6o -=o i= e6Eg€ 0=6gE qE frgE 5 EA .:d oa:. employment. and additional services that community members would not otherwise have. The likely obstacles to implementing inclusive policies and practices at level I include prejudice. 6 :gEB Esg$ gHmH' ".^ €it = 3! 6I Eb9* I Ft h ESi.E lirl:rlilll ii r:l.E n F6 :Egg *. The focus of the inclusionary policies and programs at this level is on social class-though social class is often related to gender and racelethnicity group membership.c oOc-oO 9.EEE!] FiF$EgE E*EEgE oro CE 16F^ =B .E E3 p b. .e i iiii t. recognizing that the corporation's own well-being is tied to it.r:.4 P €8 €Ee . rl l irll r.9 E EA .> -9. encourages. and facilitates the inclusion of individual employees who are different from the mainstream in the organizational EEicEPET*=cattE€tE.:a rlt r'. The main barriers to implementing inclusive policies at this level include shortsighted ancl internally focused company vision and stereotyping disadvantaged groups as unstable and clisposntrle lubor. gain a loyal workforce. At level ll-inclusion through corporate-community relations-an inclusive workplace recognizes the community as a legitimate stakeholder and directly and actively collaborates with community organizations in an effort to contribute to the community's welfare.89.9-oQ EEE EE8 I3t F'inally at level lV*inclusiou through international coffiorutionr-o company is irrclu.85 fi5E.. ooli o9ts o € 3 E E ? -5 :EEE €EEE : gE= E666 2-o Y6c !cO t_-=oE6 processes. Benefits to individuals in the community include access to opportunities like job training.9 G l0 b t P. E. At the organizational level. The main benefits at this level include better access to promotion and benefits as well as improved job satisfaction and well-being for individual employees. Shortsighted and internally focused corporate vision and economic pressures to demonstrate short-term profitability are among the main barriers to implementing inclusive policies and programs at this level. tiltliiliilii::.s6E E EEATt EEe! P €4E.. lt uvoicls lhe ternptation to cxploit uneducated cttrployees itt ptxtr reglotu ancl eoutlrrcts lltrsincss in rr lrrir trrtl cthicitl way thnt . !4EE EEE clfEe sEnE .286 . Pgi =-rU E [Eg8S.cE.!= cA ozo xp6.o o tr o E€.r:r lit i l:. overt and covert discrimination.. better access to highpotential employees who will be attracted to their organizational culture. Work organizations may expand their potential employee pool as a result of these policies. part icularly irr developiug countriec. The organization's tangible rewards include improved corporate image within as well as outside the community. = . companies may experience lower turnover and reduced absenteeism as a result of improved job satisfaction among employees.8-d .=b I E E sFE$ EEF =$E EEE Eg.Chapter 16 r Toward a Globally Inclusive Workplace 321 At level I-inclusion through diversity within work organizations----an inclusive workplace allows. lroth locally and overseas.1::l:i:l:l OnO)c tc. C'' o information networks and decision-making bEb '45€ =E€ . In depicting diversity management. Benefits to individuals rations are greed. norms. Conclusion The economic. Changing the organization's culture from merely "diversity tolerant" or "respectful of diversity'' to truly inclusive can be done through deliberate actions at the four system levels suggested in this book. The goal of diversity management is not to assimilate people of diverse characteristics into the dominant culture but to create a social. they also define the scope of what companies need to consider as their domain when they design diversity policies and programs. when people are forced to blend and give up their unique characteristics. through the community and state. Allowed to display their true colors. however. their families. social. that these trends are not only a backdrop or context for organizations to consider. sensitivity training initiatives necessitates a radical upending of basic assumptions. and unfair or inappropriate consideration of diversity in employment conditions of both local employees and expatriates. mitigate potential harmful effects and define "the rules of the game" for work organizations. as'they are able to generate goodwill from both their employees and potential customers. their families and communities. have already introduced diversity initiatives. Chapter 16 r Toward a Globally Inclusive Workplace 323 customers. to the international. . as explained in Part II of the book. This inclusive workplace offers a broad vision for managing diversity in today's global economy. one that is receiver-centered rather than self-centered. An inclusive workplace allows. they shine brightly and together create an inspiring work ofart. all of whom are also increasingly diverse. With the growing number of larger and multinational companies all over the world. and the communities in which they live. and by the international community as a whole. and demographic trends described in Part I of the book create an environment that is fertile ground for intergroup conflicts. such as potential future employees. although some smaller companies can and do adopt inclusive initiatives. As demonstrated in the case studies. for example. it is primarily midsize to large companies with adequate resources that are able to engage in all four levels of inclusion. Tieating their employees fairly and respectfully also benefits organizations. and organizational environment that respects and values individual differences. and expand their economic activities. Like colors. The main barriers related to aPplying the principles of the inclusive workplace with respect to the international collaborespects and accommodates other cultures. though. one that contains individuals and groups that have a direct or indirect stake in the organization. the result is a dull gray. the inclusive workplace offers a comprehensive and multilevel approach that ensures fair and inclusive treatment of individuals who are different from the mainstream." valuing diversity involves treating others as theywish to be treated. and structures. Although some companies. legislative. this model can potentiallybenefit individual employees. Sometimes called the "platinum rule. and investors. cultural and national difficulties in communication. and beharriors. gain a loyal and committed workforce. Valuing diversity goes beyond the golden rule of treating others as you wish to be treated yourself because it involves a higher behavior. employers need to adopt a broader vision of inclusion. I propose an image from the art world-the painter's palette. The limitation of this approach is rooted in its ambitious scope. It is important to understand. An organization that does not confront the daunting and complex task of moving toward an inclusive workplace cannot set appropriate diversityrelated goals. a vision that encompasses not only the organization itself but also its surrounding community and its national and international environment. primarily in North America and Europe. patterns. and facilitates the inclusion of individual employees who are different from the mainstream in the organizational information networks and decision-making processes at each of the four levels-from the organization. The legislative and social policy initiatives taken by individual countries. In order to avoid the pitfalls and reap the benefits of a diverse workforce. Full-fledged inclusion as opposed to. encourages. and work organizations.322 MANAGING A DIVERSE WORKFORCE IN THE GLOBAL CONTEXT in the host countries include access to job training and employment that may otherwise not be available and improved life conditions for individuals. The conventional assimilation paradigm used the industrial melting pot imageindividuals were expected to shed their unique group affiliations and cultural characteristics in order to take on the majority culture's values. My coworkers openly share work-related informationwithme. inmyorganization. supervisor (questions 7-9) 4... ... information networks. My supervisor often asks for my opinion before makingimportantdecisions...... 8.e. I am rarely invited to ioin my coworkers when they gooutforlunchordrinksafterwork(R)...memos. changesintheorganization 2 3 n4tr 515 tr I fl 2 n 3 tr4tr 5 tr6 tl I tr 2 tr 3 n 4 tr 5 tr 6 tr 1tr 2 tr 3 tr4tr 5 tr6 The Mor Barak Inclusion-Exclusion Scale (2005)t measures the degree to which individuals feel a part of critical organizational processes such as access to information...e-mails)..... It uses a matrix system with five system levels (work group. I am usually invited to important meetings D3n4 tr 5 ! ... Research Measures: Scales of lnclusion and Diversity I am often invited to contribute my opinion in with management higher than my meetings immediatesupervisor.... social/lnformal (questiorrs l3-15) .... z 3 4 5 6 Moderately Strongly Agree Agree Strongly Moderately Slightly Slightly Disagree Disagree Disagree Agree events. tr I tr 2 tr 3 tr 4 tr 5 tr 6 My supervisor does not share information with ........ higher monagement (questions l0-12) 5. higher management... . I am typically involved and invited to actively participate in work-related activities of 4- I am able to influence decisions that affect 5.... and influence in the decision-making process.. . I have influence in decisions taken by my work tr I I groupregardingourtasks. trl!2n3J4tr5n6 I frequently receive communication from management higher than my immediate supervisor (i.. E lA2 tr 3 tr 4 tr 5 tr 6 10. and participation/involvement).. and sociaVinformal) bythree inclusion dimensions (decision making.. a 1 a2fJ3n 4 tr 5 tr 6 tr 1[J2[J3 tr 4 tr 5 tr 6 OVERVIEW l. 6. work group (questions 1-3) 2.. ! 1l2n3fJ I am often asked to contribute in planning social activitiesnotdirectlyrelatedto myjobfunction.......Appendix 7... tr1tr28384trsn6 me(R). 12..... 11. E lfJZfJ 3 4 n 5 tr 6 tr 4 n 5 tr 6 r4..... The Mor Barak lnclusion-Exclusion Scale 13... organization. organization (questions 4-6) 3. ..... .. (R). tr1tr24344tr5tr6 I am often invited to participate in meetings with managementhigherthanmyimmediatesupervisor. Appendix 325 I am invited to actively participate in review and evaluationmeetingswithmysupervisor.... I am usually among the last to know about important myorgani2ation. 2.... I am always informed about informal social activities SCALE ITEMS and companysocial 15.... 3...... The measure includes 15 items that evaluate a person's sense of inclusion in relation to the following five system levels: l.. supervisor.. 5 tr1tr2fl3D4tr5tr6 n I tr 2 ! myworkgroup. 9...... involvement and participation with the organization..... Besen.81. and employee retention in nonprofit public agencies.72. b. The inclusion-exclusion scale again demonstrated good internal consistency with a Cronbach's alpha of .05) with Porter and Lawler's (1968) organizational satisfaction. and that exclusion was linked to job dissatisfaction and a lower sense of well-being. 15) Information networks (questions 2. l. Higher score.63. Findler. social support. 9. another international study matched a sample of 381 employees with their 320 supervisors in one of the largest corporations in Korea (Cho & Mor Barak. scores on the scale reflect a higher sense of inclusion. The authors examined the relationship among minority status.88 (Mor Barak & Levin.400 employees of diverse racial and ethnic backgrounds in a California-based high-tech company with Cronbach's alpha of . respectively. the respondents are asked to evaluate their inclusion in the following three dimensions: a. job satishction. individual well-being. 1986). organizational commitment. The theoretical factor structure fit both samples well (the Bartlett's Test of Sphericity was 1342. 2009).87) and appropriate correlations indicating convergent validity (r = . l5-noted by the letter R next to them) to prevent response sets in answering the questions. job satisfaction. perception of fairness. Cronbach alphas of the three distinct factors ranged from . Nissly. workplace racial composition. inclusion/exclusion.001. and the Kaiser-MeyerOlkin measure was .70 to . 6. The study utilized the l0 items related to decision-making processes and information networks from a l5-item inclusion-exclusion scule and documented the measure's strong internal consisteney with a (lrorrbach's alpha 327 of . Gibbons. the study demonstrated that women and members of racial/ethnic minorities were more likely to feel excluded. Findings from the study indicated that perception of inclusion was strongly related to job satisfaction. 8.30 and 406. and organizational commitment (Findler. p < . 2008).91. Level of participation/involvement (question s 3.7. a third study tested a theoretical model using structural equations statistical methodology. Utilizing the inclusion scale in a multivariate model.90 and . both at p < . Another study examining how perceived inclusion affects teen volunteer's organizational satisfaction illustrated the good internal consistency of the Mor Barak inclusion-exclusion scale (Bortree & Waters. organization diversity. Longitudinal studies conducted in three locations in the United StatesCalifornia.326 Appendix MANAGING DIVERSITY In each of these levels. 1998) showed strong internal consistency (Cronbach's alpha = .81 for the two national samples. & Wind. the inclusion-exclusion measure again demonstrated good internal consistency with Cronbach's alpha of . Wind. of employees from similar high-tech companies in the United States and Israel. One of these studies used structural equations modeling to provide empirical support to a comprehensive theory-based model of the relationS\ between diversity. 2003). and job satisfaction for social work professionals employed in organizations through the use of a national Internet-based survey. perception of fairness. respectively (Mor Barak.4. Anothcr longitudlnal . Pittman. employee well-being.82.13) c. and Castellanos-Brown (2009) again demonstrated high internal consistency of the inclusion-exclusion scale with a Cronbacht alpha of . Acquavita. inclusiun. & Lane. organizationel commitment. and job performance (as evaluated by the employees' supervisors) among the Korean employees. 12. 2001). The measure showed good internal consistency in a sample of 3.05) with Porter's work alienation scale (Price & Mueller. Massachusetts. & Mor Barak.87 and . BRd turuover. Psychometric Properties and Previous Research Utilizing the Measure Accumulating research demonstrates both the validity and reliability of the measure across diverse population groups. and Texas-demonstrated viable relationships between diversity. A second study with these samples tested a multivariate model and demonstrated that ethnicity. 5. inclusion. The decision-making process (questions 1. and discriminant validity Q a 32.78. and social support (Mot tlarek. The study utilized 6 of the 15 inclusion-exclusion scale items. Findings from a study carried out by Matz-Costa. for the two samples). respectively. Examining perception of inclusion among Korean employees. A series of cross-national studies demonstrated the resiliency of the measure across cultures. job stress.2007). Pittman. Pitt-Catosouphes.10. The results showed that perceived inclusion was positively associated with job satisfaction (Acquavita. 8. perceived inclusion. 2006). Findler. Gibbons.2002). The combined factors accounted for 650/o and 670/o of the variance in the tlvo samples. and job satisfaction were all significant correlates of employee well-being (Mor Barak. Utilizing only the national sample drawn from a high-tech corporation in Israel. & Wind.p < . controlling for stress. The findings demonstrated several significant associations between diversity and organizational culture such as fairness and inclusion. 11. An earlier version of the scale (Mor Barak & Cherin. In a crosscultural study with samples.83. & Castellanos-Brown. and Lynch (2009) suggest that perceived inclusion diminished after the 2007 economic downturn and appeared to be lower among individuals who had decreased job security as a result of the economic crisis. The finding revealed that inclusion was strongly associated with organizational satisfaction. 2008). 14) The 15 scale items are summed to create a composite inclusion-exclusion with three reverse-scored questions (items 5.evin. The 16 se nle items ore summed to create a composite diversity perceptions score with four reverae-e €ored questions (items I . gender. I a la2 tr 3 fl 4 tr 5 n 6 OVERVIEW of my race.. Ithinkthatdiverseviewpointsaddvalue. n IA2I fl 4 ! 329 tr 6 tr 2 E3fJ4 tr 5 tr 6 3 5 The company spends enough money and time on diversityawarenessandrelatedtraining...... using the five-item participation/involvement dimension from the original l5-item inclusion measure.. sexual . am afraid to disagree with members of other groups for fear of being called prejudiced (R)...... & Gallois.. tr orientation........ Personal comfort with diversity (items 14-16) ! employees.... or age (R).. 1. I religion.. Personal dimension Personal diversity value factor (items 1l-13) d. Managers here make layoff decisions fairly.. n I n 2 tr 3 tr4 tr 5 D 6 12.... 2004). as follows: I. 3.. tr I tr 2 tr 3 I 6 II. It also refers to management actions that affect inclusion or exclusion of women and members of minority groups-such as mentorship programs or the preservation of the "old boys' nefivork" (factor b).. 2.. regardless of their race. 9. The findings suggested that visible and informational dissimilarity were negatively related to work group involvement....... 5. The "old boys' nehvork" is alive and well here (R)..... Organizational division a.orsocialbackground... I 5. tr 5 b. The personal dimension refers to individuals'views of the importance of diversity to work groups and to the organization (factor c) and their level of eomfort in interactions with members of other groups (factor d). sexual orientation... It includes 16 items with two dimensions: the organizational and the personal. 10.. ! 1a2fJ3 tr 4 tr 5 tr 6 tr I tr2tr3tr4tr5tr6 The organizational dimension refers to the perception of managementt policies and procedures that affect members of minority groups and womensuch as discrimination or preferential treatment in hiring and promotion procedures (factor a)..f1 13.89 and . I believe diversity is a strategic business issue.. regardless of employees' race. 9.. tr 1 tr 2 ! myown. I 2 Strongly Disagree I feel that I 3 4 5 6 Moderately Slightly Slightly Moderately Strongly Disagree Disagree Agree Agree Agree have been treated differently here because gender..90 for Time 1 and Time 2.... gender... The study demonstrated high internal consistency of the scale items with Cronbach's alpha of .. .. Organizational inclusion factor (items 7-10) Managers give assignments based on the skills and abilities of n 1 tr 2 E 3 tr 4 ! c. 4 n E2Z3 tr 4 tr 5 tr 6 age. SCALE ITEMS 16. Managers interpret human resource policies (such as sick leave) I n 2n 3 fairlyforallemployees.. There is a mentoring program in use here that identifies and prepares all minority and female employeesforpromotion 4 tr 5 tr 6 sity climate in the organization (Mor Barak. Organizational fairness factor (items 1-6) 4 n 5 tr 6 Management here encourages the formation of employeenetworksupportgroups. .. 16.. gender.... 1998).. nsted by the letter . tr Managers here give feedback and evaluate employees fairly.. 1D283!4n5n6 E I E 2 tr 3 tr 4 ! 5 n 6 I feel at ease with people from backgrounds different from The Diversity Perceptions Scale 15..orage.328 Appendix MANAGING DIVERSITY study focused on the relationship between perception of dissimilarity and the inclusion dimension of work group involvement. . & Berkman... 3 l a2D3 age.. respectively. tl 1 Knowing more about cultural norms of diverse groups wouldhelpmebemoreeffectiveinmyjob... 7.. religion.religion.... Bordia.. n 5 tr 6 D4n 5 tr 6 n 1 tr2 a3D4 n 5 tr6 tr4 tr 5tr6 a Ia2 tr 3 ! . Group openness to diversity was found to moderate the relationship between visible and informational dissimilarity and work group involvement (Hobman..... The diversity perception scale examines employees'views about the diver- Managers here have a track record of hiring and promoting employees objectively. Diversity issues keep some work teams here from performing to their maximum effectiveness (R).sexual orientation... each containing two factors.. regardless of factors such as employees' race.orsocialbackground.... 6. Cherin.. The questionnaire was developed based on a review of the literature. The factor structure was tested on a sample of 2.686 employees in a California-headquartered international high-tech company with a diverse workforce. 2008). job satisfaction. Item contributors included human resource managers. diversity than did White men (Mor Barak.4o/o. reviewed the items for face validity. Pugh. The four faeteirs had Eigen values between 1. Morris. and felt more comfortable with. examining diversity climate in health care organizations. Psychometric Properties and Previous Research Utilizing the Measure The measure focuses on perceptions because it has been documented that behavior is driven by perceptions of reality. This process was done twice and resulted in a pool of 16 questions with a 6-point Likert-type scale ranging from "strongly agree" to "strongly disagree" with an additional category of "can't answer.6olo). . occupations. .g. inclusion. Items covered the personal dimension (e. job involvement. project managers. as well as each ofits factors. and line workers. Fasolo.81 and . and intention to leave. and style. Tonidandel. &.g'' McKay' AverS & Morris. respectively. Higher scores on the scale reflect a more positive perception of diversity climate. However. 2008. testing management skills.35. The measures used in the study included three of the four scale factors with the exception of the personal comfort with diversity factor. McKay. Alderfer & Brown. Johnson. Cherin. & Berkman. Mack..1993).lo/o of the varianee (fhetor l-29'9o/o. Mack. midlevel managers. & Berkman. Dietz. Avery and Morris (2008' 2009\as similar to the organizational fairness subscale. White men perceived the organization as more fair and inclusive than did'vVhite women or members of racial and ethnic minority groups (both men and women). The results of the study examining ethnic and gender diff'elences in factor employee perceptions of organizational diversity climate revealed that.g. and the Kniser-Meyer-Olkin tional fairness.77 ." The overall scale. Cherin.001. overall. composed of representatives of ethnic groups. similar surveys used in other companies.67. 1998). Conversely.83. II-13 .2002)' leave Several studies have utilized the Diversity Perception scale as criteria for the development of other scales measuring diversity perception (e. and viewpoints of minorities and women"). members of the majority group of the organization (White men) had nrore positive overall perceptions ("Things are good as they are") than women and members of racial and ethnic minority groups ("More needs to be done"). respectively (Mor Barak. and Biderman (2002) utilized the Diversity standing the organizational diversity environment. and innovativeness.. The study examined the relationships between diversiry affective commitment. "I am afraid to disagree with members of other groups for fear Perception Scale in a sample of 202 African American women employed at a national organization. Examining interaction effects. McKay et al. Johnson. . the resbarchers report that respondents who reported high perceived personal diversity also reported strong associations between perceived organizational fairness and perceived organizaas well as between affective commitment and intention to (Caldwell. One item utilized by Mackay."Management takes seriously the opinions.g. What people believe is of vital importance.Avery. This committee served as a representative liaison group to help develop and conduct an empathic survey (Alderfer. ideas. both men and women of diverse racial/ethnic background. The organizational fairness and organizational inclusion factors were found to have good internal consistency. and . & Biderman. 1980. & Wiley. explaining5T.4.80. White women and members of racial and ethnic minority groups saw more value in. .90 (Kaiser. 331 measure was .86. 1998)' The measure has been used by researchers in various studies in different contexts and with diverse population groups (e. For example. whether or not their beliefs are consistent with reality. After the first pool of about 100 items was collected.7l. with Cronbach's alpha of . The factors fit the data wellBartlett's Test of Sphericity was 4593. The study's findings indicated that there are significant relationships between organiza- of the organization reflecting issues that they felt were important of being called prejudiced") and the organizational dimension (e.330 Appendix MANAGING DTVERSITY R next to them) to prevent response sets in answering the questions. The authors reported that the correlation between their measurc and the Diversity Perceptions scale provides tional inclusion. showed strong to adequate internal consistency with Cronbacht alphas of . (2007) used nine items to assess how managers perceive the value of diversity in organizations and considered the similarity of their scale to the earlier version of this diversity scale. both men and women from different functions in the organization. 1972).etaL. Norusis. the personal diversity value dimension yielded a very low Cronbach's alpha of .Io/o. For example. and Davis-LaMastro (1990) found that employees' perceptions of being valued by an organization were associated with their conscientiousness.15 at p < . Eisenberger. wording. and racial/ethnic backgrounds) to answer the questions and critique the content.2007. The dimensions and factors can be summed and analyzed separately to gain more insight into the composition of employees' views of the diversity climate. to under- Caldwell. factor IV-6.2 and 5. and items solicited from various members Specifically. affective commitment' and turnover intention. A diversity committee of a California-headquartered international company. factor III-7.. genders. job satisfaction.2009. 1970. a pretest of the items was conducted by asking a selected group of workers (again representing various levels of management. and testing leadership in a global context). Brief. Aczel. NewYork Wiley. N. (2002-2003). Adarand Constructors v. A. J. and trad. (2002). |.. Ailon. Advances in experimental social psychology (Vol.). & Gundersen. (1965). Pugh. mirror on the wall: Culture's consequences in a value test of its own design. Cherin & Berkman. In D. 2002). (2009). A social psychological framework for understanding social inclusion and exclusion. I.317-332. J. M. Adamson. . Dietz. London: Academic/Survey University Press. & Hogg. (2000). Abrams. Abrams (Ed. Brief. About the Firm. R. (1991). 2001. New York: Academic. Inequity in social exchange. ]. 998-1030 A . Human Rights Quarterly. Case Western Reserve University: Thomson. development. Processes of social identification. In G. (1997) . pp. Adler. (1988). . Mor Barak.. (2006). Berkowitz (Ed. M. 885-904. UK: Psychology Press. Finally. K. (1999).D. Revised and expanded from the earlier versions of the Inclusion-Exclusion and Diversity Perceptions Scales (Mor Barak & Cherin. M. D.. D. 28(4) . International dimensions of organizational behayior. Geneva: Intemational Labour Organization. M. Abrams. (2004). & Castellanos-Brown. Similarly. (2008). NewYork: Four Walls Eight Windows. A. 267-299). Aaronson.e. P. relativity and the expanding unlyerse. M. | 169-1193. from www. Mor Barak. God\ equation: Einstein. Pena (1995). S. & Silbermsn.332 MANAGING DIVERSITY support for the validity of their scale. 308-3 I I ). E. f. Academy of Management Review. The Denfly's story: How a company in crisis resurrected its good name.inspf the second Beneration: The cose of North Africans in France. European lournal of Social Psychology. A. Gibbons. Adler.. human rights. In L.. & Zimmerman. & Wind. Mor Barak & Levin. The documentation and evaluation of antidiscrimination training in the Naherlands. Comments on motivational status of self esteem in social identity and intergroup discrimination . Social Psychology of Inclusion and Exclusion. 33(2). f. Fair trade: How Oxfam presented a systemic approach to poverty. N.33(4). Acquavita. Personal and organizational diversity factors'impact on social workers'job satisfaction: Results from a national internet-based suwey.. Pittman.. 1998. & Dankoor.haynesboone Abell. Hogg. Adams. G. Decolonization immigrations and the social orif. R. Alba. Retrieved December 8. 2. 15l-166. 2003. Havelaar.. 57-99).. P. Johnson (2008) suggests using the Diversity Perceptions scale as a self-assessment tool to gauge one's ethical leadership with respect to the moral aspects of diversity and exclusion (pp. S. S. Social psychology of identity and the self concept (pp. J. Breakrvell (Ed. 1998.).).. (2008).. M. M. Mirror. The International Migratlon Revlew' 36(4). References Note 1. A. CA: Wadsworth. (1992). Administration in Social Work. and Wiley (2008) used the Diversity Perceptions scale as a guide to obtain the validity of their scale.com/about/about. M. & Marques.asp Abrams. Belmont. D. Findler. International dimensions of organizational behavior. 18. Documents Similar To Part 2 - M.barak Managing Diversity 2nd Edition Chapt 7-16Skip carouselcarousel previouscarousel nextMy Secret Potential STANDARD Test4.3 - Fraser, Nancy - Toward a Discourse of Ethic Theory (en)Politics, Ideology and Discourseberger.docSummary of the Teaching of Philosophy in AustraliaEssay One Sample (2)Black Diamonds IKawakami K._dion K. - 1995 - Social Identity and Affect as Determinants of Collective ActionS9.1. 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