Management exit | organization behavior-chapter 7

Chapter seven cultures and diversity


What is culture?


Culture refers to the shared knowledge, beliefs, values, customs, attitudes, and behaviors that characterize a particular group or society.


Features of culture:

1.      Dynamic: Culture is constantly evolving and subject to change, albeit usually at a slow pace.

2.      Learned: Culture is not inherited; rather, individuals acquire it through interaction with their environment and society.

3.      Non-uniform: Different aspects of culture, such as rituals, ideas, moral values, and beliefs, vary significantly across different sections of society. Furthermore, these cultural elements can change over time.

4.      Patterned: Culture is an integrated system where a change in one aspect can have a ripple effect on other components.

5.      Social: Culture emerges as a product of social interactions and is deeply intertwined with society.

6.      Shared: Culture is not an individual experience but is shared by the members of a particular group, community, or organization.

7.      Transferable: Culture is passed down from one generation to another, ensuring its continuity and preservation.


Organizational culture


Organizational culture can be defined as a shared system of meaning held by members that sets the organization apart from others.

·         It encompasses the values, beliefs, and behaviors that characterize the organization.

Seven key characteristics capture the essence of an organization's culture:

1.      Innovation and Risk Taking: This refers to the extent to which employees are encouraged to be innovative, think creatively, and take calculated risks.


2.      Attention to Detail: It reflects the emphasis placed on precision, analysis, and meticulous attention to detail in the organization's operations and work processes.

 

3.      Outcome Orientation: This characteristic highlights the organization's focus on achieving results and outcomes, prioritizing the end goals rather than fixating on the specific techniques or processes used to attain them.


4.      People Orientation: It signifies the extent to which management considers the impact of outcomes on individuals within the organization, taking into account their well-being, satisfaction, and development.


5.      Team Orientation: This dimension indicates the degree to which work activities are structured around collaborative teams rather than solely relying on individual efforts and contributions.


6.      Aggressiveness: It pertains to the level of assertiveness, competitiveness, and ambition exhibited by individuals within the organization, contrasting with a more laid-back or easygoing approach.


7.      Stability: This characteristic reflects the organization's emphasis on maintaining the status quo, stability, and continuity rather than pursuing rapid growth or constant change.


The role of organizational culture

·         Culture serves as the social adhesive that binds an organization together.

·         It gives members an organizational identity

·         It facilitates collective commitment.

·         It promotes systems stability

·         It influences behavior by aiding members in understanding their environment.

·         It provides a boundary.

·         It has a boundary- defining roles

·         It conveys a sense of identity for organizational members

·         It facilitates the generation of commitment

·         It enhances social system stability

·         It serves as a sense-making and control mechanisms


Do Organizations Have Uniform Cultures?

No, organizations do not have uniform cultures. Instead, they often exhibit a variety of cultural dynamics, including:

1.      Dominant Culture: This refers to the primary or prevailing culture within an organization.

Ø  It represents the core values and beliefs that are widely shared by a majority of its members, shaping the overall personality and identity of the organization.

 

2.      Core Values: These are the foundational values that guide the behavior and work of the organization's members. .

Ø  Core values serve as guiding principles that influence behavior and decision-making across the organization.

 

3.      Subcultures: In large organizations, subcultures may emerge to reflect specific groups or departments that share common problems, situations, or experiences.

Ø  These subcultures may have their own distinct values, norms, and behaviors that coexist alongside the dominant culture.


Diversity


Diversity in an organization refers to the existence of employees with various characteristics and backgrounds.

Ø  This includes differences in physical appearances, gender, age, qualifications, preferences, experiences, origins, castes, religions, designations, cultures, and more.

Ø  Diversity encompasses the unique attributes of individuals, recognizes and respects their differences.

Ø  It is important to create a safe, positive, and nurturing environment that encourages the exploration and celebration of these differences.

In today's workforce, diversity is increasingly evident in terms of gender, race, ethnicity, national origin, and other aspects.

Ø  The workforce comprises individuals with diverse attitudes, needs, desires, values, and work behaviors.

Ø  To achieve success, managers must not only understand the cultural backgrounds of their employees but also recognize and manage the degree of diversity present within the workforce.


The features of diversity

1.      Multidimensional: Diversity includes both visible and invisible dimensions of human beings.

2.      Inclusion: Diversity not only includes differences but also similarities among people.

3.      Pros and Cons: Diversity, if properly managed, can be a competitive advantage for an organization. However, if mismanaged, it can lead to negative consequences and potentially harm the organization.


Cultural diversity

Cultural diversity defines as identities derived from membership in socio-culturally distinct groups, encompassing dimensions such as race, ethnicity, nationality, religion, gender, and other differences in norms, values, or traditions.

 

The characteristics of cultural diversity

1.      Competitive Advantage: can be a competitive advantage if managed properly. However, if ignored or mishandled, it can lead to conflicts and dissatisfaction within an organization.

2.      Primary and Secondary Dimensions: includes both primary dimensions (such as gender, age, race, ethnicity) and secondary dimensions (such as religion, personality differences, education).

3.      Collective Responsibility: is not solely the responsibility of top-level executives or HR managers but is the responsibility of everyone within the organization.

4.      Ongoing Process: is not a one-time task but a lifelong process that needs to be adapted to the changing needs and demands of a diverse workforce.


Benefit or Importance of Cultural Diversit

1.      Better customer service: A diverse employee base can better understand and communicate with different types of customers, resulting in better service that meets diverse customer needs.

 

2.      Better problem solving: A team composed of diverse members brings in more information, richer ideas, and a greater number of approaches to problem-solving compared to a team composed of homogeneous members. Diversity can serve as a source of knowledge for problem-solving.

 

3.      More tolerance of different ideas: A diverse employee base brings a broad variety of ideas reflecting different views and values. Organizations need to adopt a tolerant attitude towards employees holding different ideas to fully utilize these varied perspectives.

 

4.      More flexibility: Organizations must be able to respond quickly to meet rapidly changing customer desires and competitive actions. A diverse workforce can provide the flexibility needed to adapt and respond effectively.

 

5.      Valuing fairness and respect for individuals' contributions: To capitalize on the advantages of increased information and wider perspectives, organizations need to create an environment where individuals feel they operate in a fair environment that values their inputs.

 

6.      More innovative: A diverse workforce benefits organizations as people from different backgrounds have different ways of looking at the same problem, leading to more creative and innovative ideas for problem-solving and decision-making.

 

7.      Enhances firm's image: Organizations that are known for valuing diversity can build a positive public image, which can attract investors, customers, and employees. A favorable public image contributes to the reputation and success of the company.


Diversity management

Diversity management refers to the efforts made to manage and respect cultural differences among people and create an inclusive work environment that leverages the benefits of diversity.


Approaches to diversity management

1.      Discrimination and Fairness Approach: focuses on creating proactive programs to ensure equal opportunity, fair treatment, and compliance with Equal Employment Opportunity conditions for all employees.

 

Ø  Companies following this approach implement mentoring and career development programs, explicitly targeting women and minority groups, and train all employees to respect cultural differences.

Ø  The main goal of this approach is to eliminate prejudice in the workplace and promote understanding of cultural differences.

Ø  However, this approach may not effectively integrate diversity into the work culture and may not fully leverage the potential benefits of diversity.

 

2.      Access and Legitimacy Approach: focuses on accepting and utilizing differences among employees to cater to diverse customer groups.

 

Ø  Organizations applying this approach believe that the marketplace is culturally diverse, presenting both opportunities and threats. Therefore, they recognize the strategic importance of diversity.

Ø  To address the diversity of the marketplace, organizations work on enhancing the diversity of their workforce.

Ø  This involves recruiting employees with multi-skills and proficiency in multiple languages to better understand and serve diverse customers, aiming to gain legitimacy with them.

 

3.      Learning and Effectiveness Approach: aims to integrate employees by recognizing that cultural differences are an important source of organizational learning.

 

Ø  It values and incorporates diversity into core business processes. Organizations following this approach encourage open discussions, respect differences, and foster a positive diversity climate.

Ø  The goal is to develop a culture of integration and create a sense of value and respect among employees from different cultural backgrounds.

Ø  This approach requires a bureaucratic and democratic structure, an organizational culture that promotes openness and high performance standards for employees.


Process of Cultural Diversity Management:

1.      Diagnosis: assess the current situation regarding diversity policies, statistics, and culture to identify issues and their root causes.

2.      Aim Setting: Setting aims for diversity management

3.      Awareness Rising: Raising awareness about diversity among employees at all levels

4.      Policy Development: Implement new systems through the involvement of all employees.

5.      Managing the Transition: Conduct various training initiatives, including programs designed for minority groups to understand the organization's culture and acquire essential skills.

6.      Sustaining Momentum: Involving a senior management functionary

7.      Assessing Achievements: Evaluating the success of diversity management policies.


Strategies for Managing Cultural Diversity:

1.      Ignore Cultural Differences: Managers in parochial organizations do not recognize cultural differences and their impact on the organization.

Ø  Diversity is considered irrelevant, and efforts for effective diversity management are disregarded.

2.      Minimize Cultural Differences: Ethnocentric organizations acknowledge cultural diversity but view it primarily as a source of problems.

Ø  They believe their own management approach is superior and seek to reduce diversity by minimizing differences and favoring a homogenous workforce.

3.      Manage Cultural Differences: Synergetic organizations recognize the effects of cultural diversity as both advantageous and disadvantageous.

Ø  They believe in combining different management approaches to create the best organizational practices.

Ø  These organizations train managers and employees to recognize cultural differences and leverage them to create advantages for the organization.


Responses to Diversity

Managers and employees may respond to diversity in various ways, choosing approaches that are suitable for different situations.

1.      Exclusion: Involves keeping members of diverse groups out or pushing them out once they are in.

2.      Denial: Individuals subscribing to this response choose to ignore cultural differences within the organization.

3.      Suppression: Encourages individuals to restrain or conceal their differences.

4.      Segregation: Refers to placing members of particular groups in specific work or departments.

5.      Assimilation: Attempts to transform members of diverse groups into replicas of the dominant group.

6.      Tolerance: Acknowledges differences among individuals but takes steps to minimize interaction between groups.

7.      Building Relationships: Believes that fostering good relationships can overcome differences.

8.      Fostering Mutual Adaptation: This approach advocates accepting and understanding differences and diversity.


Culture as a Liability


Culture will be liability for an organization because; it could be

·         Barrier to change,

·         Barrier to diversity and

·         Barriers to acquisitions and mergers.


Globalization and People at Work


To survive in a globally competitive environment organizations now require to trade at international level.

1.      Transformations in Identity: Globalization has a psychological impact by transforming the sense of identity.

Ø  The connections among different cultures and world regions have accelerated due to advances in telecommunication and increased economic and financial interdependence.

Ø  This interconnectedness contributes to a global consciousness, where individuals perceive the world as a single place.

 

2.      Cultural Mapping: Organizations engaged in international trade and globalization must understand and map different cultures to achieve success at the international level.

Ø  Cultural awareness and adaptability are crucial for navigating diverse markets and establishing effective relationships.

 

3.      Benefits of Cultural Diversity: The increasing cultural diversity in the workforce can yield advantages for organizations.

Ø  Studies indicate that heterogeneity among group members enhances creativity, improves decision-making quality, and facilitates change by promoting flexibility.

Ø  Comparisons between decision-making groups composed of members from the same ethnic group and those including individuals from diverse ethnic backgrounds have shown that ethnically diverse groups generate more effective and higher-quality ideas.


Ways in which economic globalization may impact on employment

1.      Number of Jobs:

2.      Structure of Jobs:

3.      Employment Conditions:

4.      Skill Requirements:

5.      Wage Levels:

6.      Labor Mobility

7.      Job Insecurity and Precarious Work:


To understand the difference in management and organizational practices among the world’s cultures. we must be familiar with the importance of :

Ø  Multinational employers,

Ø  multicultural workforces diversity  , and the

Ø  Expatriate= People who work and live abroad for extended periods of time are referred to as expatriates

 


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