Kerala university mba 2014 scheme Module 2

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Unit II: Understanding Primary Aspects of Diversity - Race and ethnicity – Cultural diversity –
Issues of expatriate mangers – Impact of culture on Negotiation- Gender diversity in workplace –
Women in Leadership Position – Issues; Generational Diversity in workplace.
Understanding Primary Aspects of Diversity
The Primary Dimensions of Diversity
 Race/Ethnicity
 Age
 Physical abilities/Qualities
 Sexual orientation
 Gender
 Religious beliefs
The Secondary Dimensions of Diversity
 Work background
 Income
 Marital status
 Geographic locale
 Family background
 Education
RACE AND ETHNICITY
Divisions between genders, races and ethnicities often exist in the workplace, in part because society
as a whole still bears the scars of past injustices.
Diversity is good for business because a range of employees with a range of backgrounds will bring
different ideas and enable an employer to appeal to different parts of the marketplace and this
contributes to innovation and success.
Racial and Ethnicity Discrimination involves treating someone unfavorably because of the person‟s
race or personal characteristics associated with race. The law forbids discrimination in any aspect of
employment, including hiring, firing, pay and benefits. It is also unlawful to harass a person because
of that person‟s race. Although an employer may implement a policy that applies to everyone
regardless of race or colour, the policy can still be unlawful if it has a negative impact on the
employment of people of a particular race or colour, is not related to the job and necessary to the
operation of the business and the law also prohibits discrimination against an employee or applicant
because of that individual‟s national origin. And no individuals can be denied equal employment
opportunity because of birthplace, ancestry, culture, linguistic characteristics common to a specific
ethnic group, or accent.
Racial Discrimination: Racial discrimination in the workplace can be defined as any exclusion,
restriction or preference based on race, color, descent or national or ethnic origin which has the
purpose of impairing an employee‟s ability to exercise their rights to equal standing in the
workplace.
Ethnic discrimination occurs when an employee is treated different than his or her colleagues based on
their ethnicity in a manner that is unfair.

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A person‟s ethnicity refers to the national, cultural or religious group(s) to which they belong, or are
perceived to belong. A person‟s ethnicity can be shown visually (i.e. if they wear a turban), linguistically,
(e.g. if they have a Chinese accent), or it can be difficult to detect. A person‟s ethnicity is associated with
their cultural identity, and it can change over time. In contrast, a person‟s race is generally seen as an
unchangeable part of their biological makeup.
Ethnic Group: The term “ethnic group” refers to a group of persons whose members identify with
each other through such factors as common heritage, culture, ancestry, language, dialect, history,
identity and geographic origin.
Ethnic Minority: Ethnic minority does not only refer to ethnic groups that are a numerical
minority. Instead, it refers to any ethnic group that is not dominant socially, economically or
politically.
The Benefits of Racial and Ethnic Diversity in the Workplace
Companies increasingly understand the value of recruiting and retaining diverse employees, as
these workers play a critical role in a company‟s ability to adapt, grow and sustain a competitive
advantage in the modern business landscape.
 Gains in worker welfare and efficiency
 Reduced turnover costs
 Fewer internal disputes and grievances
 Improved accessibility to new and diverse customer markets
 Higher productivity and increased revenue
 Increased innovation
 Development of new products and services
 Improved company reputation management
 Greater flexibility and adaptability in a globalized world
 More efficient risk management (e.g. legal risks due to non-compliance)
 Prevention of marginalization and exclusion of categories of workers
 Improved social cohesion
How to Prevent Racism in the Workplace
1. Write an anti-discrimination policy that specifically addresses racism. Include consequences for acts of
racism in the workplace
2. Hire employees from all races and ethnic groups to create a diverse workforce.
3. Inform job candidates before hiring them of your policy against racism and discrimination in any
form.
4. Promote employees based on merit without considering race or other irrelevant factors. This
establishes a system of fair promotions so all employees feel valued.
5. Hold training at least once a year to remind employees of how to conduct themselves in the workplace
6. Train employees how to avoid discrimination and racism.

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7. Establish a committee in the workplace that focuses on anti-racism projects. Use the committee to
identify potential discrimination issues that might arise at work and begin finding solutions.
8. Treat all instances of racism the same according to the established policy
9. Let the victims know you will handle the situation and inform all employees that you won‟t tolerate
the behaviour
10. Encourage open communication with employees so they are more likely to report racism. Emphasize
the importance of reporting racism even if an employee sees it happen to someone else.
11. Establish an anonymous reporting system that allows employees to report racism without fear of
retaliation.
12. Follow up on reports of racism immediately.
ISSUES OF EXPATRIATE MANAGERS
 Family Stress
 Cultural Inflexibility
 Emotional Immaturity
 Responsibility Overload
 Physical Breakdown
An expatriate is an employee who is sent to work overseas for certain time-basis in the firm‟s
subsidiary to complete certain task or achieve organizational goals i.e. An expatriate is an individual
living in a country other than his or her country of citizenship, often temporarily and for work reasons.
An expatriate can also be an individual who has relinquished citizenship in their home country to
become a citizen of another.
An Expatriate manager is a citizen of one country who is working abroad in one of the firm‟s
subsidiaries.
 Three dimensions of expatriate managers:
• The self dimension: The skills that enable a manager to maintain a positive self-image and
psychological wellbeing
• The relationship dimensions: The skills required to foster relationships with the host-country
nationals
• The perception dimension: Those skills that enable a manager to accurately perceive and evaluate the
host environment.
 Six important factors of expatriated managers:
• Cultural intelligence (CQ): ability to adapt across cultures through sensing the different cues
regarding appropriate behavior across cultural settings or in multicultural settings

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• Family situation: ability to keep in touch with families collaboratively and continuously
• Flexibility and adaptability: ability to fit changed circumstance
• Job knowledge and motivation: ability to transfer knowledge smoothly and transfer international
assignment into career advancement
• Relational skills: ability to build up relationships more actively
• Extra cultural openness: ability to communicate with others more openly
 “Big Five” – the predictors of expatriate selection
a. Reliability: the consistency of a performance measure; the degree to which a performance measure
is free from random error
b. Validity: the extent to which a performance measure assesses all relevant-and only the relevant-
aspects if job performance
c. Generalizability: the degree to which the validity of a selection method established in one context
extends to other contexts
d. Utility: the degree to which the information provided by selection methods enhances the
effectiveness of selecting personnel in real organizations
e. Legality: describe the government‟s role in personnel selection decisions, particularly in the areas of
constitutional law, federal laws, executive orders, and judicial precedent
CULTURAL DIVERSITY
Cultural diversity (also known as multiculturalism) is a group of diverse individuals from different
cultures or societies. Usually, cultural diversity takes into account language, religion, race, sexual
orientation, gender, age and ethnicity. Companies started to embrace corporate diversity in the early
2000s. This was due to many trends in demographics and a changing workforce.
Cultural diversity acknowledges the existence of broad cultural groups within Indian culture.
Cultural diversity has been part of India's history, and through it, India culture is constantly
developing.
Cultural Diversity Trends and Examples
1. The growth of a minority workforce.
Today's workforce is made up of a very diverse population of individuals from every part of the world,
which creates dynamic multiracial and multicultural organizations. Such diversity brings with it many
differences in skills, abilities and experiences
2. The second trend is a growth of stereotyping and prejudices.
This can be hard to avoid when so many different cultures come together in a work environment

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3. Another trend companies are embracing is the addition of sensitivity or diversity training.
This type of training educates all employees about cultural differences so that they can understand and
appreciate each other. The purpose of sensitivity training is to teach employees how to properly act
and communicate in a corporate environment. Topics covered in a sensitivity training session will
include learning proper etiquette, appropriate terminology, improvement of communication skills,
anti-bullying management styles and how to eliminate sexual harassment in the company.
4. Large increase in female workforce.
 Workplace issues involving cultural diversity
Every company that‟s emerged as a positive example of cultural diversity
has faced issues in relation to facilitating people from different groups to work
cohesively. HR personnel and the company‟s leadership should be responsive to these issues.
The following are some diversity workplace issues:
 Conflict – This occurs when discrimination, prejudice, lack of respect, and racism are allowed
to fester in a workplace. Intolerant attitudes can turn into open conflict if companies don‟t take
the correct steps to show that any type of discrimination won‟t be tolerated.
 Harassment – This issue can present itself in a diverse workplace where leaders fail to
recognize the signs and deal with perpetrators. Training should be provided as to what
constitutes harassment. Employees who harass others should be dealt with according to
company procedures. Like all the other issues arising from diversity in the workplace,
harassment can have a devastating effect on employees and the company as a whole. Uber is an
example of a company that has suffered damage as a result of harassment claims.
 Disregarding needs – Some companies ignore the needs of disabled employees by failing to
provide them with the necessary equipment to access all facilities and to undertake their jobs.
Employers need to lead the way in creating a comfortable workplace for all of its employees,
irrespective of whether they have a disability.
 Benefits of cultural diversity
The advantages of cultural diversity include:
 Innovation – Where everyone in a company is from the same background, they‟re likely to
have similar ideas. In order to remain competitive, companies need new ideas and concepts. A
diverse workforce brings unique perspectives on how to solve problems and innovate to gain a
competitive edge.

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 Respect – A diverse workforce enables team members to appreciate the differences in others
because of the positive contribution that different people bring. Where co-workers are open to
learning from each other, they appreciate that diversity enables them to function better as a
team. Therefore, gain a mutual respect for colleagues who are different.
 Reputation – A commitment to diversity demonstrates that a company values fairness and
equality. These characteristics have a positive effect on its reputation with suppliers and
consumers. A company that openly recruits the best candidates for a job, irrespective of which
group they are in, will gain customer loyalty and a good reputation.
 Productivity – The diversity of a company is an indication of how productive its employees
will be.
 Growth – Where a company has a diversified workforce, they position themselves to build
relationships with people from different cultures. Diverse employees can advise the companies
about the best strategies to use to gain new customer bases. Employees who speak different
languages and are aware of the cultural norms of international markets can be vital to a
company‟s growth.
 Recruitment – Research shows that 67% of job seekers advised that a company‟s diverse
workforce is a key factor when evaluating job offers. These findings demonstrate that diversity
is a key aspect when recruiting the best talent. Job seekers are aware of the importance of a
diverse workforce and want to be part of a company that will value and appreciate their
difference.
 Compliance – Companies need to comply with both federal and state laws that ban them from
carrying out discriminatory practices. Promoting a diverse workplace where everyone is
respected helps companies to obey the law and also ensures that every employee is treated with
the respect he or she deserves.
Impact of culture on Negotiation
The effect of culture on negotiation can be categorized into intercultural and cross-cultural and can be
compared along cultural characteristics. Intra-cultural negotiation refers to negotiations within one„s
own culture. Cross-cultural negotiation concerns negotiation between individuals from different
cultures. Examples of cultural characteristics include collectivist versus individualistic cultures. Cross-
cultural negotiations will result in poorer outcomes compared to intra-cultural negotiations, at least
some of the time.
The following aspects of differing cultures affect the negotiation process:

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Negotiation opportunity- Cross-cultural negotiations will be influenced by the extent that negotiators
in different cultures have fundamental agreement or disagreement about whether or not the situation is
distributive or integrative.
Selection of negotiators- Different cultures weigh the criteria to select negotiators differently, leading
to varying expectations about what is appropriate in different types of negotiations.
Protocol- Cultures differ in the degree to which protocol, or the formality of the relations between the
two negotiating parties, is important.
Communication -Cultures influence how people communicate both verbally and nonverbally, directly
and indirectly, and through the body language used. Direct communication is targeted directly at the
other party such as words spoken or written communications. Indirect communication uses third
parties, situational signals or other indirect means of communication. The implications of a method of
communication for negotiation regards the ability to transmit information necessary to reach
integrative agreements
 Negotiating goal: Contract or relationship?
 Negotiating attitude: Win-Lose or Win-Win?
 Personal style: Informal or formal?
 Communication: Direct or indirect?
 Sensitivity to time: High or low?
 Emotionalism: High or low?
 Form of agreement: General or specific?
 Building an agreement: Bottom up or top down?
 Team organization: One leader or group consensus?
 Risk taking: High or low?
1. Negotiating goal: Contract or relationship?
Negotiators from different cultures may tend to view the purpose of a negotiation differently. For deal
makers from some cultures, the goal of a business negotiation, first and foremost, is a signed contract
between the parties. Other cultures tend to consider that the goal of a negotiation is not a signed
contract but rather the creation of a relationship between the two sides. Although the written contact
expresses the relationship, the essence of the deal is the relationship itself.
2. Negotiating attitude: Win-Lose or Win-Win?
Because of differences in culture, personality, or both, business persons appear to approach deal
making with one of two basic attitudes: that a negotiation is either a process in which both can gain
(win-win) or a struggle in which, of necessity, one side wins and the other side loses (win-lose). Win-
win negotiators see deal making as a collaborative, problem-solving process; win-lose negotiators

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view it as confrontational. As you enter negotiations, it is important to know which type of negotiator
is sitting across the table from you
3. Personal style: Informal or formal?
Personal style concerns the way a negotiator talks to others, uses titles, dresses, speaks, and interacts
with other persons. Culture strongly influences the personal style of negotiators. It has been observed,
for example, that Germans have a more formal style than Americans. A negotiator with a formal style
insists on addressing counterparts by their titles, avoids personal anecdotes, and refrains from
questions touching on the private or family life of members of the other negotiating team. A negotiator
with an informal style tries to start the discussion on a first-name basis, quickly seeks to develop a
personal, friendly relationship with the other team, and may take off his jacket and roll up his sleeves
when deal making begins in earnest. Each culture has its own formalities with their own special
meanings. They are another means of communication among the persons sharing that culture, another
form of adhesive that binds them together as a community
4. Communication: Direct or indirect?
Methods of communication vary among cultures. Some emphasize direct and simple methods of
communication; others rely heavily on indirect and complex methods. The latter may use
circumlocutions, figurative forms of speech, facial expressions, gestures and other kinds of body
language.
5. Emotionalism: High or low?
Accounts of negotiating behavior in other cultures almost always point to a particular group‟s
tendency to act emotionally. Various cultures have different rules as to the appropriateness and form
of displaying emotions, and these rules are brought to the negotiating table as well. Deal makers
should seek to learn them.
6. Form of agreement: General or specific?
Whether a negotiator‟s goal is a contract or a relationship, the negotiated transaction in almost all
cases will be encapsulated in some sort of written agreement. Cultural factors influence the form of the
written agreement that the parties make. If unexpected circumstances arise, the parties should look
primarily to their relationship, not the contract, to solve the problem.
7. Team organization: One leader or group consensus?
In any negotiation, it is important to know how the other side is organized, who has the authority to
make commitments, and how decisions are made. Culture is one important factor that affects how

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executives organize themselves to negotiate a deal. Some cultures emphasize the individual while
others stress the group. These values may influence the organization of each side in a negotiation.
The negotiating team with a supreme leader who has complete authority to decide all matters,
the one-leader team is usually prepared to make commitments more quickly than a negotiating team
organized on the basis of consensus. As a result, the consensus type of organization usually takes more
time to negotiate a deal.
GENDER DIVERSITY IN WORKPLACE
Gender diversity is equitable or fair representation between genders.
Advantages of gender diversity in workplace
 Men and women have different viewpoints, ideas, and market insights, which enables better
problem solving, ultimately leading to superior performance at the business unit level.
 A gender-diverse workforce provides easier access to resources, such as various sources of
credit, multiple sources of information, and wider industry knowledge.
 A gender-diverse workforce allows the company to serve an increasingly diverse customer
base.
 Gender diversity helps companies attract and retain talented women. This is especially relevant
as more women join the labor force around the world. Companies cannot afford to ignore 50%
of the potential workforce and expect to be competitive in the global economy.
1. A wider talent pool
Companies that don‟t encourage women to join them are missing out on the talents and abilities of half
the population. Tapping into these can make a huge difference to your productivity and your bottom
line.
2. Different perspectives
Having both women and men in your team‟s means you benefit from the different points of view and
approaches that come from different life experiences.
A multiplicity of perspectives can spark creativity and innovation, and help organizations spot and
seize new opportunities. It can also encourage organizations to challenge gender stereotypes.
3. Enhanced collaboration
Having women on teams can help improve team processes and boost group collaboration. Researchers
have observed that women have stronger skills reading non-verbal cues.
4. Increased financial performance

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As diversity within workforce in companies is reaching higher percentages, studies have shown that
higher diversity is expected to bring higher returns.
5. Attraction and Retention of Diversity-Sensible Talents
With a value proposition that promotes gender diversity, companies are more likely to attract talented
people that are sensible to the problem and take into consideration gender equality policies when
considering different employers.
6. Better reputation
Gender diversity in companies leads to improved reputation both directly and indirectly. Directly
because it‟s demonstrated that companies with a higher percentage of women board directors are
favorably viewed in sectors that operate close to the final customers.
7. Broader customer base
Since men and women have different viewpoints, ideas, and market insights, a gender-diverse
workforce enables better problem solving.
8. Improved decision making processes
Gender diversity in boards increases diversity of ideas by introducing different perspectives and
problem-solving approaches. This gives teams increased optionality and decision-making advantages.
9. New Skills and Management styles
Women in Leadership Position – Issues
Advantages
 It‟s good for financial performance of the company
 It‟s better for the job economy, as a whole
 It‟s Better for Relationship Building
 It‟s better for Collaboration
 Women are Better Communicators
Challenges Women Face in Leadership Positions
 Organizational Barriers
 Selection Process
 Workplace Relationships
 Globalization
 Internal Motivation
 Life-style Conflicts
 Stereotyping
 Leadership Styles

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Generational Diversity in workplace
Generational diversity simply means having people of a wide range of different ages represented in the
workplace
A generational diversity is ability to make people of different generations work effectively in the same
environment. A generation is generally defined as a group of people who are divided unto categories
depending upon the age boundaries.
Generations are basically divided into four categories. They are:
1. Matures.
2. Boomer.
3. Generation x
4. Millennial
Matures
They belong to the age category of 60 – 80 years old.
The workforce of this generation is only approximately 5% and almost most of them are retired.
They are the people who have considerable power in the organization.
1. They are very hardworking.
2. They strictly follow rules and live by ethics.
3. They have a sacrificing mindset, when it comes to job or anything.
4. Strictly committed to the job or workplace.
5. Not motivated to enjoy or have fun in workplace.
6. They hold a lot of respect to the job position.
7. Takes responsible for outcomes quickly.
Boomer
 This generation people were born between 1946 to 1964. And they belong to the age category
of 40 – 60 years old.
 They constitute more than 45% of the workforce.
 Some of the core values of boomer are:
1. They are very optimistic.
2. They believe in team work.
3. They are the people who give importance to health and mental wellness.
4. They respect individual performance and gives priority to individual well being.
5. They are workaholic.
6. They are dedicated and have lots of involvement in their job role.
Generation x
 This generation were born between 1960‟s to 1980‟s and they belong to the age category of 20
– 40 years old.

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 This particular generation contributes 40% of the workforce.
 Some of the generation X characteristics are:
1. They are the people who are adoptive to diversified mindset.
2. They have a capability to work globally.
3. They have a good work life balance.
4. They are the people who believe in self reliance.
5. Informal work life are the trend of generation x.
Millennial
 This generation people belong to age group of 20 years old born after 1980‟s.
 Millennial are the youngest generation among the generation groups and they contribute just
10% of the workforce.
 Some of the basic attributes of them are,
1. They are very optimistic.
2. They have lots of civic responsibility.
3. They are very confident people.
4. They have more social responsibility.
5. They are very adoptive to diversified nature in work environment.
6. They believe that growth is dependent on technology
 Benefits of Generational Differences in the Workplace
 Organization works round the clock
 Various view points from different generations for decision making
 Never say die attitude
 Better Innovation and Problem-Solving
 Generational Challenges We Face in the Workplace
 Poor communication
 Decreased productivity, quality, & innovation
 Misunderstood attitudes, relationships & working environments
 Less engaged volunteers & coworkers
 Lack of motivation, initiative, and team work
 Working style.
 Cultural difference.