The document provides an overview of globalization and its impact on organizations. It discusses that as business becomes more global, managers must adapt to operating across borders. Organizations can become global through exporting, importing, outsourcing, strategic partnerships, and establishing foreign subsidiaries. When operating globally, managers must understand different cultural frameworks, laws, economic systems, and country cultures to effectively do business abroad.

1. Chapter 3

2. TABLE OF CONTENTS
• Summary
• What is globalization and how does it affect organizations?
• What does society expect from organizations and managers?
• What factors determine ethical and unethical behaviors?
• What is today’s workforce like and how does it affect the way
organizations are managed?

3. SUMMARY
3

4. SUMMARY
• Explain globalization and its impact on organizations. Organizations
are considered global if they exchange goods and services with
consumers in other countries, if they use managerial and technical
employee talent from other countries, or if they use financial
sources and resources outside their home country.
• Businesses going global are usually referred to as multinational
corporations (MNCs). As an MNC, they may operate as a
multidomestic corporation, a global corporation, or a transnational
or borderless organization.
• When a business goes global, it may start with global sourcing,
move to exporting or importing, use licensing or franchising, pursue
a global strategic alliance, or set up a foreign subsidiary.
• In doing business globally, managers need to be aware of different
laws and political and economic systems. But the biggest challenge
is in understanding the different country cultures. Two cross-cultural
frameworks that managers can use are Hofstede’s and GLOBE.

5. SUMMARY
• Discuss how society’s expectations are influencing managers and
organizations. Society expects organizations and managers to be
responsible and ethical. An organization’s social involvement can be
from the perspective of social obligation, social responsiveness, or
social responsibility. After much analysis, researchers have
concluded that managers can afford to be (and should be) socially
responsible. Sustainability has become an important societal issue
for managers and organizations.

6. SUMMARY
• Discuss the factors that lead to ethical and unethical behavior in
organizations. Ethics can be viewed from the utilitarian view, the
rights view, or the theory of justice view. Whether a manager acts
ethically or unethically depends on his or her morality, values,
personality, and experiences; the organization’s culture; and the
ethical issue being faced. Managers can encourage ethical behavior
by hiring employees with high ethical standards, establishing a code
of ethics, leading by example, linking job goals and performance
appraisal, providing ethics training, and implementing protective
mechanisms for employees who face ethical dilemmas.
• Describe how the workforce is changing and its impact on the way
organizations are managed. The workforce continues to reflect
increasing diversity. Types of workforce diversity include age, gender,
race, ethnicity, disability/abilities, religion, sexual orientation, and
gender identity. Organizations and managers are responding to the
changing workforce with work-life balance programs, contingent
jobs, and recognition of generational differences

7. LEARNING OBJECTIVES
In this chapter we will address the following questions:
• Explain globalization and its impact on organizations.
• Discuss how society’s expectations are influencing managers
and organizations.
• Discuss the factors that lead to ethical and unethical behavior
in organizations
• Describe how the workforce is changing and its impact on the
way organizations are managed.

8. WHAT IS GLOBALIZATION AND HOW DOES IT AFFECT
ORGANIZATIONS?
Section 1

9. WHAT IS GLOBALIZATION AND HOW DOES IT AFFECT ORGANIZATIONS?
Management is no longer constrained
by national borders.
• Major events such as catastrophic
natural disasters and the global
economic meltdown of the past
few years have created challenges
for managers doing business
globally.
• BMW, a German-owned firm,
builds cars in South Carolina.
• McDonald’s sells hamburgers in
China.
• The world has become a global
village, a boundaryless world
where goods and services are
produced and marketed
worldwide.
To be effective in this boundaryless
world, managers need to adapt.

10. WHAT DOES IT MEAN TO BE GLOBAL?
• Organizations are considered global
if they exchange goods and
services with consumers in other
countries.
• Many organizations are considered
global because they use
managerial and technical
employee talent from other
countries.
• An organization can be considered
global if it uses financial sources
and resources outside its home
country, also known as financial
globalization.

11. WHAT DOES IT MEAN TO BE GLOBAL?

12. HOW DO ORGANIZATIONS GO GLOBAL?
• The first step toward going
international may start with global
sourcing (also called global
outsourcing), which is purchasing
materials or labor from around the
world wherever it is the cheapest.
• The next step may involve exporting -
making products domestically and
selling them abroad.
• An organization might do importing,
or acquiring products made abroad
and selling them domestically.
• Both usually entail minimal
investment and risk
Global sourcing
Exporting
Importing
Licensing or Franchising
Direct investments - global
strategic alliance & Joint ventures
Foreign subsidiary

13. HOW DO ORGANIZATIONS GO GLOBAL?
• Licensing or franchising, involve
one organization giving another
organization the right to use its
brand name, technology, or
product specifications in return
for a lump sum payment or a fee.
• This approach is used widely by
pharmaceutical companies and
fast food chains.
Global sourcing
Exporting
Importing
Licensing or Franchising
Direct investments - global
strategic alliance & Joint ventures
Foreign subsidiary

14. HOW DO ORGANIZATIONS GO GLOBAL?
Direct investments may include:
• A global strategic alliance - a
partnership between an organization
and a foreign company partner or
partners.
• Joint ventures are a specific type of
strategic alliance in which the
partners form a separate,
independent organization for some
business purpose.
• These partnerships provide a fast and
less expensive way for companies to
compete globally.
A foreign subsidiary is a separate and
independent facility or office. The
greatest commitment (and risk), occurs
when the organization sets up a foreign
subsidiary.
Global sourcing
Exporting
Importing
Licensing or Franchising
Direct investments - global strategic
alliance & Joint ventures
Foreign subsidiary

15. WHAT ARE THE DIFFERENT TYPES OF GLOBAL ORGANIZATIONS?
• Multinational companies or MNCs are any type of international company
that maintains operations in multiple countries.
• Companies such as John Deere, Ford and Honda are examples.

16. TYPES OF MNC'S
• A multidomestic corporation -
decentralizes management and
other decisions to the local
country where it is doing
business.
• Transnational or borderless
organization - companies that
use an arrangement that
eliminates artificial geographical
barriers. IBM reorganized into
industry groups.
• Global Corporation - centralizes
its management and other
decisions in the home country.
Multidomestic
corporation
Transnational
or borderless
organization
Global
Corporation

17. MULTIDOMESTIC CORPORATION
• A multidomestic corporation is a multinational corporation that decentralizes
management and other decisions to the local country.
• This type of organization doesn't attempt to replicate its domestic successes by
managing foreign operations from its home country. Instead, local employees typically
are hired to manage the business and marketing strategies are tailored to that
country's unique characteristics. This type of globalization reflects the polycentric
attitude.
• For example, Switzerland-based Nestle can be described as a multidomestic
corporation. With operations in almost every country on the globe, its managers
match the company's products to its consumers. In parts of Europeor Latin America,
Nestle sells products that are not available in the United States

18. TRANSNATIONAL OR BORDERLESS ORGANIZATION
• The terms "transnational" and "borderless corporation" describe a
multinational corporation.
• While headquartered in one country, these types of business have a global
reach, with offices and production facilities in multiple countries.
• The benefits of being a multinational include a larger customer base and the
ability to capitalize on national competencies, both of which theoretically
result in lower prices for the consumer. However, many believe that
transnational businesses are bad overall and should be more heavily
regulated.

19. GLOBAL CORPORATION
• A global company or corporation is an enterprise or company which is also involved
in trade relations with other countries. Unlike MNCs, global companies do not have
official headquarters, and they are composed of autonomous units which are parts
of one parent or global company.
• Each unit in a certain area or country handles their individual concerns, and the
parent company handles concerns which involve the overall global company. Like
MNCs, they hire the local workforce.
• Global companies sell the same products or services, the same image and maintaining
the characteristics that their company’s products are popular of. An example of a
global company is McDonald’s which has stores in most parts of the world.

20. WHAT DO MANAGERS NEED TO KNOW ABOUT
MANAGING IN A GLOBAL ORGANIZATION?
• Business has new markets to
conquer.
• U.S. managers in the past held
a rather parochial (narrow-
minded) view of the world of
business.
• Parochialism is a narrow focus
in which managers see things
only through their own eyes
and from their own
perspectives.
Seeing things solely through
their own eyes and perspectives
is an ethnocentric view
They believed that their
business practices were the best
in the world.
Organizational success can come
from a variety of managerial
practices
Status is perceived differently in
different countries, i.e. France-
ascribed status and USA-
achieved status

21. WHAT DO MANAGERS NEED TO KNOW ABOUT
MANAGING IN A GLOBAL ORGANIZATION?
Analyzing cultural differences
according to Geert Hofstede’s
framework:
• Power distance
• Individualism vs. collectivism
• Quantity of life vs. quality of life
• Uncertainty avoidance
• Long-term vs. short-term
orientation

22. POWER DISTANCE
• Shows the difference between people
in a society.
• Difference in authority, power,
influence.
• It also determines how formal and
informal people in a culture are and
how they interact.

23. POWER DISTANCE IN COMPARISON
• Small Power Distance
• All people should be independent.
• Superiors consider subordinates to
be “people like me”.
• Superiors are accessible.
• All should have equal rights.
• Large Power Distance
• A few people should be
independent; most should be
dependent.
• Superiors consider subordinates to
be a different kind of people.
• Superiors are inaccessible.
• Power-holders are entitled to
privileges.

24. INDIVIDUALISTIC/COLLECTIVISTIC
• Individualism
• People are interested in their own achievement.
• Make decisions for themselves.
• Value is placed on “I”
• Collectivism
• People are group oriented and are interested in group
achievement.
• The prefer to make decisions involving others.
• Value is placed on “We”

25. INDIVIDUALISTIC/COLLECTIVISTIC IN COMPARISON
Collectivist
• In society, people are born into
extended families or clans who
protect them in exchange for loyalty.
• Private life is invaded by
organizations and clans to which one
belongs.
• Belief is placed in group decisions.
Individualist
• In society, everybody is supposed
to take care of himself/herself.
• Everybody has a right to a private
life.
• Belief is placed in individual
decisions.

26. MASCULINITY-FEMININITY CULTURAL DIMENSION
• Is addressed as a societal, not an individual's, characteristic and "refers to
the distribution of values between the genders”.
26

27. FEMININITY/MASCULINITY
Masculinity
• A culture in which the dominant values in society are achievement, heroism,
assertiveness, money and material rewards for success.
Femininity
• A culture in which the dominant values in society are cooperation, modesty,
caring for the weak and quality of life.

28. FEMININITY/MASCULINITY IN COMPARISON
• Femininity
• Sex roles in society are more fluid.
• There should be equality between
the sexes.
• Quality of life is important.
• You work in order to live.
• People and environment are
important.
• Masculinity
• Sex roles in society are clearly
differentiated.
• Men should dominate in society.
• Performance is what counts.
• You live in order to work.
• Money and material things are
important.

29. UNCERTAINTY AVOIDANCE
• The extend to which people feel threatened by ambiguous
situations, tolerate uncertainty and have created beliefs
and institutions that try to avoid these.

30. UNCERTAINTY AVOIDANCE IN COMPARISON
• Weak Uncertainty
The uncertainty inherent in life is
more easily accepted and each
day is taken as it comes.
• Time is free.
• There is more willingness to take
risks in life.
• There should be as few rules as
possible.
• Strong Uncertainty
The uncertainty inherent in life is
felt as a continuous threat that
must be fought.
• Time is money.
• There is great concern with
security in life.
• There is a need for written rules
and regulations.

31. LONG-TERM VS. SHORT-TERM ORIENTATION
• Societies with a short-term
orientation generally have a strong
concern with establishing the
absolute truth. They are normative
in their thinking. They exhibit great
respect for traditions, a relatively
small propensity to save for the
future, and a focus on achieving
quick results.
• In societies with a long-term
orientation, people believe that
truth depends very much on
situation, context and time. They
show an ability to adapt traditions
to changed conditions, a strong
propensity to save and invest,
thriftiness, and perseverance in
achieving results.
Samples for long-term orientation
are:
• China
• Hong Kong
• Taiwan
• Japan
• South Korea
• Thailand
• Singapore
• Bangladesh

32. GLOBE’S 9 DIMENSIONS OF CULTURAL DIFFERENCE
• The Global Leadership and
Organizational Behavior Effectiveness
(GLOBE) research program has updated
Hofstede’s research.
• Using data from 825 organizations in 62
countries, GLOBE identified 9 dimensions
on which national culture differ.
• It provides with an update measure of
where countries rate on each dimension.
• For example, the United States led the
world in individualism in the 1970s but
today scores in the mid-ranks.
• We can expect future cross-cultural
studies of human behavior to
increasingly use the GLOBE dimensions to
assess differences between countries.
Assertiveness
Future orientation
Gender differentiation
Uncertainty avoidance
Power distance
Institutional Collectivism
In-group collectivism
Performance orientation
Humane orientation

33. GLOBE’S 9 DIMENSIONS OF CULTURAL DIFFERENCE
• Power Distance. Power distance
is the degree to which people
accept an unequal distribution of
power and status privileges. In
high power distance countries,
there is respect for age and titles,
people are expected to follow
rules, and there is more
tolerance for concentrated
power.
• India, Mexico, and the Philippines
have high power distance. The
United States, Australia, and
Israel have low power distance.
Power Distance
Uncertainty Avoidance
Performance
Orientation
Assertiveness
Future Orientation

34. GLOBE’S 9 DIMENSIONS OF CULTURAL DIFFERENCE
• Uncertainty Avoidance. The
degree to which people are
uncomfortable with risk, change,
and ambiguity is called
uncertainty avoidance.
• In high uncertainty avoidance
countries, there is a greater
emphasis on rules, structure,
order, and predictability.
• France, Japan, and Costa Rica, for
example, are countries with high
uncertainty avoidance.
• The United States, India, and
Sweden have low uncertainty
avoidance.
Power Distance
Uncertainty Avoidance
Performance
Orientation
Assertiveness
Future Orientation

35. GLOBE’S 9 DIMENSIONS OF CULTURAL DIFFERENCE
• Performance Orientation.
Performance orientation is the
degree to which innovation, high
standards, and excellent
performance are encouraged and
rewarded.
• Countries with high performance
orientation value materialism and
competitiveness, and they expect
to invest in training to promote
performance improvements.
• The United States and European
countries have high performance
orientations;
• Argentina, Russia, and Greece have
low performance orientations.
Power Distance
Uncertainty Avoidance
Performance
Orientation
Assertiveness
Future Orientation

36. GLOBE’S 9 DIMENSIONS OF CULTURAL DIFFERENCE
• Assertiveness. Assertiveness is the
degree to which individuals are
forceful, confrontational, and
aggressive, as opposed to
cooperative and compassionate.
• In high assertiveness countries such
as the United States, Germany, and
Mexico, communication is direct
and unambiguous.
• Individual initiative is encouraged,
and relationships are likely to be
competitive. Countries with low
assertiveness rankings are
Switzerland and New Zealand.
• Managers in these countries are
more likely to look for consensus
and cooperative decision making.
Power Distance
Uncertainty Avoidance
Performance
Orientation
Assertiveness
Future Orientation

37. GLOBE’S 9 DIMENSIONS OF CULTURAL DIFFERENCE
• Future Orientation. The degree
to which delayed gratification
and planning for the future are
valued over short-term gains is
called future orientation.
• Countries with high future
orientation encourage
investments for future payoffs
over immediate consumption.
• It is similar to the ability of
individuals to delay gratification.
Canada, Switzerland, and
Malaysia have high future
orientation;
• Poland, Argentina, and Russia
have low future orientation.
Power Distance
Uncertainty Avoidance
Performance
Orientation
Assertiveness
Future Orientation

38. GLOBE’S 9 DIMENSIONS OF CULTURAL DIFFERENCE
• Humane Orientation. The degree
to which fairness, altruism,
generosity, and kindness are
encouraged and valued is a
measure of a country’s humane
orientation.
• In nations with high humane
orientation, individuals are
responsible for promoting the
well-being of others as opposed
to the state providing social and
economic support.
• The Philippines, Ireland, and
Egypt have high humane
orientation;
• France, Germany, and Singapore
have low humane orientation.
Humane Orientation
Institutional
Collectivism
In-group collectivism
Gender differentiation

39. GLOBE’S 9 DIMENSIONS OF CULTURAL DIFFERENCE
• Institutional Collectivism.
Institutional collectivism is the
degree to which organizational and
societal institutions encourage
individuals to be integrated into
groups and organizations.
• In high institutional collectivism
countries, collective distribution of
resources and collective action are
encouraged.
• Sweden, Japan, and Singapore are
examples of countries that have
high institutional collectivism;
• Germany, Argentina, and Italy have
low institutional collectivism.
Humane Orientation
Institutional
Collectivism
In-group collectivism
Gender differentiation

40. GLOBE’S 9 DIMENSIONS OF CULTURAL DIFFERENCE
• In-Group Collectivism. In-group
collectivism is the degree to which
individuals express pride, loyalty,
and cohesiveness in their
organizations or families.
• In countries with high institutional
collectivism, individuals identify
with their families or organizations
and duties and obligations
determine behaviors.
• A strong distinction is made
between individuals who are in a
group and those who are not.
India, Egypt, and China are
examples of countries that have
high institutional collectivism;
• Sweden, New Zealand, and Finland
have low institutional collectivism.
Humane Orientation
Institutional
Collectivism
In-group collectivism
Gender differentiation

41. GLOBE’S 9 DIMENSIONS OF CULTURAL DIFFERENCE
• Gender differentiation. The
degree to which male and
female equality is actualized is
called gender egalitarianism.
• Countries with high gender
egalitarianism provide more
opportunities for women and
have more women in positions of
power.
• Sweden, Poland, and Costa Rica
have high gender egalitarianism.
Japan, Italy, and Egypt have low
gender egalitarianism.
• In these countries, women
generally have lower status at
work and in the culture
Humane Orientation
Institutional
Collectivism
In-group collectivism
Gender differentiation

42. WHAT DOES SOCIETY EXPECT FROM ORGANIZATIONS AND MANAGERS?
Section 2

43. SOCIETY’S EXPECTATIONS
• Many managers believe that society
expects organizations and managers to
be responsible and ethical.
• However, judging from recent financial
scandals at Enron, Bernard Madoff
Investment Securities, HealthSouth, and
others, managers don’t always act
responsibly or ethically.
• In this photo, we see college students
surrounding Blake Mycoskie, the
founder of TOMS Shoes.
• Mycoskie believes that management’s
responsibilities include improving
society’s welfare, so TOMS donates
shoes to children in need through
international charitable giving partners
that meet TOMS criteria and that are
well established in the countries where
TOMS shoes are distributed.

44. HOW CAN ORGANIZATIONS DEMONSTRATE
SOCIALLY RESPONSIBLE ACTION?
• Social responsibility is a
business’s intention, beyond its
legal and economic obligations,
to do the right things and act in
ways that are good for society.
• Social obligation occurs when a
firm engages in social actions
because of its obligation to meet
certain economic and legal
responsibilities.
• Social responsiveness is seen
when a firm engages in social
actions in response to some
popular social need.
• Social responsibility adds an
ethical imperative to do those
things that make society better
and to not do those that could
make it worse.
Social
responsibility
Social
obligation
Social
responsiveness

45. SHOULD ORGANIZATIONS BE SOCIALLY INVOLVED?
• Corporate social responsibility
surfaced in the 1960s when social
activists questioned the singular
economic objective of business.
• Managers are now confronted with
decisions that have a dimension of
social responsibility
• Social responsibility can include:
philanthropy, pricing, employee
relations, resource conversation,
product quality, and doing business
in countries with oppressive
governments, etc.
• Studies have found a positive
relationship between social
involvement and economic
performance,
• But some caution is necessary
because of questions associated with
the social responsibility and
economic performance

46. SHOULD ORGANIZATIONS BE SOCIALLY INVOLVED?

47. WHAT IS SUSTAINABILITY AND WHY IS IT IMPORTANT?
• Many companies have
announced plans to move more
environmentally sustainable
products and services including
Walmart’s plan to reduce
greenhouse gases at the
company locations by 20 million
metric tons by the end of year
2015.
• Managing in a sustainable way
includes widening corporate
responsibility not only to
managing in an efficient and
effective way, but also to
responding strategically to a wide
range of environmental and
societal challenges.

48. WHAT IS SUSTAINABILITY AND WHY IS IT IMPORTANT?
• Sustainability has been defined
as a company’s ability to achieve
its business goals and increase
long-term shareholder value by
integrating economic,
environmental, and social
opportunities into its business
strategies.
• Following sustainability practices
is one way in which organizations
can show customers their
commitment to being
responsible.

49. WHAT DOES SOCIETY EXPECT FROM ORGANIZATIONS AND MANAGERS?
VideoTime–“Whybusinesscanbegoodatsolvingsocialproblems”
 “Why do we turn to nonprofits, NGOs
and governments to solve society's
biggest problems?”
 Michael Eugene Porter is an American
academic known for his theories on
economics, business strategy, and
social causes. He is the Bishop William
Lawrence University Professor at
Harvard Business School, and he was
one of the founders of the consulting
firm The Monitor Group and FSG, a
social impact consultancy.
 https://www.youtube.com/watch?v=0iI
h5YYDR2o

50. WHAT FACTORS DETERMINE ETHICAL AND UNETHICAL BEHAVIORS?
Section 3

51. ETHICAL BEHAVIOR
Ethics is a set of rules or
principles that defines right and
wrong conduct.

52. IN WHAT WAYS CAN ETHICS BE VIEWED?
• The Utilitarian View: What action
provides the greatest amount of good
for the greatest number of people?
• The Rights View: Human beings have
certain moral entitlements that must
be respected at all times.
• Theory of Justice View: Benefits and
burdens are equitably distributed
equal treatment; consistent
administration of rules.
• Individual ethics also depend on
several factors. These factors include
an individual’s morality, values,
personality, and experiences; the
organization’s culture; and the
ethical issue being faced.
The Utilitarian View
• Greatest amount of good
The Rights View
• Certain moral entitlements
Theory of Justice View
• Benefits and burdens are equitably
distributed

53. HOW CAN MANAGERS ENCOURAGE ETHICAL BEHAVIOR?
High ethical
standards
Code of ethics
Lead by example
Link job goals
and performance
appraisal
Ethics training

54. HIGH ETHICAL STANDARDS
• Hire employees with high ethical
standards, establish codes of
ethics, lead by example, link job
goals and performance appraisal,
provide ethics training, and
implement protective
mechanisms for employees who
face ethical dilemmas.
• By themselves, such actions
won’t have much of an impact.
But if an organization has a
comprehensive ethics program
in place, it can potentially
improve an organization’s ethical
climate.

55. CODE OF ETHICS
• A code of ethics is a formal
statement of an organization’s
primary values and the ethical
rules it expects employees to
follow. In addition, decision rules
can be developed to guide
managers in handling ethical
dilemmas in decision making.

56. LEAD BY EXAMPLE
• Top management’s leadership
and commitment to ethical
behavior is extremely important
since the cultural tone for an
organization is established by its
top managers.

57. LINK JOB GOALS AND PERFORMANCE APPRAISAL
• Employees’ job goals should be
tangible and realistic, because
clear and realistic goals reduce
ambiguity and motivate rather
than punish. Job goals are usually
a key issue in the performance
appraisal process

58. HIGH ETHICAL STANDARDS
• If an organization wants
employees to uphold high ethical
standards, this dimension must
be included in the appraisal
process. Performance appraisals
should include this dimension,
rather than focusing solely on
economic outcomes.

59. ETHICS TRAINING
• Ethics training should be used to
help teach ethical problem
solving and to present
simulations of ethical situations
that could arise. At the least,
ethics training should increase
awareness of ethical issues.

60. WHAT IS SUSTAINABILITY AND WHY IS IT IMPORTANT?
VideoTime–“Whatreallymotivatespeopletobehonestinbusiness”
 “Each year, one in seven large
corporations commits fraud. Why? To
find out, Alexander Wagner takes us
inside the economics, ethics and
psychology of doing the right thing”.
 Alexander F. Wagner is a Swiss Finance
Institute (SFI) Professor at the University
of Zurich, Switzerland. He holds a Ph.D.
from Harvard University. His previous
degrees include a doctorate in
economics and a law degree from the
University of Linz, Austria. Alex studies
corporate finance and governance, as
well as tradable permit markets and the
political economy of the environment
 https://www.youtube.com/watch?v=Qh
omjw2P-V0

61. WHAT IS TODAY’S WORKFORCE LIKE AND HOW DOES IT AFFECT THE
WAY ORGANIZATIONS ARE MANAGED?
Section 4

62. WHATISWORKPLACEDIVERSITY?
• Diversity has been a popular
business topic over the last two
decades.
• Workforce diversity is defined as
the ways in which people in an
organization are different from
and similar to one another.

63. WHAT TYPES OF DIVERSITY ARE FOUND IN
WORKPLACES
• Age is often categorized by
generation, such as baby
boomers, Generation X, Y and Z
and millennials. While not all
people of the same age group
think the same way, there are
some similarities that are defined
by a person’s age.
• Gender - Women make up half of
the population in the country, so
it’s important that they have
equal representation in the
workplace. However, as one of
the most visible types of
diversity, having a workplace that
is gender diverse isn’t just about
the number of women and men
in the company

64. WHAT TYPES OF DIVERSITY ARE FOUND IN
WORKPLACES
• Diversity in the workplace based
on race and ethnicity are
important factors to consider,
especially given the long,
controversial and complicated
history of race within the United
States and other parts of the
world. Race and ethnicity are
sometimes used interchangeably,
but they actually refer to
different forms of diversity.
• Disabilities/Abilities - Some
people think disabilities are only
physical and related to mobility.
However, employees can have
disabilities that vary from vision
and movement to thinking and
learning

65. WHAT TYPES OF DIVERSITY ARE FOUND IN
WORKPLACES
• There are multiple world religions
and spiritual practices that employees
may choose to observe. In order to
have a diverse workplace, it’s
important to be aware of any biases
your organization may have in your
hiring practices with regard to
religion.
• Sexual orientation is about to whom
a person is attracted. While it’s a very
personal matter, employees need to
feel safe in expressing their sexual
orientation with the people with
whom they work without fear of
discrimination

66. WHAT TYPES OF DIVERSITY ARE FOUND IN
WORKPLACES
• Employees from different
socioeconomic backgrounds likely
have varying attitudes toward certain
aspects of life, like money.
• Thinking Style and Personality-
Working with people who think
differently can lead to innovative
ideas and effective teamwork. If
everyone in your department was an
introvert, for example, it may be
difficult to manage it without making
your team uncomfortable and
uneasy.

67. HOW ARE ORGANIZATIONS AND MANAGERS
ADAPTING TO A CHANGING WORKFORCE?
• Work/Life Balance Programs -
Employees in the 1960s and 1970s
showed up at the workplace Monday
through Friday and did their job in
eight- or nine-hour chunks of time.
• Today’s employees are increasingly
complaining that the line between
work and non-work time has become
blurred, creating personal conflicts
and stress.
• Communication technology allows
employees to do their work at home,
in their car, or on the beach in Tahiti.
• Organizations are asking employees
to put in longer hours.
• Fewer families rely on a single
breadwinner.

68. HOW ARE ORGANIZATIONS AND MANAGERS
ADAPTING TO A CHANGING WORKFORCE?
• Employees are increasingly
recognizing that work is squeezing
out their personal lives and they
want jobs that give them flexibility in
their work schedules so they can
better manage work/ life conflicts.
• Organizations are offering family
friendly benefits, with a wide range
of scheduling options that allow
employees more flexibility at work.
• Many large companies are converting
some permanent jobs into
temporary ones.

69. HOW ARE ORGANIZATIONS AND MANAGERS
ADAPTING TO A CHANGING WORKFORCE?
• Contingent Jobs - part-time,
temporary, and contract workers who
are available for hire on an as-needed
basis.
• Contingent workers may grow to 40%
of the workforce by the end of the
next decade.
• What issues do contingent workers
create for managers?
• Each contingent worker may need to
be treated differently in terms of
practices.
• Today’s managers need to motivate
their entire work force—full-time as
well as part-time employees— to
build their commitment to doing
good work!

70. HOW ARE ORGANIZATIONS AND MANAGERS
ADAPTING TO A CHANGING WORKFORCE?
• Generational Differences - will
present unique challenges.
• Office attire will depend on the type
of work being done and the size of
the organization. The key is flexibility.
• Technology - Gen Y has grown up
with ATMs, DVDs, cell phones, e-mail,
texting, laptops, and the Internet and
they’re content to meet virtually to
solve problems, while baby boomers
expect important problems to be
solved with in-person meetings.
• Management style - Gen Y
employees want bosses who are
open-minded, experts in their field
and mentors; not authoritarian or
paternalistic; respectful of their
generation; understanding of their
need for work/life balance.

71. WHAT IS TODAY’S WORKFORCE LIKE AND HOW DOES IT AFFECT THE
WAY ORGANIZATIONS ARE MANAGED?
Workforce diversity-Question
• What is workforce diversity, and why is it an important issue
for managers?
• Describe and discuss the three ways that organizations and
managers are adapting to a changing workforce.

72. WHAT IS TODAY’S WORKFORCE LIKE AND HOW DOES IT AFFECT THE
WAY ORGANIZATIONS ARE MANAGED?
Workforce diversity- Answers
What is workforce diversity, and why is it an important issue for managers?
• The authors have chosen to define workplace diversity as the ways in which
people in an organization are different from and similar to one another. It is
the differences between employees that can lead to advantages for the
company. Differences in experiences, culture, skills, and abilities lead to
better decision making and help the organization to address problems and
changes experienced by their customers.

73. WHAT IS TODAY’S WORKFORCE LIKE AND HOW DOES IT AFFECT THE
WAY ORGANIZATIONS ARE MANAGED?
Workforce diversity- Answers
Describe and discuss the three ways that organizations and managers are
adapting to a changing workforce.
• Organizations and managers are responding to the changing workforce with
work-life balance programs, contingent jobs, and recognition of
generational differences. Work/Life Balance Programs include benefits that
provide a wide range of scheduling options that allow employees more
flexibility at work, accommodating their need for a work-life balance.
Contingent Jobs allow for part-time, temporary, and contract workers who
are available for hire on an as-needed basis. Management also recognizes
generational differences which present some unique challenges, especially
for baby boomers and Gen Y. Conflicts and resentment can arise over issues
ranging from appearance to technology and management style.