The document discusses globalization and managing cultural diversity in organizations. It states that organizations wishing to benefit from diversity must create multicultural organizations by focusing on five key components: leadership commitment, training, research, analyzing and changing culture and human resource systems, and follow up. Leaders must personally commit to diversity and help move the organization forward. Training is a common starting point. Research helps identify areas needing change. Auditing culture and systems can uncover bias and disadvantages. Ongoing monitoring and evaluation can institutionalize diversity as an ongoing process, potentially leading to competitive advantages through human resources.

1. Globalization
Management Academy

2. What is Globalization?What is Globalization?
““Globalization is defined as the process ofGlobalization is defined as the process of
increasing the connectivity and interdependenceincreasing the connectivity and interdependence
of the worlds nations in economic, social andof the worlds nations in economic, social and
political areas.”political areas.”
Aydin, C. H. & McIsaac, M. S. (2004)Aydin, C. H. & McIsaac, M. S. (2004)

3. Next Up: ChrisNext Up: Chris
First, Everyone Up!
http://www.youtube.com/watch?v=Q2RMMQkmiRs
Radio calisthenicsRadio calisthenics (( ラジオ体操ラジオ体操 ,, rajio taisōrajio taisō??
, literally,, literally,
"radio exercises") refers to warm-up calisthenics"radio exercises") refers to warm-up calisthenics
popular in Japan, which are broadcast to music onpopular in Japan, which are broadcast to music on
public NHK radio early in the morning.public NHK radio early in the morning.

4. Globalization 2011
Thomas Friedman, authorThomas Friedman, author
“The World is Flat”, foreign“The World is Flat”, foreign
affairs correspondent for theaffairs correspondent for the
New York TimesNew York Times, 3 times, 3 times
Pulitzer Prize winnerPulitzer Prize winner
Pietra Rivoli, Author “ThePietra Rivoli, Author “The
Travels of a T-Shirt in theTravels of a T-Shirt in the
Global Economy”, the bookGlobal Economy”, the book
has become a standardhas become a standard
business school standardbusiness school standard
world wideworld wide
Example of all boats rising inExample of all boats rising in
her bookher book

5. Globalization 1.0-3.0
according to Thomas Friedman

6. Globalization 3.0
Era of the Individual
In 1992, when Bill Clinton wasIn 1992, when Bill Clinton was
elected president, no oneelected president, no one
outside of government hadoutside of government had
Email.Email.
In 1998, the Internet andIn 1998, the Internet and
e-commerce just got startede-commerce just got started
2000, Globalization meant the2000, Globalization meant the
individual competed againstindividual competed against
other individuals, but also toother individuals, but also to
workwork withwith themthem
Example of Egypt situationExample of Egypt situation

7. Globalization 3.0
Globalization 3.0 means that individualsGlobalization 3.0 means that individuals
compete against other individuals, butcompete against other individuals, but
also gives us the ability to workalso gives us the ability to work withwith
other individuals, and for small/mediumother individuals, and for small/medium
companies use this collaborationcompanies use this collaboration
In the process, the effect is that they areIn the process, the effect is that they are
racing us to the topracing us to the top
Reuters News Service, outsources newsReuters News Service, outsources news
reportersreporters
CAT Scans and “Nighthawks”CAT Scans and “Nighthawks”
Dr. Dale Alverson, UNM Center forDr. Dale Alverson, UNM Center for
Telehealth and CybermedicineTelehealth and Cybermedicine

8. The Travels Begin
So Where was Pietra’sSo Where was Pietra’s
T-Shirt made?T-Shirt made?
And was the womanAnd was the woman
protester at Georgetownprotester at Georgetown
University correct?University correct?
Does everyone assumeDoes everyone assume
the cotton was grownthe cotton was grown
overseas?overseas?
So Where was Pietra’sSo Where was Pietra’s
T-Shirt made?T-Shirt made?
And was the womanAnd was the woman
protester at Georgetownprotester at Georgetown
University correct?University correct?
Does everyone assumeDoes everyone assume
the cotton was grownthe cotton was grown
overseas?overseas?
First, who grew the cotton?First, who grew the cotton?

9. Nelson and Ruth Reinsch at Their Farm in Smyer, Texas. (Photo Courtesy of Dwade Reinsch and Colleen Phillips.)
Well, if they grew the cotton, who made the T-Shirt?Well, if they grew the cotton, who made the T-Shirt?

10. (Photo Courtesy of Wiley Publishing)
Well, if she made the T-Shirt, how did it get to the US?
(and is it complicated?), yes it is.
Well, if she made the T-Shirt, how did it get to the US?
(and is it complicated?), yes it is.
Next up: RaneyNext up: Raney

11. Management & Organizational Culture
United States
Organizational CultureOrganizational Culture
-- Individualistic & egocentric -loyalty to self over organizationIndividualistic & egocentric -loyalty to self over organization
-- Motivated by ambition, promotion, very competitiveMotivated by ambition, promotion, very competitive
-- Focus on immediate outcomeFocus on immediate outcome
Management/Leadership CharacteristicsManagement/Leadership Characteristics
-- Democratic -clear areas of responsibility vs. accountabilityDemocratic -clear areas of responsibility vs. accountability
-- Confusing titles, poor reflection of powerConfusing titles, poor reflection of power
• Prepared for our Global Environment?Prepared for our Global Environment?
-- Innovative, risk taking, competitive, flexible, technologyInnovative, risk taking, competitive, flexible, technology
-- BUT low to medium cultural sensitivityBUT low to medium cultural sensitivity

12. Management & Organizational Culture
Japan
KarōshiKarōshi (( 過労死過労死 ), translated literally from), translated literally from
Japanese as "Japanese as "death from overworkdeath from overwork", is", is
occupational sudden death. The term wasoccupational sudden death. The term was
developed in the 70’s after significant numbers ofdeveloped in the 70’s after significant numbers of
Japanese executives died suddenly of heartJapanese executives died suddenly of heart
attack and stroke reportedly due to stress.attack and stroke reportedly due to stress.

13. Management & Organizational Culture
Japan
Organizational CultureOrganizational Culture
-- Collectivist: high morale, motivation, productivityCollectivist: high morale, motivation, productivity
-- Permanent employees, generalists vs. specialists, job rotationPermanent employees, generalists vs. specialists, job rotation
-- Promotion based on seniority, highly predictablePromotion based on seniority, highly predictable
Management/Leadership CharacteristicsManagement/Leadership Characteristics
-- Paternalistic -focus on employee satisfaction & loyalty, consensusPaternalistic -focus on employee satisfaction & loyalty, consensus
-- Long hours, strong devotionLong hours, strong devotion
• Preparedness for our Global Environment?Preparedness for our Global Environment?
-- Skilled at negotiation, highly productive, innovative, highSkilled at negotiation, highly productive, innovative, high
standards, ahead of the game technologicallystandards, ahead of the game technologically

14. Management & Organizational Culture
India
Organizational CultureOrganizational Culture
-- Collectivist: work/life balance, harmonyCollectivist: work/life balance, harmony
-- Based on Caste structure, distinct rolesBased on Caste structure, distinct roles
-- Honor and reputation very important, no one is shamedHonor and reputation very important, no one is shamed
Management/Leadership CharacteristicsManagement/Leadership Characteristics
-- Paternalistic: focused on harmonyPaternalistic: focused on harmony
-- Management will not do tasks “beneath” their positionManagement will not do tasks “beneath” their position
• Preparedness for our Global EnvironmentPreparedness for our Global Environment
-- Cultural adaptability,Cultural adaptability,
readiness for change isreadiness for change is highly developedhighly developed

15. Management & Organization Culture
Mexico
Organizational CultureOrganizational Culture
-- Loyal to superior, person rather than organizationLoyal to superior, person rather than organization
-- Favors harmony, competition is discouragedFavors harmony, competition is discouraged
-- Work/life balance, siestas commonWork/life balance, siestas common
Management/Leadership CharacteristicsManagement/Leadership Characteristics
-- Autocratic -subordinates assigned tasks, not authorityAutocratic -subordinates assigned tasks, not authority
-- Trustworthiness highly valued, family & friends often hiredTrustworthiness highly valued, family & friends often hired
• Preparedness for our Global Environment?Preparedness for our Global Environment?
-- Slow to adapt, behind the game technologicallySlow to adapt, behind the game technologically

16. Management & Organizational Culture
Germany
Organizational CultureOrganizational Culture
-- Rule-oriented, task oriented, aversion to riskRule-oriented, task oriented, aversion to risk
-- Collections of highly specialized teams with well-defined jobsCollections of highly specialized teams with well-defined jobs
-- Commitment to greater whole, specifically to German organizationCommitment to greater whole, specifically to German organization
Management/Leadership CharacteristicsManagement/Leadership Characteristics
-- Autocratic -subordinates assigned tasks, not authorityAutocratic -subordinates assigned tasks, not authority
Preparedness for our Global Environment ?Preparedness for our Global Environment ?
-- Perfection may not lend to adaptabilityPerfection may not lend to adaptability
Next Up: EliotNext Up: Eliot

17. What is Culture?
““The collective programming of the mindThe collective programming of the mind
which distinguishes the members of onewhich distinguishes the members of one
group or category of people fromgroup or category of people from
another.”another.”
Hofstede, G. (1991)Hofstede, G. (1991)

18. Model of Cultural Dimensions
Power DistancePower Distance
Individualism-CollectivismIndividualism-Collectivism
Masculinity-FemininityMasculinity-Femininity
Uncertainty AvoidanceUncertainty Avoidance
Long Term-OrientationLong Term-Orientation

19. Internet Culture
Collectivist CultureCollectivist Culture
becoming morebecoming more
Individualistic (mixed)Individualistic (mixed)
Feminine becoming mixedFeminine becoming mixed
Low Power DistanceLow Power Distance
Low Uncertainty AvoidanceLow Uncertainty Avoidance

20. Think about what stereotypes exist about yourThink about what stereotypes exist about your
own cultureown culture
Be flexible when facing different values – try toBe flexible when facing different values – try to
understand what reasons lie behind other waysunderstand what reasons lie behind other ways
of thinkingof thinking
Internet Cultural Skills

21. Most used language onlineMost used language online
Age of average Internet userAge of average Internet user
Average Internet user’s genderAverage Internet user’s gender
FavoriteFavorite onlineonline activityactivity
Internet users generally haveInternet users generally have
a higher education levela higher education level
Internet Culture
Next Up: JacquelineNext Up: Jacqueline

22. CompetitionCompetition

23. Competition
Income in the U.S. has fallen and is expected to continueIncome in the U.S. has fallen and is expected to continue
declining due to global competition.declining due to global competition.
Increased competition for Universities in the U.S. to raiseIncreased competition for Universities in the U.S. to raise
education standardseducation standards

24. Competition in Higher Education
Private EducationPrivate Education
Online EducationOnline Education
- Formal Entities- Formal Entities
- Informal Education Alternatives- Informal Education Alternatives
Universities Seeking a good ReputationUniversities Seeking a good Reputation

25. Ranking List
World’s Best Universities

26. Ranking ListRanking List
U.S. Top Three SchoolsU.S. Top Three Schools

27. New Mexico’s Rankings based
on America’s Best Colleges

28. Collaborations
Collaboration ArrangementsCollaboration Arrangements
Used to maintain or gain a visibleUsed to maintain or gain a visible
international profileinternational profile
To attract talented studentsTo attract talented students
Research CollaborationsResearch Collaborations
May permit the exchange ofMay permit the exchange of
researchers, both faculty and students.researchers, both faculty and students.
Collaborations provide institutions withCollaborations provide institutions with
additional sources of funding.additional sources of funding.
Next Up: AnaNext Up: Ana

29. Globalization: Managing Cultural Diversity
Organizations wishing to maximize theOrganizations wishing to maximize the
benefits and minimize the drawbacksbenefits and minimize the drawbacks
of diversity, in terms of workgroupof diversity, in terms of workgroup
cohesiveness, interpersonal conflict,cohesiveness, interpersonal conflict,
turnover, and coherent action on majorturnover, and coherent action on major
organizational goals, must createorganizational goals, must create
“multicultural” organizations.“multicultural” organizations.

30. Five key components needed to transformFive key components needed to transform
traditional organizations into multiculturaltraditional organizations into multicultural
ones:ones:
LeadershipLeadership
TrainingTraining
ResearchResearch
Analysis and change of culture and humanAnalysis and change of culture and human
resource management systemsresource management systems
Follow UpFollow Up

31. LeadershipLeadership
Management MustManagement Must
Commit to cultural diversityCommit to cultural diversity
Managers take a personal stand on the need toManagers take a personal stand on the need to
changechange
Assist in moving theAssist in moving the
organization forwardorganization forward

32. TrainingTraining
Managing and valuing diversity training is theManaging and valuing diversity training is the
most prevalent starting point for managingmost prevalent starting point for managing
diversity.diversity.

33. ResearchResearch
Identifying issues to be addressed in theIdentifying issues to be addressed in the
education processeducation process
Helps identify areas where changes are neededHelps identify areas where changes are needed
Provides clues about how to make themProvides clues about how to make them

34. Culture/Management Systems AuditCulture/Management Systems Audit
Analysis of the OrganizationAnalysis of the Organization
RecruitmentRecruitment
Performance AppraisalPerformance Appraisal
CompensationCompensation
Objectives of the AuditObjectives of the Audit
Uncover Potential BiasUncover Potential Bias
Identify Ways the Culture putsIdentify Ways the Culture puts
Members at a DisadvantageMembers at a Disadvantage

35. Follow UpFollow Up
Monitoring ChangeMonitoring Change
Evaluating ResultsEvaluating Results
Institutionalizing as Part of the ProcessInstitutionalizing as Part of the Process

36. Conclusion
Ability to attract, retain and motivate workersAbility to attract, retain and motivate workers
May lead to a competitive advantageMay lead to a competitive advantage
Maintain highest quality Human ResourcesMaintain highest quality Human Resources

38. And, finally…