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Cultural Competency in Global Business: Managing Ethnic Diversity

Explore the implications of ethnic cultural differences on business interactions, management orientation, communication & control systems, and workforce dynamics. Learn how culturally competent managers can create a competitive advantage in a diverse workplace. Understand the layers of culture, shared meanings, and enduring values that shape organizational culture and influence actions. Discover strategies for integrating and managing different cultures in the global business landscape.

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Cultural Competency in Global Business: Managing Ethnic Diversity

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  1. ETHNIC CULTURAL DIFFERENCES REASONS FOR BUSINESS FOCUS

  2. GLOBALIZATION OF BUSINESS • US FIRMS ARE MORE INVOLVED IN WORLD MARKETS • EXPORTING • LICENSING • STRATEGIC ALLIANCES • EQUITY ALLIANCES, JOINT VENTURES • NON-EQUITY ALLIANCES: OUTSOURCING, LONG TERM CONTRACTS • FOREIGN DIRECT INVESTMENT • ALL REQUIRING DEALING WITH BUSINESS PEOPLE FROM OTHER CULTURES

  3. FOREIGN FIRMS ARE INCREASING THEIR PRESENCE IN US • SAME METHODS OF GLOBAL BUSINES EXPANSION • ATTRACTIVE MARKETS IN US • MORE OPEN ENTREPRENURIAL ENVIRONMENT • LOWER TAXES • LESS REGULATIONS • FOREIGN OWNED FIRMS BRING IN MORE DIVERSE CULTURE CONTACTS • REQUIRING MORE CULTURAL COMPETENCE

  4. HUGE WAVE OF IMMIGRATION • RAPID CHANGE IN THE LABOR POOL • RAPID CHANGE IN THE CUSTOMER BASE • NO TIME FOR SLOW ASSIMILATION PROCESS • LESS DESIRE OF NEW IMMIGRANTS TO BE ASSIMILATED COMPLETELY • LESS DESIRE FOR ESTABLISHED CULTURE GROUPS TO BE ASSIMILATED COMPLETELY • HUGE ISSUE OF ILLEGAL IMMIGRATION

  5. IMPLICATIONS OFNEW WAVE OF IMMIGRATION • MULTI ETHNIC WORKFORCE • MULTI ETHINC CLIENT/ CUSTOMER BASE • MULTIPLICITY OF EE EXPECTATIONS • MANAGEMENT ORIENTATION • CONTROL SYSTEMS • COMMUNICATION SYSTEM • REWARD SYSTEM • COMMITMENT AND ATTACHMENT

  6. IMPLICATIONS OF ETHNIC CULTURAL DIFFERENCES • REQUIRES INCREASED CULTURAL COMPETENCY • CULTURALLY COMPETENT MGRs CAN MAKE THEIR FIRMS GAIN COMPETETIVE ADVANTAGE • US FIRMS HAVE A LEG UP ON FIRMS IN SOME OTHER COMPANIES • IF THE US FIRMS CAN LEARN TO IMPROVE MGT OF ETHNICALLY DIVERSE WORKFORCE

  7. MEANING OF CULTURE • SHARED DEFINITIONS OF SITUATIONS BY A GROUP • DETERMINES MUTUAL EXPECTATIONS IN BUSINESS INTERACTIONS -OUR EXPECTATIONS DEFINE US, -IF MET WITH SIMILAR EXPECTATIONS, CREATES MUTUALITY OF MEANING

  8. LAYERS OF CULTURE • EXPLICIT ELEMENTS • OBSERVABLE ELEMENTS • BEHAVIOR • LANGUAGE • CEREMONIES • MONUMENTS (FERTILE SOURCES OF PREJUDICES)

  9. LAYERS OF CULTURE • NORMS • WHAT IS RIGHT • WHAT IS WRONG • HOW I SHOULD BEHAVE • VALUES • WHAT IS GOOD • WHAT IS BAD • HOW I DESIRE TO BEHAVE

  10. STABLE CULTURES • NORMS REFLECT THE VALUES • OTHERWISE, THE CLASH WILL DESTABILIZE THE CULTURE

  11. ENDURING CULTURES HAVE • SHARED MEANINGS OF VALUES AND NORMS • IMPORTANT FOR THE GROUP • DEVELOPED THRU TIME • ELABORATED BY THE GROUP MEMBERS

  12. CORE ASSUMPTION • VALUES AND NORMS IMPROVES SURVIVAL CHANCES • HAS HELPED THE GROUP SOLVE BASIC PROBLEMS • THRU TIME, HAVE BECOME UNTESTED ASSUMPTIONS • SOURCES OF IRRITATION WHEN QUESTIONED • CHANGE ONLY WHEN CONSISTENTLY FAILS TO RESOLVE PROBLEMS

  13. CULTURE AND ACTION • CULTURE DIRECTS ACTION • ACTION REINFORCES CULTURE THRU SOCIALIZATION PROCESS • CULTURE IS MAN-MADE • IT SHAPES OUR INTERACTIONS

  14. CULTURE AS A NORMAL DISTRIBUTION • WIDE SPREAD OF NORMS, VALUES AND ASSUMPTIONS IN EVERY CULTURE • HAS A MEANINGFUL AVERAGE • HAS OUTLIERS (TAILS) • HAS OVERLAPS (SIMILARITIES) WITH OTHER CULTURES • THE AVERAGES MAY BE COMPARED W/ OTHER CULTURES • FOCUSING ON THE EXTREMES (OUTLIERS) LEADS TO STREOTYPING AND CARICATURE DESCRIPTIONS • DIFFERENCES ARE JUST THAT.

  15. DIFFERENT CULTURES ADDRESS COMMON DILEMMAS • HOW DO WE RELATE TO THE OTHERS • HOW DO WE RELATE TO TIME • HOW DO WE RELATE TO NATURE • HOW DO WE RELATE TO ACTIVITIES • MANAGERS: • HOW DO WE INTEGRATE, RECONCILE CULTURES • HOW DO WE MANAGE DIFFERENT CULTURES AT WORK

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