2. Layout
1 For Cultural
Diversity 5 Hofstede’s five value
dimensions
2 Organisational
Culture 6 Project Globe
3 Multicultural
Organisation 7 Hofstede’s
arguments
4 diversity in
workplace 8 Case Study
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3. For Cultural Diversity
Arguments in favour of cultural diversity in organisations
Cultural diversity builds strength for dealing with global markets. To be successful in
working with and
Ethnic diversity builds strength for dealing with diverse customers. gaining value from
diversity requires a
Diverse work teams are high in creativity and innovation. sustained, systemic
approach and long-
Diverse workforces attract new highly talented members. term commitment.
an opportunity for
an occasion that as well as group
Success is everyone in an
requires a leadership and
facilitated by a organization to
supportive and process skills that
perspective that learn from each
cooperative can facilitate
considers diversity other how better
organizational effective group
to be to accomplish
culture functioning.
their work and
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4. Organisational Culture
Inclusivity • How open the organization is to someone who can do the job
• A shared set of beliefs, values and patterns of behavior common
Culture to group of people
• Organization based on pluralism and operates with respect for
Multicultural Organisation diversity
• Groupings of people based on shared demographics and job
Organisational Subcultures identities
• The belief that one’s sub-cultural group or membership is
Ethnocentrism superior to all others
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5. Characteristics of a
Multicultural Organisation
• Members of minority and majority cultures
Pluralism
influence key values and policies.
• Minority-culture members are well represented at
Structural integration
all levels and in all responsibilities.
Informal network • Mentoring and support groups assist career
integration development of minority-culture members.
Absence of prejudice and • Training and task force activities support goal of
discrimination eliminating culture-group biases.
Minimum inter-group • Members of minority and majority cultures avoid
conflict destructive conflicts.
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6. Managing diversity in workplace
Building an inclusive work environment that allows
everyone to reach their potential
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7. Culture and structure
Hofstede’s findings
One of the important studies
Attempted to study impact cultural differences on
management
Conducted by Geert Hofstede, first in the late 1960s
and continuing through the next three decades.
The original study was based on an employee survey involving
116,000 IBM employees in 40 different countries.
The survey asked people of their preferences in terms of management
style and work environment.
Hofstede five value dimensions on which countries differed.
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8. Hofstede’s five value dimensions
Diversity among global cultures
• The degree to which a society accepts unequal
Power Distance distribution of power
• The degree to which a society tolerates risk and
Uncertainty Avoidance uncertainty
Individualism- • The degree to which a society emphasizes individuals and
collectivism their self-interests
• The degree to which a society values assertiveness and
Masculinity-femininity materialism
• The degree to which a society values short term or long
Long Term Orientation term goals
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11. Hofstede’s arguments
Given the value differences, Hofstede questioned whether American theories
could be applied abroad and discussed the consequences of cultural differences
in terms of motivation, leadership, and organisation.
Hofstede argued, organisations in countries with high
power distance would tend to have
More levels of hierarchy.
A higher proportion of supervisory personnel (narrow span of control).
More centralised decision making.
Status and power would serve as motivators.
Leaders would obeyed as authorities.
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13. Hofstede’s arguments
In countries with high uncertainty avoidance
Organisation more formalised.
Greater amount of written rules and organisation.
Greater importance attached to specialisation in terms of technical
competence.
Managers would avoid risk and would be motivated by stability
and security.
The role of leadership would be more one of
planning, organising, coordinating, and controlling.
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14. Hofstede’s arguments
In countries with high collectivist orientation
Preference for group as opposed to individual decision making.
Consensus and cooperation more valued than individual initiative and effort.
Motivation derives from sense of belonging, and rewards are based on being
part of the group (loyalty and tenure).
The role of leadership is to facilitate team effort and integration, to foster a
supportive atmosphere, and to create necessary group culture.
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15. Hofstede’s arguments
In countries ranked high on masculinity
Management style is likely to be more concerned with task accomplishment
than nurturing social relationships.
Motivation will be based on accumulation of money and things rather than
quality of life.
The role of leadership is to ensure bottom-line profits in order to satisfy
shareholders.
In a more feminine cultures, the role of the leader would be to safeguard
employee well-being, and to demonstrate concern to social responsibility.
Hofstede’s also found country clusters.
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