CULTURE AND DIVERSITY IN BUSINESS

1. CULTURE AND DIVERSITY IN BUSINESS Chapter 16

2. IMPORTANCE OF CULTURE • Culture – the beliefs, customs, and attitudes of a distinct group of people • Often defined by dress, food, language, art • Can also be defined by history, geography, religion • Can refer to a group, an entire city, or a country

3. IMPORTANCE OF CULTURE • Companies MUST know the cultural differences as they trade globally • Must know etiquette, business customs, and proper personal interaction • Will lose business • Will be seen as less smart

4. IMPORTANCE OF CULTURE • Culture has TWO distinct meanings • Culture of other countries you do business with • Culture of your own business/company

5. CULTURE IN GLOBAL ECONOMY • Must be aware of differences in language (especially slang), currencies, laws, and measurement, customs • Eating habits • Touching • Making eye contact • Life in Japan

6. MARKETING ABROAD • Might have to change your product to suit the new market • Chevy Nova • Coca-Cola changing formula • Budweiser changing alcohol content • Must be aware of language issues • Jolly Green Giant

7. WORKERS ABROAD • Must adapt to culture of country living in • Mexico has siesta in the afternoon • Holidays are different in other countries • Religious beliefs (days of operation) • Interaction with employees

8. BUSINESS ETIQUETTE • Business Etiquette – what is considered acceptable social behavior and manners in business. • Different in different parts of the world • Gifts from clients in Japan • Having a meal before getting started • Must respect the customs of those countries

9. CORPORATE CULTURE • Corporate Culture – a company’s shared values, beliefs and goals. • Can be formal or informal • Owner or boss can dictate formality of culture • Level of formality sets rules for business

10. FORMAL CULTURE • Strict Hierarchy – everyone has a specific rule or chain of command. • Dress codes strictly enforced • Written manual of expectations and job duties • Job titles a sign of power and status • Very attention to detail oriented

11. INFORMAL CULTURE • Not as strict – employees have more freedom. • Casual dress code • Promote social activities • Flexible work hours • Creativity and teamwork over job titles and status • Managers on first name basis with employees

12. DIVERSITY IN THE WORKPLACE • No two people or groups are alike • Your success in the workplace depends on how well you get along with others • Different skills • Different work habits • Different approaches to tasks

13. DIVERSITY IN THE WORKPLACE • Diversity is not the same as culture • People diverse based on: • Age • Gender • Ethnicity • Individual Needs (handicapped) • Education • Marital/Parental status • Income • Religious beliefs

14. DIVERSITY IN THE WORKPLACE • Stereotyping is bad • People have individual skills • Dealing with diversity means understanding and using the differences of people

15. STOP SLIDE

16. IMPACT OF DIVERSITY • Hispanics and Asians are fastest growing groups in US • Hispanic population grew almost 60% b/t 1990-2000 • Hispanics no longer minorities in CA and TX • Population getting older • 1946-1964 babies are called baby boomers (due to WW II) • Have 51% of all wealth in country

17. CHANGES IN WORKPLACE • About 85% of people entering workforce are women and minorities • More women, Asians, Hispanics, African-Americans in management • Younger workers becoming more important

18. CHANGES IN THE MARKETPLACE • Minorities and women now working • Now have purchasing power • Company reaction • Used to only target white males • Now target all areas of market • Must appeal to all different groups • More pharmaceutical ads than ever before, why? • Baby boomers are now 50-60 years old

19. MANAGING DIVERSITY • Human Resources responsible for managing – tries to make company inclusive organization • Increases productivity • People want to work for company • Goal is to create inclusive, respectful work environment

20. MANAGING DIVERSITY • Until 1970’s workforce was white males • People tend to hire people like themselves • Had no laws to protect anyone • Discrimination – excluding someone on the basis of age, gender, ethnicity, or physical handicaps • Illegal in workforce now due to Anti-Discrimination Laws • Some companies did policies before laws

21. LAWS AGAINST DISCRIMINATION • Age Discrimination Act • Protects workers over 40 (ageism) • Equal Employment Opportunity Act • Regulated by EEOC • Protects based on gender, ethnicity, religion, etc. • Americans with Disabilities Act (ADA) • Protects handicapped workers • Requires handicapped accessibility for all buildings

22. DIVERSITY PROGRAMS • Many companies have diversity programs to help employees work together • Promote trust and cooperation b/t employees • Break down stereotypes • Managers must work to promote equality and break stereotypes and discrimination • Promote this through corporate culture

23. BENEFITS OF DIVERSITY • Companies purposefully hire diverse people • Allows to work with more diverse customer base • Have increased productivity and efficiency • Fewer legal costs from being sued

24. BENEFITS OF DIVERSITY • A diverse workforce offers a broader range of ideas and ways of looking at things. • Greater diversity in the workplace helps a company better understand and serve the needs of a more diverse marketplace. • It creates a greater sense of morale among employees and commitment to company goals.