CHAPTER 2
FIVE IMPORTANT ENVIRONMENTAL FORCES
1.) Globalization
2.) Diversity
3.) Technology
4.) Ethics and corporate governance
5.) New employment relationships
EQUITY- is about creating fair access, opportunity, and advancement for all those different people.
INCLUSION- all team members, employees and other people feel valued and a sense of belonging within
a given organizational setting.
1.) DIVERSITY- the variety of observable and unobservable similarities and differences among people.
TYPES OF DIVERSITY
1.) Surface- level of diversity: observable differences in people, gender, race, age, ethnicity, and
physical abilities.
2.) Deep- level of diversity: unobservable differences in people, goals, values, personalities,
decision-making styles, knowledge and attitudes.
3.) Intersectionality: diversity that results from simultaneously belonging to more one demographic
category.
4.) Separation: differences in position or opinion among group members reflecting disagreement
with regard to group goals.
5.) Variety: differences in a certain type or category, including group members expertise,
knowledge, or functional background.
6.) Disparity: differences in the concentration of valuable social assets or resources including
dissimilarity in rank, pay, decision-making authority, or status.
NOTE: David Harrison and Katherine Klein
BARRIERS TO INCLUSION
The “like me” bias: people prefer to associate with others they perceive to be like themselves.
Stereotypes: a belief about an individual or a group based on the idea that everyone in a
particular group will behave the same way or have the same characteristics.
Prejudice: outright bigotry or intolerance for other groups.
Perceived threat of loss: if some employees perceive a direct threat to their own career
opportunities, they may feel that they need to protect their own prospects by impeding
diversity efforts.
Ethnocentrism: the belief that one’s own language, native country, and cultural rules and norms
are superior to all others.
, Unequal access to organizational networks: women and minorities are often excluded from
organizational networks, which can be important to job performance, mentoring opportunities,
and being recognized as a candidate for promotion.
2.) GLOBALIZATION- the internationalization of business activities and the shift towards an integrated
global economy.
CULTURAL COMPETENCE- the ability to interact effectively with people of different cultures.
FOUR COMPONENTS OF CC
1.) Awareness of our own cultural worldview and of our reactions to people who are different:
2.) Our attitude toward cultural differences:
3.) Knowledge of different worldviews and cultural practices:
4.) Cross-cultural skills:
GEERT HOFSTEDE FOUND
1.) Individualism: individuals
2.) Collectivism: tight social framework, which they belong
3.) Power distance (orientation to authority): the extent to which people accept as normal
4.) Uncertainty avoidance (preference for stability): feel threatened by unknown situations
5.) Masculinity (assertiveness or materialism): emphasizes aggressiveness
6.) Long- term values: focusing on future, distant payoff
7.) Short- term values: oriented toward the past and the present, respect for traditions
8.) Global perspective: willingness to be open and learn
3.) TECHNOLOGY AND BUSINESS – refers to the methods used to create products, including both
physical goods and intangible services.
MANUFACTURING- form of business that combines and transforms resources into tangible outcomes
that are then sold to others.
SERVICE ORGANIZATION- transforms resources into an intangible output and creates time or place
utility for its customers.
4.) ETHICS- person’s beliefs regarding what is right or wrong in a given situation.
CORPORATE GOVERNANCE- refers to the oversight of a public corporation by its board of directors.
CORPORATE SOCIAL RESPONSIBILITY- businesses living and working together for the common good and
valuing human dignity.
FIVE IMPORTANT ENVIRONMENTAL FORCES
1.) Globalization
2.) Diversity
3.) Technology
4.) Ethics and corporate governance
5.) New employment relationships
EQUITY- is about creating fair access, opportunity, and advancement for all those different people.
INCLUSION- all team members, employees and other people feel valued and a sense of belonging within
a given organizational setting.
1.) DIVERSITY- the variety of observable and unobservable similarities and differences among people.
TYPES OF DIVERSITY
1.) Surface- level of diversity: observable differences in people, gender, race, age, ethnicity, and
physical abilities.
2.) Deep- level of diversity: unobservable differences in people, goals, values, personalities,
decision-making styles, knowledge and attitudes.
3.) Intersectionality: diversity that results from simultaneously belonging to more one demographic
category.
4.) Separation: differences in position or opinion among group members reflecting disagreement
with regard to group goals.
5.) Variety: differences in a certain type or category, including group members expertise,
knowledge, or functional background.
6.) Disparity: differences in the concentration of valuable social assets or resources including
dissimilarity in rank, pay, decision-making authority, or status.
NOTE: David Harrison and Katherine Klein
BARRIERS TO INCLUSION
The “like me” bias: people prefer to associate with others they perceive to be like themselves.
Stereotypes: a belief about an individual or a group based on the idea that everyone in a
particular group will behave the same way or have the same characteristics.
Prejudice: outright bigotry or intolerance for other groups.
Perceived threat of loss: if some employees perceive a direct threat to their own career
opportunities, they may feel that they need to protect their own prospects by impeding
diversity efforts.
Ethnocentrism: the belief that one’s own language, native country, and cultural rules and norms
are superior to all others.
, Unequal access to organizational networks: women and minorities are often excluded from
organizational networks, which can be important to job performance, mentoring opportunities,
and being recognized as a candidate for promotion.
2.) GLOBALIZATION- the internationalization of business activities and the shift towards an integrated
global economy.
CULTURAL COMPETENCE- the ability to interact effectively with people of different cultures.
FOUR COMPONENTS OF CC
1.) Awareness of our own cultural worldview and of our reactions to people who are different:
2.) Our attitude toward cultural differences:
3.) Knowledge of different worldviews and cultural practices:
4.) Cross-cultural skills:
GEERT HOFSTEDE FOUND
1.) Individualism: individuals
2.) Collectivism: tight social framework, which they belong
3.) Power distance (orientation to authority): the extent to which people accept as normal
4.) Uncertainty avoidance (preference for stability): feel threatened by unknown situations
5.) Masculinity (assertiveness or materialism): emphasizes aggressiveness
6.) Long- term values: focusing on future, distant payoff
7.) Short- term values: oriented toward the past and the present, respect for traditions
8.) Global perspective: willingness to be open and learn
3.) TECHNOLOGY AND BUSINESS – refers to the methods used to create products, including both
physical goods and intangible services.
MANUFACTURING- form of business that combines and transforms resources into tangible outcomes
that are then sold to others.
SERVICE ORGANIZATION- transforms resources into an intangible output and creates time or place
utility for its customers.
4.) ETHICS- person’s beliefs regarding what is right or wrong in a given situation.
CORPORATE GOVERNANCE- refers to the oversight of a public corporation by its board of directors.
CORPORATE SOCIAL RESPONSIBILITY- businesses living and working together for the common good and
valuing human dignity.
