Session 2
Foundations of Individual Behavior
Biographical CharacteristicsAgeGenderRaceAbilitySocial GroupsTenureReligionSexual Orientation
Workplace DiversityManagers need to recognize and
capitalize on the differences to get the most out of their employees.
Increases access to widest possible pool of skills, abilities and ideas.
Surface level diversity Deep level diversity
AbilityAbility refers to an Individual’s
capacity to perform the various tasks in a job.
2 sets of factors – Intellectual Abilities Physical Abilities
Cultural Diversity
Cultural diversity refers to dealing with different cultures
Cultural diversity is seen across states, nations
Ability DiversityIndividuals with disabilities are
underutilized human resource.Disabled people constitute 5% of
the population. Loco motor disability group
commonly employed.
Corporate Initiatives Wipro Technologies TCS ITC Hotels McDonald – McJobs IBM India
Gender DiversityDoes gender difference exists in
workplace behavior? Are there biases ? If yes real?Do these biases make a difference
to workplace attitudes and behaviors?
Do these biases make a difference to workplace outcomes? (Glass Ceiling, Attrition)
How to overcome the biases ? Is gender diversity required If
yes, then why? What are the organizational
initiatives?
Gender BiasGender bias is a result of cultural
system and this system influences the behavior of men and women.
Process of GenderingSocialization ProcessGender StereotypesPassing of 73rd and 74th
Constitutional Amendments in 1992; facilitated 33% women’s participation in local government
OutcomesUnder represented in governance and decision
making process. Women held less than 3% managerial positions
in India and Glass Ceiling exists.Increase in number of female employees is
concentrated only at the clerical level and their count at the top levels was significantly low.
Women in senior management positions in 2008◦ Global – (24%) ◦ Philippines (47%) ◦ Russia(42%) ◦ Thailand (38%).
Why Gender Diversity‘Women Matter’ study conducted
by Mckinsey, showed that companies where women are most strongly represented at board are also the companies that perform best.
Women are driving force behind more than 70% of purchasing decisions.
How to achieve Gender DiversityCreate transparency by
implementing gender diversity KPIs
Implement measures to facilitate the work-life balance
Adapt the human resources management process
Corporate India Initiatives Biocon – no. of women is 30%
ICICI Bank – 40% (managers) IBM IndiaFamily run Businesses Women holding senior positions in family
owned businesses – Ashni Biyani – Future Group’s director at age 24.
(Exception)Videocon International has underrated
women’s potential.
IT/BPO SectorBanking and Insurance Sector State Bank of India (SBI) has not
seen any women as a CEO
ICICI has provided conducive environment for women to excel and Glass Ceiling doesn’t exists.
IT/BPO SectorGender neutral, creating
flexibility in their policies (eg. Aricent, Accenture, Intelenet Global Services)
Nurturing women leaders is yet another area of focus
Diversity’s Benefits & Problems
BENEFITS PROBLEMS• Resistance to change• Lack of cohesiveness• Communication problems• Interpersonal conflicts• Slower decision making
•Attracts and retains the best talent• Improves marketing efforts• Promotes creativity and innovation•Results in better problem solving•Enhances organizational flexibility
ValuesValuesBasic convictions that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence.Value SystemA hierarchy based on a ranking of an individual’s values in terms of their intensity.
Importance of ValuesProvide understanding of the
attitudes, motivation, and behaviors of individuals and cultures.
Influence our perception of the world around us.
Represent interpretations of “right” and “wrong.”
Imply that some behaviors or outcomes are preferred over others.
Types of Values –- Rokeach Value Survey
Terminal ValuesDesirable end-states of existence; the goals that a person would like to achieve during his or her lifetime.
Instrumental ValuesPreferable modes of behavior or means of achieving one’s terminal values.
Values in the
RokeachSurvey
Source: M. Rokeach, The Nature of Human Values (New York: The Free Press, 1973).
Values in the
Rokeach Survey(cont’d)
Source: M. Rokeach, The Nature of Human Values (New York: The Free Press, 1973).
Values, Loyalty, and Ethical Behavior
Ethical Climate inthe Organization
Ethical Values and Behaviors of Leaders
Cultural ValuesCultural values: what is
good/beautiful/holy beautiful, and what are legitimate goals for life
Your Choice?You are riding in a car driven by a close friend.
S/He hits a pedestrian. You know s/he was going 80 kms per hour in an area of the city where the maximum allowed speed is 50 kms per hour. There are no witnesses. Her/His lawyer says that if you testify under oath that s/he was only driving only 50 kms per hour, it may save her/him from serious consequences.
What right has your friend to expect you to protect her/him?
What do you think you would do in view of the obligations of a sworn witness and the obligation to your friend?
Universalism vs. ParticularismPertain to how people treat each
other based on rules or personal relationships
Universalistic Particularistic
Right way is based on abstract principles such as rules, law, religion
Consistency Systems, standards &
rules Uniform procedures Demand clarity
• Each judgment represents unique situation that can be dealt with based on relationships
Flexibility Pragmatic Make exceptions “It depends” At ease with ambiguity
My Best Friend Vs. MoneyYou are walking to a critical business meeting at
which you are going to close a $100 mn deal. You will receive a fee of three million dollars if the contract is signed. However, some major details need to be discussed, and you are the only person capable of discussing them.
Suddenly, your best friend in the world – you have known him since childhood, rushes up to you and blurts out, “something terrible has happened, and I need your help immediately. You are the only person who can help me!”
What would you do?
Cultural ContextsCharacteristics of High-Context cultures
◦long lasting relationships Insiders and Outsiders are distinguished
◦communication is economical, fast and efficient Agreements between persons are spoken
rather than written◦wider range of communicative
expressions◦people in authority are personally
responsible for the actions of subordinates
◦Cultural patterns are ingrained and relatively slow to change
Cultural Contexts (contd..)Characteristics of Low-Context
Cultures◦shorter relationships
Insiders and Outsiders are less closely distinguished
◦messages are made explicit ◦agreements are written rather than
spoken ◦ authority is diffused◦Cultural patterns are relatively fast
to change
Specific vs. DiffuseExtent to which an individual’s life is involved in
workSpecific
◦ Business segregated from other parts of life◦ Contracts often delineate relationships◦ Prefer the freedom of direct speech ◦ Low context—specific to general ◦ Adaptable and flexible ◦ Criticism considered constructive
Diffuse◦ Business relationships encompassing/involving◦ Private and segregated space is small◦ Prefer indirect and implicit speech ◦ High context—general to specific ◦ Rich and subtle, yet resolute◦ Criticism often devastating
Achievement vs. AscriptionManner in which society gives
statusAchievement
◦People earn status based on performance and accomplishments
Ascription◦Characteristics or associations define
status◦e.g., status based on schools or
universities
Hofstede’s Framework for Assessing Cultures
Power DistanceThe extent to which a society accepts that power in institutions and organizations is distributed unequally.low distance: relatively equal distributionhigh distance: extremely unequal distribution
Hofstede’s Framework (cont’d)
Achievement (Masculinity)The extent to which societal values are characterized by assertiveness, materialism and competition.
Nurturing (Femininity)The extent to which societal values emphasize relationships and concern for others.
Masculinity / Career Success Vs. Femininity / Quality of Life
Hofstede’s Framework (cont’d) Collectivism
A tight social framework in which people expect others in groups of which they are a part to look after them and protect them.
IndividualismThe degree to which people prefer to act as individuals rather than a member of groups.
Hofstede’s Framework (cont’d)
Uncertainty AvoidanceThe extent to which a society feels threatened by uncertain and ambiguous situations and tries to avoid them.
Hofstede’s Framework (cont’d)Long-term Orientation
A national culture attribute that emphasizes the future, thrift, and persistence.
Short-term OrientationA national culture attribute that emphasizes the past and present, respect for tradition, and fulfilling social obligations.
The GLOBE
Framework for
Assessing Cultures
• Assertiveness• Future Orientation• Gender differentiation• Uncertainty avoidance• Power distance• Individual/collectivism• In-group collectivism• Performance orientation• Humane orientation
Source: M. Javidan and R. J. House, “Cultural Acumen for the Global Manager: Lessons from Project GLOBE,” Organizational Dynamics, Spring 2001, pp. 289–305.
EthicsEthics is guided by our value
systems.Policies and procedures should
align with your cultural values.
The Case of Daimler-ChryslerIn what way did the cultures of the two
companies differ? What do you think the terms innovation,
risk taking, change meant to Chrysler employees? To Daimler employees?
What were the underlying causes of conflict in these organizations? What concepts can these causes be related to?
What could have been done differently?