Leadership- Teamwork

CHAPTER 14

International and Culturally Diverse Aspects of Leadership

The purpose of this chapter is to help the reader understand the leadership challenges stemming from working in international and culturally diverse environments. In addition, the reader is given many specific suggestions for leading effectively in such an environment.

CHAPTER OUTLINE AND LECTURE NOTES

Sensitivity to and an appreciation of cultural diversity improves working relationships. The modern leader must be multicultural because corporate success, profit, and growth depend increasingly on the management of a diverse workforce. An increasing number of new entrants to the workforce are women and people of color. The leader must respond to the needs of diverse groups of people. In addition to the workforce becoming more diverse, business has become increasingly global.

I. THE ADVANTAGES OF MANAGING FOR DIVERSITY

The ethical and social responsibility goals of leaders and their organizations support the importance of providing adequately for members of the diverse workforce. Ethical leaders feel compelled to use merit as a basis for making human resource decisions. A firm that embraces diversity is also behaving in a socially responsible manner. Managing for diversity brings a competitive advantage to the firm in the following ways:

A. Reduction of turnover and absenteeism costs may result from managing diversity.

B. Managing diversity well offers a marketing advantage. For example, a multicultural group of decision makers may be at an advantage in reaching a multicultural market. Another marketing advantage is that many people from culturally diverse groups prefer to buy from a company that has a good reputation for managing diversity.

C. Companies with a favorable record in managing diversity are at a distinct advantage in recruiting and retaining talented people.

D. Managing diversity well unlocks the potential for excellence.

E. Heterogeneity...