978-1285866352 Chapter 10 Solution Manual Part 2

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B. Benefits of Embracing Diversity (Slide 10-29 and Discussion Question on 10-28 and 10-30)

LO 10-8. Explain the benefits of embracing diversity.

The value of diversity is evident in studies that have found, among other things, that a diversified

workforce offers an advantage in understanding and meeting the needs of diverse customers; some of the

best job candidates are found among women and other culturally diverse groups; embracing and valuing

diversity can lower an organization’s cost attributed to high turnover and/or absenteeism among minority

groups; and diverse work groups are more creative and innovative than homogeneous work groups.

Many believe there is an ethical and moral imperative to pursue a policy of inclusion rather than exclusion.

From a legal perspective, embracing diversity is in compliance with laws.

From a practical perspective, shifting demographics and increasing globalization have changed the composition

of the workforce, forcing corporations to respond or suffer economic loss.

Regardless of the moral, legal, or practical imperative of diversity, it must also have a positive link to the

“bottom line.”

Some of the economic benefits or value that make the case for embracing diversity include the following:

1. Embracing diversity can offer a company a marketing advantage.

2. Companies that embracing diversity are able to

3. Embracing diversity has cost implications.

4. Embracing diversity provides an organization with a broader and deeper base of creative problem

solvers and decision makers.

5. Diverse teams often outperform non-diverse teams.

C. Creating a Pro-Diversity Organizational Culture (Slide 10-31 and Discussion Question on 10-32)

LO 10-9. What leadership actions can support and sustain a pro-diversity culture.

An organization that has a strong culture of diversity has a commitment to attract, retain, and promote

employees of minority backgrounds and a system that rewards diversity initiatives throughout the

organization. The best companies look beyond diversity compliance (with its focus on simply managing

the numbers) to diversity institutionalization (with its focus on results). Some of the factors that promote

a culture of diversity include: top management support and commitment; removing obstacles, including

diversity as a criterion for assessing and rewarding managerial performance, organizational awareness,

organizational practices and policies, and regular training and education on diversity.

The best companies look beyond diversity compliance to diversity institutionalization, with its focus on results.

Saying you have a pro-diversity culture and being a diversified organization are two different things.

That is why diversity proponents emphasize the importance of executive leadership and organization-wide

participation.

See Exhibit 10.5: Factors That Support and Sustain a Pro-Diversity Culture (Slide 10-33)

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1. Top Management Support and Commitment

2. Remove Obstacles

Diversity blockers, or obstacles, are company policies and practices that result in unintended

3. Organizational Policies and Practices

Policies do not always go hand in hand with practices.

4. Heightened Awareness

5. Include Diversity as a Criterion for Measuring Success

6. Training and Education

Sustaining a culture of diversity takes continuous training and education.

Diversity training can include but is not limited to activities such as:

Diversity training is most successful when not a onetime event, but an ongoing activity with follow-up

activities to evaluate behavior post training.

WORK APPLICATION 10-7

Identify and briefly explain which of the obstacles to diversity exist or have been

removed where you work or have worked.

WORK APPLICATION 10-8

Identify and briefly explain which of the six factors related to creating a pro-

diversity culture exist or do not exist where you work or have worked.

WORK APPLICATION 10-9

Does the organization you work or have worked for offer diversity-awareness

training and education? If you are not sure, contact the human resources

department to find out. If it does, briefly describe the program.

YOU MAKE THE ETHICAL CALL 10.3

Gender Discrimination

Answers will vary based on opinion.

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CONCEPT APPLICATION 10-3

Factors That Support and Sustain a Pro-Diversity Culture

Answers to the Concept Application questions are at the end of lecture outline.

E. The Effects of Globalization on Diversity Leadership (Slide 10-34, Discussion Question on 10-35 and

Key Terms on 10-36)

Corporations are becoming more global and hence more ethnically diverse.

Globalization has led firms to originate, produce, and market their products and services worldwide.

A global labor market is emerging, dominated by Brazil, Russia, India, and China (“BRIC” countries).

United States–based companies such as Pepsi-Cola, Coca-Cola, Procter & Gamble, and many others have

established a significant presence in China and India, partly motivated by cheap labor and a sizable consumer

market.

European companies such as Daimler-Benz, Nestlé of Switzerland, Canada’s Northern Telecom, and many

others with a significant presence in the United States.

Global companies must learn to deal with a diverse cross-cultural workforce, customers, competitors, suppliers,

and financial institutions.

Understanding cultural differences and learning to deal effectively with partners from different cultures will be

critical.

Multinational companies are interested in recruiting leaders who have multicultural experiences.

Self-Assessment 10-2

Personality, Culture, Values, and Diversity

If you want students to complete the Self-Assessment exercises throughout the

book, you may want to tell students and spend a little time talking about them.

LEARNING OUTCOMES ANSWERS

The chapter summary is organized to answer the learning objectives for Chapter 10. They are also found at the end

of the chapter and can be used as short answer questions on exams.

These learning outcomes are included in the test bank in the conceptual section.

1. Explain the power of culture to an organization’s effectiveness, both internally and externally.

An organization’s culture determines the way that it responds to changes in its external and internal

environments. The two important functions served by culture are directly tied to this concept. They are: (1)

2. Describe the characteristics of strong versus weak cultures.

When there is little or no consensus on the values and norms governing member behavior, the culture of an

organization is considered to be weak. The lack of common values and norms means that members of the

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The characteristics of low-performance cultures include insular thinking, resistance to change, a highly

politicized internal environment, and poorly conceived promotion or advancement practices for employees. The

3. Distinguish between symbolic and substantive leadership actions for shaping organizational culture.

Leaders can initiate many different types of policies, programs, and practices to change, modify, or sustain an

organization’s culture. Some of these actions are substantive, while others are simply symbolic; yet taken

4. Identify and briefly describe the four types of culture commonly found in organizations.

The cooperative culture is found in organizations that operate in dynamic environments, yet emphasize an

internal strategic focus. The belief is that empowering, respecting, rewarding, and trusting employees is the key

to capitalizing on external opportunities. The adaptive culture is also found in organizations that operate in

dynamic environments; however, the organization’s strategic focus is external. Solutions for responding to

external opportunities and threats are sought both inside and outside the firm. These organizations pursue

5. Describe Hofstede’s theory of National Culture Identities.

The conceptual framework for understanding global cultural differences proposes that national cultures differ by

the values they espouse. Researchers have associated different value dimensions with the cultures of different

nationalities and/or regions of the world. Leading this effort is the work of Geert Hofstede, whose research,

spanning almost two decades and involving more than 160,000 people from more than 60 countries, helped

6. Identify organizational practices that do foster an ethical work environment.

Organizational practices that can promote an ethical work environment include the following: a jointly

7. Explain how authentic leadership has its roots in moral and ethical theory of leadership.

Authenticity is a psychological construct that focuses on knowing, accepting, and acting in accordance with

one’s core values, beliefs, emotions, and preferences. The authentic leader holds him or herself to a higher

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8. Explain the benefits for embracing diversity.

Changing demographics and increasing globalization have significantly changed the composition of the

workforce. With more women and minorities entering the workforce and the growing interdependence between

global companies, the need to embrace and value diversity is more critical than ever. The value of diversity is

9. What leadership actions can support and sustain a pro-diversity culture?

A diversity-supportive culture is one that continuously values diversity and has made it a way of life in the

organization. To achieve full diversity, organizations are challenged to create a diversity-supportive culture that

REVIEW QUESTION ANSWERS

These review questions are included in the test bank in the conceptual section.

1. What are the similarities and differences between the cooperative culture and the adaptive culture?

Cooperative culture represents a leadership belief in strong, mutually reinforcing exchanges and linkages

between employees and departments. In this type of culture, operating policies, procedures, standards, and tasks

are all designed with one goal in mind—to encourage cooperation, teamwork, power sharing, and camaraderie

Adaptive culture represents a leadership belief in active monitoring of the external environment for emerging

opportunities and threats. This culture is made up of policies, procedures, and practices that support employees’

ability to respond quickly to changing environmental conditions. In adaptive cultures, members are encouraged

2. How does a code of ethics help enforce ethical behavior in an organization?

A code of ethics is a formal statement of an organization’s ethical values. Ethical values govern the behavior of

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3. What potential problems could develop in a case in which a leader is from a high-power-distance culture

but his followers are from a low-power-distance culture?

In a high power-distance culture, leaders and followers rarely interact as equals; while in a low power-distance

culture, leaders and their members interact on several levels as equals. In an organization with a high power-

4. Describe the personality profile of an authentic leader.

Gardner and his associates describe four underlying components of authentic leadership: self-awareness,

balanced information processing, authentic behavior, and relational transparency. Self-awareness is defined as

a process where one continually comes to understand his or her unique talents, strengths, sense of purpose, core

values, beliefs and desires. Balanced information processing is the second component of authentic leadership.

5. What are the major obstacles often encountered in trying to achieve diversity?

Leaders often face a number of personal and organizational obstacles to achieving full diversity. The most

prevalent are:

Stereotypes and Prejudice – This is perhaps the most prevalent obstacle to achieving diversity in many

organizations. Prejudice is the tendency to form an adverse opinion without just cause about people who are

Ethnocentrism – Ethnocentrism is the belief that one’s own group or subculture is naturally superior to other

Policies and Practices – A third obstacle to diversity is embedded in organizational policies and practices that

work against maintaining a diverse workforce. The leader must perform an audit of the organization to

The Glass Ceiling – The fourth obstacle to diversity is the presence of the glass ceiling. The glass ceiling is an

Unfriendly Work Environment – Minorities and women may be excluded from social activities in or out of the

CRITICAL THINKING QUESTION ANSWERS

Applications may also be used as class discussion questions or written assignments to develop communication skills.

These communication questions are included in the test bank in the application section.

1. Based on your knowledge of the Enron case, what part did culture play in its actions and ultimate

demise? (Slide 10-4)

2. Describe some of the practices, policies, and norms that you would expect to find in an organization that

prides itself on building a culture of respect and trust. (Slide 10-15)

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3. Describe the different generations that make up what some people are now referring to as “generational

diversity” and identify their unique characteristics. What are the implications of generational diversity

on effective leadership? (Slide 10-28)

Four distinct generations comprise today’s workforce—the Traditionalists (1900–1945), the Baby Boomers

(1946–1964), the Generation Xers (1965–1980), and the Millenials (1981–2000). The Traditionalists represents

the generation that values stability, frugality, and a strong sense of loyalty. The Baby Boomers are characterized

4. Despite the benefits of diversity, some say it is a “double-edged sword.” Explain why? (Slide 10-30)

Diversity provides an organization with an array of ideas, perspectives, and knowledge that can result in better

solutions, creativity, and, ultimately, innovation. However, diversity also means that many more people from

5. What is the difference between diversity compliance and diversity institutionalization? (Slide 10-32)

Diversity complaince focuses on simply managing the numbers, while diversity institutionalization focuses on

6. In your opinion, what would be some strategies for developing a diversity sensitive orientation (DSO)?

CONCEPT APPLICATION ANSWERS

There are similar questions in the test bank in the application section.

Concept Application 10-1 Characteristics of Low- and High-Performing Cultures

b 1. Intensely people oriented.

h or i 2. Politicized internal environment and unhealthy promotion practices are acceptable choices.

Concept Application 10-2 Type of Organizational Culture

b 11. Adaptive

Concept Application 10-3 Factors that Support and Sustain a Pro-Diversity Culture

__d__ 15. Heightened awareness

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CASE ANSWERS

Marry Barra – New CEO of General Motors

1. In your opinion, what culture type is CEO Barra bringing to GM? Support your answer with evidence

from the case.

It is evident from the case that CEO Barra wants GM to embrace a culture or collaboration and teamwork. She

2. In what ways has GM’s governing board shown that it embraces and supports diversity?

GM’s board could have hired a candidate from the old-boys network. The expectations were that the board will

3. What is the evidence in the case to support the assertion that CEO Barra exemplifies the principles of

authentic leadership?

Authenticity is a psychological construct that reflects knowing, accepting, and acting in accord with one’s

values, beliefs, preferences and emotions. The authentic leader holds himself/herself to a higher standards of

4. What are some the factors in Mary Barra’s life that have influenced her values?

No doubt her parents. Barra credits her parents for instilling core values about integrity and the importance of

Cumulative Case Questions

5. Based on what you know so far of Mary Barra, describe the quality of the exchange relationship

(Chapter 7) she would most likely have with her followers. Explain your answer

CEO Barra is more likely to form a high-quality social exchange relationship with her followers. This

6. In chapter 8, we discussed how organizational climate can influence team creativity and the role of top

leaders in creating such a climate. Is Mary Barra the kind of CEO that can make this happen at GM ?

Support your answer.

Creativity feeds innovation, which is fast becoming a critical requirement for success in any type of business

(profit or not-for-profit). The companies that will survive and thrive in the present global knowledge driven

7. Transformational versus transactional leadership describes two leadership styles commonly associated with

senior leaders of corporations (Chapter 9). Which of these leadership types is more representative of Mary

Barra? Support your answer.

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Transformational leaders are known for transforming or changing the status quo and inspiring followers to join

them on the quest for a better future. They are visionaries and strategists who have the ability to move and

CASE EXERCISE AND ROLE-PLAY

Put yourself in CEO Barra position. Since the announcement that she was GM’s new CEO, she has been featured in

media outlets across the globe and bombarded by reporters, photographers and TV crews on her reaction to being

the first female to lead a major automaker. She wants to craft a short and insightful statement that she can give

every time the question is asked so she can move on to other things. Prepare the exact wording of such a statement.

VIDEO CASE ANSWERS

Diversity at PepsiCo

9. What is it important for upper-level managers at PepsiCo to receive diversity and inclusion training?

If upper-level managers do not receive and support this training, the underlying corporate culture will not accept

10. Do you think that PepsiCo’s encouragement of employee networks actually works against diversity and

the formation of multicultural teams? Why or why not?

Answers will vary, but students should demonstrate an understanding of the two concepts, noting that employee

DEVELOPING YOUR LEADERSHIP SKILLS EXERCISE 10-1 IDEAS

Identifying and Improving Organizational Culture

Total Time (10–50 minutes)

Select a total time you want to spend on this exercise and select an option.

Testing on Developing Your Leadership Skill Exercise 10-1

To assess ability to identify culture, have students complete Work Applications 1, 2, 3, and/or 5 from the Test Bank.

To assess ability to identify and improve culture, have students pass in the preparation for this exercise and grade it.

DEVELOPING YOUR LEADERSHIP SKILLS EXERCISE 10-2 IDEAS

Diversity Training

Total Time (20–60 minutes)

Select a total time you want to devote to this exercise, then allocate the time to the procedures.

Recommended approximate time for a 50-minute period:

8:00 Procedure 1 3 minutes

8:03 Procedure 2 25 minutes

8:28 Procedure 3 15 minutes

8:43 Conclusion 3 minutes

8:46 Apply It 4 minutes

8:50

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DEVELOPING YOUR LEADERSHIP SKILLS EXERCISE 10-3 IDEAS

Developing an Effective Multicultural Team

Total Time (20–50 minutes)

You can elect to perform the whole exercise in class or assign part of it to be done out of class. For example, form

the groups in class and then have the groups deliberate out of class and present their results during the next class

period. The emphasis of the project is on how the teams propose to work together given their value differences and

the potential inherent conflicts. These issues must be addressed in the presentations or during the conclusion of the

exercise.

Recommended approximate time for a 50-minute period:

8:00 Procedure 1 5 minutes