Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Chapter 3 Lecture Notes
Managing Diversity in a Global Environment
The Global Environment
Slide 3
Global village – refers to companies conducting business worldwide without boundaries.
Managing Foreign Trade
Slide 4
Ethnocentrism – Regarding one’s own ethnic group or culture as superior to others.
Trade Barriers
Slide 5
Embargo – total ban on the importing of a product from one or more countries.
Exhibit 3-1: Trade Barriers
Slide 6
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
See figure on page 67.
Trade Agreements
Slide 7
There are six major trade agreements around the globe:
1) North American Free Trade Agreement (NAFTA)
Exhibit 3-2: Trade Agreements
Slide 8
See figure on page 68.
Exchange Rates
Slide 9
Exhibit 3-3: Exchange Rates
Slide 10
See figure on page 69.
Standard of Living and the Effects of Foreign Trade
Slide 11
Standard of living – the level of wealth, comfort, material goods, and necessities available to a certain
Exhibit 3-4: Management Practices of Global Companies
Slide 12
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Exhibit 3-5: Forms of Global Business
Slide 13
See figure on page 72.
Managing Different Forms of Global Business
Slide 14
Global sourcing – hiring others outside the organization to perform work worldwide.
Managing Different Forms of Global Business
Slide 15
Contract manufacturing – contracting a foreign firm to manufacture products a company will sell as its
Managing Different Forms of Global Business
Slide 16
Strategic alliance – an agreement to share resources that does not necessarily involve creating a new
Workplace Diversity and Inclusion
Slide 17
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Diversity – the variety of people with different group identities within the same workplace.
Exhibit 3-6: Types of Workforce Diversity
Slide 18
Exhibit 3-7: U.S. Population Changes 2013-2060
Slide 19
See figure on page 76.
Are Diversity and Inclusion Really Important?
Slide 20
Discrimination – an illegal practice that gives unfair treatment to diversity groups in employment
decisions.
Age and Generational Diversity and Management
Slide 21
The best way to understand this diversity and how to manage generational differences is by reading
Exhibit 3-8.
Exhibit 3-8: Generational Differences and Management
Slide 22
Gender and Sexual Orientation (LGBT) Diversity and Management
Slide 23
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Race and Ethnicity Diversity and Management
Slide 24
Race – a biological characteristic, such as skin color, that creates diverse group identities.
Disability and Ability Diversity and Management
Slide 25
Disability – a mental or physical impairment that substantially limits one or more major life activities.
Religious Diversity and Management
Slide 26
Employers are required by law to make reasonable accommodations for employees’ religious beliefs,
Other Types of Diversity and Management
Slide 27
There are many kinds of other ways that people are diverse in the workplace, below are just a few:
Managing Diversity Through Inclusion
Slide 28
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Companies need active policies and practices to promote a diversity climate of inclusion that is part of
the organizational culture.
Exhibit 3-9: Globe Dimensions
Slide 29
See figure on page 87.
International Assignments
Slide 30