CHAPTER 6
The Multicultural Environment
CHAPTER SUMMARY
Chapter 6 discusses the nature of diversity and multiculturalism including current trends, the dimensions
LEARNING OBJECTIVES
After covering this chapter, students should be able to:
1. Describe the nature of diversity and multiculturalism.
2. Identify and describe the major trends and dimensions of diversity and multiculturalism in
organizations.
The opening case portrays the effects of the sub-prime mortgage crisis on blacks and Hispanics. Blacks and
Hispanics accounted for 49 percent of the increase in homeowners between 1995 and 2006. They were,
LECTURE OUTLINE
I. THE NATURE OF DIVERSITY AND MULTICULTURALISM
Multiculturalism—the broad issues associated with differences in values, beliefs, behaviors,
customs, and attitudes held by people in different cultures.
Diversity exists in a group or organization when its members differ from one another along one or
more important dimensions such as age, gender, or ethnicity.
Organization culture, multiculturalism, and diversity are closely related concepts.
Discussion Starter: Ask students to debate the following question: “Are all organizations diverse?”
Chapter 6: The Multicultural Environment
II. DIVERSITY AND MULTICULTURALISM IN ORGANIZATIONS
A. Trends in Diversity and Multiculturalism
Organizations today are becoming more diverse due to a variety of reasons.
1. The demographics of the labor market are changing so that employees are more likely to
be female, an ethnic minority, and older.
B. Dimensions of Diversity and Multiculturalism
Teaching Tip: Note the various observable dimensions of diversity that are present in your classroom.
Note the additional dimensions that may exist but that are not observable (i.e., religion, dietary
preferences, political beliefs, etc.).
1. Age distributions—The average age of the U.S. workforce is gradually and continually
increasing due to declining birthrates, the aging of the baby-boomers, improved health
Extra Example: In the last several years, there has been an increasing number of women rising to the
top ranks in large companies. Examples include CEOs Irene Rosenfeld of Kraft Foods and Ursula
Teaching Tip: The Americans with Disabilities Act has made organizations even more concerned with
disability status as a dimension of diversity.
5. Multicultural differences may manifest themselves in organizations as a result of
immigration patterns and/or international expansion.
Chapter 6: The Multicultural Environment
Discussion Starter: Some people view diversity as a fundamental management issue today. Others see
Interesting Quote: “The whole point of managing diversity is to draw on the uniqueness of each
III. EFFECTS OF DIVERSITY AND MULTICULTURALISM IN ORGANIZATIONS
A. Diversity, Multiculturalism, and Competitive Advantage
Six arguments indicate how multiculturalism contributes to competitiveness:
1. The cost argument suggests that firms that learn to cope with diversity will generally
have higher levels of productivity and lower levels of turnover and absenteeism.
B. Diversity, Multiculturalism, and Conflict
There are various ways in which diversity can lead to conflict.
Some of these include the perception of favoritism, misunderstood interactions, differences in
Discussion Starter: If you don’t mind controversy, ask students for examples of conflict they have
experienced that resulted from diversity.
Cross-Reference: We discuss conflict in more detail in Chapter 19.
Chapter 6: The Multicultural Environment
IV. MANAGING DIVERSITY AND MULTICULTURALISM IN ORGANIZATIONS
Discussion Starter: Ask students how they might better prepare themselves in college for working in a
diverse work setting. Ask if they anticipate any problems being able to do so.
A. Individual Strategies
1. First, a manager must understand the nature and meaning of diversity. Differences cause
Discussion Starter: Ask the students to critically evaluate each of these individual strategies for
managing diversity. Under what circumstances is one likely to be more effective than the others?
Global Connection: Given the trend toward globalization, there is a very high probability that many of
B. Organizational Approaches
1. Organizational policies that affect how people are treated as well as policies that arise
from problems caused by diversity will influence how employees perceive the
Extra Example: Exxon requires that every employee in the firm participate in a diversity training
program.
Chapter 6: The Multicultural Environment
4. An organization culture that values diversity is also an important element of diversity
management.
Interesting Quote: “People must be managed on an individual-by-individual basis. That’s the only
way with integrity to manage diversity. You can’t manage as a group or you will continue to
stereotype.” (Barbara Jerich, executive at Honeywell, HR Magazine, April 1991, 35.)
Extra Example: Some firms designate a top executive to be responsible for diversity. For example,
Discussion Starter: Ask students if they have encountered any specific organizational policy or
practice that seemed to facilitate or inhibit diversity in the organization.
Global Connection: IBM has used its diversity savvy very effectively in Japan. A few years ago the
Discussion Starter: Ask students if they think that diversity-related issues can be handled via the
hierarchy, by mandate, and by similar bureaucratic means.
V. TOWARD THE MULTICULTURAL ORGANIZATION
The multicultural organization is one that has achieved high levels of diversity, is able to fully
capitalize on the advantages of the diversity, and has few diversity-related problems.
A. A multicultural organization has six basic characteristics:
1. Pluralism—Every group in the organization will work to understand every other group.
Chapter 6: The Multicultural Environment
END OF CHAPTER QUESTIONS
Questions for Review
1. What are the primary dimensions of diversity?
The three primary dimensions of diversity are age, gender, and ethnicity. Other dimensions include
2. Summarize the six arguments used to describe how the effective management of diversity can lead
to a competitive advantage.
There are six reasons why the effective management of diversity is seen as conferring a competitive
advantage on an organization. (1) The cost argument asserts that diverse organizations have more
3. Discuss the four basic individual approaches and the four basic organizational approaches to
diversity and multiculturalism.
The four basic individual approaches to managing diversity include understanding, empathy,
4. What are the characteristics of a multicultural organization?
Multicultural organizations are characterized by pluralism, in which every group works to
Questions for Analysis
5. In your opinion, are the “other” dimensions of diversity likely to have a greater or a lesser impact
than the basic dimensions? Explain your answer.
Students’ answers will vary as they compare the impact of age, gender, and ethnicity to the impact
Chapter 6: The Multicultural Environment
6. The text outlines many different advantages of diversity and multiculturalism in organizations. Can
you think of any disadvantages?
When an organization employs only a small number of a particular group, those in the group may
7. Think of a time when issues of diversity or multiculturalism created an advantage or led to positive
outcomes at school or work. What actions did the participants take to lead to those positive
outcomes?
Students’ answers will vary depending on the situation they choose to address. Students may note
Questions for Application
8. Visit the registrar’s office or admissions office at your college or university, or find information
about admissions from your school’s website. What actions, if any, is your school taking to increase
diversity? If it is not taking any action, why do you think that is the case? If it is taking action, do
you think the actions are likely to be effective, and why?
the use of minority students in advertising material, or the hiring of minority admissions staff.
9. Consider the case of an employee who is part of a minority group on one dimension of diversity.
What are some of the potential problems that this employee might encounter? What are some ways
that this employee’s supervisor can help alleviate these problems?
This person might experience prejudice, blatant discrimination, or even harassment, if the work
10. Assume that you work for a large multinational organization. You have just learned that you are
being transferred overseas to an office in which you will be the first person of your ethnicity to work
there. What steps might you take before you go to minimize problems that your presence might
cause?
You can request cultural training from your supervisor. If you go in knowing something about the
Chapter 6: The Multicultural Environment
END OF CHAPTER EXERCISES
Building Effective Technical Skills
I. Purpose
This exercise provides practice for students in analyzing and understanding the impact of diversity
on an organization.
II. Format
This exercise must be done outside of class by individuals or small groups, in order to use the
Teaching Tip: Often this exercise is a good ice-breaker for the sometimes sensitive topic of diversity.
III. Follow-Up
A. Use the Internet to gather information about the gender and ethnic diversity of your school’s
student body. Next, gather information about your school’s workforce, both faculty and staff.
(Hint: You might consult the school’s website for pages related to admissions and human
resources.)
B. Use the Internet to gather information about the diversity of the state and local communities in
C. Based on the information that you’ve gathered, would you say that your school’s student body
at an appropriate level of diversity? Explain why or why not.
Students should consider both the student body in relation to the workforce and the student
Building Effective Time anagement Skills
I. Purpose
This in-class demonstration shows for the students, in a very graphic way, the importance of
priority-setting in their professional and personal lives.
II. Format
The in-class demonstration takes about 10 minutes. Discussion of any length could follow, or the
follow-up questions could be used as a take-home, written, individual assignment.
III. Follow-Up
This demonstration has the most impact if you are able to follow the directions below and
Chapter 6: The Multicultural Environment
You will need the following equipment: One very large container, preferably of glass or transparent
plastic, the size of a five-gallon jar or a milk crate; a few (about 3 to 5) large rocks—large enough to
hold in two hands but that can all fit in the container at the same time; a quantity of large gravel or
small pebbles, enough to fill the gaps in the container when it is holding all of the large rocks; a
quantity of sand or water, enough to fill the gaps in the container when it is holding all of the large
rocks and all of the pebbles.
Then say, “Your life seems to be full, but it’s not.” Show the students the pebbles and say, “These
are things that are important to you but not as important as the heavyweights. These pebbles might
be your desire to travel around the world or become wealthy or learn a new skill.” Let the students
watch you put the pebbles into the gaps in the container.
Then say, “Your life seems to be full, but it’s not.” Show the students the sand or water and say,
The demonstration is intended to focus students’ attention on how items of differing priorities all
play a part in their lives. Ask them to discuss the demonstration. For example, what happens if you
fill the container in reverse order so that it becomes full of sand immediately? Where is the room
then for the rocks? The students can answers the follow-up questions, below.
A. What are your “rocks”? What are your “pebbles”? What are your “grains of sand”?
B. Using the classification scheme, determine your most important personal values.
This activity should cause students to reflect on items of high, medium, and low priority in
their lives, leading them to a greater understanding of their true values.
Chapter 6: The Multicultural Environment
Building Effective Decision-Making Skills
I. Purpose
This exercise provides students with a scenario that is designed to help them develop their decision–
making skills relating to workforce diversity.
II. Format
Either small groups or individuals may do this decision-making skills exercise. A discussion of the
about 30 minutes.
III. Follow-Up
A. Develop a layoff plan that will not substantially affect the level of your firm’s diversity.
In order to avoid a reduction in diversity, students will have to recommend that some of the
workers with seniority (who are primarily white and male) be laid off.
B. Decide how best to communicate your decision to the workforce.
Students’ suggestions will differ depending on their opinion and preferences. Factors to
C. Make a list of the potential obstacles to implementing your plan.
One set of obstacles will revolve around the unpleasant task of choosing and then notifying
MANAGEMENT AT WORK
BET BETS IT CAN BE BETTER
BET (Black Entertainment Network) was started by Robert Johnson to be “for black media what Disney
is to the general media.” When its parent, Viacom, charged BET CEO, Debra L. Lee with growth
through expanded content, the new programming drew a lot of protests for its profanity-filled content and
its negative portrayal of African Americans.
Management Update: To further cater to American tastes, Ikea’s newest U.S. store, located in the San
Diego suburb of Costa Mesa, California, features an in-store spa offering massages and makeovers. The
Seattle outlet sponsors musical events, while the Houston, Texas store offers free backpacks to
kindergarteners.
1. Case Question 1: In general, do you think that a member of its target ethnic group makes the most
effective leader at an ethnically oriented business like BET? Why or why not?
This is a debatable point that should generate intense discussion. The basic question is should an
2. Case Question 2: Among the six arguments for organizational diversity as a contributor to
competitive advantage, focus on the following: marketing, creativity, and flexibility. Apply each of
Chapter 6: The Multicultural Environment
these arguments to show how BET might approach its programming problems by reflecting greater
diversity in its management decisions.
BET’s target market is the category of males aged 18-34 years. To be successful, their
3. Case Question 3: You’re an intern in the program–development department at BET and you’ve
asked to participate in a meeting to brainstorm new programming ideas. What sort of programs
would probably be successful? What sort of new programs do you think BET should avoid? What
sort of programs might you suggest as possibilities for the network?
4. Case Question 4: BET, says Sheila Johnson, got off to a good start, “but the problem is that then
the video revolution started up.” What does she mean by “the video revolution”? Do you agree or
disagree with her assessment of its impact? In what ways does that impact reflect multiculturalism
among U.S. consumers? In what ways does it transcend multiculturalism?
What Sheila Johnson means is that prior to the video revolution, TV networks competed with each