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Chapter 2: Challenges for Managers

Chapter 2
Challenges for Managers
In This Chapter, You’ll Find:

Chapter Overview
Learning Outcomes
Key Terms
PowerPoint Guide
Review Questions and Answers
Discussion & Communication Questions and Suggested Answers
Ethical Dilemma Self-
Assessments Issues in
Diversity Experiential
Exercises Additional
Examples Case Study:
Netflix
Video: Theo Chocolate
Cohesion Case: DonorsChoose.org—An Online Charity Helps Public Education in
America Student Handouts:
Ethical Dilemma
What About You?: Planning for a Global Career
What About You?: How Much Do You Know about Sexual Harassment?
Issues in Diversity: The U.S. Supreme Court—Another Good Ol’ Boy Ivy League Network
Experiential Exercise: International Orientations
Experiential Exercise: Ethical Dilemmas
Case Study: Netflix
Cohesion Case Study Part 1
Chapter Overview

This chapter focuses on the changes and accompanying challenges those changes will bring
about in the coming decade. Four major challenges facing managers include globalizing the
firm’s operations to compete in the global village; leading a diverse workforce; encouraging
positive ethics, character, and personal integrity; and advancing and implementing technological

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 2
Chapter 2: Challenges for Managers

innovation in the workplace. Globalization has created a boundaryless market in which all firms,
large and small, must compete. Cultural diversity within the United States encompasses all
forms of differences among individuals, including age, gender, race, and ability. Technological
change is one of the keys to strategic competitiveness, but it is also complex and risky. Ethical
issues compound the complex challenges of management, and involve things such as white-
collar crime, computer use, employee rights, sexual harassment, romantic involvement at work,
organizational justice, whistle-blowing, and social responsibility.

Learning Outcomes

After readings this chapter, students should be able to do the following:

1 Describe the factors that affect organizations competing in the global economy.
Globalization suggests that the world is free from national boundaries and is borderless. What
were once called multinational organizations (organizations that did business in several
countries) are now referred to as transnational organizations, indicating that the global viewpoint
supersedes national issues. Transnational organizations operate worldwide across long distances
and employ a multicultural mix of workers. Social and political upheavals have led
organizations to change the way they conduct business as a result of thinking globally. The
opening of trade barriers is another issue that affects organizations competing in a global
economy. One key for any company competing in the global marketplace is to understand
diverse cultures. Whether managing culturally diverse individuals within a single location or
managing individuals at remote locations around the globe, organizations must appreciate the
differences among cultures. Geert Hofstede and his colleagues identified five dimensions of
cultural differences that formed the basis for work-related attitudes:
Individualism versus collectivism
High power distance versus low power distance
High uncertainty avoidance versus low uncertainty
avoidance Masculinity versus femininity
Long-term orientation versus short-term orientation

2 Explain how cultural differences form the basis of work-related attitudes.

In cultures where individualism predominates, the social framework is loose, and employees
put loyalty to themselves and their families ahead of loyalty to their company and work group.
Cultures characterized by collectivism, on the other hand, are tightly knit social frameworks in
which individual members depend strongly on others and group decisions are valued and

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 3
Chapter 2: Challenges for Managers

accepted.
In countries with a high power distance, bosses are afforded more authority, which is seldom
bypassed, titles are used, and formality is the rule. In societies with low power distance,
people believe in minimizing inequality.
Cultures with high uncertainty avoidance are concerned with security and tend to avoid
conflict; whereas cultures with low uncertainty avoidance tolerate ambiguity better.
In cultures characterized by traditional masculinity, assertiveness and materialism are valued;
whereas cultures characterized by traditional femininity emphasize relationships and concern
for others.
Cultures also differ in time orientation—a culture’s values may be oriented toward the
future (long-term orientation) or toward the past and present (short-term orientation).
In today’s multicultural environment, it is imperative that organizations help their employees
recognize and appreciate cultural differences. One way companies do this is through cultural
sensitivity training. Another way to develop sensitivity is by using cross-cultural task forces or
teams. The globalization of business affects all parts of the organization, but particularly
human resource management. Human resource managers must adopt a global view of human
resource management, recruitment and selection, compensation, and training and development.

3 Describe the challenges and positive influences diversity brings to today’s

business environment.

Diversity encompasses all forms of difference among individuals, including culture,

gender, age, ability, religion, personality, social status, and sexual orientation. Diversity:
Helps firms attract and retain the best available human talent
Aids marketing efforts
Promotes creativity and innovation
Improves problem solving
Enhances organizational flexibility because it makes an organization challenge
old assumptions and become more adaptable

Five problems that are particularly notable with diversity at work are:
Resistance to change
Lack of cohesiveness
Communication problems
Interpersonal conflicts
Slower decision making

4 Discuss the role of ethics, character, and personal integrity in the organization.

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 4
Chapter 2: Challenges for Managers

Ethical theories help people understand, evaluate, and classify moral arguments; make decisions;
and then defend conclusions about what is right and wrong. Ethical theories can be classified as:
Consequential theories—these emphasize the consequences or results of behavior.
Rule-based theories—these emphasize the character of the act itself, not its effects,
in arriving at universal moral rights and wrongs.
Character theories—these emphasize the character of the individual and the intent
of the actor instead of the character of the act itself or its consequences.

5 Explain five issues that pose ethical dilemmas for managers.

Contemporary organizations experience a wide variety of ethical and moral dilemmas such as:
Employee rights—drug testing, free speech, downsizing and layoffs, and due
process are but a few of the employee rights issues that managers face.
Sexual harassment—according to the Equal Employment Opportunity
Commission, sexual harassment is unwelcome verbal or physical sexual attention
that affects an employee’s job conditions or creates a hostile working environment.
Organizational justice—distributive justice concerns the fairness of outcomes that
individuals receive; whereas procedural justice concerns the fairness of the process
by which outcomes are allocated.
Whistle-blowing—whistle-blowers are employees who inform authorities
of wrongdoings by their companies or coworkers.
Social responsibility—corporate social responsibility is an organization’s obligation
to behave ethically in its social environment. Most mature professions guide their
practitioners’ actions and behavior with codes of ethics.

6 Describe the effects of technological advances on today’s workforce.

Technology consists of the intellectual and mechanical processes used by an organization to
transform inputs into products or services that meet its goals. Technological advances have
prompted the advent of alternative work arrangements, or the nontraditional work practices,
settings, and locations that are now supplementing traditional workplaces. Technological
innovation affects the very nature of the management job. Most workers understand the benefits
of modern technologies—innovation has improved working conditions and increased the
availability of skilled jobs. Technology is also bringing disadvantaged individuals into the
workforce. Despite these and other benefits of new technology in the workplace, however,
employees may still resist change. Technological innovations change employees’ work
environments, generating stress. Also, many workers react negatively to change that they feel

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 5
Chapter 2: Challenges for Managers

threatens their work situation. Often their fears center around loss—of freedom, of control,
of the things they like about their jobs. Consequently, they may fear diminished quality of
work life along with increased pressure. Further, employees may fear being replaced by
technology or being displaced into jobs of lower skill levels.

Key Terms

Transnational organization (p. 17)

Guanxi (p. 17)
Expatriate manager (p. 18)
Individualism (p. 19)
Collectivism (p. 19)
Power distance (p. 21)
Uncertainty avoidance (p. 21)
Masculinity (p. 21)
Femininity (p. 21)
Time orientation (p. 21)
Diversity (p. 22)
Glass ceiling (p. 23)
Consequential theory (p. 27)
Rule-based theory (p. 27)
Character theory (p. 27)
Distributive justice (p. 29)
Procedural justice (p. 29)
Whistle-blower (p. 30)
Social responsibility (p. 30)
Technology (p. 30)
Expert system (p. 31)
Robotics (p. 31)
Telecommuting (p. 32)
Reinvention (p. 34)

PowerPoint Guide

Introduction
Slide 2-3 – Learning Outcomes
Slide 4 – Four Challenges

LO1: Describe the factors that affect organizations competing in the global economy.

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Chapter 2: Challenges for Managers

Slide 5 – Learning Outcome

Slide 6 – Changing Business Perspectives
Slide 7 – Global Marketplace
Slide 8 – Understanding Cultural Differences
Slide 9 – Figure 2.1 – Hofstede’s Dimensions of Cultural Differences

LO2: Explain how cultural differences form the basis of work-related attitudes.
Slide 10 – Learning Outcomes
Slide 11-13 – Cultural Differences and Work Related
Attitudes Slide 14 – Developing Cross-Cultural Sensitivity

LO3: Describe the challenges and positive influences diversity brings to today’s
business environment.
Slide 15 – Learning Outcome
Slide 16 – Diversity
Slide 17 – Ethnic Diversity
Slide 18 – Gender Diversity
Slide 19 – Age Diversity
Slide 20 – Ability Diversity
Slide 21 – Valuing Diversity
Slide 22 – Table 2.2 – The Benefits and Problems of Diversity

LO4: Discuss the role of ethics, character, and personal integrity in the organization.
Slide 23 – Learning Outcome
Slide 24 – Ethical Theories

LO5: Explain five issues that pose ethical dilemmas for managers.
Slide 25 – Learning Outcome
Slide 26 – Employee Rights Issues
Slide 27 – Sexual Harassment = Unwanted Sexual Attention
Slide 28 – Organizational Justice
Slide 29 – Individual and Organizational Responsibility
Slide 30 – Codes of Ethics
Slide 31 – Figure 2.2 – The Four Way Test

LO6: Describe the effects of technological advances on today’s

workforce. Slide 32 – Learning Outcome
Slide 33 – Technological Innovation
Slide 34-35 – Alternative Work Arrangements

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 7
Chapter 2: Challenges for Managers

Slide 36 – Technological Change Requires Managers To:

Slide 37 – Help Employees Adjust by:
Slide 38– Lost in Translation
Slide 39 – Theo Chocolate

Review Questions and Answers

1. What are Hofstede’s five dimensions of cultural differences that affect work attitudes?
Using these dimensions, describe the United States.

Hofstede’s five dimensions of cultural differences that affect work attitudes are
polarized concepts of the following:
Individualism versus collectivism
High power distance versus low power distance
High uncertainty avoidance versus low uncertainty
avoidance Masculinity versus femininity
Long-term orientation versus short-term orientation

The United States is extremely individualistic, tolerant of uncertainty, weak on

power distance, masculine, and short term in regard to time orientation.

2. What are the primary sources of diversity in the U.S. workforce?

The U.S. workforce is characterized by diversity of all types—culture, gender, age,

ability, religion, personality, social status, and sexual orientation.

3. What is the reality of the glass ceiling? What would it take to change this reality?

The glass ceiling is a transparent barrier that keeps women from rising above a certain
level in organizations. Its reality is that in the United States, it has been rare to find women
in positions above middle management. Although growth in opportunities for women to
attain executive positions has recently stagnated, the situation is improving for women in
the boardroom.

Corporations that shatter the glass ceiling share several practices:

Upper managers demonstrate support for the advancement of women.
Leaders incorporate practices into their diversity management programs to
ensure that women perceive the organization as attractive.
Women are represented on standing committees addressing key strategic business

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 8
Chapter 2: Challenges for Managers

issues and are targeted for participation in executive education programs.

Systems are put in place to identify women with high potential for advancement.

4. What are the potential benefits and problems of diversity?

Diversity:
Helps firms attract and retain the best available human
talent Aids marketing efforts
Promotes creativity and innovation
Improves problem solving
Enhances organizational flexibility because it makes an organization challenge old
assumptions and become more adaptable
Five problems that are particularly notable with diversity at work are:
Resistance to change
Lack of cohesiveness
Communication problems
Interpersonal conflicts
Slower decision making

5. What are some of the ethical challenges encountered in organizations?

Contemporary organizations experience a wide variety of ethical and moral dilemmas

such as employee rights, sexual harassment, organizational justice, whistle-blowing, social
responsibility, and codes of ethics.

6. Describe the difference between distributive and procedural justice.

Distributive justice concerns the fairness of outcomes that individuals receive in an

organization, while procedural justice concerns the fairness of the process by
which outcomes are allocated.

7. Why do employees fear technological innovations, and how can managers help
employees adjust?

Technological innovations change employees’ work environments, generating stress. Also,

many workers react negatively to change that they feel threatens their work situation. Often
their fears center around loss—of freedom, of control, of the things they like about their jobs.
Consequently, they may fear diminished quality of work life along with increased pressure.
Further, employees may fear being replaced by technology or being displaced into

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 9
Chapter 2: Challenges for Managers

jobs of lower skill levels.

Managers can take several actions to help employees adjust to changing technology.
Encouraging workers’ participation in the early phases of decision making regarding
technological changes is important. Individuals who participate in planning for the
implementation of new technology learn about the potential changes in their jobs and are
less resistant to the changes. Managers should also keep in mind the effects that new
technology has on the skill requirements of workers. Many employees support changes that
increase the skill requirements of their jobs because increased skill requirements often lead
to increased job autonomy, responsibility, and (potentially) pay. Whenever possible,
managers should select technology that increases workers’ skill requirements. Providing
effective training is essential. Training helps employees perceive that they control the
technology rather than being controlled by it. A related challenge is to encourage workers
to invent new uses for existing technology. Managers must lead organizations to adopt new
technologies more humanely and effectively.

Discussion & Communication Questions and

Suggested Answers

1. How can managers be encouraged to develop global thinking? How can managers
dispel stereotypes about other cultures?

All managers can enhance their perspectives by participating in cross-cultural sensitivity

workshops or training offered by organizations which will help their employees recognize
and appreciate cultural differences. Another way is to use cross-cultural task forces or
teams. Because cultural differences are constantly in flux, it is important for managers to
foster up-to-date knowledge of relevant cultural trends. Students have opportunities to meet
and learn about other cultures on campus by attending the festivals and celebrations that are
typically held each academic year for student groups.

2. Some people have argued that in designing expert systems, human judgment is
made obsolete. What do you think?

Students’ answers may vary. Expert systems are computer-based applications that use a
representation of human expertise in a specialized field of knowledge to solve problems.
They are built on the judgment of experts in a field, to help train and sharpen the decision
making of less experienced problem solvers. The best expert system would be only as
good as the human expert who provided the decision rules for the program.

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 10
Chapter 2: Challenges for Managers

3. Why do some companies encourage alternative work arrangements?

Technological advances have prompted the advent of alternative work arrangements, or the
nontraditional work practices, settings, and locations that are now supplementing traditional
workplaces. Alternative work arrangements may allow companies to reduce overhead costs
by reducing the amount of office space needed. Alternative work arrangements may also
serve as a tool to attract a diverse group of employees and to better allow employees to
meet personal needs while maintaining a job.

4. What effects will the globalization of business have on a company’s culture? How can an
organization with a strong “made in America” identity compete in the global marketplace?

One key for any company competing in the global marketplace is to understand diverse
cultures. The globalization of business and changing demographic trends present
organizations with a culturally diverse workforce, creating both challenge and risk.
Globalization will help in understanding needs of current constituents, as well as future
clients. By learning about various cultures, organizational members are able to understand
that other companies’ missions and objectives are not vastly different from their own, and
that they need not surrender their company loyalty to interact and negotiate with others.

Chief executive officers of U.S. corporations have cited four challenges managers
must overcome to remain competitive:
Globalizing the firm’s operations to compete in the global village
Leading a diverse workforce
Encouraging positive ethics, character, and personal integrity
Advancing and implementing technological innovation in the workplace

5. Why is diversity such an important issue? Is the workforce more diverse today than in
the past?

Diversity helps organizations in many ways. Some organizations recognize the potential
benefits of aggressively working to increase the diversity of their workforces. People work best
when they are valued and when diversity is taken into account. When people feel valued, they
build relationships and work together as a team. Managing diversity helps companies become
more competitive. The population is much more diverse than it has ever been. Whether the
business is service- or product-oriented, the constituents and clients of the company must be
understood in order to satisfy their needs. New ideas come from analyzing old problems
differently. Diverse work-forces assist in seeing traditional problems in a new frame of
reference. Today’s workforce is definitely more diverse than past workforces.

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 11
Chapter 2: Challenges for Managers

6. How does a manager strike a balance between encouraging employees to celebrate their
own cultures and forming a single unified culture within the organization?

This is a difficult balance. Any organization that is referenced for a strong culture can
be countered with an example of rigidity in their practices and views. The key seems to
be separating the personalities from the missions and objectives of the organization.

7. Do you agree with Hofstede’s findings about U.S. culture and other cultures? On what
do you base your agreement or disagreement?

Students’ answers will vary by work experience and by cultural identity. Often students
will perpetuate stereotypes in their answers of other countries, yet rationalize the
weaknesses of their own society. It is interesting to ask students from other cultures what
their stereotypes were about the U.S. before arriving, and if those perceptions have been
reinforced since being here.

One point worth mentioning to students is that Hofstede’s study, although monumental,
was completed almost 35 years ago. The study is currently being updated with cooperation
from participating countries.

8. Select one of the four challenges (globalization, diversity, ethics, technology,) and write
a brief position paper arguing for its importance to managers.

Students’ answers will vary depending upon the challenge they choose. Encourage
students to use specific answers in support of their position. This exercise can generate
interesting discussion in class as students present potentially different perspectives on why
an issue is important to managers.

9. Find someone whose culture is different from your own. This might be a classmate, an
international student, or a Native American at your university. Interview the person about
his or her culture, using Hofstede’s dimensions. Also ask what you might need to know
about doing business in the person’s country (e.g., customs, etiquette). Be prepared to share
this information in class.

Students’ answers will vary. This provides an excellent opportunity for students to learn
about another culture. During class discussion, have students share anything that
surprised them in the information that they gathered. Discuss why they were surprised by
this information.

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 12
Chapter 2: Challenges for Managers

Ethical Dilemma

The purpose of the Ethical Dilemmas is to encourage students to develop their awareness of ethical
issues in the workplace and the managerial challenges they present. The dilemmas are set up to
present situations in which there is no clear ethical choice. The goal for the instructor is to guide
students through the process of analyzing the situation and examining possible alternative solutions.
There are no “right” answers to the questions at the end of each scenario, only opportunities to
explore alternatives and generate discussions on the appropriateness of each alternative. The student
portion of the activity is on a handout at the end of this chapter guide.

Darcy has a number of options open to her, including firing either Ryan or his boss, Natalie,
or taking some less drastic measure against them, or taking no action at all.

1. Using consequential, rule-based, and character theories, evaluate Darcy’s options.

Consequential theory—firing Ryan will appease Hisa, please Natalie, and is likely to facilitate
future business between the two firms. However, reprimanding Ryan and reassigning him may
accomplish the same things. Firing or reprimanding Natalie might please Ryan, but is unlikely to
appease Hisa or allow for the possibility of future business between the two firms. Doing
nothing won’t make anyone happy and will almost certainly preclude future business dealings
between the two firms. At the same time, firing Ryan may cause considerable problems among
other project managers in the firm who could potentially find themselves being sent to a foreign
country without adequate cultural training.

Rule-based theory—Ryan is directly responsible for insulting the Japanese business people,
and Natalie is indirectly responsible. If Darcy fires or reprimands Ryan, her action will most
readily be seen by Hisa as the right thing to do. Firing or reprimanding Natalie may also be
seen as right by Hisa, but the failure to fire or reprimand Ryan will probably be seen as
wrong and is likely to outweigh the rightness of actions taken against Natalie. Doing
nothing will almost certainly be seen as wrong by Hisa and his staff.

Character theory—if accountability is an important character trait for Darcy, she will
probably feel compelled to fire or reprimand Ryan, or possibly Natalie, and not doing so
will seem unethical to her.

2. What should Darcy do? Why?

The best answer might be that Darcy should reprimand Ryan and reassign him back in the

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Chapter 2: Challenges for Managers

United States, and put in place a process to ensure that other project managers are not given
foreign assignments without first receiving adequate cultural training. This course of action
is likely to please Hisa and perhaps facilitate future business between the two firms. It is
also likely to please Natalie, who believes Ryan is solely to blame for the current situation.
Ryan will not be pleased, but will be better off than if he had lost his job altogether. This
course of action seems to provide the greatest good for the greatest number of people, and is
thus the most ethical course of action under the consequential theory.

The same course of action observes the moral rule of accountability by holding Ryan
accountable for his lack of sensitivity to cultural differences. In this way, this course
of action represents an ethical option under the rule theory.

Finally, holding Ryan accountable by reprimanding and reassigning him shows that Darcy
possesses and acts in accordance with a character trait most people find positive.
Moreover, putting in place a process to prevent similar situations from occurring in the
future shows Darcy’s intention to improve the company’s way of doing business—another
character trait most consider positive. Thus, this course of action represents the most
ethical choice for Darcy under the character theory as well.

Self-Assessments—What about You?

2.1 Planning For a Global Career

Careers in management have taken on a global dimension. Working in transnational

organizations may well give managers the opportunity to work in other countries. Expatriate
managers, those who work outside their home countries, benefit from having as much
knowledge as possible about cultural differences. Because managers are increasingly exposed to
global work experiences, it is never too early to begin planning for this aspect of one’s career.
This exercise asks students to begin gathering information about a country in which they would
like to work, including information on its culture.

Students choose countries they would like to work in, do business in, or visit, and find out all
they can about the countries’ cultures, using Hofstede’s dimensions as guidelines. Then,
students answer the seven questions provided in the exercise. Once the research is completed
and the questions answered, students can be placed in small groups for discussion or the topic
may be used as the basis for a full-class discussion on Hofstede’s cultural dimensions. The
student portion of the activity is on the review card in the student edition of ORGB and on a
handout at the end of this chapter guide.

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 14
Chapter 2: Challenges for Managers

2.2 How Much Do You Know about Sexual Harassment?

While somewhat ambiguous, sexual harassment is defined in the eyes of the beholder. This
exercise offers ten True/False statements to students to determine how much they know about
sexual harassment. Once students have completed the exercise, they can be placed in small
groups for discussion of their results, followed by a class discussion about the topic, including
many of the misconceptions that exist about sexual harassment in the workplace. This might also
be a good opportunity to provide students with information about any educational and
counseling resources available on campus with regard to sexual harassment. The student portion
of the activity is on the review card in the student edition of ORGB and on a handout at the end
of this chapter guide.

Issues in Diversity

The U.S. Supreme Court—Another Good Ol’ Boy Ivy League Network?

In recent times, the U.S. Supreme Court has become more diverse than it ever was. Its
demographic makeup became more diverse in August 2010 when Elena Kagan was sworn in as
the 112th justice. Three of the nine justices are women; in August 2009, the Senate confirmed
Sonia Sotomayor. Ruth Bader Ginsburg was appointed by President Bill Clinton in 1993. One
justice is African American—Clarence Thomas was nominated by President George H.W. Bush
in 1991 to fill retiring justice Thurgood Marshall’s seat on the bench. In 2010, five justices are
younger than 65 years of age—Samuel Alito, Clarence Thomas, John Roberts, Elena Kagan, and
Sonia Sotomayor. Be that as it may, one could argue Kagan’s confirmation to the Supreme Court
resulted in a less diverse court. When Kagan was sworn in, she became the second woman
appointed by President Obama since taking office, and she became the eighth of nine justices
with an Ivy League education. An obsession with the Harvard-Yale pedigree, perhaps? If so,
President Obama is not alone with this “obsession” when it comes to identifying candidates to
serve on the nation’s highest court. Only retiring Justice John Paul Stevens studied law at a
school other than Harvard or Yale. Additionally, in terms of geographic and religious diversity,
two Supreme Court justices hail from states other than New York, New Jersey, or California;
and none of the justices are Protestants.

1. If a recruitment source has been proven successful in the past for yielding highly qualified
talent, what is the harm in continuing to draw from that source to recruit employees?

A potential problem with continuing to recruit employees from the same source is the loss
of diversity in ideas and approaches to issues. Drawing from a variety of sources can yield a
greater variety of ideas as people from different backgrounds look at things differently. Of

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Chapter 2: Challenges for Managers

course, it is important to ensure that all new employees possess a similarly high level
of quality.

2. Is having a diversity of backgrounds in organizations as important as having

demographic diversity? Why or why not?

Diversity of backgrounds has the strong potential to increase innovation and creativity within
organizations. While demographic diversity may also do the same, the likelihood is less
because people of different sexes, ages, cultures, etc. may have the same backgrounds. It is
not the differences in demographics that bring about diversity of ideas, but the differences in
background within those demographics that result in such diversity.

SOURCES: T. Padgett, “Is the Supreme Court Too Packed with Ivy Leaguers?,” Time (May 12, 2010), accessed
at http://www.time.com/time/nation/article/0,8599,1988877,00.html ; Biographies of current justices of the
Supreme Court, accessed at http://www.supremecourt.gov/about/biographies.aspx.

Experiential Exercises

2.1 International Orientations

The exercise immediately following the case is a difficult one. The students are asked to rate a
potential expatriate and his spouse with very little information about the couple. The key to this
exercise is to assess the reasons why they made the choices they did. Are they justified, given
the information provided? What follow-up questions could the student ask to make more
confident ratings? There are many behavioral details the students may attend to in order to make
their ratings. The details, however, do not provide the full picture about the couple. Here are
some points the students may list:
Jonathan—he has never lived outside his hometown. He speaks a second language (i.e.,
German). He is familiar with some German ethnic traditions. OSI does not have a location
in Germany. Jonathan is active and likes people. He organizes OSI’s softball and
volleyball teams—both of which are American sports.
Sue—she has studied English literature. She is a teacher by profession and a trainer at a city
mission. At the mission, she interacts with people who are of a lower socioeconomic status.
Given that she volunteers her time, she is probably a person who likes to help others. Her
interests include ethnic cooking, which indicates that she likes to try new foods.

Student handouts are at the end of this chapter guide.

1. This is an opportunity for the students to write questions that could map the international

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Chapter 2: Challenges for Managers

orientation of the couple. What types of questions are they asking? Some critical
information they may include is a realistic preview of what the assignment may entail—
allowing the couple to self-select out if they so choose. They could discuss the educational
opportunities for the couple’s daughter and career opportunities for Sue.

2. & 3. Do the students expect that the Australian culture would be an easier transition than
would the French or Japanese transfers? The “country difficulty,” that is, the extent to
which the foreign country differs from one’s own, should be considered in all
expatriate cases. The Australian transfer would have less of a language barrier than
would the French or Japanese transfers.

4. There are many possible types of training. For example, the couple could listen to lectures,
see films, read books, etc., about the host country. Likewise, the couple could take language
and culture training, go visit the country for a short stay to “test the waters,” or talk to
people who have been on expatriate assignments in the same country.

5. This gives the students an opportunity for some personal reflection on their
own international orientations.

6. Dual-career couples will need to find placement for both members or make other
arrangements for the spouse (e.g., the spouse could take a sabbatical from work, be
transferred to the same country as well, take a break in his or her career). In an age when
both men and women have careers, multinational companies must think of more
creative ways to satisfy both the expatriate and his or her spouse.

7. In general, younger children have an easier time adapting to living abroad. Older children,
especially teenagers, have a more difficult time adjusting. For example, they resent being
moved so far from their friends. For this reason, multinational companies should allow the
entire family (not just the expatriate) ample opportunity to self-select in or out of the
foreign position. This needs to be decided as a family because any member may impact the
success of the expatriate when he or she is abroad.

International Orientation Scale

The International Orientation Scale is an index of behaviors that are related to one’s acceptance
of, and interest in, other cultures. From the criterion-related validity study conducted, it was
found that International Orientation is related to how well individuals adjust to living abroad,
and how much they will interact with host nationals. The International Orientation Scale has also
been found to be related to tolerance of ambiguity, interpersonal orientation, optimism, personal

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Chapter 2: Challenges for Managers

need for structure, and openness to challenges. The IOS was not related to self-monitoring
or time urgency.

There are two major limitations of the scale that should be addressed in class discussion. First,
there are no established norms for the scale. For this reason, one cannot say, “he or she falls
above or below normal” on the scale. As yet, the scale is only intended to guide one’s
thinking about international orientation and to generate awareness for self-assessment.

The second major limitation of the scale is that the items were generated with an American
population. Likewise the reliability and validity evidence was established on an American
population. The behaviors of Dimensions Two, Three, and Four were generated from
experiences that Americans may either have or choose to have in their lives. As one can imagine,
it would be inappropriate to assess (or even worse, interpret) non-Americans who have had little
or no opportunity to have the types of experiences on the IOS.

The items of Dimension One (i.e., International Attitudes) are reverse scored. The rest of the
scores can be added and used for personal reflection. As mentioned in the previous paragraph,
there are no established norms, so the scores cannot indicate some specific deficit or talent the
student has. The scores can be used as a means to think about one’s own international
orientation (e.g., one’s answers to the self-assessment discussion questions.)

*Experiential Exercise 2.1 is by Paula M. Caligiuri, Department of Psychology, Pennsylvania State University.
Used with permission. In Dorothy Marcic and Sheila Puffer, Management International, West Publishing, 1994.

2.2 Ethical Dilemmas

This is a simple, introductory overview of ethical issues. As students become more familiar
with ethical issues, these could be revisited for elaboration. This exercise serves as an initial
icebreaker, beginning orientation for group work, and an introduction to ethical issues. After
discussing the questions provided, the five themes of the book could be discussed in terms of
ethical issues related to these new challenges. Ask students to provide examples of ethical
issues related to technology, quality, workforce diversity, and globalization. You may want to
help begin the conversation with the following issues—security and privacy with technology,
promotion of a lesser qualified minority to meet requirements, providing entertainment for
potential clients from another country, and altering the information for the Malcolm Baldrige
Award. A student handout is at the end of this chapter guide.

2.3 Nutty Buddy—An Exercise in Individual Differences

This exercise requires a bag of peanuts-in-the-shell. Students do not need an additional handout

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Chapter 2: Challenges for Managers

to complete this exercise. This exercise may be used as a team-builder or an icebreaker for the
beginning of the semester. The time necessary for the exercise and debriefing is about twenty
minutes and is ideal for group sizes of 10-25, although it easily accommodates larger groups
as well.

1. The instructor rummages through a bag of peanuts-in-the-shell, choosing peanuts most similar
in shape and size. Peanuts having clearly evident defining characteristics, such as split shell,
an attached stem, discoloration, three nuts rather than two, etc., should be discarded. The
selection process should yield approximately one-fourth more peanuts than number of
participants. The qualifying peanuts are place in a large bowl that is then passed to each
participant, who is asked to choose a peanut and to wait for additional instructions.

2. Each person has one minute to get to know his or her peanut. Students cannot mark on their
peanut, open it, or alter it in any way. They may sniff it, talk to it, lick it, fondle it, argue
with it, confess to it—in short, whatever will aid them in getting to know it better.

3. The peanuts are returned to the bowl along with those extra peanuts that had not
been selected. The peanuts are then emptied onto a table or in the middle of the floor
and participants are instructed to “find your peanut.”

4. If anyone cannot locate his or her peanut, he or she is invited to check everyone else’s
peanut and to negotiate ownership. (A short intervention by the instructor on the vagaries of
“peanut napping” may be appropriate here.)

Instructor’s Notes

This exercise is an adaptation from the old Gestalt-learning exercise, “know your lemon,” to help
participants become more aware of nonverbal cues in perception. This exercise illustrates issues of
individual differences and diversity in organizational life, as well as stereotypes and prejudice.

The following excerpt is a typical debriefing or application sequence of questions and discussion
items. The purpose is to move students in a logical manner to a clearer, gut-level understanding and
appreciation of differences among people and between themselves and others.

1. Ask students to analyze their peanuts carefully. How are they able to recognize it?
What distinguishes it? How confident are you that the peanut is your peanut?

Amazingly, typically 90+% of participants are absolutely confident.

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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The Zapote, a Tree in the Gardens of San Telmo.

 PLATE 65

The Island and River in the Gardens of San Telmo.

 PLATE 66

The Yucca, a rare Tree in the Gardens of San Telmo.

 PLATE 67

General View of the Hospital de la Sangre.

 PLATE 68

Church of the Sagrario, North Side.

 PLATE 69

Principal Façade of the Hospital de la Sangre.

 PLATE 70

Porch of the Church of the Hospital de la Sangre.

 PLATE 71

Bas-relief. Hospital de la Sangre, the Work of Torregiano.

 PLATE 72

General View of the Exterior of the Cathedral.

 PLATE 73

The Giralda, from the Patio de los Naranjos.

 PLATE 74

The Top of the Giralda.

 PLATE 75

The Dancing Choir Boys, Seville Cathedral.

 PLATE 76

Dancing Boys, Seville Cathedral.

 PLATE 77

The Gate of the Archbishop.

 PLATE 78

Plaza de San Francisco, with the Giralda and Cathedral.

 PLATE 79

Plaza del Triunfo, the Cathedral, and the Exchange, from the Gate
of the Lion.
 PLATE 80

The Fête.
 PLATE 81

Gate of San Miguel in the Cathedral.

 PLATE 82

Gate of the Cathedral called de las Campanillas.

 PLATE 83

Gate of the Baptist in the Cathedral.

 PLATE 84

The Gate of the Lizard in the Cathedral.

 PLATE 85

General View of the Cathedral From the Tribune of the Principal

Door.
 PLATE 86

Principal Sacristy in the Cathedral.

 PLATE 87

Principal Entrance to the Cathedral.

 PLATE 88

Interior View of the Principal Sacristy in the Cathedral.

 PLATE 89

The Gamba Chapel.

 PLATE 90

The Cathedral.
The Gamba Chapel and Entrance to that of the Antigua.
 PLATE 91

Chapels of the Conception and the Annunciation in the Cathedral.