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What are the 3 things that you learned in the past lecture?
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Agenda
Introduction
Strategic International Human Resource Management
Culture and International HRM/ Cross-cultural management
Global Staffing and International Assignments
Institutions, Actors and Micropolitics: Organizational Culture
Global Talent Management
International Compensation and Reward
Global Labour Regulation and Corporate Social Responsibility (22.3.17)
Gender & Global Diversity Management (29.3.17)
Summary and essay review (5.3.17)
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‹#›
2017
How we perceive the world
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Perception
is the process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.
tends to be error-prone.
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Simons & Chabris (1999)
We see what we are looking for
The limits of conscious perceptions:
People cannot process more than 7 plus/minus 2 junks of information simultaneously (Miller, 1956).
We filter out information that is irrelevant. But this information is nonetheless processed, on a non-conscious level, as the Cocktail Party Effect demonstrates.
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Chabris & Simons (2010)
Halo Effect
Fundamental Attribution Error (Success Stories)
Stereotypes (e.g. Nationality)
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We see what matters to us
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Vase vs. Faces
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We see what matters to us
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Vase vs. Faces
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Why is perception important?
The world as it is perceived is the world that is behaviourally important.
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Top Down Effect vs. Bottom Up Effect
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Why do we have biases?
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System 1: Intuitive thinking
System 2: Reflective thinking
Controlled
Slow
Effortful
Systematic
Conscious
Kahneman (2011); Kahneman, Lovallo & Sibony (2011)
Automatic
Quick
Effortless
Schematic
Non-conscious
Halo Effect
Fundamental Attribution Error (Success Stories)
Stereotypes (e.g. Nationality)
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What biases do we have?
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Halo Effect
Fundamental Attribution Error (Success Stories)
Stereotypes (e.g. Nationality)
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What biases do we have?
Fundamental attribution bias: People tend to see the reasons for others‘ behaviours in the personal qualities of others rather than in the situation.
Self-serving bias: People tend to interpret information in ways that maintain or enhance their self-esteem.
Affect heuristic: People tend to minimize risk and maximize benefits for options they like, and to do the opposite for options they dislike.
Confirmation bias: People tend to search for evidence confirming their view, rather than for evidence that challenges their view.
Anchoring bias: People tend to use a number or value as a starting point and then adjust insufficiently from this anchor.
Availability bias: People tend to base a judgment on the ease with which they can bring something to mind.
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Halo Effect
Fundamental Attribution Error (Success Stories)
Stereotypes (e.g. Nationality)
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Availabilty Bias
People asked to think of six examples rated themselves as relatively assertive because it was easy to think of this many examples (“Hey, this is easy—I guess I’m a pretty assertive person”).
People asked to think of twelve examples rated themselves as relatively unassertive because it was difficult to think of this many examples (“Hmm, this is hard—I must not be a very assertive person”).
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Schwarz et al. (1991)
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What biases do we have?
Endowment Effect: People tend to ascribe more value to things merely because they own them.
Sunk-Cost Fallacy / Escalation of Commitment: People tend to have an increased commitment to a previous decision, even in spite of current negative information.
Hindsight Bias: People tend to exaggerate how much they could have predicted an outcome after knowing that it occurred.
Halo Effect: People tend to draw a general impression based on a single characteristic.
Stereotyping: People tend to judge others on the basis of the perception of the group to which they belong
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Halo Effect
Fundamental Attribution Error (Success Stories)
Stereotypes (e.g. Nationality)
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What are your stereotypes?
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System 1: Intuitive thinking
System 2: Reflective thinking
Controlled
Slow
Effortful
Systematic
Conscious
Kahneman (2011); Kahneman, Lovallo & Sibony (2011)
Automatic
Quick
Effortless
Schematic
Non-conscious
Halo Effect
Fundamental Attribution Error (Success Stories)
Stereotypes (e.g. Nationality)
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What stereotypes do we have?
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Halo Effect
Fundamental Attribution Error (Success Stories)
Stereotypes (e.g. Nationality)
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What stereotypes do we have?
The implicit association test (Greenwald, McGhee & Schwarz, 1998):
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Greenwald et al. (2009); Uhlmann, Leavitt, Menges, Koopman, Howe, & Johnson (2012)
The IAT relies on a sorting task. Participants observe a computer screen and see words, pictures or other stimuli that belong to four different categories. Participants see, for example, the pictures of young and old people, and words that relate to good or bad. A picture of a teenager belongs to the category ‘young’, a picture of an elderly person to ‘old’, the word “happy” to ‘good’, and the word “terrible” to ‘bad’. The participants’ task is to quickly press one of two buttons on the keyboard to sort the pictures and words they see on the screen into a category. The differences in participants’ response times for particular pairings and the accuracy of the responses provide information on the relative strength of the implicit associations between the different concepts.
In our example, most people find it easier to respond quickly and accurately to pairs of young and good than to pairs of old and good. Similarly, people are quicker and more accurate when sorting pairs of old and bad than pairs of young and bad. These results reveal that the implicit associations between young and good and between old and bad are stronger than the implicit associations between young and bad and between old and good (Nosek , Greenwald, & Banaji , 2005). Put differently, people implicitly associate young with good, and old with bad. Hence, people hold a more favorable attitude towards the young than towards the old. Notable for our purposes, the implicit attitudes towards young and old gauged through the IAT often stand in contrast to the expressed attitude. Whereas some people insist on being tolerant towards the elderly in self-reports, they nonetheless show an unfavorable attitude towards ‘old’ in implicit assessments (Hummert , Garstka , O'Brien, Greenwald, & Mellott , 2002).
The response accuracy and latency pattern is, of course, not the same for everyone. Some people are considerably slower and less accurate than others to respond to the pairs of old and good or young and bad. These people arguably hold stronger resentments against the elderly. It is interesting to see, for example, that the preference for ‘young’ over ‘old’ is amplified among the young, but older people do not prefer ‘old’ over ‘young’ (Hummert, et al., 2002). The capacity to detect such differences especially on socially sensitive matters such as age, race, and gender is one of the strengths of the IAT.
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What stereotypes do we have?
The implicit association test (Greenwald, McGhee & Schwarz, 1998):
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Greenwald et al. (2009); Uhlmann, Leavitt, Menges, Koopman, Howe, & Johnson (2012)
The IAT relies on a sorting task. Participants observe a computer screen and see words, pictures or other stimuli that belong to four different categories. Participants see, for example, the pictures of young and old people, and words that relate to good or bad. A picture of a teenager belongs to the category ‘young’, a picture of an elderly person to ‘old’, the word “happy” to ‘good’, and the word “terrible” to ‘bad’. The participants’ task is to quickly press one of two buttons on the keyboard to sort the pictures and words they see on the screen into a category. The differences in participants’ response times for particular pairings and the accuracy of the responses provide information on the relative strength of the implicit associations between the different concepts.
In our example, most people find it easier to respond quickly and accurately to pairs of young and good than to pairs of old and good. Similarly, people are quicker and more accurate when sorting pairs of old and bad than pairs of young and bad. These results reveal that the implicit associations between young and good and between old and bad are stronger than the implicit associations between young and bad and between old and good (Nosek , Greenwald, & Banaji , 2005). Put differently, people implicitly associate young with good, and old with bad. Hence, people hold a more favorable attitude towards the young than towards the old. Notable for our purposes, the implicit attitudes towards young and old gauged through the IAT often stand in contrast to the expressed attitude. Whereas some people insist on being tolerant towards the elderly in self-reports, they nonetheless show an unfavorable attitude towards ‘old’ in implicit assessments (Hummert , Garstka , O'Brien, Greenwald, & Mellott , 2002).
The response accuracy and latency pattern is, of course, not the same for everyone. Some people are considerably slower and less accurate than others to respond to the pairs of old and good or young and bad. These people arguably hold stronger resentments against the elderly. It is interesting to see, for example, that the preference for ‘young’ over ‘old’ is amplified among the young, but older people do not prefer ‘old’ over ‘young’ (Hummert, et al., 2002). The capacity to detect such differences especially on socially sensitive matters such as age, race, and gender is one of the strengths of the IAT.
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Why do stereotypes matter?
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Halo Effect
Fundamental Attribution Error (Success Stories)
Stereotypes (e.g. Nationality)
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Why do stereotypes matter?
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In business contexts, stereotypes…
…erroneously disadvantage people (e.g., think-manager-think-male problem)
…erroneously advantage people (e.g., think-german-think-efficient)
…create barriers for diversity
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Why do stereotypes matter?
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Landy (2008)
The IAT relies on a sorting task. Participants observe a computer screen and see words, pictures or other stimuli that belong to four different categories. Participants see, for example, the pictures of young and old people, and words that relate to good or bad. A picture of a teenager belongs to the category ‘young’, a picture of an elderly person to ‘old’, the word “happy” to ‘good’, and the word “terrible” to ‘bad’. The participants’ task is to quickly press one of two buttons on the keyboard to sort the pictures and words they see on the screen into a category. The differences in participants’ response times for particular pairings and the accuracy of the responses provide information on the relative strength of the implicit associations between the different concepts.
In our example, most people find it easier to respond quickly and accurately to pairs of young and good than to pairs of old and good. Similarly, people are quicker and more accurate when sorting pairs of old and bad than pairs of young and bad. These results reveal that the implicit associations between young and good and between old and bad are stronger than the implicit associations between young and bad and between old and good (Nosek , Greenwald, & Banaji , 2005). Put differently, people implicitly associate young with good, and old with bad. Hence, people hold a more favorable attitude towards the young than towards the old. Notable for our purposes, the implicit attitudes towards young and old gauged through the IAT often stand in contrast to the expressed attitude. Whereas some people insist on being tolerant towards the elderly in self-reports, they nonetheless show an unfavorable attitude towards ‘old’ in implicit assessments (Hummert , Garstka , O'Brien, Greenwald, & Mellott , 2002).
The response accuracy and latency pattern is, of course, not the same for everyone. Some people are considerably slower and less accurate than others to respond to the pairs of old and good or young and bad. These people arguably hold stronger resentments against the elderly. It is interesting to see, for example, that the preference for ‘young’ over ‘old’ is amplified among the young, but older people do not prefer ‘old’ over ‘young’ (Hummert, et al., 2002). The capacity to detect such differences especially on socially sensitive matters such as age, race, and gender is one of the strengths of the IAT.
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Why do stereotypes matter?
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Conformity pressure
Study Findings:
61 % of employees felt overt or implicit pressure to cover up their identity
Appearance: 29% changed their dress to hide identity and blend in
Affiliation: 40% refrained from identity revealing behavior
Advocacy: 57% avoided sticking up for their identity group
Association: 18% limited contact to identity group
Result: 66% said their sense of self is undermined, 51% said they see limited opportunities with their company, and 50% indicated a diminished sense of commitment.
Yoshino & Smith, 2014, based on survey with 3,000 employees in 20 large US firms
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Why do stereotypes matter?
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Williams, 2014
“I’m not a girl. I’m a geek at Google.”
Marissa Mayer, CEO of Yahoo! and former Google employee
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Why do stereotypes matter?
Our stereotypes influence not only our own, but also others’ behaviours through self-fulfilling prophecies:
When we make self-fulfilling prophecies, we...
...have an expectation about what another person is like, which...
...influences how we act toward that person, which...
causes that person to behave consistently with people’s original expectations, making the expectations come true.
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People asked to think of six examples rated themselves as relatively assertive because it was easy to think of this many examples (“Hey, this is easy—I guess I’m a pretty assertive person”).
People asked to think of twelve examples rated themselves as relatively unassertive because it was difficult to think of this many examples (“Hmm, this is hard—I must not be a very assertive person”).
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Why do stereotypes matter?
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Aronson, Wilson & Akert (2010)
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Theory X
strict rules and control
passive work behavior
unwilling to take on responsibility, no initiative
results in
cause
leads to
confirm
Theory Y
job control, self-control
work engagement
initiative, readiness to take on responsibility
results in
allows
leads to
increase
Why do stereotypes matter? Theories X and Y (McGregor): Leadership Behavior
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leadership
leadership
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Why do stereotypes matter?
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Halo Effect
Fundamental Attribution Error (Success Stories)
Stereotypes (e.g. Nationality)
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Why is diversity important?
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Derven (2014)
Global Trends
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Diversity
Globalization / New Markets
Demographic Changes / Migration
Social Movements
Talent and Skill Shortage
Why is diversity important?
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Moral Imperative
Increased fairness for all
Reduced discrimination
More tolerance
Greater professionalism
Lower reputational risk
Better PR
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Why is diversity important?
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Business Imperative
Better customer insight
More creativity and innovation
Better integration after M&A
Better reflection of investors
Better understanding of suppliers
Larger labour pool
Better problem solving
Enhanced risk assessment
More flexibility
Lower absenteeism
Forbes Insights (2011)
“More creativity and innovation”
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Why is diversity important?
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Groysberg & Connolly (2013)
Moral Imperative Business Imperative
“My leadership is vision-driven from a business point of view and value-driven at the foundation.”
Mikael Ohlsson, former CEO of IKEA
+
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Why is diversity challenging?
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Barriers to diversity
Subtle biases: People hold stereotypes, including prototypes of success, that influence decisions and behavior outside of awareness
Conformity pressure: People conform to groups to be liked and accepted.
Similarity Attraction: People gravitate toward people like them – a phenomenon called “homophily”
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Why is diversity challenging?
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Similarity attraction
Whose opinions and advice have I sought – and whose have I left out? Why?
Who is not being included in decisions? Why?
With whom do I build relationships at work?
Do I build relationships with people who are different to me? If not, why?
Riordan (2014)
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Why is diversity challenging?
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Barriers to diversity
Subtle biases: People hold stereotypes, including prototypes of success, that influence decisions and behavior outside of awareness
Conformity pressure: People conform to groups to be liked and accepted.
Similarity Attraction: People gravitate toward people like them – a phenomenon called “homophily”
While diversity offers important informational benefits, it can create emotional tension and relational challenges.
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Low diversity
High diversity
Ineffective teams
Effective teams
Average teams
Why is diversity challenging?
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How can we make diversity work?
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Recommendations for developing female talent (Cranfield 2014)
Talent Management AND Diversity Management focus
Make diversity an explicit focus of talent management process (TM)
Hold senior leaders accountable for supporting women’s careers
Mentor
Sponsor
Translate unconscious bias training into practice
Nurture female talent through leadership development programmes
Make female talent visible through sponsorship, mentoring and exposure to senior leaders
Adopt a holistic approach and embed conversations about female talent in on-going business processes
Women and Expatriation (Harris 2006)
International assignments increasingly critical for career progression of managers in MNCs
Expatriate appointments not without problems but generally seen to enhance skills acquisition, personal development and career development in the open market. (Stahl et al 2002)
Women continue to be hugely underrepresented in expatriate appointments
18% of US international assignments, 9% of European and 6% of Australian – sharp contrast with 30-45% of women in middle-management roles (GMAC 2003)
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Inclusion is key to performance
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“Diversity itself is about the mix of people you have, and creating an inclusive culture is about making that mix work.”
Jim Turley, former CEO
Groysberg & Connolly (2013)
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Inclusion is key to learning
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Ely & Thomas (2001)
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Toward a culture of inclusion
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Culture elements
Make appreciation of differences an organizational value
Don‘t just hire diverse people, hire inclusive people
Measure and reward inclusion
Create opportunities for people to be different
Track biases
Create and communicate a uniting identity for all employees
Talk about diversity and inclusion
Contribute to an inclusive eco-system
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What are the 3 things that you learned in this lecture?
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Seminar 9: In your workshop group:
Agenda
Introduction
Strategic International Human Resource Management
Culture and International HRM/ Cross-cultural management
Global Staffing and International Assignments
Institutions, Actors and Micropolitics: Organizational Culture
Global Talent Management
International Compensation and Reward
Global Labour Regulation and Corporate Social Responsibility
Gender & Global Diversity Management
Summary and essay review