Cultural Diversity & Negotiations—A Global Perspective

By : Prof. Rajesh Asrani
Core Faculty Member,
N. R. Institute of Business Management, Ahmedabad, India
(P. G. Centre of Gujarat University for MBA)

If managers are to truly understand and appreciate diversity, they must also recognize its role in different countries.

• Diversity in Japan
  Japanese organizations also have their own unique diversity profiles. The Japanese also have a workforce that is becoming even older and that comprises relatively few women, especially in managerial positions. The traditional career path in Japan has been for women who finished school to work a few years in clerical positions and then to drop out to start a family. U. S. firms in Japan have been a major reason for shifts in career opportunities for women in that country. Fighting an acute labor shortage in Japan, U. S. firms like IBM and Motorola started offering women who were leaving to have children a guaranteed job later if they wished to return to work. To the surprise of many traditional Japanese managers, large numbers of women have indeed chosen to return to work after a few years. Now many Japanese organizations have begun to make similar offers. Japanese firms have little diversity in terms of ethnicity and national origin. Most Japanese managers tend to be Japanese nationals.

  As per the four dimensions identified by Geert Hofstede, Japanese believe in teamwork and are equally capable of taking individual initiatives. They want power and believe that possessing knowledge and ability to handle power is important and at the same time, they accept the power of superiors to subordinate. They are less open to the idea of taking risk, until the situation can be helped.

• Diversity in Australia
  Australia is recognized as one of the most successful nations in building a tolerant, inclusive and culturally diverse society and is proud to be a multicultural nation. Its multicultural policy rests on three principles: The right to cultural identity, the value of social justice and the interest in economic efficiency. These principles apply to all.

  English is the Australian language. Linguistic diversity is regarded as an important cultural asset. The following composition in ethnic groups prevail:
  
  Caucasian            92%
  Asian                        7%
  Aboriginal/Other     1%

  Australians are usually distrustful of authority and of people who think that they are somehow “better” than others. They generally dislike negotiating and aggressive sales technique. Modesty, casualness, and an air of nonchalance are characteristic attitudes in Australian business culture. They are receptive to new ideas. Generally, they are analytical, conceptual thinkers. Established rules or laws usually take precedence over one’s feelings. During negotiations, company policy is followed at all times. Ethnocentrism tends to be strong. The work environment tends to be collaborative. Australian women are still struggling for increased salary and positions of authority. In the workplace, men may not always treat women as equals.

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