2013년 11월 24일 일요일

About 'account manager definition'|...and warmly remembered. I’ve read accounts of those who saw Captains...ours, but Liberty owner Ivan Anderson and his manager Colonel Roy Forehand weren’t kidding...







About 'account manager definition'|...and warmly remembered. I’ve read accounts of those who saw Captains...ours, but Liberty owner Ivan Anderson and his manager Colonel Roy Forehand weren’t kidding...








Franklin               D.

Raines,               chairman               and               CEO               of               Fannie               Mae,               states               that,               "the               way               America               will               be               able               to               excel               in               the               increasingly               competitive               world               market               of               the               twenty-first               century               is               to               utilize               the               incredible               wealth               of               untapped,               diverse               talent               in               this               country.

Those               companies               that               maximize               their               utilization               of               our               greatest               natural               resource               will               be               the               ones               who               emerge               as               the               global               leaders               of               the               next               millennium"               (qtd.

in               Bucher               x).

With               changes               in               demographics               trending               toward               an               increasingly               diverse               workforce               and               consumer-base,               it               is               of               utmost               importance               for               leading               edge               companies               to               gain               a               strategic               competitive               advantage               through               the               utilization               of               diversity.

When               management               does               not               understand               how               diversity               can               be               profitable,               and               does               not               understand               and               implement               strategies               for               utilizing               it,               the               economic               benefits               of               diversity               go               unrealized               and               companies               miss               opportunities               to               increase               their               profit               margin.

Assuming               managers               have               the               prerequisite               skills               for               managing               diversity,               it               is               important               that               they               understand               why               diversity               is               of               importance               to               their               organization,               how               and               when               it               is               profitable,               and               what               strategies               they               can               implement               to               utilize               diversity               to               increase               their               profit               margins.

In               order               to               effectively               utilize               diversity               for               profitability,               one               must               define               diversity               and               utilization,               and               take               into               account               the               effects               of               context               on               the               use               of               it.

Management's               role               in               utilizing               diversity               is               key               to               the               profitability               of               it,               and               requires               prerequisite               skills               in               leadership               and               management,               conflict               management,               and               a               profound               dedication               to               the               utilization               of               diversity.
               In               general,               diversity               can               be               utilized               for               profitability               through               the               employee               base,               consumer               base,               and               organizational               structure.

Under               each               of               these               categories,               examples               and               strategies               for               utilizing               diversity               will               be               examined               forthcoming,               as               will               the               costs               of               not               managing/utilizing               diversity.

Additionally,               solutions               and               suggestions               for               utilizing               "hidden"               diversity               will               be               discussed               including:               measurement,               assessment,               and               management               accountability,               with               an               emphasis               on               the               importance               of               an               integrative               approach.

Managers               who               utilize               diversity               within               their               organizations               can               potentially               increase               the               profit               margin               of               their               company;               thereby               gaining               a               strategic               competitive               advantage               over               other               companies.
               Diversity               has               many               definitions               and               is               used               in               many               different               contexts.

Generally               speaking,               diversity               means               a               range               of               cultural               differences.

When               most               people               refer               to               diversity,               or               cultural               differences,               they               are               commonly               referring               to               age,               ethnicity,               and               gender.

However,               diversity               and               culture               include               a               very               wide               spectrum               of               differences               ranging               from               a               macro-level               to               a               micro-level.

An               example               of               a               more               macro-level               difference               is               that               of               a               foreign               country's               "national"               culture.

Philip               R.

Harris               and               Robert               T.

Moran,               summarize               Geert               Hofstede's               work               in               identifying               four               basic               dimensions               of               "national"               culture:
               Power               distance               -               the               extent               to               which               a               society               accepts               that               power               in               institutions               and               organizations               is               distributed               unequally…Uncertainty               avoidance               -the               extent               to               which               a               society               feels               threatened               by               uncertain               or               ambiguous               situations…Individualism               -               a               loosely               knit               social               framework               in               a               society               in               which               people               are               supposed               to               take               care               of               themselves               and               of               their               immediate               families               only…Masculinity               with               its               opposite               pole,               femininity               -This               dimension               expresses               (53)               'the               extent               to               which               the               dominant               values               in               society               are               assertiveness,               money               and               material               things,               not               caring               for               others,               quality               of               life               and               people'.

(qtd.

in               Harris               and               Moran)               53               
               These               large-scale               categories               of               difference               make               up               one               aspect               of               foreign               culture.
               An               example               of               a               more               micro-level               difference               is               illustrated               by               the               sub-culture               of               "work".

The               work               culture               can               include               sub-categories               of               personnel,               work               role,               work               schedule,               and               workplace               (Harris               and               Moran               168).

These               small-scale               differences               can               be               very               minuscule.

In               order               to               utilize               diversity               to               it's               fullest               potential               it               is               important               that               management               recognizes               that               the               definition               of               diversity               is               wider               ranging               than               most               people               commonly               define               it               as.

Therefore,               defining               diversity               inclusively               provides               more               opportunities               for               management               to               tap               into               the               profitable               benefits               of               many               types               of               diversity.
               The               context               in               which               diversity               exists               makes               a               difference               in               how               it               is               to               be               utilized.

For               example,               Orlando               C.

Richard               discusses               the               importance               of               context               in               the               outcome               of               a               study               of               the               relationship               between               cultural               racial               diversity               and               firm               performance,               and               business               strategy               within               the               banking               industry.

Richard               states,               "The               results               demonstrate               that               the               positive               impact               of               racial               diversity               on               firm               performance               has               to               do               with               context.

In               sum,               the               same               [diverse]               resources               that               offer               some               firms               competitive               advantage               can               be               a               performance               detriment               to               others"               (par               50).

The               context               of               a               business               organization               can               include               corporate               life               cycle,               financial               status,               size,               and               organizational               structure.

In               order               to               obtain               the               most               profitable               results               from               the               utilization               of               diversity,               management               must               take               many               contextual               variables               into               consideration.
               It               is               easy               to               see               from               people               who               surround               us               in               our               daily               activities               that               the               world               is               becoming               increasingly               diverse.

Diversity               permeates               all               areas               of               life               from               communities               to               schools,               from               church               to               the               workplace,               even               inside               our               homes               (e.g.

intercultural               marriages               and               international               adoption).

The               changing               demographics               of               the               world,               especially               the               United               States,               illustrate               how               increases               in               diversity               has               impacted               the               work-world.

Richard               D.

Bucher               states,               "the               U.S.

Census               Bureau               estimates               that               by               the               year               2050,               racial               and               ethnic               minorities               will               account               for               47               percent               of               the               nation's               populations…"               (3).

There               are               many               reasons               the               population               has               become               more               diverse,               including               improvements               in               communication,               travel               technology,               and               the               globalization               of               business.
               Improvement               in               communication               technology               has               enabled               people               from               around               the               world               to               converse               more               often,               more               conveniently,               and               with               less               expense               (e.g.

internet               and               cellular               phones).

Additionally,               technological               improvements               in               travel               have               decreased               travel               time               and               expense,               therefore               enabling               people               to               travel               farther               and               more               often               around               the               world.

Regarding               the               influence               of               globalization               in               business,               Taylor               Cox               Jr.,               notes               that               many               businesses               in               the               United               States               "derive               more               than               half               their               revenues               from               overseas               markets.

This               trend               is               even               beginning               to               extend               to               predominately               service               operations…"               (5).

These               technological               and               business               changes               have               played               a               significant               role               in               influencing               demographics,               and               therefore               diversity.
               Understanding               the               impact               of               demographic               trends               is               important               to               managers               of               international               and               national               corporations               alike,               because               it               is               an               indicator               that               the               demographics               of               the               labor               force               and               consumer-base               are               becoming               more               diverse               as               well.

For               example,               Cox               Jr.

states               that               within               industrial               nations,               including               the               United               States,               "growth               of               the               labor               forces…               must               come               from               immigration               or               from               increasing               labor-force               participation               by               groups               that               are               presently               underrepresented"               (3).

Cox               Jr.

also               notes               that               within               the               United               States,               "Asians,               Blacks,               and               Hispanics               now               collectively               represent               nearly               $500               billion               annually               in               consumer               spending.

The               Asian               segment               of               the               population               is               growing               at               a               rate               that               is               ten               times               that               of               the               overall               population"               (28-29).

As               the               demographics               of               the               employee               and               consumer               bases               change,               managers               must               adapt               their               business               strategies,               management               skills,               and               especially               their               corporate               culture,               in               order               to               utilize               diversity               for               increased               profitability.

Harris               and               Moran               agree               that,               "For               leading-edge               organizations,               globalism               means               the               creation               of               a               culture               that               embraces               diversity               to               maximize               the               potential               of               personnel…"               (171).

The               ability               to               utilize               diversity               to               increase               the               profit               margin               in               any               organization,               is               dependent               upon               managements'               ability               to               adapt               to               increasing               diversity.
               What               does               it               mean               to               "utilize"               diversity?

In               the               context               of               this               paper,               it               means               to               proactively               seek               out               a               wide               variety               of               ways               to               reveal               and               use               organizational               differences               explicitly               for               the               purpose               of               increasing               the               profit               margin.

It               is               important               to               note               that               the               utilization               of               diversity,               within               this               paper,               does               not               refer               solely               to               the               quantity               of               diversity               within               an               organization.

Although               quantity               is               an               element               of               utilizing               diversity,               quantitative               approaches               are               usually               more               focused               on               managing               or               monitoring               diversity,               whereas,               qualitative               approaches               to               utilizing               diversity               focus               more               on               proactive               utilization               of               diversity.

Although               both               approaches               are               necessary               to               effectively               utilize               diversity,               moving               beyond               quantitative               approaches,               to               qualitative               approaches               for               diversity               utilization               is               preferable               and               usually               more               effective.
               The               responsibility               of               utilizing               diversity               belongs               to               the               leaders               of               organizations,               the               managers.

However,               in               order               for               a               manager               to               utilize               it               in               the               first               place,               this               endeavor               presupposes               several               things               about               the               manager               (and               therefore               the               corporate               culture).

Management               must               have               good               leadership               and               management               skills,               view               conflict               in               a               positive               light,               and               have               profound               dedication               to               obtaining               diversity               training               and               education               for               the               entire               corporation.

Since               it               is               the               management               that               establishes               and               sustains               the               corporate               culture,               it               is               of               utmost               importance               that               managers               work               to               create               a               corporate               culture               that               fosters               and               utilizes               diversity.
               Cox               Jr.

discusses               how               "the               degree               of               congruence               or               fit               between               organization               and               individual               culture               is               of               potential               importance               to               various               career               outcomes               of               individuals"               (21).

Cox               Jr.

cites               empirical               tests               completed               by               O'Reilly,               Chatman,               &               Caldwell               which               "have               shown               that               value               congruence               between               employees               and               their               firms               has               a               significant               effect               on               organizational               commitment,               employment               satisfaction,               likelihood               to               quit,               and               actual               turnover"               (21).

What               is               significant               about               these               results               is               that               the               diverse               workforce               thrives               best               in               a               corporate               culture               that               respects               and               utilizes               diversity.
               Regarding               leadership,               a               good               leader               is               able               to               inspire               a               unified               vision               and               lead               the               organization               to               a               common               goal,               as               well               as               be               fully               responsible               for               establishing               and               sustaining               corporate               culture.

Therefore,               the               leaders               of               the               organization               must               be               able               to               communicate               a               plan               for               utilizing               diversity               and               unify               and               lead               the               organization               to               this               common               goal.

All               leaders               must               be               cohesive               in               this               understanding               and               must               communicate               the               same               message               in               order               for               it               to               be               effective.

David               A.

Thomas               and               Robin               J.

Ely               concur               that               "one               cardinal               limitation               is               at               the               root               of               companies'               inability               to               attain               the               expected               performance               benefits               of               higher               levels               of               diversity:               the               leadership's               vision               of               the               purpose               of               a               diversified               workforce"               (par               76).

Good               leadership               skills               are               a               very               important               prerequisite               to               utilizing               diversity               for               profitable               ends.
               Good               management               skills               are               equally               important               in               ensuring               that               diversity               is               managed               well.

Cox               Jr.,               discusses               findings               that               indicate               
               some               of               the               heterogeneous               teams               were               more               productive               than               the               homogeneous               teams               and               some               were               less               productive               than               the               homogeneous               teams.

This               research               was               interpreted               to               show               that               if               work               teams               manage               the               diversity               well               (for               example,               by               ensuring               that               all               members               have               ample               opportunity               to               contribute               and               by               dealing               successfully               with               potential               communications,               group               cohesiveness,               and               interpersonal               conflict               issues               presented               by               cultural               diversity),               they               will               be               able               to               make               diversity               an               asset               to               performance.

(26)               
               Cox               Jr.

adds,               "Alternatively,               if               the               diversity               is               ignored               or               mishandled               [by               management],               it               may               become               a               detractor               from               good               performance"               (26).

It               is               important               that               managers               have               good               management               skills               in               order               to               increase               the               profit               margin               by               utilizing               diversity.
               Where               there               is               a               higher               degree               of               diversity               there               will               be               higher               degrees               of               conflict               due               to               more               frequent               incompatibilities               between               goals,               resources,               values,               and               interests.

Since               conflict               management               skills               enable               two               parties               to               effectively               resolve               these               incompatibilities,               conflict               management               skills               are               essential               for               utilizing               diversity               for               profitable               ends.

Unresolved               conflict               disrupts               productivity,               which               impacts               profitability.

A               paradigm               shift               recognizing               that               conflict               is               not               inherently               negative,               (which               is               a               common               cultural               assumption               in               American               management),               is               necessary               for               management               to               effectively               deal               with               conflict.
               Like               managing               diversity,               the               result               of               conflict               resolution               depends               on               how               the               conflict               is               managed.

For               example,               Bucher               lists               some               benefits               of               managing               conflict               well,               such               as,               stimulating               creativity,               signaling               a               need               for               change,               and               creating               personal               and               professional               growth               (179).

Conflict               management               skills               are               absolutely               essential               when               dealing               with               utilizing               diversity               and               should               provide               management               with               most               of               the               skills               necessary               to               deal               with               it               at               most               levels               and               within               most               contexts.
               Regarding               profound               dedication,               it               is               important               that               management               take               the               utilization               of               diversity               seriously               by               becoming               immersed               in               diversity               education               and               training               on               a               regular               basis               and               by               purposefully               exposing               oneself               to               change.

This               level               of               dedication               is               quite               thorough               and               the               only               true               way               to               successfully               implement               initiatives               aimed               at               utilizing               diversity               in               the               name               of               profit.

Stephen               Covey               insists               that               real               change               "doesn't               come               from               hacking               at               the               leaves               of               attitude               and               behavior               with               quick               fix               personality               ethic               techniques.

It               comes               from               striking               at               the               root-the               fabric               of               our               thought,               the               fundamental               essential               paradigms               which               give               definition               to               our               character               and               create               the               lens               through               which               we               see               the               world"               (qtd               in               Bucher               23).

This               is               a               very               pertinent               point               that               is               key               to               management's               ability               to               utilize               diversity.

In               order               to               utilize               it,               one               must               take               it               seriously,               not               as               some               passing               fad,               but               integrate               it               into               the               foundation               of               one's               thoughts               and               actions.

This               immersion               will               also               better               enable               the               manager               to               foster               corporate               culture               along               the               same               vein.
               It               is               important               to               note               that               the               profitable               results               of               diversity               are               usually               indirectly               obtained,               as               opposed               to               directly.

For               example,               when               management               exploits               individual               skills               and               talents               to               their               fullest               potential,               employee               morale               increases.

Employees               who               experience               higher               morale               are               generally               more               productive.

Employees               who               are               more               productive               increase               the               profit               margin               of               the               company.

Therefore,               using               this               logic,               utilizing               diversity               increases               the               profit               margin.

The               forthcoming               examples               will               often               implement               this               logic,               in               order               to               help               understand               how               diversity               positively               affects               the               profit               margin.
               Assuming               that               managers               fulfill               the               necessary               prerequisites               for               utilizing               diversity,               the               next               question               becomes,               "in               what               way               does               it               positively               affect               the               profit               margin"?

The               basic               areas               of               organizations               in               which               diversity               can               be               utilized               for               profitability               include               the               employee               base,               consumer               base,               and               organizational               structure.

Within               these               areas,               it               can               be               utilized               quantitatively               or               qualitatively.
               An               example               of               a               quantitative               way               of               utilizing               diversity               is               to               intentionally               widen               the               spectrum               of               differences               regarding               personnel               and/or               market               segments               and/or               products               and               services               (e.g.

affirmative               action).

An               example               of               a               qualitative               way               to               utilize               diversity               is               to               create               a               position               in               order               to               match               an               employee's               distinctive               skills               and               talents.

Both               quantitative               and               qualitative               examples               exist               within               the               employee               base,               customer               base,               and               organizational               structure               of               an               organization.
               Within               the               employee               base,               the               profitable               uses               of               diversity               include               innovation,               creativity,               and               problem               solving,               as               well               as               accommodation               of               the               diverse               needs               of               employees.

In               today's               business-world,               the               trend               is               turning               from               profiting               from               tangible               products               to               intangible               services               that               are               created               by               people.

The               ability               to               innovate,               create,               and               problem-solve               is               key               to               becoming               a               cutting-edge               company               because               of               the               increased               capacity               to               invent               new               products               and               services,               and               to               come               up               with               more               frequent               and               creative               solutions,               all               of               which               increases               the               companies               profit               margin               by               making               the               company               more               competitive.

Additionally,               the               better               employees'               needs               are               accommodated,               the               more               likely               they               are               to               miss               fewer               days               and               be               more               productive,               which               in               turn               decreases               employer               costs,               and               increases               profitability.
               An               example               of               profitable               innovation,               due               to               the               utilization               of               a               diverse               employee               base,               is               recounted               by               Bucher,               who               cites               the               following               example               from               Ford               Motor               Company:               "Ford               decided               that               it               needed               to               take               a               different               approach               to               create               a               new               and               competitive               midsized               car.

They               put               the               designers,               manufacturers,               and               salespeople               on               one               team.

Each               person               was               asked               to               describe               his               or               her               ideal               care               and               submit               a               "wish               list."               The               end               product               of               this               team               effort               was               the               Taurus,               one               of               Ford's               best-selling               models"               (165).

Ford's               example               is               a               qualitative               approach               to               utilizing               diversity,               in               that               management               intentionally               placed               diverse               positions               together               in               order               to               create               a               group               dynamic               that               spurned               innovation.

In               another               example,               Cox               Jr.

discusses               how               Kanter's               studies               of               pioneering               companies               disclose               that               these               organizations               purposefully               create               diverse               work-teams               in               order               to               "create               a               marketplace               of               ideas,               recognizing               that               a               multiplicity               of               points               of               view               need               to               be               brought               to               bear               on               a               problem"               (qtd               in               Cox               Jr.

32).

Innovation               can               be               a               very               profitable               outcome               of               the               utilization               of               diversity.
               Next               we               will               examine               how               profitable               creativity               can               be               utilized               from               diversity               within               the               employee-base.

The               more               creative               the               company               is,               the               more               progressive               the               company               becomes.

The               more               progressive               the               company               is,               the               more               likely               they               are               to               be               profitable.

For               example,               Cox               Jr.

cites               the               research               of               Charlene               Nemeth               who               "found               that               the               minority               groups               adopted               multiple               strategies               and               identified               more               solutions               than               the               majority               groups               [and               she]               concluded               that               the               groups               exposed               to               minority               views               were               more               creative               than               the               more               homogeneous,               majority               groups.

She               further               concluded               that               persistent               exposure               to               minority               viewpoints               stimulates               creative               thought               processes               (32).

Cox               Jr.

also               reported               the               results               of               a               series               of               experiments               performed               by               Triandis,               Hall,               and               Ewen,               to               test               the               effects               of               diversity               on               creativity.

The               results               were               judged               on               "originality               and               practicality"               and               "indicated               that               as               long               as               the               team               members               had               similar               ability               levels,               the               heterogeneous               teams               were               more               creative               than               the               homogeneous               ones…"               (32-33).

Creativity               is               key               to               becoming               a               leading               edge               company               and               increasing               profitability.
               Regarding               problem-solving,               Cox               Jr.

cites               research               studies               conducted               at               the               University               of               Michigan               in               the               1960s               that               "found               that               heterogeneous               groups               produced               better-quality               solutions               to               problems               than               did               homogenous               groups"               (33-34).

Specifically,               Cox               Jr.

cites               studies               by               Nemeth               and,               Nemeth               and               Wachter,               who               
               found               that               the               level               of               critical               analysis               of               decision               issues               and               alternatives               was               higher               in               groups               subjected               to               minority               views               than               in               those               that               were               not.

The               presence               of               minority               views               improved               the               quality               of               the               decision               process               regardless               of               whether               the               minority               view               ultimately               prevailed.

Among               the               specific               differences               in               problem               solving               processes               they               found               were               (1)               a               larger               number               of               alternatives               considered,               and               (2)               a               more               thorough               examination               of               assumptions               and               implications               of               alternative               scenarios.

(34)
               The               preceding               data               indicates               that               the               effects               of               diversity               on               problem               solving               are               both               quantitative               and               qualitative               in               that               it               increases               the               quantity               and               quality               of               problem               solving.

Many               companies               initially               take               only               a               quantitative               approach               to               utilizing               diversity               in               the               employee               base,               by               recruiting               a               wide               variety               of               employees.

Although               this               is               a               necessary               first               step,               it               is               not               until               management               purposefully               creates               various               work-group               dynamics               for               the               intentional               purpose               of               creating               innovation,               creativity,               and               problem               solving,               that               the               full               profitability               of               utilizing               diversity               can               be               realized.
               Accommodating               diverse               needs               within               the               employee               base               can               also               increase               profitability.

Accommodating               employees'               diverse               needs               to               the               fullest               extent               possible               will               increase               employee               satisfaction,               which               will               then               improve               work               performance.

Improvements               in               work               performance               will               result               in               increased               profitability.

Cox               Jr.

recounts               several               studies,               which               examine               the               extent               of               employer               accommodation               to               a               range               of               diverse               employee               needs,               in               relation               to               the               effect               on               employee               performance.
               Cox               Jr.

discusses               a               study               cited               in               "Helping               Pregnant               Workers"               in               which               "companies               were               assigned               an               "accommodation               score"               on               the               basis               of               the               adoption               of               four               benefit-liberalization               changes               associated               with               pregnant               workers.

The               higher               a               company's               accommodation               score,               the               lower               the               number               of               sick               days               taken               by               pregnant               workers               and               the               more               willing               they               were               to               work               overtime               during               pregnancy"               (Cox               Jr.

24-25).

Cox               Jr.

also               discusses               another               example,               which               compared               the               absenteeism               and               turnover               rates               of               mothers               who               worked               and               used               company-sponsored               day               care,               versus               those               who               worked               and               were               not               utilizing               company               sponsored               day               care               (25).

The               results               showed               that               "the               absenteeism               rate               for               the               day-care               users               was               38               percent               lower               than               that               of               the               other               groups,               and               that               they               had               a               turnover               rate               of               less               than               2               percent               compared               to               over               6               percent               for               the               nonbenefit               groups"               (Cox               Jr.

25).

Cox               Jr.

cited               yet               another               study               by               Youngblood               and               Chambers-Cook,               which               indicated               that               the               implementation               of               an               on-site               child-care               facility               "improved               worker               attitudes               improved               on               six               measures,               including               organizational               commitment               and               job               satisfaction,               and               that               turnover               declined               63               percent"               (25).

Finally,               Cox               Jr.

recounts               a               field               study               by               Kim               and               Campagna,               that               assessed               the               effects               of               the               implementation               of               flextime               on               worker               performance               and               which               found,               "that               both               short-term               and               long-term               absences               declined               significantly               and               that               three               of               four               worker-efficiency               measures               increased               significantly               under               flextime"               (25-26).

It               is               apparent               by               the               aforementioned               studies               that               the               utilization               of               diversity               through               managements'               accommodation               of               the               diverse               needs               of               employees,               decreases               absenteeism               and               turnover,               and               increases               employee               morale               and               job               satisfaction,               thereby               increasing               the               profitability               of               the               company.
               Next               we               will               examine               how               utilizing               diversity               within               the               consumer               base               potentially               increases               profitability.

Within               the               consumer               base,               the               profitable               uses               of               diversity               begin               with               understanding               how               consumerism               differs               within               a               diverse               market.

Once               management               obtains               this               understanding,               the               next               step               is               to               implement               strategies               in               order               to               better               relate               to,               identify               with,               and               represent               these               consumer               differences.

These               strategies               utilize               diversity               within               the               customer               base               and,               therefore,               better               serve               the               consumers'               needs.

As               a               result,               customer               satisfaction               increases,               as               do               customers,               thereby               making               the               company               more               profitable.
               Cox               Jr.

discusses               examples               of               research               on               consumer               behavior               that               demonstrates               how               cultural               differences               at               both               a               macro               and               micro               level               impact               consumerism.

Regarding               macro               level               consumer               differences,               Cox               Jr.

cites               research               by               Tse,               Lee,               Vertinsky,               and               Wehrung               who               studied               buying               behavior               distinctions               "among               145               mainland               Chinese,               Hong               Kong,               and               Canadian               executives               and               found               that               culture               had               predictable               effects               on               decision-making               behavior.

Among               their               specific               conclusions               was               that               culture               affects               problem               identification               and               the               objectives               motivating               choice               in               decision               situations"               (29).

Furthermore,               Cox               Jr.

points               out               that               "the               evidence               on               acculturation               patterns               among               Asians               and               Latinos               in               the               United               States               indicates               that               substantial               identity               with               the               root               national               culture               remains               even               after               three               or               more               generations               of               citizenship"               (29-30).

This               data               is               important               for               management               to               use               in               assisting               with               the               utilization               of               diversity,               within               the               customer-base.
               Regarding               consumer               differences               at               a               more               micro-level,               Cox               Jr.

cites               research               by               Deshpande,               Hoyer,               &               Donthu,               which               has               shown               that               "consumer               behavior               of               Hispanic-Americans               is               influenced               by               the               strength               of               identification               with               their               ethnic               group"               (30).

Cox               Jr.

also               summarizes               the               former               president               of               USA               today,               Nancy               Woodhull,               who               indicated               that;               "the               early               marketing               success               of               the               USA               TODAY               newspaper               was               largely               attributable               to               the               presence               of               people               from               a               wide               variety               of               cultural               backgrounds               in               daily               news               meetings.

Diversity               in               group               composition               was               deliberately               planned               and               led               to               a               natural               representation               of               different               points               of               view…"               (30).

Once               mangers               have               a               good               understanding               of               how               diversity               affects               consumerism               at               both               macro               and               micro               levels,               they               can               better               implement               strategies               to               better               represent               and               accommodate               these               consumer               differences.
               Strategies               for               utilizing               the               profitability               of               diversity               within               the               consumer               base               include               accommodating               diverse               customer               needs               by               improving               customer               relations,               customer               identification,               and               customer               representation.

These               strategies               are               best               illustrated               by               Allstate               insurance               company,               which               Louisa               Wah               states,               designates               local               agents               to               interact               with               local               communities               in               an               effort               to               understand               their               specific               needs               and               better               serve               them               (par               39).

Also,               Allstate               "recruits               employees               with               diverse               backgrounds"               (Wah               par               15)               including               its               potential               customers               in               order               to               better               represent               the               market               segments               they               are               interested               in"               (Wah               par               18).
               In               another               example,               Wah               discusses               how               Penny               Wells-Sims,               who               is               in               charge               of               the               northwestern               Arkansas               Allstate               office,               has               focused               on               tapping               into               serving               the               diverse               needs               of               the               senior               market               (par               54-55).

Wah               notes               that               Wells-Sims               believes               that               her               experience               with               the               senior               market               "helps               give               her               a               competitive               edge",               because               she               will               already               have               experience               with               one               diverse               segment               of               the               market               (par               57).

Also,               Ron               McNeil,               senior               vice               president               for               product               operations               at               Allstate,               discusses               how               these               strategies               have               been               profitable,               stating,               "Our               diverse               workforce               has               allowed               us               to               establish               relationships               in               communities               and               allowed               us               to               shorten               the               acquisition               curves               for               new               customers"               (qtd               in               Wah               43).

Wah               also               notes               that               "the               partnership               [between               Allstate               and               the               local               community]               program               in               Philadelphia…boosted               Allstate's               market               share               in               the               city               from               7.3               percent               in               1993               to               33               percent               in               1997"               (43).
               Cox               Jr.

provides               another               illustration               of               how               utilizing               diversity               through               representation               within               the               customer               base,               improved               the               profitability               of               Avon               Corporation               within               U.S.

inner               city               markets:               "After               the               company               made               personnel               changes               to               give               substantial               authority               over               these               markets               to               Black               and               Hispanic               managers,               results               in               these               formerly               unprofitable               sectors               improved               to               the               point               where               they               are               now               among               the               most               productive               of               Avon's               U.

S.

markets"               (30).

Another               example               by               Cox               Jr.

asserts,               "Avon               president               Jim               Preston               has               commented               that               members               of               a               given               cultural               group               are               uniquely               qualified               to               understand               certain               aspects               of               the               world               view               of               persons               from               that               group"               (30).

Cox               Jr.

provides               another               example               of               how               Maybelline               accommodated               the               needs               of               a               diverse               market               by               introducing               a               line               of               cosmetics               especially               made               for               darker               skinned               women               (31).

The               first               year               the               product               was               introduced               it               "did               $15               million               of               sales,               beating               the               industry               standard               for               a               major               first-year               success               by               50               percent"               (Cox               Jr.

31).

When               management               understands               how               diversity               impacts               the               consumer               base,               they               are               better               able               to               implement               strategies               that               improve               customer               relations.

Using               improved               customer               identification               and               representation               strategies,               companies               can               better               serve               the               diverse               needs               of               their               consumer               base               by               increasing               customers               and               customer               satisfaction,               thereby               increasing               profitability.
               Organizational               structure               can               be               used               to               utilized               diversity               for               profitable               ends.

Organizations               can               be               structured               in               such               a               way               as               to               either               increase               or               decrease               opportunities               for               utilizing               diversity.

The               structural               components               of               an               organization               can               include               marketing,               sales,               research               and               development,               production,               management,               human               resources.
               An               example               of               organizational               structural               strategies               that               multinational               corporations               can               use               to               increase               profit               from               the               utilization               of               diversity,               are               discussed               by               Leslie               Palich,               Gomez-Mejia,               and               R.

Luis.

The               authors               contend               that,               "firms               can               manage               international               business               units               more               efficiently               when               those               businesses               are               established               in               countries               that               are               related               in               terms               of               national               culture               (i.e.,               when               the               cultural               diversity               among               the               firms               international               division               is               manageable)"               (Palich,               Gomez-Mejia,               and               Luis,               par               8).

According               to               the               authors,               similarities               in               national               culture,               positively               affects               the               profitability               of               marketing,               production,               and               research               and               development,               as               well               as               the               exchange               of               management               knowledge,               in               such               organizations               (Palich,               Gomez-Mejia,               and               Luis,               par               36).
               Palich,               Gomez-Mejia,               and               Luis,               assert               that               because               "people               from               similar               cultures               are               likely               to               value               and,               therefore,               purchase               similar               products…operations               serving               similar               cultures               can               achieve               economies               of               scale               through               combined               facilities…"               (par               14).

The               authors               also               discuss               how               cultural               similarity               may               encourage               the               exchange               of               technology               transfer,               which               may               result               in               the               following               profitable               benefits:               "merged               R               &               D               function",               "shorten[ed]               design               time",               and               "successful               transfer               of               R               &               D",               which               "allows               [for]               early               entry               into               new               technologies               for               multiple               business               units"               (Palich,               Gomez-Mejia,               and               Luis,               par               19).

Because               people               from               similar               cultures               have               similar               "schemas",               the               authors               contend               that,               "culturally               related               MNEs               are               able               to               exploit               management               knowledge               because               of               compatible               thinking               between               international               divisions"               (Palich,               Gomez-Mejia,               and               Luis,               par               24).
               The               authors               also               assert               that               efficiency               is               likely               to               be               promoted               through               cultural               relatedness               within               strategy               formulation,               implementation,               and               control,               and               therefore,               increase               profitability               (Palich,               Gomez-Mejia,               and               Luis               par               25).

For               example,               the               authors               discuss               how               "culturally               similar               units               are               easier               to               understand               and               manage               from               the               corporate               center,               thereby               reducing               the               firm's               transaction               costs"               (Palich,               Gomez-Mejia,               Luis,               par               34).

Additionally,               the               authors               note,               different               cultures               prefer               different               organizational               structures               and,               therefore,               "models               of               expertise               in               organizational               structure               may               be               more               usefully               adapted               between               culturally               related               divisions               vis-à-vis               culturally               unrelated               divisions"               (Palich,               Gomez-Mejia,               and               Luis,               par               30).

Although               in               the               aforementioned               examples,               the               utilization               of               diversity               involved               decreasing               it               within               divisions               of               an               organization,               it               is               still               a               way               of               using               diversity               for               profitable               ends.

A               multinational               corporation               may,               in               its               entirety,               have               a               wide               range               of               diverse               divisions               as               well               as               wide               ranging               diversity               within               those               divisions.

However,               the               structure               of               the               multinational               corporation               can               be               organized               to               utilize               diversity               for               profitable               ends.
               In               addition               to               looking               at               the               profitability               of               managing               diversity,               it               is               just               as               important               to               realize               what               the               costs               of               not               utilizing               it               are,               since               costs               directly               affect               the               profitability               of               the               company.

The               costs               of               not               utilizing               diversity               include               increased               employee               turnover               and               absenteeism,               discrimination               lawsuits,               and               the               loss               of               potential               and               existing               customers.

When               diverse               people               (especially               those               in               the               minority)               do               not               feel               that               their               diverse               skills               are               respected               and               utilized,               one               of               the               results               is               decreased               employee               morale,               which               tends               to               negatively               influences               employee               turnover               rates               and               absenteeism,               and               increasing               the               chances               of               discrimination               lawsuits,               resulting               in               costs               to               the               employer.
               Cox               Jr.

provides               examples               from               various               studies               of               how               companies               suffer               costs               when               they               do               not               utilize               diversity               within               the               employee               base:               "data               from               the               U.S.

workforce               indicate               that               turnover               and               absenteeism               are               often               higher               among               women               and               non-White               men               than               they               are               for               White               males"               (23).

Cox               Jr.

cites               studies               by               Bergmann               and               Krause,               which               indicate               "the               overall               turnover               rate               for               Blacks               in               the               U.S.

workforce               is               40               percent               higher               than               the               rates               for               Whites,"               (Cox               Jr.

30).

Additionally,               Cox               Jr.

discusses               studies               by               Hymowitz,               which               indicate,               "Corning               Glass               recently               reported               that               during               the               period               1980-1987               turnover               among               women               in               professional               jobs               was               double               that               of               men,               and               the               rates               for               Blacks               were               2.5               times               those               of               Whites"               (Cox               Jr.

23).

Furthermore,               Cox               Jr.

cites               studies               by               Schwartz               that               indicate,               "a               two-to-one               ratio               in               the               turnover               of               women               and               men…"               regarding               women               in               management               (Cox               Jr.

23).

Finally,               Cox               cites               studies               by               Meisenheimer               that               show               that               a               "study               of               absence               rates               in               the               U.S.

workforce               shows               that               rates               for               women               are               58               percent               higher               than               for               men"               (Cox               Jr.

23).
               The               costs               of               turnover               and               absenteeism               can               be               a               significant               amount               to               the               employer,               and               Cox               Jr.

provides               two               specific               hypothetical               breakdowns               of               costs               to               the               organization:               First,               Cox               estimates               that               in               a               hypothetical               firm               of               10,000               employees               in               which               half               of               the               workforce               is               composed               of               minorities               (gender               and               ethnically               speaking)               and               with               taking               the               above               statistics               into               account,               that               "the               differential               turnover               rates               would               produce               an               additional               250               losses               annually               [and]               …a               conservative               figure               for               replacement               costs               for               each               loss               would               be               $15,000…"               (Cox               Jr.

23).

Therefore,               Cox               Jr.'s               final               calculation               for               turnover               costs               in               this               hypothetical               organization               is               "3.8               million"               (23).

Cox               Jr.

suggests               a               second               hypothetical               scenario               in               which               the               same               organization               has               invested               $40,000               in               benefits               and               salary               per               year,               per               employee               (23).

Regarding               the               above               statistics               on               absenteeism               rates,               and               presuming               women               make               up               35%               of               the               workforce,               Cox               Jr.

estimates               that               "the               additional               1.74               percent               in               lost               paid               time               represents               a               productivity               loss               of               $2.4               million               annually"               (23-24).

It               is               clear               by               the               aforementioned               hypothetical               calculation,               that               not               utilizing               diversity               can               be               quite               costly               to               organizations.
               Another               cost               of               not               utilizing               diversity               can               be               that               of               discrimination               lawsuits,               in               which               not               only               is               it               commonly               not               utilized               at               all,               but               also               disrespected.

For               example,               Bucher               cites               the               following               as               an               example               of               costly               lawsuits               revolving               around               discrimination:               "In               1994,               Denny's               restaurants               paid               $45               million               to               settle               class-action               suits.

African-American               customers               charged               that               they               were               treated               differently               by               the               chain's               waiters               and               managers"               (52).

Aside               from               the               direct               costs               of               this               lawsuit,               undoubtedly,               the               organization's               reputation               was               also               at               stake               and               could               have               easily               resulted               in               loss               of               employees               and               customers,               which               also               costs               the               organization.
               In               addition               to               the               costs               of               not               utilizing               diversity,               it               is               also               important               to               note               that               there               are               costs               associated               with               implementing               initiatives               to               utilize               it.

Each               company               must               perform               a               comprehensive               cost-benefit               analysis               in               order               to               determine               if               they               are               in               a               position               to               profit               from               utilizing               diversity.

The               profitability               of               diversity               in               its               entirety               can               only               be               realized               by               companies               that               are               either               already               profitable,               or               who               are               ready               to               make               the               utilization               of               diversity               a               continuous               priority               whatever               their               budget.
               So,               what               can               management               do               to               better               utilize               diversity               for               profitable               ends?

First,               management               must               realize               that               they               will               need               to               employ               strategies               for               proactively               seeking               out               what               I               will               call               "hidden"               diversity.

Bucher               discusses               how               "only               about               10               percent               of               [diversity]               is               visible,"               which               means               the               remaining               90%               is               not               overtly               known               to               managers               (15).
               A               good               example               of               "hidden               diversity"               is               illustrated               in               David               A               Thomas,               and               Robin               J.

Ely               who               give               an               example               of               a               company               in               which               a               manager               hired               a               minority               female               on               the               basis               of               the               leadership               skills               he               had               known               she               possessed               from               observing               her               in               church               (par               60-63).

When               the               manager               hired               her,               he               soon               became               disappointed               because               the               woman               did               not               exhibit               the               same               leadership               behavior               inside               the               company               as               she               had               exhibited               outside               of               the               company               (Ely,               Thomas               par               60-63).

When               approached               about               her               lack               of               expected               performance,               it               turned               out               that               the               women               did               not               feel               that               it               would               be               acceptable               to               portray               that               talent               within               the               company               (Ely,               Thomas,               par               64).
               Not               only               does               this               example               illustrate               how               corporate               culture               affects               the               use               of               diversity,               but,               more               important               is               that               the               only               reason               the               hiring               manager               knew               about               this               woman's               "hidden"               talents               is               because               he               had               the               opportunity               to               witness               her               outside               of               work.

This               example               illustrates               that               it               is               not               enough               for               managers               to               be               simply               be               open               to               the               profitable               opportunities               diverse               employees               may               overtly               display,               but               the               managers               should               actually               be               trained               to               uncover               covert               types               of               diverse               opportunities               as               well.

Oftentimes,               employees'               skills               and               talents               are               overlooked               because               no               one               was               able               to               uncover               their               hidden               diverse               talents,               therefore,               it               goes               to               waste,               and               profitability               goes               unrealized.

Therefore,               the               most               important               solution               to               utilizing               diversity               for               profitable               means               is               for               managers               to               develop               skills               in               uncovering               the               hidden               90%               of               it.
               How               a               manager               may               go               about               revealing               the               hidden               90%               of               diversity               may               be               the               same               for               how               technical               work               skills               are               revealed:               through               questionnaires               and               skill               tests               (which               may               be               delegated               to               the               Human               Resource               Department).

These               questionnaires               and               tests               would               have               to               be               oriented               specifically               to               diversity               and               be               expansive               in               going               beyond               the               scope               of               the               workplace.

For               example,               regarding               macro-diversity,               the               questions               would               primarily               revolve               around               national               culture,               ethnicity,               religion,               gender,               culture,               heritage,               etc.

Regarding               micro-diversity,               the               questions               would               revolve               around               their               hobbies,               their               education,               their               personalities,               what               roles               they               play               outside               of               work               and               what               skills               they               utilize               for               these               roles               that               aren't               necessarily               utilized               at               work               (but               that               could               be).

There               are               many               questions               in               between               these               two               extremes,               but               the               goal               of               the               questioning               is               to               reveal               as               much               of               the               hidden               diversity               as               possible.

Revealing               the               fullest               spectrum               of               diversity               is               key               to               obtaining               the               most               profitable               results               from               utilizing               it.
               Once,               as               much               of               the               90%               of               the               hidden               diversity               is               revealed               as               is               possible,               the               next               step               is               to               research               the               background               to               such               differences.

This               is               where               the               profound               dedication               to               diversity               education               and               training               comes               into               play.

In               order               to               know               how               to               best               utilize               differences,               one               must               understand               why               these               differences               exist,               and               that               often               requires               researching               the               differences               (i.e.

studying               the               national               cultural               differences).

This               profound               understanding               of               the               person's               specific               diversity               enables               the               placement               of               the               employees               to               be               more               profitable.
               This               preliminary               research               should               be               followed               by               an               analysis               of               the               diverse               findings               in               relation               to               company               objectives.

It               is               important               to               note,               that               one               should               not               attempt               to               fit               the               person               into               an               already               existing               job               position,               because               opportunities               for               maximizing               the               profitability               of               the               diversity,               may               be               obscured               by               the               limitations               of               an               already               existing               job               description.

What               is               important,               however,               is               that               when               positions               are               created,               or               expanded,               specifically               to               utilize               diverse               talents,               this               diversity               must               still               align               with               the               company's               objectives.

Since               company               objectives               are               tied               to               profitability,               the               diversity               that               the               position               utilizes               will               be               aligned               with               profitability               as               well.

This               type               of               assessment               and               analysis               needs               to               be               done               for               employees               at               all               levels               of               the               company,               in               order               to               be               the               most               effective.
               Once               employees               are               placed               into               a               position               in               which               their               diversity               is               maximized               for               profitability,               it               is               up               to               management               to               ensure               that               this               diversity               is,               and               remains,               profitable.

In               order               to               determine               this,               it               is               of               utmost               importance               to               measure               the               profitability               of               utilizing               diversity,               ensure               management               is               held               accountable               for               ensuring               these               initiatives               are               working,               and               to               employ               strategies               for               maintaining               diversity               initiatives.

Without               measuring               devices               (feedback               systems),               it               is               difficult,               if               not               impossible,               to               determine               the               success               of               diversity               initiatives               in               relation               to               profitability,               and               therefore,               difficult               to               determine               when               they               need               improvements               or               renovation,               or               implementation               (in               the               case               of               companies               that               do               not               have               diversity               initiatives,               they               would               determine               if               implementation               is               necessary               through               a               cost-benefit               analysis               of               utilization               of               diversity).

Without               accountability,               there               is               no               one               responsible               for               establishing               and               maintaining               the               diversity               initiatives.

Without               maintenance               systems               in               place,               the               utilization               of               diversity               may               become               lost               over               time.
               Allstate               exemplifies               several               strategies               for               measuring               the               success               (meaning               the               increase               in               profitability)               of               diversity               initiatives,               ensuring               management               accountability               for               diversity               initiatives,               as               well               as               maintaining               diversity               initiatives.

In               order               to               measure               diversity               initiatives,               Wah               discusses               how               Allstate               surveys               all               of               its               employees               twice               a               year               regarding               diversity               in               relation               to               leadership               (par               29).

Then,               the               results               of               these               surveys               are               placed               in               an               index               for               leadership,               and               another               index               for               diversity               (Wah               par               30).

Then               management               compares               the               two               indexes               and               has               been               able               to               draw               a               correlation               between               the               two               (Wah               par               30)               and,               according               to               director               of               diversity,               Carlton               Yearwood,               "the               better               employees               perceive               their               manager's               effort               to               produce               a               diverse               work               environment,               the               more               satisfied               they               are"               (Wah               par               31).

This               same               correlation               also               suggests               that,               according               to               Yearwood,               "the               higher               the               leadership               and               diversity               indexes,               the               more               likely               it               is               for               customers               to               renew               [their               insurance               policies]"               (qtd               in               Wah               par               31).
               Additionally,               Allstate               has               purposefully               correlated               the               goal               of               diversity               to               compensation               by               associating               merit               pay               and               bonuses               to               the               successful               implementation               and               maintenance               of               diversity               initiatives               (Wah               par               35).

Regarding               maintenance               of               diversity               initiatives,               Allstate               has               taken               it               upon               themselves               to               ensure               that               every               new               employee               receives               diversity               training               within               their               first               six               months               of               employment               (Wah               par               60).

This               training               shows               the               employee               how               diversity               positively               affects               the               bottom               line               (Wah               par               62).

Additionally,               Allstate               "provides               additional               support               to               managers               on               how               to               sustain               a               diverse               and               trustful               environment"               (Wah,               par               64).

The               strategies               utilized               by               Allstate               exemplify               how               measurement,               accountability,               and               maintenance,               are               important               to               the               profitable               success               of               the               implementation               of               initiatives               to               utilize               diversity.
               Cox               Jr.

states               that,               "…organizations               that               are               able               to               preempt               competitors               in               creating               a               climate               where               all               personnel               have               equal               opportunity               and               motivation               to               contribute               should               gain               a               competitive               cost               advantage"               (26-27).

In               order               to               fully               utilize               the               diversity               for               profitable               ends,               management               must               have               good               leadership               and               management               skills,               good               conflict               management               skills,               and               profound               dedication               to               the               utilization               of               diversity.

Management               should               implement               a               variety               of               strategies               for               utilizing               diversity,               beginning               with               proactively               tapping               into               the               "hidden"               90%               of               it.

In               an               increasingly               diverse               world,               management               can               utilize               diversity               within               the               employee               base,               consumer               base,               and               through               the               organizational               structure               of               the               company,               thereby               increasing               their               profit               margin.
               Beyond               utilizing               diversity,               is               the               ultimate               goal               of               learning               from               it,               which               occurs               when               the               organization               begins               to               integrate               what               they               have               learned               from               diversity               into               their               mode               of               operation.

Thomas               and               Ely               discuss               the               idea               of               learning               from               diversity               by               creating               a               paradigm               that               "promotes               equal               opportunity               for               all               individuals…[and]               acknowledges               cultural               differences               among               people               and               recognizes               the               value               in               those               differences…[yet]               lets               the               organization               internalize               differences               among               employees               so               that               it               learns               and               grows               because               of               them"               (par               40).

As               an               extension               of               increasing               profitability               by               utilizing               diversity,               it               would               prove               beneficial               to               research               specific               strategies               for               learning               from               diversity.

As               Bucher               notes,               "Many               assume               that               our               society               is               divided               because               of               our               differences.

Does               the               problem               lie               with               our               differences               or               our               inability               to               respect               and               learn               from               these               differences?"               (14).

This               is               an               important               question,               whose               answer               is               the               key               to               the               ultimate               utilization               of               diversity               -learning.
               
               Works               Cited
               Bucher,               Richard               D.

Diversity               Consciousness.

Ed.

Mary               Carnis.

New               Jersey:               Prentice               Hall,               2000.
               Cox,               Taylor               Jr.,               Cultural               Diversity               in               Organizations.

San               Francisco:               Berrett               Koehler,               1993.
               Harris,               Philip               R.,               and               Robert               T.

Moran.

Managing               Cultural               Differences.

4th               ed.

Houston:               Gulf,               1996.
               Palich,               Leslie,               Gomez-Mejia,               and               R.

Luis.

"A               Theory               of               Global               and               Firm               Efficiencies:               Considering               the               Effects               of               Cultural               Diversity."               
               Journal               of               Management.

25               (1999):               587-606.

23               July               2000.
               Raines,               Franklin               D.

Forward.

Diversity               Consciousness.

By               Richard               D.

Bucher.

Ed.

Mary               Carnis.

New               Jersey:               Prentice               Hall,               2000.

ix-x.
               Richard,               Orlando               C.

"Racial               Diversity,               Business               Strategy,               and               Firm               Performance:               A               Resource-Based               View."               Academy               of               Management               Journal.

2               (2000):               164               (14p).

16               July,               2000.
               Thomas,               David               A.

and               Robin               J.

Ely.

"Making               Differences               Matter:               A               New               Paradigm               for               Managing               Diversity."               Harvard               Business               Review.

5               (1996):               79               (12p).

23               July               2000.
               Wah,               Louisa.

"Diversity               at               Allstate."               Management               Review.

7               (1999):               24               (7p).

22               July               2000.






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