Multinational Corporations consideration & application

of diversity in strategy

MGMT 734 PresentationJess Maher | 3328773

Multinational Corporations

• Operate across national borders• Feature large numbers of employees• Commonly encounter issues • Feature diversity;– in number of areas; process, employees,

customers & environments – In a number of layers & take a number of

approaches

Types & Layers of Discrimination

Questions for you

• How to strategist’s approach diversity?

• What level of diversity do you think strategist consider in planning & theorising about strategy?

• How do you think theorists can better manage difference in an environment where organisations are so diverse?

• Do you think strategists are overlooking potential benefits and/or advantages that could be gained through fostering diversity?

METHODOLOGY, LITERATURE & RESEARCH; CLASSICAL STRATEGY PERSPECTIVE & CONTEMPORARY APPROACH

Classical Strategy Literature

• Foundations of strategy drawn from economics, 3 main works from 60’s;– Chandler (1962) Strategy & Structure– Ansoff (1965) Corporate Strategy – Andrew (1965) Business Policy

• Not until 80’s when Purdue – proposed; Performance = ( Strategy & Environment )

• Porter’s (80) Five Forces – Industry specific analysis

Rumelt, R. P., Schendel, D., & Teece, D. J. (1994). Fundamental issues in strategy : a research agenda. Boston, Mass.: Harvard Business School Press. p9-47.

• Globalisation & Technology • New framework for conceptualisation

structure and process of strategy

• Marshall’s Neoclassical economic theory – Transaction cost economics – Agency Theory– Game Theory – Evolutionary economics

Classical Strategy Literature

Jarzabkowski, P., Balogun, J., & Seidl, D. (2007). Strategizing: The challenges of a practice perspective. Human Relations, 60(1), 5.

Limitations of “Classical Strategy” approach

• ‘Macro-level consideration – little evidence of human action’

• ‘Lost sight of the human being’

• Over conceptualised, removed from reality of firms operations

‘concern over gap between theory of what people do and what people actually do have given rise to the

‘practise’ approach in management literature’ (Jarzabkowski, 2004, p529)

Strategy as practise

‘Practise theory designed as an account of diversity’ (Turner, 2007, p119)

‘Focus upon strategist engaged in the real world of strategizing.. Knowledge is not something that a firm has, but knowing in action, something that a firm and its actors do… strategy not as something a firm has,

but something the firm does.’ (Jarzabkowski, 2004, p529)

•Macro-Context – broad commonalities of action

•Micro-Context – action highly localised(Jarzabkowski, 2004, p536)

Practise Theory

• New Institutionalism• Recursive ; sedimented rules & resources that

govern how to act • Adaption ; varying degrees of change

between the actor (individual) & the social environment

‘Social movement of practise occurs within and between social levels – firms to individuals’

(Jarzabkowski, 2004, p)

Strategic theory & the perpetuation of diversity: Recourse & Adapt

Jarzabkowski, P. (2004). Strategy as Practice: Recursiveness, Adaptation, and Practices-in-Use. Organization Studies, 25(4), 529-599

MNC’s strategic approach to diversity

• Assimilation?

• Accommodation?

• Amalgation?

• Ignored and/or overlooked diversity?

CURRENT MULTINATIONALS: A STRATEGY TO EMBRACE DIVERSITY & STRATEGIC INITIATIVES

Organisations that embrace Diversity

Contemporary Strategies Lessons: Communities of Practise

• Understanding & Opportunity

‘Provides 2 important components of theory of practise: that practise is idiosyncratic and that local contexts provide

opportunities for adaptive practise’ (Jarzabkowski, 2004, p536)

• Johnson & Johnson Affinity Groups • African American Leadership Council (AALC)

• Gay & Lesbian Organisation for Business & Leadership (GLOBAL)

• Woman’s Leadership Initiative (WLI)

Diversity Vision Statement: “maximise the global power of diversity & inclusion to drive superior

business results & sustainable competitive advantage”

• Affinity Groups

• Diversity University

• Global Office of Diversity & Inclusion

• First Equal Opportunity Policy – 1953

• Diversity Council

• Talent Partnerships– American Association for People with Disabilities (AAPD) – Society of Women Engineers (SWE)

– National Society of Black Engineers [NSBE]

• Diversity Network Groups

• Diversity Training

•People with a disability•Women in Technology•Part Time and Job Share

•People who are Gay, Lesbian, Bisexual or Transgender•People of different cultural backgrounds

• Soul of Dell; Customers, The Dell Team, Direct Relationships, Global Citizenship, Winning

• Global Diversity Council

• Supplier Diversity Initiative

• Partnerships with Multicultural Groups – African, American, Asia & Hispanic Chambers of Commerce– Out and Equal

• Networking Groups– Building Relationships in Diverse Group Environments (BRIDGE) – Women in Search of Excellence (WISE)– Asians in Motion (AIM)

• Values Based Organisation – Value Purposive Leadership & Involving all

employees in major decision making processes

• Wellbeing, Attitude, Validity & Energy (WAVE)– Designed to enhance and assist employees reach

personal goals

• International Rotation for Managers

• Gender Diversity Strategy

Diversity concerns in Strategies

• Aging Workforce & Ageism

• Disabilities & Physical Impairments

• Racial Diversity & Racism

• Gender Diversity & Sexism

– Occupational Segregation

– Work-Life Balance

THANKS FOR YOUR PARTICIPATION

Any questions, comments, feedback?

ReferencesDell. (2008). Dell's Global Diversity Program. Retrieved Oct, 10, 2008, from http://www.strategicdiversity.com/strategic_diversity_Diverse_Company_Profile_DELL_1.htm

Reckwitz, A. (2002). Toward a Theory of Social Practices: A Development in Culturalist Theorizing. European Journal of Social Theory, 5(2), 243.

Dell. (2008). Soul of Dell. Retrieved Oct 11, 2008, from http://www.dell.com/content/topics/global.aspx/corp/soulofdell/en/index?c=us&l=en&s=corp

Rumelt, R. P., Schendel, D., & Teece, D. J. (1994). Fundamental issues in strategy : a research agenda. Boston, Mass.: Harvard Business School Press

IBM. (2008). IBM Diversity Profile. Retrieved Oct 2, 2008, from http://www.strategicdiversity.com/strategic_diversity_Diverse_Company_Profiles_IBM.htm

Turner, S. (2007). Practise then and now. Human Affairs, 17, 111-125.

Jarzabkowski, P. (2004). Strategy as Practice: Recursiveness, Adaptation, and Practices-in-Use. Organization Studies, 25(4), 529-599

Vodafone. (2008). Workplace Diversity Retrieved Oct 18, 2008, from http://www.vodafone.com/start/responsibility/employees/equal_opportunities.html

Jarzabkowski, P. (2003). Strategic practices: An activity theory perspective on continuity and change. The Journal of Management Studies, 40(1), 23.

Vodafone. (2008). History of Vodafone. Retrieved Oct 6, 2008, from http://www.vodafone.com/start/about_vodafone/who_we_are/history.html

Jarzabkowski, P., Balogun, J., & Seidl, D. (2007). Strategizing: The challenges of a practice perspective. Human Relations, 60(1), 5.

Vodafone Group. (2007). Company Information: Vodafone New Zealand. 2 Oct, 2008, from http://www.vodafone.co.nz/about/company-information/

Johnson & Johnson. (2008). Company Diversity Profile. Retrieved Oct 7, 2008, from http://www.strategicdiversity.com/strategic_diversity_Diverse_Company_Profiles_johnson_&_johnson.htm

Wenger, E. C., & Synder, W. M. (2000). Communities of Social Practise: The Organisational Frontier. Harvard Business Review, 139-145.