ADM 3319 Lecture Notes - Lecture 5: Bounded Rationality, Organizational Culture, Rationality

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Approaches to managing cultural diversity within organizations. Teams described as the organization in microcosm. Homogenous teams: all members share a similar background. Token teams: all but one member comes from the same background. Bicultural teams: two distinct cultures are represented. Multicultural teams: three or more ethnic backgrounds are represented. Cultural diversity in multicultural teams: advantages and disadvantages. Advantages: increased creativity, ne(cid:272)essar(cid:455) to u(cid:374)dersta(cid:374)d others" ideas, perspe(cid:272)ti(cid:448)es, (cid:373)ea(cid:374)i(cid:374)gs, argu(cid:373)e(cid:374)ts, better problem definitions, alternatives, solutions, decisions, more effective teams, more productive teams. Disadvantages: mistrust, miscommunication, stress, inability to validate ideas, agree, gain consensus, and take concerted action, teams can become less efficient, effective and productive. Multicultural teams vs. homogenous teams: potential productivity vs. Multicultural teams have the potential to achieve higher productivity but they also have the potential to experience greater inefficiency and ineffectiveness through faulty processes. Multicultural teams: faulty process losses: attitudinal.

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