Impact of Globalization on organizational behavior

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Impact of Globalization on organizational
behavior

• Bangkok University
• Organizational Behavior
• Second Semester, 2002
• Globalization on OB
• lritzel_at_prasena.com

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May 4th, 2002

• Structure of todays lecture
• Prasena Tips on your Final Exam
• What is Globalization?
• Impact on individuals!
• Diversity Worksheet exercise
• How does it impact an employees life?
• The importance of culture embedded in
  Organizations
• Different levels of socializing employees (case
  study)
• How does it impact a managers work?
• How to manage diversity
• Implications on a diverse Workforce
• Managing Expatriates
• Some tips for your final exam on OB!
• Follow up on case studies

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Tips on Final Exam

• 1st Part About Textbook 25 - 30 minutes
• 2nd Part Essay About 9 Cyber-Phenomena 50 - 60
  minutes
• 3rd Part About Books, Movies and Websites 25 -
  30 minutes

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1st Part OB Principles

• This part refers more particularly to your
  textbook. Your understanding of the book and your
  capacity to apply such understanding to your own
  environment will be taken into consideration, as
  well as your critical thinking and analytical
  skills.
• You may choose to answer one, several or all of
  the following questions, keeping in mind that you
  should spend no more than 30 minutes on this
  part. Quantity counts much less than quality!

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2nd Part OBs Current Environment

• This part refers more particularly to your course
  presentations and your case study. Your
  understanding of these presentations and your
  capacity to apply such understanding to real
  life will be taken into consideration, as well
  as your creative thinking, logical thinking and
  written presentation skills.
• Please choose only one proposed topic, keeping in
  mind that you should spend around one hour on
  this part.

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3rd Part OB-Related Analyses

• This part refers more particularly to the books,
  movies and websites you were requested to analyze
  throughout the term. Your understanding of them
  and your capacity to draw lessons for your own
  life will be taken into consideration, as well as
  your critical thinking, vision and analytical
  skills.
• You may choose to answer one, several or all of
  the following questions, keeping in mind that you
  should spend no more than 30 minutes on this
  part.

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IMPORTANT

• In the time you have for this exam, it is
  impossible that you answer properly to all
  questions. It is not the objective. The
  assessment will be made on which questions you
  have chosen to answer, and how you answer them.

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What is Globalization?
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Globalization The difficult topic
Physical World becomes smaller Expatriates Glob
al Companies Business Travellers Virtual Intern
et Mobile Communication
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Globalization
Power Play
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Globalization
?
The fair chance
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Definition

• Globalization this characteristic of the
  Cybernetic Revolution qualifies the tendency of
  any entity/activity/technology to acquire a
  dimension that grows beyond any "frontier" that
  would be imposed by such criteria as geography,
  culture, religion, gender, age, etc. Anything
  and/or anybody can have a worldwide impact.

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Impact on Individuals
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And you?

• Do you consider yourself a global citizen?
• My partner is a foreigner, my best friend is
  Catholic, my boss is younger than me
• I prefer to be with my own kind
• I sit at home but e-chat with the whole world

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The person within!
Organizational Dimensions
Functional Level/ Classification
External Dimensions
Geographic Location
WorkContent/Field
MaritalStatus
Internal Dimensions
Mgmt.Status
Income
Age
Personality
ParentalStatus
PersonalHabits
Race
Division/Dept./Unit/Group
RecreationalHabits
Appearance
SexualOrientation
Ethnicity
UnionAffiliation
PhysicalAbility
WorkExperience
Religion
EducationalBackground
WorkLocation
Seniority
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Diversity Worksheet exercise
Scale 1-10
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Why?

• Why would YOU need the world?
• When will the word Farang become extinct?
• When will you think about yourself as a member of
  a community than being Thai first (Geographical
  dimension only)

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Why

• Why would the world need You?

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Impact on Employees
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Prasena a working day
James Fay Washington DC (hotel)
Isabelle Michelet Bangkok (her house) Philippe
Kopcsan Singapore (business trip) Lukas Ritzel
Bangkok (in his condo) Russell Kearnon
Bangkok (at Starbucks) Sudarat Leelavanaval
Bangkok (office) Sakulthip Naunkhao Bangkok
(office)
Tony Waltham Chiang Mai (week end house)
Philippe Colin Hong Kong
Catherine Michelet France (at the Swimming pool)
Tom Seinige Zurich (In the train)
Christian Cloche Somewhere between Geneva and
Brussels (airplane)
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Workforce Demographics USA
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Singapore

• Another melting pot
• Whites
• Malays
• Chinese
• Indians
• Different terminologies, different categorization
• Different vision
• Different ways of addressing issues
• Is any of them really global-minded?
• What about so-far homogeneous populations, thrown
  into a global world?

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Impact on Managers
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Barriers / Challenges to Managing Diversity

• Inaccurate stereotypes and prejudice
• Ethnocentrism
• Poor career planning
• Unsupportive and hostile work environment
• Lack of political savvy by diverse workers
• Balancing career and family issues
• Fears of reverse discrimination
• Diversity not seen as a priority
• Outdated performance appraisal and reward systems
• Resistance to change

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Specific Diversity Initiatives

• Accountability Practices
• Pertain to treating diverse employees fairly
• Create administrative procedures aimed at
  integrating diverse employees into management
  ranks
• Development Practices
• Pertain to preparing diverse employees for
  greater responsibility and advancement
• Training programs, networks and support groups,
  and mentoring are frequently used
• Recruitment Practices
• Pertain to attracting qualified diverse employees
  at all levels

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Competitive Advantages of Managing Diversity

• Lower Costs and Improved Employee Attitudes
• Improved Recruiting Efforts
• Increased Sales, Market Share and Corporate
  Profits
• Increased Creativity and Innovation
• Increased Group Problem-Solving and Productivity

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HR and Globalization

• Definition
• The Human Resources Management is
  globalization-oriented when each employee is able
  to (and expected to) grasp, and adapt to,
  conceptual and operational realities at different
  levels and in different cultures.
• Ask yourselves
• Are more than 5 nationalities represented among
  your employees?
• Is your corporate culture attached to a specific
  country's culture?
• Workforce Trends
• Apparition of the Poverty jet set", a group of
  people who, waiting for globalization, are given
  to chronic traveling at the expense of long-term
  job stability and a permanent residence

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Organizations are Globalization-oriented when

• The top management thinks beyond physical
  boundaries in all aspects and when the
  organization's ergostructure supports virtual
  work.
• It is ensured that virtualization contributes to
  generating more economic value, and helps the
  organization increase its contribution to the
  greater community.
• Technologies used are open to virtual reality and
  multimedia techniques, which are viewed as means
  to enhance efficiency of processes and
  communications.
• Employees have integrated the concept of virtual
  reality and use it, in such forms as virtual
  teams, teleworkers, etc. to enhance expertise and
  optimize synergies.
• Products/services themselves and/or the way they
  are designed/promoted/distributed is virtual.
  Virtual shopping centers can sell virtual
  products and be paid with virtual money.