Organizational Behavior in a Global Context

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Organizational Behavior in a Global Context
Hitt et al Chapter 3 Abridged and Augmented

• MGT 5371-001
• Managing Organizational Behavior Design
• May 6-7-07
• John D. Blair, PhD
• Georgie G. William B. Snyder Professor in
  Management

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Globalization

• The trend toward a unified global economy where
  national borders mean relatively little
• Products, services, people, technologies, and
  financial capital move relatively freely across
  national borders
• Tariffs, currency laws, travel restrictions,
  immigration restrictions, and other barriers to
  these international flows become less difficult
  to manage
• Unified world market in which to sell products
  and services, and acquire resources

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Forces of globalization

• Rapid growth in information technology and
  electronic communication.
• Movement of valuable skills and investments.
• Increasing cultural diversity.
• Implications of immigration.
• Increasing job migration among nations.
• Impact of multicultural workforces.

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Globalization Inexpensive goods from poor
repressive countries?
http//online.wsj.com/article/SB117994581454912387
.html
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Globalization and economic alliances

• Globalization is contributing to the emergence
  of regional economic alliances.
• Important regional alliances.
• European Union (EU).
• North American Free Trade Agreement (NAFTA).
• Asia-Pacific Economic Co-operation Forum (APEC).

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Outsourcing etc.

• Outsourcing.
• Contracting out work rather than accomplishing it
  with a full-time permanent workforce.
• Off shoring.
• Contracting out work to persons in other
  countries.
• Job migration.
• Movement of jobs from one location or country to
  another.

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Culture

• Shared values and taken-for-granted assumptions
  that govern acceptable behavior and thought
  patterns in a country and that give a country
  much of its uniqueness
• What is normal

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Culture Cont.

• The learned, shared way of doing things in a
  particular society.
• The software of the mind.
• Helps define boundaries between different groups
  and affects how their members relate to one
  another.
• Cultural intelligence is the ability to identify,
  understand, and act with sensitivity and
  effectiveness in cross-cultural situations.

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Language

• Perhaps the most visible aspect of culture.
• Whorfian hypothesis considers language as a
  major determinant of thinking.
• Low-context cultures the message is conveyed by
  the words used.
• High-context cultures words convey only a
  limited part of the message.

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Time orientation

• Polychronic cultures.
• Circular view of time.
• No pressure for immediate action or performance.
• Emphasis on the present.
• Monochronic cultures.
• Linear view of time.
• Create pressure for action and performance.
• Long-range goals and planning are important.

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Use of space

• Proxemics.
• The study of how people use space to communicate.
• Reveals important cultural differences.
• Concept of personal space varies across cultures.
• Space is arranged differently in different
  cultures.

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Religion

• A major element of culture.
• Can be a very visible aspect of culture.
• Influences codes of ethics and moral behavior.
• Influences conduct of economic matters.

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Values and national culture

• Cultures vary in underlying patterns of values
  and attitudes.
• Hofstedes five dimensions of national culture
• Power distance.
• Uncertainty avoidance.
• Individualism-collectivism.
• Masculinity-femininity.
• Long-term/short-term orientation.

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Power distance

• The willingness of a culture to accept status and
  power differences among members.
• Respect for hierarchy and rank in organizations.
• Example of a high power distance culture
  Indonesia.
• Example of a low power distance culture Sweden.

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Uncertainty avoidance

• The cultural tendency toward discomfort with risk
  and ambiguity.
• Preference for structured versus unstructured
  organizational situations.
• Example of a high uncertainty avoidance culture
  France.
• Example of a low uncertainty avoidance culture
  Hong Kong.

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Individualism-collectivism

• The cultural tendency to emphasize individual or
  group interests.
• Preferences for working individually or in
  groups.
• Example of an individualistic culture United
  States.
• Example of a collectivist culture Mexico.

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Masculinity-femininity

• The tendency of a culture to value stereotypical
  masculine or feminine traits.
• Emphasizes competition/assertiveness versus
  interpersonal sensitivity/relationships.
• Example of a masculine culture Japan.
• Example of a feminine culture Thailand.

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Long-term/short-term orientation

• The tendency of a culture to emphasize
  future-oriented values versus present-oriented
  values.
• Adoption of long-term or short-term performance
  horizons.
• Example of a long-term orientation culture
  South Korea.
• Example of a short-term orientation culture
  United States.

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Examples of cultural differences?
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How does cultural diversity affect people at work?
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How does cultural diversity affect people at
work?
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Advice regarding cultural relativism and ethical
absolutism

• Multinational businesses should adopt core or
  threshold values that respect and protect
  fundamental human rights.
• Beyond the threshold, businesses should adapt and
  tailor actions to respect the traditions,
  foundations, and needs of different cultures.

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Global managers

• Know how to conduct business in multiple
  countries.
• Are culturally adaptable and often multilingual.
• Think with a worldview and are able to map
  strategy in the global context.
• Have a global attitude.
• Have a global mindset.

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Understanding cultural differences helps in
dealing with parochialism and ethnocentrism

• Parochialism assuming that the ways of ones
  own culture are the only ways of doing things.
• Ethnocentrism assuming that the ways of ones
  culture are the best ways of doing things.