Thomas G. Cummings Christopher G. Worley Chapter Twenty Three : Organization Development In Global Settings Organization Development and Change

HS 23-2 Learning Objectives for Chapter Twenty Three To explore the differences in OD applications in a cross-cultural context. To understand the cultural values that might impact OD applications in other societies To examine how OD can best be applied in worldwide firms and global social change organizations

HS 23-3 Growth of OD in Global Settings The rapid development of foreign economies The increasing worldwide availability of technological and financial resources The emergence of a global economy

HS 23-4 Cultural Context Context Orientation Power Distance Uncertainty Avoidance Achievement Orientation Individualism

HS 23-5 Context The extent to which meaning in communication is carried in the words Organizations in high context cultures tend to value ceremony and ritual, the structure is less formal, there are fewer written policies, and people are often late for appointments

HS 23-6 Power Distance Extent to which members of a society accept that status and power are distributed unequally in an organization Organizations in these cultures tend to be autocratic, possess clear status differences, and have little employee participation

HS 23-7 Uncertainty Avoidance The extent to which members of a society tolerate the unfamiliar and unpredictable Organizations in these cultures tend to value experts, prefer clear roles, avoid conflict, and resist change

HS 23-8 Achievement Orientation The extent to which people in a society value assertiveness and the acquisition of material goods Organizations in these cultures tend to associate achievement with wealth and recognition, value decisiveness, and gender roles are clearly differentiated.

HS 23-9 Individualism The extent to which people in a society believe they should be responsible for themselves and their immediate family Organizations in these cultures tend to encourage personal initiative, value time and autonomy, accept competition, and autonomy is highly valued

HS Economic Development Subsistence Economies  Primarily agriculture-based Industrializing Economies  Moderately developed and tend to be rich in natural resources Industrial Economies  Highly developed and emphasize nonagricultural industry

HS Cultural and Economic Contexts of International OD Practice Cultural Fit with OD Practice High Low Moderate High Level of Economic Development India South Africa United Kingdom Scandinavia USA Central America Eastern Europe Asia South Pacific South America Middle East

HS Worldwide Strategic Orientations Offer products/services in more than one country Balance product and functional concerns with geographic issues of distance, time, and culture Carry out coordinated activities across cultural boundaries using a wide variety of personnel

HS The Integrative-Responsiveness Framework Global Orientation Transnational Orientation International Orientation Multinational Orientation High Need for Global Integration Low Need for Local ResponsivenessHigh

HS Interventions for Worldwide Strategic Orientations The International The Global Orientation The Multinational Orientation The Transnational Orientation

HS International Strategic Orientation Characteristics of the International Design  Sell existing products/services to nondomestic markets  Goals of increased foreign revenues Implementing the International Orientation  OD facilitates extending the existing strategy into the new market  Cross-cultural training and strategic planning

HS The Global Strategic Orientation Characteristics of the Global Design  Centralized with a global product structure  Goals of efficiency through volume Implementing the Global Orientation  OD supports career planning, role clarification, employee involvement, conflict management and senior management team building to help achieve improved operational efficiency  OD helps the organization transition to global integration from local responsiveness

HS The Multinational Strategic Orientation Characteristics of the Multinational Design  Operate a decentralized organization  Goals of local responsiveness through specialization Implementing the Multinational Orientation  OD helps with intergroup relations, local management selection and team building  OD facilitates management development, reward systems, and strategic alliances

HS Transnational Strategic Orientation Characteristics of the Transnational Design  Tailored products  Goals of learning and responsiveness through integrations Implementing the Transnational Orientation  Extensive selection and rotation  Acquire cultural knowledge and develop intergroup relations  Build corporate vision

HS Global Social Change Organizations  Their primary task is a commitment to serve as an agent of change in the creation of environmentally and socially sustainable world futures  They have discovered and mobilized innovative social-organizational architectures  They hold values of empowerment in the accomplishment of their global change mission  They are globally-locally linked in structure, membership, or partnership and thereby exist as entities beyond the nation-state  They are multi-organizational and often cross-sectoral

HS Application Stages of Global Social Change Organizations Build the local organization  Using values to create the vision  Recognizing that internal conflict is often a function of external conditions  Understanding the problems of success Create horizontal linkages  Build a network of local organizations with similar views and objectives Develop vertical linkages  Create channels of communication and influence upward to governmental and policy-level, decision-making processes

HS Stewardship Role Bridging Role Communication Skills Negotiation Skills Networking Skills Global Social Change Organizations OD Roles and Skills

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