Organizational Behavior, 8e Schermerhorn, Hunt, and Osborn Prepared by Michael K. McCuddy Valparaiso University John Wiley & Sons, Inc.

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Organizational Behavior: Chapter 33 Chapter 3 Global Dimensions of Organizational Behavior  Study questions. – Why is globalization significant to organizational behavior? – What is culture? – How does globalization affect people at work? – What is a global view on organizational learning?

Organizational Behavior: Chapter 34 Why is globalization significant to organizational behavior?  Most organizations must achieve high performance within a complex and competitive global environment.

Organizational Behavior: Chapter 35 Why is globalization significant to organizational behavior?  Globalization involves complex economic networks of competition, resource supplies, and product markets transcending national boundaries and circling the globe.

Organizational Behavior: Chapter 36 Why is globalization significant to organizational behavior?  A global economy. – Information technology and electronic communications have: Promoted a global economy. Created Internet business opportunities. – Transnational movement of products, trends, values, and innovations. – Multicultural workforces.

Organizational Behavior: Chapter 37 Why is globalization significant to organizational behavior?  Regional economic alliances. – European Union (EU). – North American Free Trade Agreement (NAFTA). – Caribbean Community (CARICOM). – Andean Pact. – Asia-Pacific Economic Co-operation Forum (APEC).

Organizational Behavior: Chapter 38 Why is globalization significant to organizational behavior?  Global quality standards. – ISO designation for quality standards. – ISO framework for quality assurance worldwide. – ISO certification is important for doing business in Europe and developing a reputation as a “world-class” manufacturer.

Organizational Behavior: Chapter 39 Why is globalization significant to organizational behavior?  Global managers. – A global manager is someone who knows how to conduct business across borders. – The global manager: Is often multilingual. Thinks with a world view. Appreciates diverse beliefs, values, behaviors, and practices. Is able to map strategy in light of the above.

Organizational Behavior: Chapter 310 Why is globalization significant to organizational behavior?  Challenges facing global managers. – Managers’ styles and attitudes may not work well overseas. – A global mindset is required in order to avoid failure.

Organizational Behavior: Chapter 311 What is culture?  Culture is the learned, shared way of doing things in a particular society.  Culture helps to define the boundaries between different groups and affect how their members relate to one another.

Organizational Behavior: Chapter 312 What is culture?  Popular dimensions of culture include: – Language. – Time orientation. – Use of space. – Religion.

Organizational Behavior: Chapter 313 What is culture?  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 — use words to convey only a limited part of the message.

Organizational Behavior: Chapter 314 What is culture?  Time orientation. – Polychronic cultures. Circular view of time. Does not create pressure for immediate action or performance. Emphasis on the present. – Monochronic cultures. Linear view of time. Creates pressure for action and performance. Long-range goals and planning are important.

Organizational Behavior: Chapter 315 What is culture?  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.

Organizational Behavior: Chapter 316 What is culture?  Religion. – A major element of culture. – Can be a very visible aspect of culture. – Often prescribes specific behavioral practices. – Influences codes of ethics and moral behavior. – Influences conduct of economic matters.

Organizational Behavior: Chapter 317 What is culture?  Values and national culture. – Cultures vary in underlying patterns of values and attitudes. – Hofstede’s five dimensions of national culture: Power distance. Uncertainty avoidance. Individualism-collectivism. Masculinity-femininity. Long-term/short-term orientation.

Organizational Behavior: Chapter 318 What is culture?  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.

Organizational Behavior: Chapter 319 What is culture?  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.

Organizational Behavior: Chapter 320 What is culture?  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.

Organizational Behavior: Chapter 321 What is culture?  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.

Organizational Behavior: Chapter 322 What is culture?  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.

Organizational Behavior: Chapter 323 What is culture?  Values and national culture. – Hofstede’s five dimensions of national culture are: Interrelated. Not independent. – Cultural dimensions typically cluster together.

Organizational Behavior: Chapter 324 What is culture?  Understanding cultural differences. – Two problems in international dealings: parochialism and ethnocentrism. – Parochialism — assuming that the ways of one’s own culture are the only ways of doing things. – Ethnocentrism — assuming that the ways of one’s culture are the best ways of doing things.

Organizational Behavior: Chapter 325 What is culture?  The Trompenaars’ framework for understanding cultural differences in the way people solve problems regarding: – Handling relationships with other people. – Attitudes toward time. – Attitudes toward the environment.

Organizational Behavior: Chapter 326 What is culture?  Cultural differences in handling relationships with other people. – Universalism versus particularism. – Individualism versus collectivism. – Neutral versus affective. – Specific versus diffuse. – Achievement versus prescription.

Organizational Behavior: Chapter 327 What is culture?  Cultural differences in attitudes toward time. – Sequential view of time. Time is a passing series of events. – Synchronic view of time. Time consists of an interrelated past, present, and future.

Organizational Behavior: Chapter 328 What is culture?  Cultural differences in attitudes toward the environment. – Inner-directed cultures. Members view themselves as separate from nature and believe they can control it. – Outer-directed cultures. Members view themselves as part of nature and believe they must go along with it.

Organizational Behavior: Chapter 329 How does globalization affect people at work?  Multinational employers. – Multinational corporation (MNC). A business firm that has extensive international operations in more than one foreign country. – MNC characteristics. Missions and strategies are worldwide in scope. Has a total world view without allegiance to any one national home. Has enormous economic power and impact.

Organizational Behavior: Chapter 330 How does globalization affect people at work?  Multicultural workforces. – Styles of leadership, motivation, decision making, planning, organizing, and controlling vary from country to country. – Domestic multiculturalism. Describes cultural diversity within a specific national population. Reflected in the workforces of local organizations.

Organizational Behavior: Chapter 331 How does globalization affect people at work?  Expatriate work assignments. – Expatriates. People who live and work abroad for extended periods of time. Can be very costly for employers. Progressive employers take supportive measures to maximize potential for expatriate success. Greatest problems occur when entering and working in a foreign culture and upon return home.

Organizational Behavior: Chapter 332 How does globalization affect people at work?  Expatriate work assignments — cont. – Phases of expatriate adjustment to a new country. Tourist stage — the expatriate enjoys discovering the new culture. Disillusionment stage — the expatriate’s mood is dampened as difficulties become more evident. Culture shock — confusion, disorientation, and frustration in the ways of the local culture and living in the foreign environment set in.

Organizational Behavior: Chapter 333 How does globalization affect people at work?  Expatriate work assignments — cont. – Considerations in reentry to home country. Expatriates should maintain adequate contact with home office during overseas assignment. Employers should provide support for reentry move. Employers should identify any new skills and abilities acquired during overseas experience, and make commensurate job assignments.

Organizational Behavior: Chapter 334 How does globalization affect people at work?  Ethical behavior across cultures. – Ethical challenges result from: Cultural diversity. Variations in governments and legal systems. – Prominent current issues: Corruption and bribery. Poor working conditions. Child and prison labor. Support of repressive governments.

Organizational Behavior: Chapter 335 How does globalization affect people at work?  Ethical behavior across cultures — cont. – Cultural relativism. The position that there is no universal moral standard. Ethical behavior is determined by cultural context. – Ethical absolutism. The position that there is a single moral standard that fits all situations. Ethical behavior transcends cultural context.

Organizational Behavior: Chapter 336 What is a global view on organizational learning?  Global organizational learning. – The ability to gather from the world at large the knowledge required for long-term organizational adaptation.

Organizational Behavior: Chapter 337 What is a global view on organizational learning?  Are management theories universal? – Answer is “no.” – Cultural influences should be carefully considered in transferring theories and their applications across cultures.

Organizational Behavior: Chapter 338 What is a global view on organizational learning?  Best practices around the world. – What is being done well elsewhere may be of great value at home. – Best practices no longer mainly North American or European. – Best practices can be found throughout the world.