1. Organizational Behavior Across Cultures
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Chapter Objectives
To understand:
How social, legal, ethical, political, and economic conditions vary in different cultures
The operation of ethnocentrism and cultural shock
Ways to overcome barriers to cultural adaptation
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Activity 1
You are a president of a United Arab Emirates firm and are thinking about setting up a factory in a foreign country. Would local attitudes toward work and productivity be an important consideration in your decision? How might unfavorable attitudes toward work and productivity affect production operations?
Should your firm avoid investments in countries
where there are unfamiliar favorable attitudes?
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4. Multinational Organizations
A global economy is now a reality
The emergence of the European Community
Changes in the former Soviet Union and eastern Europe
Strong markets developing in China, India, Japan, Korea, and other emerging nations
Multinational organizations add new dimensions to organizational behavior
There are different social, legal, political, and economic environments
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Managing technical aspects is easier than managing social factors
Cultural issues arise because much of the world is less developed than the United States and other industrialized nations
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6. Conditions Affecting Multinational Operations
There are similarities among nations, but there are also differences
Some nations are economically developed; others are just developing their natural and human resources
Some are educationally and socially advanced; others have minimal literacy and social development
In each case, the conditions of work are different because of different attitudes, values, and expectations from participants
Understanding these differences and how they influence international behavior is aided by examination of key social, legal, ethical, political, and economic conditions
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7. Conditions Affecting Multinational Operations
Social Conditions
Many countries have poorly developed human resources
Shortages of managerial personnel, scientists, and technicians limit the ability to employ local labor productively
Needed skills must be imported temporarily from other countries, while vast training programs begin to prepare local workers
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Lending skilled people to a nation for training their
local replacements can provide a more lasting benefit
than the lending of capital
The loaned skilled people develop locals, who in turn train others
People in local cultures are often not familiar with
high-technology products and the close margin of
error that they tolerate
The work ethic can also vary significantly
Japanese employees often work several hundred more hours per year than do their American counterparts
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9. Conditions Affecting Multinational Operations
Legal and Ethical Conditions
Managers need to be aware of the possible differences in both laws and ethical values that define acceptable and unacceptable behaviors in foreign countries
Foreign Corrupt Practices Act of 1977
This law is particularly concerned with the bribery of officials in order to win business
Women as expatriates major work issues revolve around the treatment of women and minorities
Male-dominated cultures
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10. Conditions Affecting Multinational Operations
Political Conditions
Instability and nationalism
Organized labor
Layoff and transfer restrictions
Economic Conditions
Per capita income
Rapid inflation
Unequal distribution of wealth
Constrains stability, security, and human resource development
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11. Conditions Affecting Multinational Operations
Individual Differences
Masculinity/femininity
Individualism/collectivism
Accent individual rights and freedoms
Place considerable attention on self-respect
Uncertainty avoidance
Employees in some cultures value clarity and feel very comfortable receiving specific directions from supervisors
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12. Managing an International Workforce
Multiculturalism
Leadership styles
Communication patterns
Other practices
Expatriates
Parent-country nationals from the nation in which the home office is located
Third-country nationals from some other nation
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Cultural Adaptation
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14. Cultural Shock
Confusion and insecurity caused by a strange new environment
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15. Phases of Cultural Shock
Excitement and stimulation
Insecurity and disorientation
Adaptation
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16. Overcoming Barriers to Cultural Adaptation
Careful selection
Desire and support
Cultural intelligence
Compatible assignments
Socio-cultural clusters
Anglo-American, Latin European, Latin American, Pacific Rim, Central European
Predeparture training
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17. Cross-Cultural Communication
Nonverbal Communication
Time efficiency
Thought patterns
Need for personal space
Eye contact
Physical appearance
Posture
Gestures
Silence
Values placed on seeing the future
Touch
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18. Cross-Cultural Communication
Transcultural Managers
Cultural preparation
Importance of language skills
Increasing need for
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