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

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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

4. Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing
Cultural Context
Context Orientation
Power Distance
Uncertainty Avoidance
Achievement Orientation
Individualism
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

5. Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing
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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

6. Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing
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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

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.
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

9. Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing
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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

10. Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing
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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

11. Cultural and Economic Contexts of International OD Practice
Cultural Fit with OD Practice
Low
High
Moderate
South Pacific
South America
Middle East
India
South Africa
Level of Economic
Development
Central America
Eastern Europe
Asia
United Kingdom
Scandinavia
USA
High
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

12. 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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

13. The Integrative-Responsiveness Framework
High
Global
Orientation
Transnational Orientation
International Orientation
Multinational Orientation
Need for Global
Integration
Low
High
Low
Need for Local Responsiveness
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

14. Interventions for Worldwide Strategic Orientations
The International
The Global Orientation
The Multinational Orientation
The Transnational Orientation
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

15. 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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

16. 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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

17. 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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

18. 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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

19. 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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

20. 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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing

21. Global Social Change Organizations OD Roles and Skills
Stewardship Role
Bridging Role
Communication Skills
Negotiation Skills
Networking Skills
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing