1. Copyright 1998 Prentice-Hall Inc. adapted by Prof. Dr. vom Kolke 1- 1 Chapter 1 The Management of International Organizational Behavior

2. Copyright 1998 Prentice-Hall Inc. adapted by Prof. Dr. vom Kolke 1- 2 Learning Objectives l Define international organizational behavior l Understand why it is important to study IOB l Compare industrialization and culture as explanations for IOB l Know the role of theory in the study of IOB l Explain the benefits of the comparative perspective for studying IOB

3. Copyright 1998 Prentice-Hall Inc. adapted by Prof. Dr. vom Kolke 1- 3 Globalization A social process in which the constraints of geography on social and cultural arrangements recede, and in which people become increasingly aware that they are receding

4. Copyright 1998 Prentice-Hall Inc. adapted by Prof. Dr. vom Kolke 1- 4 l Consequence: important to know how to manage – culturally diverse, – cross-cultural and – geographical dispersed organizations Globalization

5. Copyright 1998 Prentice-Hall Inc. adapted by Prof. Dr. vom Kolke 1- 5 l Questions for the global manager: –Do all cultures have the same understanding of ethics? –Are people in different cultures motivated in different ways? –Are leadership styles the same in all cultures? –How do different cultures manage diversity? –Do all cultures negotiate business deals the same way? Globalization

6. Copyright 1998 Prentice-Hall Inc. adapted by Prof. Dr. vom Kolke 1- 6 Why Study IOB? l Competitive Advantage –knowledge of other cultures and behavior in their organizations l to evaluate prospects for collaboration (Mitsubishi/Chrysler) l to borrow ideas to improve performance (TQM, JIT) l increasing multiculturalism in the workforce (immigrants, tempor. guestworkers)

7. Copyright 1998 Prentice-Hall Inc. adapted by Prof. Dr. vom Kolke 1- 7 l Competitive Advantage (cont.) –Understanding Organizations l formal structure - social structure l essential for interpreting social control/ economic production structures –Understanding Own and Others’ Cultures l intellectual curiosity about other cultures l prevent misunderstandings about one‘s own “preferable” culture Why Study IOB?