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Organizational Behavior in a Global Context

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Culture ... Perhaps the most visible aspect of culture. ... Example of an individualistic culture United States. Example of a collectivist culture Mexico. ... – PowerPoint PPT presentation

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Title: Organizational Behavior in a Global Context


1
Organizational Behavior in a Global Context
Hitt et al Chapter 3 Abridged and Augmented
  • MGT 5371-001
  • Managing Organizational Behavior Design
  • May 6-7-07
  • John D. Blair, PhD
  • Georgie G. William B. Snyder Professor in
    Management

2
Globalization
  • The trend toward a unified global economy where
    national borders mean relatively little
  • Products, services, people, technologies, and
    financial capital move relatively freely across
    national borders
  • Tariffs, currency laws, travel restrictions,
    immigration restrictions, and other barriers to
    these international flows become less difficult
    to manage
  • Unified world market in which to sell products
    and services, and acquire resources

3
Forces of globalization
  • Rapid growth in information technology and
    electronic communication.
  • Movement of valuable skills and investments.
  • Increasing cultural diversity.
  • Implications of immigration.
  • Increasing job migration among nations.
  • Impact of multicultural workforces.

4
Globalization Inexpensive goods from poor
repressive countries?
http//online.wsj.com/article/SB117994581454912387
.html
5
Globalization and economic alliances
  • Globalization is contributing to the emergence
    of regional economic alliances.
  • Important regional alliances.
  • European Union (EU).
  • North American Free Trade Agreement (NAFTA).
  • Asia-Pacific Economic Co-operation Forum (APEC).

6
Outsourcing etc.
  • Outsourcing.
  • Contracting out work rather than accomplishing it
    with a full-time permanent workforce.
  • Off shoring.
  • Contracting out work to persons in other
    countries.
  • Job migration.
  • Movement of jobs from one location or country to
    another.

7
Culture
  • Shared values and taken-for-granted assumptions
    that govern acceptable behavior and thought
    patterns in a country and that give a country
    much of its uniqueness
  • What is normal

8
Culture Cont.
  • The learned, shared way of doing things in a
    particular society.
  • The software of the mind.
  • Helps define boundaries between different groups
    and affects how their members relate to one
    another.
  • Cultural intelligence is the ability to identify,
    understand, and act with sensitivity and
    effectiveness in cross-cultural situations.

9
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 words convey only a
    limited part of the message.

10
Time orientation
  • Polychronic cultures.
  • Circular view of time.
  • No pressure for immediate action or performance.
  • Emphasis on the present.
  • Monochronic cultures.
  • Linear view of time.
  • Create pressure for action and performance.
  • Long-range goals and planning are important.

11
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.

12
Religion
  • A major element of culture.
  • Can be a very visible aspect of culture.
  • Influences codes of ethics and moral behavior.
  • Influences conduct of economic matters.

13
Values and national culture
  • Cultures vary in underlying patterns of values
    and attitudes.
  • Hofstedes five dimensions of national culture
  • Power distance.
  • Uncertainty avoidance.
  • Individualism-collectivism.
  • Masculinity-femininity.
  • Long-term/short-term orientation.

14
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.

15
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.

16
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.

17
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.

18
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.

19
Examples of cultural differences?
20
How does cultural diversity affect people at work?
21
How does cultural diversity affect people at
work?
22
Advice regarding cultural relativism and ethical
absolutism
  • Multinational businesses should adopt core or
    threshold values that respect and protect
    fundamental human rights.
  • Beyond the threshold, businesses should adapt and
    tailor actions to respect the traditions,
    foundations, and needs of different cultures.

23
Global managers
  • Know how to conduct business in multiple
    countries.
  • Are culturally adaptable and often multilingual.
  • Think with a worldview and are able to map
    strategy in the global context.
  • Have a global attitude.
  • Have a global mindset.

24
Understanding cultural differences helps in
dealing with parochialism and ethnocentrism
  • Parochialism assuming that the ways of ones
    own culture are the only ways of doing things.
  • Ethnocentrism assuming that the ways of ones
    culture are the best ways of doing things.
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