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  • 1. OrganizationalOrganizational Behavior, 9/EBehavior, 9/E Schermerhorn, Hunt, andSchermerhorn, Hunt, and OsbornOsborn Prepared by Michael K. McCuddy Valparaiso University John Wiley & Sons, Inc.
  • 2. Organizational Behavior: Chapter 3 2 Chapter 3 Study Questions Why is globalization significant for organizational behavior? What is culture and how can we understand cultural differences? How does cultural diversity affect people at work? What is a global view on organizational learning?
  • 3. Organizational Behavior: Chapter 3 3 Study Question 1: Why is globalization significant for organizational behavior?  Most organizations must achieve high performance within a complex and competitive global environment.  Globalization refers to the complex economic networks of international competition, resource suppliers, and product markets.
  • 4. Organizational Behavior: Chapter 3 4 Study Question 1: Why is globalization significant for organizational behavior? 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.
  • 5. Organizational Behavior: Chapter 3 5 Study Question 1: Why is globalization significant for organizational behavior? 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. Organizational Behavior: Chapter 3 6 Study Question 1: Why is globalization significant for organizational behavior? Outsourcing. – Contracting out of 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. Organizational Behavior: Chapter 3 7 Study Question 1: Why is globalization significant for organizational behavior? 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.
  • 8. Organizational Behavior: Chapter 3 8 Study Question 1: Why is globalization significant for organizational behavior? Culture. – 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. Organizational Behavior: Chapter 3 9 Study Question 2: What is culture and how can we understand cultural differences? 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. Organizational Behavior: Chapter 3 10 Study Question 2: What is culture and how can we understand cultural differences? 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. Organizational Behavior: Chapter 3 11 Study Question 2: What is culture and how can we understand cultural differences? 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. Organizational Behavior: Chapter 3 12 Study Question 2: What is culture and how can we understand cultural differences? 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. Organizational Behavior: Chapter 3 13 Study Question 2: What is culture and how can we understand cultural differences? 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.
  • 14. Organizational Behavior: Chapter 3 14 Study Question 2: What is culture and how can we understand cultural differences? 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. Organizational Behavior: Chapter 3 15 Study Question 2: What is culture and how can we understand cultural differences? 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. Organizational Behavior: Chapter 3 16 Study Question 2: What is culture and how can we understand cultural differences? 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. Organizational Behavior: Chapter 3 17 Study Question 2: What is culture and how can we understand cultural differences? 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. Organizational Behavior: Chapter 3 18 Study Question 2: What is culture and how can we understand cultural differences? 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. Organizational Behavior: Chapter 3 19 Study Question 2: What is culture and how can we understand cultural differences?
  • 20. Organizational Behavior: Chapter 3 20 Study Question 2: What is culture and how can we understand cultural differences? Understanding cultural differences helps in dealing with 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.
  • 21. Organizational Behavior: Chapter 3 21 Study Question 2: What is culture and how can we understand cultural differences?
  • 22. Organizational Behavior: Chapter 3 22 Study Question 2: What is culture and how can we understand cultural differences? Cultural differences in handling relationships with other people. – Universalism versus particularism. • Relative emphasis on rules and consistency, or on relationships and flexibility. – Individualism versus collectivism. • Relative emphasis on individual freedom and responsibility, or on group interests and consensus.
  • 23. Organizational Behavior: Chapter 3 23 Study Question 2: What is culture and how can we understand cultural differences? Cultural differences in handling relationships with other people (cont.). – Neutral versus affective. • Relative emphasis on objectivity and detachment, or on emotion and expressed feelings. – Specific versus diffuse. • Relative emphasis on focused and narrow involvement, or on involvement with the whole person.
  • 24. Organizational Behavior: Chapter 3 24 Study Question 2: What is culture and how can we understand cultural differences? Cultural differences in handling relationships with other people (cont.). – Achievement versus prescription. • Relative emphasis on performance-based and earned status, or on ascribed status.
  • 25. Organizational Behavior: Chapter 3 25 Study Question 2: What is culture and how can we understand cultural differences? 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.
  • 26. Organizational Behavior: Chapter 3 26 Study Question 2: What is culture and how can we understand cultural differences? 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.
  • 27. Organizational Behavior: Chapter 3 27 Study Question 3: How does cultural diversity affect people at work? Multinational corporation (MNC). – A business firm that has extensive international operations in more than one foreign country. – Have a total world view without allegiance to any one national home. – Have enormous economic power and impact. – Bring benefits and controversies to host countries.
  • 28. Organizational Behavior: Chapter 3 28 Study Question 3: How does cultural diversity affect people at work? Multicultural workforces and expatriates. – Styles of leadership, motivation, decision making, planning, organizing, and controlling vary from country to country. – 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.
  • 29. Organizational Behavior: Chapter 3 29 Study Question 3: How does cultural diversity affect people at work?
  • 30. Organizational Behavior: Chapter 3 30 Study Question 3: How does cultural diversity 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. • Business support of repressive governments. • Sweatshops.
  • 31. Organizational Behavior: Chapter 3 31 Study Question 3: How does cultural diversity affect people at work?
  • 32. Organizational Behavior: Chapter 3 32 Study Question 3: How does cultural diversity affect people at work? 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.
  • 33. Organizational Behavior: Chapter 3 33 Study Question 4: What is a global view on organizational learning? Organizational learning. – The process of acquiring the knowledge necessary to adapt to a changing environment. Global organizational learning. – The ability to gather from the world at large the knowledge required for long-term organizational adaptation.
  • 34. Organizational Behavior: Chapter 3 34 Study Question 4: 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.
  • 35. Organizational Behavior: Chapter 3 35 Study Question 4: What is a global view on organizational learning? Best practices around the world. – Global organizational learning should identify best practices around the world. – Potential high-performance benchmarks exist throughout the world. – Cultural diversity enriches global organization learning.
  • 36. Organizational Behavior: Chapter 3 36 COPYRIGHT Copyright 2005 © John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.

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