core concepts of organizational behavior schermerhorn, hunt, and osborn prepared by michael k....

Core Concepts of Core Concepts of Organizational Organizational

BehaviorBehaviorSchermerhorn, Hunt, and Schermerhorn, Hunt, and

OsbornOsbornPrepared by

Michael K. McCuddy

Valparaiso University

John Wiley & Sons, Inc.

Core Concepts of Organizational Behavior: Chapter 3

2

COPYRIGHT

Copyright 2004 © 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.

Core Concepts of Organizational Behavior: Chapter 3

3

Chapter 3Global Dimensions of

Organizational BehaviorStudy questions.

– Why is globalization significant to organizational behavior?

– What is culture?– How does globalization affect people at work?– What is a global view on organizational

learning?

Core Concepts of Organizational Behavior: Chapter 3

4

Why is globalization significant to organizational behavior?

Most organizations must achieve high

performance within a complex and

competitive global environment.

Core Concepts of Organizational Behavior: Chapter 3

5

Why is globalization significant to organizational behavior?

Globalization involves complex economic

networks of competition, resource

supplies, and product markets transcending

national boundaries and circling the globe.

Core Concepts of Organizational Behavior: Chapter 3

6

Why is globalization significant to organizational behavior?

A global economy.– Information technology and electronic

communications have:• Promoted a global economy.• Created Internet business opportunities.

– Transnational movement of products, trends, values, and innovations.

– Multicultural workforces.

Core Concepts of Organizational Behavior: Chapter 3

7

Why is globalization significant to organizational behavior?

Regional economic alliances.– European Union (EU).– North American Free Trade Agreement

(NAFTA).– Caribbean Community (CARICOM).– Andean Pact.– Asia-Pacific Economic Co-operation Forum

(APEC).

Core Concepts of Organizational Behavior: Chapter 3

8

Why is globalization significant to organizational behavior?

Global quality standards.– ISO designation for quality standards.– ISO framework for quality assurance

worldwide.– ISO certification is important for doing

business in Europe and developing a reputation as a “world-class” manufacturer.

Core Concepts of Organizational Behavior: Chapter 3

9

Why is globalization significant to organizational behavior?

Global managers.– A global manager is someone who knows how

to conduct business across borders.– The global manager:

• Is often multilingual.• Thinks with a world view.• Appreciates diverse beliefs, values, behaviors, and

practices.• Is able to map strategy in light of the above.

Core Concepts of Organizational Behavior: Chapter 3

10

Why is globalization significant to organizational behavior?

Challenges facing global managers.

– Managers’ styles and attitudes may not work

well overseas.

– A global mindset is required in order to avoid

failure.

Core Concepts of Organizational Behavior: Chapter 3

11

What is culture?

Culture is the learned, shared way of doing

things in a particular society.

Culture helps to define the boundaries

between different groups and affect how

their members relate to one another.

Core Concepts of Organizational Behavior: Chapter 3

12

What is culture?

Popular dimensions of culture include:

– Language.

– Time orientation.

– Use of space.

– Religion.

Core Concepts of Organizational Behavior: Chapter 3

13

What is culture?

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 — use words to convey

only a limited part of the message.

Core Concepts of Organizational Behavior: Chapter 3

14

What is culture?

Time orientation.– Polychronic cultures.

• Circular view of time.• Does not create pressure for immediate action or

performance.• Emphasis on the present.

– Monochronic cultures.• Linear view of time.• Creates pressure for action and performance.• Long-range goals and planning are important.

Core Concepts of Organizational Behavior: Chapter 3

15

What is culture?

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.

Core Concepts of Organizational Behavior: Chapter 3

16

What is culture?

Religion.

– A major element of culture.

– Can be a very visible aspect of culture.

– Often prescribes specific behavioral practices.

– Influences codes of ethics and moral behavior.

– Influences conduct of economic matters.

Core Concepts of Organizational Behavior: Chapter 3

17

What is culture?

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.

Core Concepts of Organizational Behavior: Chapter 3

18

What is culture?

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.

Core Concepts of Organizational Behavior: Chapter 3

19

What is culture?

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.

Core Concepts of Organizational Behavior: Chapter 3

20

What is culture?

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.

Core Concepts of Organizational Behavior: Chapter 3

21

What is culture?

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.

Core Concepts of Organizational Behavior: Chapter 3

22

What is culture?

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.

Core Concepts of Organizational Behavior: Chapter 3

23

What is culture?

Values and national culture.

– Hofstede’s five dimensions of national culture

are:

• Interrelated.

• Not independent.

– Cultural dimensions typically cluster together.

Core Concepts of Organizational Behavior: Chapter 3

24

What is culture?

Understanding cultural differences.– Two problems in international dealings:

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.

Core Concepts of Organizational Behavior: Chapter 3

25

What is culture?

The Trompenaars’ framework for

understanding cultural differences in the

way people solve problems regarding:

– Handling relationships with other people.

– Attitudes toward time.

– Attitudes toward the environment.

Core Concepts of Organizational Behavior: Chapter 3

26

What is culture?

Cultural differences in handling relationships with other people.– Universalism versus particularism.– Individualism versus collectivism.– Neutral versus affective.– Specific versus diffuse.– Achievement versus prescription.

Core Concepts of Organizational Behavior: Chapter 3

27

What is culture?

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.

Core Concepts of Organizational Behavior: Chapter 3

28

What is culture?

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.

Core Concepts of Organizational Behavior: Chapter 3

29

How does globalization affect people at work?

Multinational employers.– Multinational corporation (MNC).

• A business firm that has extensive international operations in more than one foreign country.

– MNC characteristics.• Missions and strategies are worldwide in scope.• Has a total world view without allegiance to any

one national home.• Has enormous economic power and impact.

Core Concepts of Organizational Behavior: Chapter 3

30

How does globalization affect people at work?

Multicultural workforces.– Styles of leadership, motivation, decision

making, planning, organizing, and controlling vary from country to country.

– Domestic multiculturalism.• Describes cultural diversity within a specific

national population.• Reflected in the workforces of local organizations.

Core Concepts of Organizational Behavior: Chapter 3

31

How does globalization affect people at work?

Expatriate work assignments.– 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.

• Greatest problems occur when entering and working in a foreign culture and upon return home.

Core Concepts of Organizational Behavior: Chapter 3

32

How does globalization affect people at work?

Expatriate work assignments — cont.– Phases of expatriate adjustment to a new

country.• Tourist stage — the expatriate enjoys discovering

the new culture.• Disillusionment stage — the expatriate’s mood is

dampened as difficulties become more evident.• Culture shock — confusion, disorientation, and

frustration in the ways of the local culture and living in the foreign environment set in.

Core Concepts of Organizational Behavior: Chapter 3

33

How does globalization affect people at work?

Expatriate work assignments — cont.– Considerations in reentry to home country.

• Expatriates should maintain adequate contact with home office during overseas assignment.

• Employers should provide support for reentry move.

• Employers should identify any new skills and abilities acquired during overseas experience, and make commensurate job assignments.

Core Concepts of Organizational Behavior: Chapter 3

34

How does globalization 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.• Support of repressive governments.

Core Concepts of Organizational Behavior: Chapter 3

35

How does globalization affect people at work?

Ethical behavior across cultures — cont.– Cultural relativism.

• The position that there is no universal moral standard.

• Ethical behavior is determined by cultural context.

– Ethical absolutism.• The position that there is a single moral standard

that fits all situations.• Ethical behavior transcends cultural context.

Core Concepts of Organizational Behavior: Chapter 3

36

What is a global view onorganizational learning?

Global organizational learning.

– The ability to gather from the world at large

the knowledge required for long-term

organizational adaptation.

Core Concepts of Organizational Behavior: Chapter 3

37

What is a global view onorganizational learning?

Are management theories universal?

– Answer is “no.”

– Cultural influences should be carefully

considered in transferring theories and their

applications across cultures.

Core Concepts of Organizational Behavior: Chapter 3

38

What is a global view onorganizational learning?

Best practices around the world.– What is being done well elsewhere may be of

great value at home.

– Best practices no longer mainly North American or European.

– Best practices can be found throughout the world.