general issues in organization behavior, o.b across cultures

7/30/2019 General issues in Organization behavior, O.B across cultures

1/53

General issues in Organization

behavior, O.B across cultures

Chapters 2 & 3; Session 2


2/53

Study QuestionsWhat is a high-performance organization?

What is Human capital and how organizationsachieve competitive advantage?

What are the dimensions of high involvementmanagement?

What is multiculturalism, and how can workforce

diversity be managed?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?


3/53

Modern Organization Designs

CommunicationTechnology

Transportation

Technology

Globalization


4/53

Transportation

Technology

Communication

TechnologyGlobalization Diversity

Cultural

Change

Demographic

Change

Effects of Globalization


5/53

Transportation

Technology

CommunicationTechnology

GlobalizationDiversity

Cultural

change

Demographic

Change

Flexibility

Globalization and its impact on

organizations


6/53

Transportation

technology

Communicatio

n technology

Globalization

Diversity

Cultural

Change

Demographic

Change

Flexibility

Hyper Competition

Faster pace of

change

Impact of Globalization On organizations


7/53

Transportation

Technology

Communication

Technology

GlobalizationDiversity

FlexibilityCultural

Change

Demographic

Change

Hyper

Competition

Faster pace

of innovation

Smaller, flatter,networked

organizations

Globalization And Development of New

Organization Designs


8/53

High Performance Organizations

High Performance organizations

(HPO) are designed to bring out the

best in people and producesustainable organizational results


9/53

High-performance organizations.

Value and empower people, and respectdiversity.

Mobilize the talents of self-directed workteams.

Use cutting-edge technologies to achievesuccess.

Thrive on learning and enable members togrow and develop.

Are achievement-, quality-, and customer-oriented, as well as being sensitive to theexternal environment.


10/53

High-performance organizations

Stakeholders. The individuals, groups, and other

organizations affected by anorganizations performance.

Value creation. The extent to which an organization

satisfies the needs of strategic

constituencies.


11/53


12/53


Total quality management (TQM).

A total commitment to:

High-quality results.

Continuous improvement. Customer satisfaction.

Meeting customers needs.

Doing all tasks right the first time.

Continuous improvement focuses on two questions: Is it necessary?

If so, can it be done better?


13/53


Human capital. The economic value of people with job-relevant

abilities, knowledge, ideas, energies, andcommitments.

Knowledge workers. People whose minds rather than physical capabilities

create value for the organization.

Intellectual capital. The performance potential of the expertise,

competencies, creativity, and commitment within anorganizations workforce.


14/53


Empowerment.

Allows people, individually and in groups, to

use their talents and knowledge to make

decisions that affect their work.

Social capital.

The performance potential represented in the

relationships maintained among people atwork.


15/53


Learning and high-performance cultures.

Uncertainty highlights the importance of

organizational learning.

High-performance organizations are designed

for organizational learning.

A learning organization has a culture that

values human capital and invigorates learningfor performance enhancement.


16/53


17/53

Human Capital and Competitive

Advantage Human capital: The sum of the skills,

knowledge, and general attributes of thepeople in an organization

Competitive advantage:An advantageenjoyed by an organization that canperform some aspect of its work betterthan competitors or in a way thatcompetitors cannot duplicate such that itoffers products/services that are morevaluable to customers


18/53

Human Capital as Source of

Competitive Advantage

Competitive

AdvantageHuman Capital

Value

Associates are capable

of performing thebasic work of the

organization

Human CapitalRareness

Skills and talents of

associates are unique

in the industry

Human Capital

Imitability

Skills and talents of

associates cannot becopied by other

organizations


19/53

Human Capital as Source of

Competitive Advantage

Are human resources in the firm . . .

Valuable Rare

Difficult to

imitate

Competitive

implications Performance

No

Competitive

Disadvantage Below Normal

Yes No Competitive Parity Normal

Yes Yes No

TemporaryCompetitive

Advantage Above Normal

Yes Yes Yes

Sustained

Competitive

Advantage Above Normal

Supported by

effective

management

Exhibit 1.2 Human Capital and Competitive Advantage

Source: Adapted from J. Barney and P. Wright, On Becoming a Strategic Partner,Human Resource Management37 (1999): 3146.


20/53

Dimensions of

High-Involvement Management

Exhibit 1.3 Dimensions of High-Involvement Management

Aspect Description

Selective Hiring Large pools of applicants are built through advertising, word of

mouth, and internal recommendations. Applicants are evaluated

rigorously using multiple interviews, tests, and other selection tools.

Applicants are selected on the basis of not only skills but also fit with

culture and mission.

Extensive Training New associates and managers are thoroughly trained for job skills

through dedicated training exercises as well as on-the-job training.

They also participate in structured discussions of culture and mission.Existing associates and managers are expected or required to

enhance their skills each year through in-house or outside training

and development. Often, existing associates and managers are

rotated into different jobs for the purpose of acquiring additional skills.



21/53

Dimensions of

High-Involvement Management


Aspect Description

Decision Power Associates are given authority to make decisions affecting their work

and performance. Associates handle only those issues about which

they have proper knowledge. Lower-level managers shift from closely

supervising work to coaching associates. In addition to having

authority to make certain decisions, associates participate in

decisions made by lower-level and even middle managers.

Information Sharing Associates are given information concerning a broad variety of

operational and strategic issues. Information is provided through

bulletin boards, company intranets, meetings, posted performance

displays, and newsletters.

Incentive

Compensation

Associates are compensated partly on the basis of performance.

Individual performance, team performance, and business

performance all may be considered.



22/53

High-Involvement Managers

High-involvement managers:

Identify situations in which responsibility can bedelegated

Manage through encouragement andcommitment rather than fear and threats

Respect and value each associates skills andknowledge

Empower people in ways that are consistent withtheir uniqueness as individuals

Invest effort in building and maintaining trust


23/53

Multiculturalism and DiversityWorkforce diversity.

Describes differences among people withrespect to age, race, ethnicity, gender,

physical ability, and sexual orientation.

Multiculturalism.

Refers to pluralism and respect for diversity

and individual differences in the workplace.

Inclusivity.

The degree to which the organizations culture

respects and values diversity.


24/53

Multiculturalism and Diversity

Diversity biases in the workplace.

Prejudice.

Discrimination.

The glass ceiling effect.

Sexual harassment.

Verbal abuse.

Pay discrimination.


25/53



26/53


Managing diversity. Developing a work environment and organizational

culture that allows all organization members to reachtheir full potential.

A diversity mature organization is created when: Managers ensure the effective and efficient utilization

of employees in pursuit of the corporate mission.

Managers consider how their behaviors affect

diversity.Well-managed workforce diversity increases

human capital.


27/53

Global context 0f OB

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.


28/53


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


29/53


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).


30/53


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


31/53


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.


32/53

Culture & Cross cultural

Understanding

Culture.

The learned, shared way of doing things in aparticular society.

The software of the mind. Helps define boundaries between different

groups and affects how their members relateto one another.

Cultural intelligence is the ability to identify,understand, and act with sensitivity andeffectiveness in cross-cultural situations.


33/53

Popular Dimensions of 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 words convey only a limited

part of the message. Western cultures are mostly low context cultures

Asian and Middle Eastern cultures are low context

P l Di i f C l


34/53


Time orientation.

Polychronic cultures. Circular view of time.

Time is cyclical and goes around and around

No pressure for immediate action or performance

One will have another chance to pass the same

way again. If opportunity is lost today no problem,

it may again return tomorrow.

Emphasize present and often do more than one

thing at a time


35/53


Time orientation. (cont.)

Monochronic cultures.

Linear view of time.

Past is gone, the present is here briefly and futureis almost upon us

Create pressure for action and performance.

People appreciate schedules and appointments,

talk about saving and wasting time

Long-range goals and planning is a way for

managing future

Pop lar Dimensions of C lt re


36/53

Popular Dimensions of 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.

Personal space can be thought of as the bubble thatsurround us

Arabs and south Americans shorter distance North Americans greater distance

Asians even further than North Americans

Space is arranged differently in different cultures.

In Polychronic cultures space is arranged in such a way thatmany activities can takes place at a time ( Italian andSpanish towns are arranged around central squaresPlazas)

In Monochronic cultures ( America) towns have traditionalmain street laid out in linear fashion


37/53


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.

V l d N ti l C lt


38/53

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.


39/53

Values and National Culture

Power distance.

The willingness of a culture to accept status

and power differences among members.

Respect for hierarchy and rank inorganizations.

Example of a high power distance culture

Indonesia. Example of a low power distance culture

Sweden.


40/53


Uncertainty avoidance.

The cultural tendency toward discomfort with

risk and ambiguity.

Preference for structured versus unstructuredorganizational situations.

Example of a high uncertainty avoidance

culture France. Example of a low uncertainty avoidance

culture Hong Kong.


41/53


Individualism-collectivism.

The cultural tendency to emphasize individual

or group interests.

Preferences for working individually or ingroups.

Example of an individualistic culture United

States. Example of a collectivist culture Mexico.


42/53


Masculinity-femininity.

The tendency of a culture to value

stereotypical masculine or feminine traits.

Emphasizes competition/assertiveness versusinterpersonal sensitivity/relationships.

Example of a masculine culture Japan.

Example of a feminine culture Thailand.


43/53


Long-term/short-term orientation.

The tendency of a culture to emphasizefuture-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.


44/53

Understanding Cultural Differences


45/53

Understanding Cultural Differences 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.

It is parochial for a traveling American business

man to insist that all his business contacts speak

English

It is ethnocentric for him to think that any onewho dines with a spoon instead of knife and fork

lacks proper table manners

Understanding Cultural Differences


46/53

Understanding Cultural Differences A frame work developed by Fons Trompenaar

offers a vantage point in understanding and

dealing with cultural differences

He suggests that culture varies the way its

members solve problems of three major types

1. Relationship with people2. Attitudes towards time

3. Attitudes towards the environment

Trompenaar identifies five major culturaldifferences in how people handle relationships

with other people


47/53

Trompenaars Cultural DimensionsUniversalism Versus Particularism

Universalism: ideas and practices and practices can be applied every where without

modification

Particularism: Circumstances dictate how ideas and practices should be applied.

Universalism Particularism

Emphasize and guided by strict

rules and legal contracts

United States, European Countries

Lets get down to business attitude

and not deviate from regulations

Focus more on personal relationship

and trust rather than formal rules and

contracts

Republics of former soviet union,

Asian countries

Engage in small talk to get to know

each other, flexible and not rules get

in the way of what is right thing to do

between friends

Trompenaars Cultural Dimensions


48/53

Trompenaar s Cultural Dimensions

Individualism Versus Collectivism

Individualism Collectivism

People regarding themselves as individual People regarding themselves

as a part of group

Attribution Attributed greater personal

responsibility for success

and group responsibility for

failure

Attributed greater personal

responsibility for group failure

than success and accepted

greater personal responsibility

than individualistic managers

Self efficacy Individualistic subjects had

enhanced self efficacy and

displayed greater effort and

performance when their

training was directed

towards personal actions

and potential

Collectivist managers who took

part in individual oriented

training programs had lower

self-efficacy beliefs and

displayed lower performance

than their counterparts who took

part in group oriented training


49/53


Attributes Individualism Collectivism

Stress Bureaucratic /formal

structure more stressful

High level of stress

when faced with making

decisions themselves

Goal Setting and

Performance

Tendency towards

commitment to

individual goals

Tendency toward

commitment to goals

that serve the best

interest of the group,participative goal setting

yield better results

Relationship and

interpersonal criteria are

more salient features

T C lt l Di i


50/53


Neutral Versus Affective:

Neutral Culture: Emotions ate held in check and not outwardly

expressed ( Japan and British)

Affective Culture: Emotions are openly and outwardly expressed (Mexican, Dutch, Swiss). Tend to smile a great, talk loudly, greet other

enthusiastically

It should not be assumed that neutral culture are uninterested or

unmotivated because of their non-expressive demeanor, and vice versa.

In Communication and other interpersonal interactions, the nonverbal

and verbal cues have to be read differently in both the culture types

T C lt l Di i


51/53


Specific Versus Diffuse.

Specific Culture: Here individuals have a large public space where they readily letothers enter and share a small private space which they guard closely and share only

with close friends and associates ( United states, Austria, united Kingdom,

Switzerland)

Diffuse Culture: In this both the public space and private space are similar in size,

individuals guard their public space carefully because entry into public space afford entrinto private space ( Venezuela, China and Spain)

Individuals in specific cultures are open, extroverted, there is a strong separation of

work and private life.

Individuals in diffuse culture often appear indirect and introverted, work and private

life are often closely linked

In diffuse culture, outsiders should respect a persons title, age, and background

connections and should not get impatient when people are indirect or evasive

In Specific culture, outsiders should try to get to the point, minimize the titles, play

down achievements or skills not relevant to the situation

T C lt l Di i


52/53

Trompenaars Cultural DimensionsAchievement Versus Ascription

Achievement culture is one in which people are accorded status basedon how well they perform their functions ( Austria, USA, Switzerland,

Sweden, Germany)

Ascription culture is one in which status is accorded based on who or

what a person is. ( Venezuela, China, Japan)

Achievement cultures give high status to high achievers. Ascription

culture accord status based on age, gender, or social connections


53/53

general issues in organization behavior, o.b across cultures

Documents