organization development and change

Organization Development and Change

Thomas G. CummingsChristopher G. Worley

Chapter Twenty Three:Organization Development

In Global Settings

Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing 23-2

Learning Objectivesfor Chapter Twenty Three

To explore the differences in OD applications in a cross-cultural context.

To understand the cultural values that might impact OD applications in other societies

To examine how OD can best be applied in worldwide firms and global social change organizations


Growth of OD in Global Settings

The rapid development of foreign economies The increasing worldwide availability of

technological and financial resources The emergence of a global economy


Cultural Context

Context Orientation Power Distance Uncertainty Avoidance Achievement Orientation Individualism


Context The extent to which meaning in

communication is carried in the words Organizations in high context cultures tend

to value ceremony and ritual, the structure is less formal, there are fewer written policies, and people are often late for appointments


Power Distance Extent to which members of a society accept

that status and power are distributed unequally in an organization

Organizations in these cultures tend to be autocratic, possess clear status differences, and have little employee participation


Uncertainty Avoidance The extent to which members of a society

tolerate the unfamiliar and unpredictable

Organizations in these cultures tend to value experts, prefer clear roles, avoid conflict, and resist change


Achievement Orientation The extent to which people in a society value

assertiveness and the acquisition of material goods

Organizations in these cultures tend to associate achievement with wealth and recognition, value decisiveness, and gender roles are clearly differentiated.


Individualism The extent to which people in a society

believe they should be responsible for themselves and their immediate family

Organizations in these cultures tend to encourage personal initiative, value time and autonomy, accept competition, and autonomy is highly valued


Economic Development Subsistence Economies

Primarily agriculture-based Industrializing Economies

Moderately developed and tend to be rich in natural resources

Industrial EconomiesHighly developed and emphasize nonagricultural

industry


Cultural and Economic Contexts of International OD Practice

Cultural Fit with OD PracticeHighLow

Moderate

High

Leve

l of E

cono

mic

D

evel

opm

ent

IndiaSouth Africa

United Kingdom Scandinavia

USA

Central America Eastern EuropeAsia

South Pacific South America Middle East


Worldwide Strategic Orientations Offer products/services in more than one

country Balance product and functional concerns with

geographic issues of distance, time, and culture

Carry out coordinated activities across cultural boundaries using a wide variety of personnel


The Integrative-Responsiveness Framework

Global Orientation

Transnational Orientation

International Orientation

Multinational Orientation

High

Need for GlobalIntegration

Low

Low Need for Local ResponsivenessHigh


Interventions for Worldwide Strategic Orientations

The International The Global Orientation The Multinational Orientation The Transnational Orientation


International Strategic Orientation Characteristics of the International Design

Sell existing products/services to nondomestic markets

Goals of increased foreign revenues Implementing the International Orientation

OD facilitates extending the existing strategy into the new market

Cross-cultural training and strategic planning


The Global Strategic Orientation Characteristics of the Global Design

Centralized with a global product structure Goals of efficiency through volume

Implementing the Global Orientation OD supports career planning, role clarification,

employee involvement, conflict management and senior management team building to help achieve improved operational efficiency

OD helps the organization transition to global integration from local responsiveness


The Multinational Strategic Orientation

Characteristics of the Multinational DesignOperate a decentralized organizationGoals of local responsiveness through

specialization Implementing the Multinational Orientation

OD helps with intergroup relations, local management selection and team building

OD facilitates management development, reward systems, and strategic alliances


Transnational Strategic Orientation

Characteristics of the Transnational Design Tailored products Goals of learning and responsiveness through integrations

Implementing the Transnational Orientation Extensive selection and rotation Acquire cultural knowledge and develop intergroup

relations Build corporate vision


Global Social Change Organizations

Their primary task is a commitment to serve as an agent of change in the creation of environmentally and socially sustainable world futures

They have discovered and mobilized innovative social-organizational architectures

They hold values of empowerment in the accomplishment of their global change mission

They are globally-locally linked in structure, membership, or partnership and thereby exist as entities beyond the nation-state

They are multi-organizational and often cross-sectoral


Application Stages of Global Social Change Organizations

Build the local organization Using values to create the vision Recognizing that internal conflict is often a function of external

conditions Understanding the problems of success

Create horizontal linkages Build a network of local organizations with similar views and

objectives Develop vertical linkages

Create channels of communication and influence upward to governmental and policy-level, decision-making processes


Global Social Change Organizations OD Roles and Skills

Stewardship Role Bridging Role Communication Skills Negotiation Skills Networking Skills

organization development and change

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society value assertiveness

value decisiveness