Organization Development inGlobal Settings

» The rapid development of foreign economies » The increasing worldwide availability of

technical and financial resources» The emergence of a global economy

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» Context» Power Distance» Uncertainty Avoidance» Achievement Orientation» Individualism

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» 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

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» 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

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» 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

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» 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 support clear sex roles

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» 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, and accept competition

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Cultural Fit with OD PracticeHighLow

Moderate

High

Lev

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f E

con

omic

D

evel

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ent

IndiaSouth Africa

United Kingdom Scandinavia

USA

Central America Eastern EuropeAsia

South Pacific South America Middle East

» Offer products or services worldwide» Balance product and functional concerns with

geographic issues» Coordination must address complex personnel

and cross-cultural issues» Its competitive position in one national market is

affected by its global integration and local responsiveness

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Global

OrientationTransnational Orientation

International Orientation

Multinational Orientation

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High

Need for GlobalIntegration

Low

Low Need for Local ResponsivenessHigh

» 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

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» The International» The Global Orientation» The Multinational Orientation» The Transnational Orientation

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» 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

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» 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

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» Characteristics of the Multinational Design˃ Operate a decentralized organization˃ Goals 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

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» 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

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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 21-18

» 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 21-19

» Bridging Role» Stewardship Role» Communication Skills» Negotiation Skills» Networking Skills

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