Organizational Behavior 9E Schermerhorn Hunt and Osborn Prepared

Organizational Behavior, 9/E Schermerhorn, Hunt, and Osborn Prepared by Michael K. Mc. Cuddy Valparaiso University John Wiley & Sons, Inc. Organizational Behavior: Chapter 3

Chapter 3 Study Questions Ø Why is globalization significant for organizational behavior? Ø What is culture and how can we understand cultural differences? Ø How does cultural diversity affect people at work? Ø What is a global view on organizational learning? Organizational Behavior: Chapter 3 2

Study Question 1: Why is globalization significant for organizational behavior? Ø Most organizations must achieve high performance within a complex and competitive global environment. Ø Globalization refers to the complex economic networks of international competition, resource suppliers, and product markets. Organizational Behavior: Chapter 3 3

Study Question 1: Why is globalization significant for organizational behavior? 1. 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. Organizational Behavior: Chapter 3 4

Study Question 1: Why is globalization significant for organizational behavior? Ø Globalization is contributing to the emergence of regional economic alliances. Ø Important regional alliances. – European Union (EU). – North American Free Trade Agreement (NAFTA). – Asia-Pacific Economic Co-operation Forum (APEC). Organizational Behavior: Chapter 3 5

Study Question 1: Why is globalization significant for organizational behavior? Ø Outsourcing. – Contracting out of work rather than accomplishing it with a full-time permanent workforce. Ø Off shoring. – Contracting out work to persons in other countries. Ø Job migration. – Movement of jobs from one location or country to another. Organizational Behavior: Chapter 3 6

Study Question 1: Why is globalization significant for organizational behavior? Ø 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. Organizational Behavior: Chapter 3 7

Study Question 1: Why is globalization significant for organizational behavior? Ø 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. Organizational Behavior: Chapter 3 8

Study Question 2: What is culture and how can we understand cultural differences? Ø 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. Organizational Behavior: Chapter 3 9

Study Question 2: What is culture and how can we understand cultural differences? 1. 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. Organizational Behavior: Chapter 3 10

Study Question 2: What is culture and how can we understand cultural differences? Ø 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. Organizational Behavior: Chapter 3 11

Study Question 2: What is culture and how can we understand cultural differences? Ø 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. Organizational Behavior: Chapter 3 12

Study Question 2: What is culture and how can we understand cultural differences? Ø 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. Organizational Behavior: Chapter 3 13

Study Question 2: What is culture and how can we understand cultural differences? Ø 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. Organizational Behavior: Chapter 3 14

Study Question 2: What is culture and how can we understand cultural differences? Ø 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. Organizational Behavior: Chapter 3 15

Study Question 2: What is culture and how can we understand cultural differences? Ø 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. Organizational Behavior: Chapter 3 16

Study Question 2: What is culture and how can we understand cultural differences? Ø 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. Organizational Behavior: Chapter 3 17

Study Question 2: What is culture and how can we understand cultural differences? 1. Long-term/short-term orientation. – The tendency of a culture to emphasize futureoriented 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. Organizational Behavior: Chapter 3 18

Study Question 2: What is culture and how can we understand cultural differences? Organizational Behavior: Chapter 3 19

Study Question 2: What is culture and how can we understand cultural differences? Ø 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. Organizational Behavior: Chapter 3 20

Study Question 2: What is culture and how can we understand cultural differences? Organizational Behavior: Chapter 3 21

Study Question 2: What is culture and how can we understand cultural differences? Ø 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. Organizational Behavior: Chapter 3 22

Study Question 2: What is culture and how can we understand cultural differences? Ø 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. Organizational Behavior: Chapter 3 23

Study Question 2: What is culture and how can we understand cultural differences? Ø Cultural differences in handling relationships with other people (cont. ). – Achievement versus prescription. • Relative emphasis on performance-based and earned status, or on ascribed status. Organizational Behavior: Chapter 3 24

Study Question 2: What is culture and how can we understand cultural differences? Ø 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. Organizational Behavior: Chapter 3 25

Study Question 2: What is culture and how can we understand cultural differences? Ø 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. Organizational Behavior: Chapter 3 26

Study Question 3: How does cultural diversity affect people at work? 1. 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. Organizational Behavior: Chapter 3 27

Study Question 3: How does cultural diversity affect people at work? Ø 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. Organizational Behavior: Chapter 3 28

Study Question 3: How does cultural diversity affect people at work? Organizational Behavior: Chapter 3 29

Study Question 3: How does cultural diversity affect people at work? Ø 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. Organizational Behavior: Chapter 3 30

Study Question 3: How does cultural diversity affect people at work? Organizational Behavior: Chapter 3 31

Study Question 3: How does cultural diversity affect people at work? 1. 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. Organizational Behavior: Chapter 3 32

Study Question 4: What is a global view on organizational learning? Ø Organizational learning. – The process of acquiring the knowledge necessary to adapt to a changing environment. Ø Global organizational learning. – The ability to gather from the world at large the knowledge required for long-term organizational adaptation. Organizational Behavior: Chapter 3 33

Study Question 4: What is a global view on organizational learning? Ø Are management theories universal? – Answer is “no. ” – Cultural influences should be carefully considered in transferring theories and their applications across cultures. Organizational Behavior: Chapter 3 34

Study Question 4: What is a global view on organizational learning? Ø 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. Organizational Behavior: Chapter 3 35

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