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organizational behavior in a global context. Chapter 3. Michael A. Hitt C. Chet Miller Adrienne Colella. ?. Knowledge Objectives. Define globalization and discuss the forces that influence this phenomenon.
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organizational behavior in a global context Chapter 3 Michael A. Hitt C. Chet Miller Adrienne Colella
? KnowledgeObjectives • Define globalization and discuss the forces that influence this phenomenon. • Discuss three types of international involvement by associates and managers and describe problems that can arise with each. • Explain how international involvement by associates and managers varies across firms. • Describe high-involvement management in the international arena, emphasizing the adaptation of this management approach to different cultures. • Identify and explain the key ethical issues in international business.
Globalization Trend toward a unified global economy where national borders mean relatively little.
Culture • Shared values and assumptions that govern acceptable behavior and thought patterns in a country.
Growth Political Risks Diversification of Risk Economic Risks Opportunities Challenges Economiesof Scale Location Advantages Managerial Risks Opportunities and Challenges Exhibit 3-1: Opportunities and Challenges for Firms with International Involvement
Internationally Focused Jobs • Thrive on challenge • Geographically dispersed teams • Rely heavily on electronically mediated communication • Virtual electronic teams • Develop trust quickly • Swift trust
Learning About a Counterpart’s Culture Adapted from Exhibit 3-2: Learning about a Counterpart’s Culture Don’t try to identify another’s culture too quickly. Beware of the Western bias toward taking actions. Avoid formulating simple perceptions of others’ cultural values. Don’t assume your values are the best for the organization. Recognize that norms for interacting with outsiders may differ from those between compatriots. Be careful in making assumptions about cultural values and expected behaviors based on published dimensions of a person’s national culture.
Foreign Job Assignments Expatriate Individual who leaves his/her home country to live and work in a foreign land.
Training Expatriates • Convince its important • Train entire family • Predeparture orientation • Key cultural information • Conversational language training • Consider additional training after arrival • Language • Cultural exposure • Host-country support
Foreign Job Assignments Culture Shock Stress involving difficulties coping with the requirements of life in a new country.
Foreign Job Assignments Ethnocentrism Belief that one’s culture is better than others.
Foreign Job Assignments Glass Border Unseen but strong discriminatory barrier blocking many women from international assignments.
Cross-cultural Working Relationships High-context Cultures Low-context Cultures Rely on direct questioning to understand people and their communications Value efficiency and performance • Use contextual cues to understand people and their communications • Value trust and personal relationships
Cross-culturalWorking Relationships Monochronic Time Orientation Polychronic Time Orientation Willing to juggle multiple tasks per unit of time Accept interruptions and unwilling to be driven by time • Prefer to focus on one task per unit of time • Complete that task in a timely fashion
Cultural Intelligence • Ability to separate aspects of behavior based in culture versus unique to individuals or humans in general.
Dimensions of National Culture Power Distance Individualism Uncertainty Avoidance Assertiveness National Culture Humane Orientation In-group Collectivism Gender Egalitarianism Performance Orientation Future Orientation Exhibit 3-4: Dimensions of National Culture
National Cultures L – Low M – Medium H – High Adapted from Exhibit 3-5: National Culture in India, Germany, and the United States
Ethics and Globalization • International Ethics • Principles of proper conduct focused on issues such as corruption, exploitation of labor, and environmental impact.
Absence of Corruption Rankings Top Five Bottom Five Somalia Afghanistan Myanmar Sudan Iraq • New Zealand • Denmark • Singapore • Sweden • Switzerland Adapted from Exhibit 3-6: Absence of Corruption in Select Countries
Strategic lens • Given the complexity and challenges in operating in foreign countries, why do organizations enter international markets? • How can understanding and managing cultural diversity among associates contribute positively to an organization’s performance? • How can being knowledgeable of diverse cultures enhance an individual’s professional career? Check out http://wileymanagementupdates.com/ for daily articles related to management in the news .