Organizational
Behavior, 8e
Schermerhorn, Hunt, and
Osborn
Prepared by
Michael K. McCuddy
Valparaiso University
John Wiley & Sons, Inc.
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Organizational Behavior: Chapter 3
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Chapter 3
Global Dimensions of
Organizational Behavior
 Study questions.
– Why is globalization significant to
organizational behavior?
– What is culture?
– How does globalization affect people at work?
– What is a global view on organizational
learning?
Organizational Behavior: Chapter 3
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Why is globalization significant to
organizational behavior?
 Most organizations must achieve high
performance within a complex and
competitive global environment.
Organizational Behavior: Chapter 3
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Why is globalization significant to
organizational behavior?
 Globalization involves complex economic
networks of competition, resource supplies,
and product markets transcending national
boundaries and circling the globe.
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Why is globalization significant to
organizational behavior?
 A global economy.
– Information technology and electronic
communications have:
• Promoted a global economy.
• Created Internet business opportunities.
– Transnational movement of products, trends,
values, and innovations.
– Multicultural workforces.
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Why is globalization significant to
organizational behavior?
 Regional economic alliances.
– European Union (EU).
– North American Free Trade Agreement
(NAFTA).
– Caribbean Community (CARICOM).
– Andean Pact.
– Asia-Pacific Economic Co-operation Forum
(APEC).
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Why is globalization significant to
organizational behavior?
 Global quality standards.
– ISO designation for quality standards.
– ISO framework for quality assurance
worldwide.
– ISO certification is important for doing
business in Europe and developing a
reputation as a “world-class” manufacturer.
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Why is globalization significant to
organizational behavior?
 Global managers.
– A global manager is someone who knows how
to conduct business across borders.
– The global manager:
• Is often multilingual.
• Thinks with a world view.
• Appreciates diverse beliefs, values, behaviors, and
practices.
• Is able to map strategy in light of the above.
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Why is globalization significant to
organizational behavior?
 Challenges facing global managers.
– Managers’ styles and attitudes may not work
well overseas.
– A global mindset is required in order to avoid
failure.
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What is culture?
 Culture is the learned, shared way of doing
things in a particular society.
 Culture helps to define the boundaries
between different groups and affect how
their members relate to one another.
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What is culture?
 Popular dimensions of culture include:
– Language.
– Time orientation.
– Use of space.
– Religion.
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What is 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 — use words to convey
only a limited part of the message.
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What is culture?
 Time orientation.
– Polychronic cultures.
• Circular view of time.
• Does not create pressure for immediate action or
performance.
• Emphasis on the present.
– Monochronic cultures.
• Linear view of time.
• Creates pressure for action and performance.
• Long-range goals and planning are important.
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What is 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.
– Space is arranged differently in different
cultures.
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What is culture?
 Religion.
– A major element of culture.
– Can be a very visible aspect of culture.
– Often prescribes specific behavioral practices.
– Influences codes of ethics and moral behavior.
– Influences conduct of economic matters.
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What is culture?
 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.
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What is culture?
 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.
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What is culture?
 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.
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What is culture?
 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.
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What is culture?
 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.
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What is culture?
 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.
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What is culture?
 Values and national culture.
– Hofstede’s five dimensions of national culture
are:
• Interrelated.
• Not independent.
– Cultural dimensions typically cluster together.
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What is culture?
 Understanding cultural differences.
– Two problems in international dealings:
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.
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What is culture?
 The Trompenaars’ framework for
understanding cultural differences in the
way people solve problems regarding:
– Handling relationships with other people.
– Attitudes toward time.
– Attitudes toward the environment.
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What is culture?
 Cultural differences in handling
relationships with other people.
– Universalism versus particularism.
– Individualism versus collectivism.
– Neutral versus affective.
– Specific versus diffuse.
– Achievement versus prescription.
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What is culture?
 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.
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What is culture?
 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.
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How does globalization
affect people at work?
 Multinational employers.
– Multinational corporation (MNC).
• A business firm that has extensive international
operations in more than one foreign country.
– MNC characteristics.
• Missions and strategies are worldwide in scope.
• Has a total world view without allegiance to any
one national home.
• Has enormous economic power and impact.
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How does globalization
affect people at work?
 Multicultural workforces.
– Styles of leadership, motivation, decision
making, planning, organizing, and controlling
vary from country to country.
– Domestic multiculturalism.
• Describes cultural diversity within a specific
national population.
• Reflected in the workforces of local organizations.
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How does globalization
affect people at work?
 Expatriate work assignments.
– 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.
• Greatest problems occur when entering and
working in a foreign culture and upon return home.
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How does globalization
affect people at work?
 Expatriate work assignments — cont.
– Phases of expatriate adjustment to a new
country.
• Tourist stage — the expatriate enjoys discovering
the new culture.
• Disillusionment stage — the expatriate’s mood is
dampened as difficulties become more evident.
• Culture shock — confusion, disorientation, and
frustration in the ways of the local culture and
living in the foreign environment set in.
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How does globalization
affect people at work?
 Expatriate work assignments — cont.
– Considerations in reentry to home country.
• Expatriates should maintain adequate contact with
home office during overseas assignment.
• Employers should provide support for reentry
move.
• Employers should identify any new skills and
abilities acquired during overseas experience, and
make commensurate job assignments.
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How does globalization
affect people at work?
 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.
• Support of repressive governments.
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How does globalization
affect people at work?
 Ethical behavior across cultures — cont.
– Cultural relativism.
• The position that there is no universal moral
standard.
• Ethical behavior is determined by cultural context.
– Ethical absolutism.
• The position that there is a single moral standard
that fits all situations.
• Ethical behavior transcends cultural context.
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What is a global view on
organizational learning?
 Global organizational learning.
– The ability to gather from the world at large
the knowledge required for long-term
organizational adaptation.
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What is a global view on
organizational learning?
 Are management theories universal?
– Answer is “no.”
– Cultural influences should be carefully
considered in transferring theories and their
applications across cultures.
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What is a global view on
organizational learning?
 Best practices around the world.
– What is being done well elsewhere may be of
great value at home.
– Best practices no longer mainly North
American or European.
– Best practices can be found throughout the
world.
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