Organization Development and Change
Chapter Twenty Three :
Organization Development
In Global Settings
Thomas G. Cummings
Christopher G. Worley
Learning Objectives
for 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

HS 23-2
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
HS 23-3
Cultural Context
Context Orientation
Power Distance
Uncertainty Avoidance
Achievement Orientation
Individualism
HS 23-4
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

HS 23-5
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

HS 23-6
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
HS 23-7
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.
HS 23-8
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
HS 23-9
Economic Development
Subsistence Economies
Primarily agriculture-based
Industrializing Economies

Moderately developed and tend to be rich in
natural resources
Industrial Economies
Highly developed and emphasize
nonagricultural industry

HS 23-10
Cultural and Economic Contexts of
International OD Practice
Low
Level of Economic
Development
Moderate
High
Cultural Fit with OD Practice
South Pacific
South America
Middle East
Central America
Eastern Europe
Asia
High
India
South Africa
United Kingdom
Scandinavia
USA
HS 23-11
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
HS 23-12
The Integrative-Responsiveness
Framework
Need for Global
Integration
High
Global
Orientation
Transnational
Orientation
International
Orientation
Multinational
Orientation
Low
Low
Need for Local Responsiveness
High
HS 23-13
Interventions for Worldwide
Strategic Orientations
The International
The Global Orientation
The Multinational Orientation
The Transnational Orientation
HS 23-14
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
HS 23-15
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
HS 23-16
The Multinational
Strategic Orientation


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
HS 23-17
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
HS 23-18
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
HS 23-19
Application Stages of
Global Social Change Organizations

Build the local organization




Create horizontal linkages


Using values to create the vision
Recognizing that internal conflict is often a function of external conditions
Understanding the problems of success
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
HS 23-20
Global Social Change Organizations
OD Roles and Skills
Stewardship Role
Bridging Role
Communication Skills
Negotiation Skills
Networking Skills
HS 24-21
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