Ch03

Organizational Organizational Behavior, 9/EBehavior, 9/E

Schermerhorn, Hunt, and Schermerhorn, Hunt, and OsbornOsborn

Prepared by

Michael K. McCuddy

Valparaiso University

John Wiley & Sons, Inc.

Organizational Behavior: Chapter 3 2

Chapter 3 Study Questions

Why is globalization significant for organizational behavior?

What is culture and how can we understand cultural differences?

How does cultural diversity affect people at work?

What is a global view on organizational learning?


Study Question 1: Why is globalization significant for organizational behavior?

Most organizations must achieve high

performance within a complex and competitive

global environment.

Globalization refers to the complex economic

networks of international competition, resource

suppliers, and product markets.



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.



Globalization is contributing to the emergence of regional economic alliances.

Important regional alliances.– European Union (EU).– North American Free Trade Agreement

(NAFTA). – Asia-Pacific Economic Co-operation Forum

(APEC).



Outsourcing. – Contracting out of work rather than accomplishing it

with a full-time permanent workforce.

Off shoring. – Contracting out work to persons in other countries.

Job migration. – Movement of jobs from one location or country to

another.



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.


Study Question 1: Why is globalization significant for organizational behavior?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.


Study Question 2: What is culture and how can we understand cultural differences?

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.



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.



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.



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.



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.



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.



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.



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.



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.



Long-term/short-term orientation.– The tendency of a culture to emphasize future-

oriented 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.





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.





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.



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.



Cultural differences in handling relationships with other people (cont.).– Achievement versus prescription.

• Relative emphasis on performance-based and earned status, or on ascribed status.



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.



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.


Study Question 3: How does cultural diversity affect people at work?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.


Study Question 3: How does cultural diversity affect people at work?

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.




Study Question 3: How does cultural diversity 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.• Business support of repressive governments.• Sweatshops.





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.


Study Question 4: What is a global view on organizational learning?Organizational learning.

– The process of acquiring the knowledge

necessary to adapt to a changing

environment.

Global organizational learning.

– The ability to gather from the world at large

the knowledge required for long-term

organizational adaptation.


Study Question 4: 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.


Study Question 4: What is a global view on organizational learning?

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.


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