GLOBAL ORGANIZATIONAL BEHAVIOR Characteristics needed to develop a global mindset Psychological capital Knowledge of international business and ability to learn Intellectual Capital characterized by a global business savvy cognitive complexity and cosmopolitan outlook characterized by a passion for diversity thirst for adventure and self assurance characterized by intercultural empathy interpersonal impact and diplomacy Ability to form connections and bring people together Openness to other cultures and willingness to change Social Capital Increases individual and organizational value in short and long term Societal culture shared values norms identities and interpretations that result from common experiences of members of collectives that are transmitted over time shared amongst members Prescriptive or descriptive Organizational culture is a byproduct of this which in turn affects individual differences Influenced by economics technology politics law ethnicities and religion Merging societal and organizational cultures is a challenge for global managers Ethnocentrism the belief that one s native country culture language and modes of behavior are superior to all others has its roots in the dawn of civilization Natural similar to me effect Often due to lack of knowledge or experience Negatively impacts individual and organizational success Ethnocentric managers have a preference for putting home country people in key positions everywhere in the world and rewarding them more handsomely for work along with a tendency to feel that this group is more intelligent more capable or more reliable Greater awareness training exposure helps immensely travel Cultural Intelligence the ability to accurately interpret ambiguous cross cultural situations which is an important skill in today s workplace Must first develop emotional intelligence Hofstede conducted a unique cross cultural study on over 116 000 IBM employees in 53 countries Hofstede s Cultural Dimensions Cultures and people can be characterized using FOUR basic dimensions related to cultural beliefs the extent to which people in a culture are comfortable with Power distance differences in power o In every culture o United States has low power distance o Think of ANOVA variation in set of observations divided into distinct components Individualism Collectivism individual vs the collective see the GLOBE model Masculinity Femininity People within the culture tend to think in the competitive cutthroat side dominates vs nurturing side o Assertiveness vs Nurturing Uncertainty Avoidance to what extent do people in a culture want to avoid Short term v Long term orientation a fundamental difference in Eastern and o Ex Will you save or spend your money o Western cultures tend to be short term while Eastern cultures tend to be uncertainty Western culture long term Project GLOBE Global Leadership and Organizational Behavior Effectiveness massive ongoing research program to study the impact of cultural variables on leadership behaviors and organizational effectiveness More definition more grain Built off basis of Hofstede Most important difference is it assesses both values what should be and practices norms what is for each dimension Individualism Collectivism has been broken down from previous model o Do you see yourself as part of a large group society o In group collectivism do you see yourself as a part of a family or a large society 9 GLOBE Cultural Dimensions 1 Power Distance Extent to which power is distributed equally or not 2 Uncertainty Avoidance Extent of comfort with uncertainty ambiguity 3 Institutional Collectivism Extent of reward for individual vs group focus I and me cultures give priority to individual a Individualistic cultures freedom and choice b Collectivist cultures than individual desires and goals we and us cultures rank shared goals higher In group Collectivism Extent of an individual s pride loyalty for the larger group 4 5 Gender Egalitarianism Extent of gender discrimination role inequality 6 Assertiveness Extent of confrontation attempt to control in relationships 7 Future Orientation Extent of focus on the future vs the present 8 Performance Orientation Extent to which performance is rewarded 9 Humane orientation Extent to which kindness generosity etc is rewarded Other Notable Cultural Differences Communication High Context Low Context o High context cultures perceiving and communicating with others rely heavily on situational cues for meaning when Nonverbal cues such as one s official position status or family connections convey messages more powerfully than do spoken words Ex Chinese Japanese Korean Mexican Saudi Arabian cultures Low context cultures written and spoken words carry the burden of shared meanings example is detailed written contracts in North America US Canada Germany France Norway Sweden Time Orientation relative rather than absolute concepts o Monochronic time is revealed in the ordered precise schedule driven use of public time that typifies and even caricatures efficient Northern Europeans and North Americans Low context cultures tend to be on this time One thing at a time time is not something you can waste o Polychronic Time that is seen in the multiple and cyclical activities and concurrent involvement with different people in the Mediterranean Latin American and Arab cultures The more things a person tends to do at once the more polychromic they tend to be View time as flexible fluid and multidimensional Operate on the fly can always find the time Social Customs norms taboos Use of Space Religion Expatriates anyone living and or working outside of their home country US expats often fail and leave job early due to job dissatisfaction Becoming less of an issue because technology is allowing for more interaction availability Individual s spouse significant other cannot adapt to the new situation o Ex While you are immersed in GE culture they are immersed in local culture Cannot adapt to new surroundings Family problems children relatives etc Emotional immaturity inability to deal with others Inability to handle the new role and responsibilities Lack of necessary technical skills knowledge Lack of motivation willingness to learn new things Selection preparation and training are critical o Cross cultural Training CCT training that is focused on preparing employees for international assignments includes any activities aimed at enhancing the cultural awareness of employees to enable them to work
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