GLOBAL ORGANIZATIONAL BEHAVIORCharacteristics needed to develop a global mindset:- Intellectual Capital : Knowledge of international business and ability to learn, characterized by a global business savvy, cognitive complexity, and cosmopolitanoutlook- Psychological capital : Openness to other cultures and willingness to change, characterized by a passion for diversity, thirst for adventure, and self-assurance- Social Capital : Ability to form connections and bring people together, characterized by intercultural empathy, interpersonal impact, and diplomacy *Increases individual and organizational value in short and long termSocietal 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 managersEthnocentrism: 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 keypositions 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—travelCultural 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 53countriesHofstede’s Cultural Dimensions—Cultures (and people) can be characterized using FOUR basic dimensions related to cultural beliefs- Power distance: the extent to which people in a culture are comfortable with differences in power. o In every cultureo United States has low power distanceo Think of ANOVA—variation in set of observations divided into distinct components- Individualism—Collectivism: People within the culture tend to think in the individual vs. the collective—see the GLOBE model- Masculinity—Femininity : competitive, cutthroat side dominates vs. nurturing sideo Assertiveness vs. Nurturing- Uncertainty Avoidance : to what extent do people in a culture want to avoid uncertainty?- Short-term v. Long-term orientation: a fundamental difference in Eastern and Western cultureo Ex: Will you save or spend your money?o Western cultures tend to be short-term while Eastern cultures tend to be long-termProject 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 modelo 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 Dimensions1. Power Distance: Extent to which power is distributed equally or not2. Uncertainty Avoidance: Extent of comfort with uncertainty/ambiguity3. Institutional Collectivism: Extent of reward for individual vs. group focusa. Individualistic cultures : “I” and “me” cultures, give priority to individual freedom and choiceb. Collectivist cultures : “we” and “us” cultures, rank shared goals higher than individual desires and goals4. In-group Collectivism: Extent of an individual’s pride/loyalty for the larger group5. Gender Egalitarianism: Extent of gender discrimination/role inequality6. Assertiveness: Extent of confrontation/attempt to control in relationships7. Future Orientation: Extent of focus on the future vs. the present8. Performance Orientation: Extent to which performance is rewarded9. Humane orientation: Extent to which kindness, generosity, etc. is rewardedOther Notable Cultural Differences- Communication: High Context—Low Contexto High context cultures : rely heavily on situational cues for meaning when perceiving and communicating with others 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 culturesLow 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 conceptso Monochronic : time is revealed in the ordered, precise, schedule-driven useof 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 wasteo 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 ReligionExpatriates (anyone living and/or working outside of their home country)US expats often fail and leave job early due to job dissatisfactionBecoming less of an issue because technology is allowing for more interaction availability Individual’s spouse/significant other cannot adapt to the new situationo 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
View Full Document
Unlocking...