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OSU BA 352 - Organizational Behavior in a Global Context

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Chapter 3 Organizational Behavior in a Global ContextMcDonald’s Thinks Globally and Acts LocallyKnowledge ObjectivesForces of GlobalizationCultureOpportunities and ChallengesRisksInternationally Focused JobsLearning About a Counterpart’s CultureForeign Job AssignmentsTraining for ExpatriatesAfter ArrivalGlass BorderAre Asian Women Breaking the Glass Border?Foreign Nationals as ColleaguesContext CulturesTime OrientationCultural IntelligenceOpportunities for International ParticipationLocal ResponsivenessOrganizational DesignInternational ParticipationDimensions of National CultureNational CulturesManaging Diverse CulturesNational Culture and High-Involvement ManagementSlide 27Ethics in the International ContextAbsence of Corruption RankingsCaux Round Table: Ethical Principles for BusinessThe Strategic LensQuestions3-1Michael A. HittC. Chet MillerAdrienne ColellaChapter 3 Organizational Organizational Behavior in aBehavior in aGlobal ContextGlobal ContextSlides by Ralph R. Braithwaite3-2McDonald’s McDonald’s Thinks Globally andThinks Globally and Acts Locally Acts Locally•What are your thoughts on McDonald’s approach to international business?•What about their concept of thinking globally but acting locally. Why is it a good idea?•What can other businesses learn from McDonald’s example?Exploring Behavior in Action3-3Knowledge ObjectivesKnowledge Objectives1. Define globalization and discuss the forces that influence this phenomenon.2. Discuss three types of international involvement by associates and managers and describe problems that can arise with each.3. Explain how international involvement by associates and managers varies across firms.4. Describe high-involvement management in the international arena, emphasizing the adaptation of this management approach to different cultures.5. Identify and explain the key ethical issues in international business.3-4Forces of GlobalizationForces of GlobalizationGlobalization – The trend toward a unified global economy involving free trade and a free flow of capital between countries•Products, services, people, technologies, and financial capital move relatively freely across national borders•Tariffs, currency laws, travel restrictions, immigration restrictions, and other barriers to these international flows become less difficult to manage•Unified world market in which to sell products and services, and acquire resources3-5CultureCultureShared values and taken-for-granted assumptions that govern acceptable behavior and thought patterns in a country and that give a country much of its uniqueness.Thoughts?“Many fear that unique cultures around the world will disappear over time if the world becomes one unified market for goods and services.”3-6Opportunities and ChallengesOpportunities and ChallengesExhibit 3-1: Opportunities and Challenges for Firms with International InvolvementDiversification of RiskChallengesChallengesPolitical RisksPolitical RisksEconomic RisksEconomic RisksManagerial RisksManagerial RisksGrowthGrowthLocation AdvantagesLocation AdvantagesOpportunitiesOpportunitiesEconomiesof Scale3-7RisksRisksPolitical RisksEconomic RisksManagerial Risks3-8Internationally Focused JobsInternationally Focused JobsIndividual IssuesVirtual TeamsSwift TrustWell suited to associates who thrive on challengeTypically member of geographically dispersed teams3-9•Don’t attempt to identify another’s culture too quickly•Beware of the Western bias toward taking actions•Avoid the tendency to formulate simple perceptions of others’ cultural values•Don’t assume that your values are the best for the organization•Recognize that norms for interactions involving outsiders may differ from those for interactions between compatriots•Be careful about making assumptions regarding cultural values and expected behaviors based on the published dimensions of a person’s national cultureAdapted from Exhibit 3-2: Learning about a Counterpart’s CultureLearning About a Learning About a Counterpart’s CultureCounterpart’s Culture3-10Foreign Job AssignmentsForeign Job AssignmentsExpatriatesExpatriatesCulture ShockCulture ShockEthnocentrismEthnocentrismSpousal Spousal AdjustmentAdjustmentBuilding RelationshipsBuilding RelationshipsAdjusting to Local CultureAdjusting to Local CultureDeveloping a Feeling of Developing a Feeling of Being at HomeBeing at HomeEffectivenessat3-11Training for ExpatriatesTraining for Expatriates•Train the entire family, if there is one•Departure orientation•Key cultural information•Conversational language training•Convince busy families of need for training3-12After ArrivalAfter Arrival•Additional training•Continued language training•Social support•Reintegration process3-13Glass BorderGlass Border•Historically, fewer international assignments for women•Results in issues of development and knowledge for higher-level jobs•Impact on human capital3-14ExperiencingStrategic OBAre Asian Women Breaking the Are Asian Women Breaking the Glass Border?Glass Border?•What role do cultural values and traditions still play in the Asian business world?•Are more Asian women taking on leadership roles? How will this impact business in the future?•What are the potential negative consequences for Asian companies that do not make the best use of all their human capital?3-15Foreign Nationals as ColleaguesForeign Nationals as ColleaguesSome issues involve different:ValuesValuesWays of ThinkingWays of ThinkingNormsNormsThought PatternsThought PatternsWorking StylesWorking StylesDecision StylesDecision Styles3-16Context CulturesContext CulturesHigh-context culture•Value personal relationships•Develop agreements based on trust•Favor slow, ritualistic negotiationsLow-context culture•Value performance and expertise•Develop formal agreements•Engage in efficient negotiationsJapan South Korea GermanyUnited States3-17Time OrientationTime OrientationMonochronic•Prefer to do one task in a give time period•Dislike multi-tasking•Prefer to do one task without interruption•Prompt, schedule driven and time-focusedPolychronic •Comfortable doing more than one task at a time•Not troubled by interruptions•Time is less of a guiding force•Plans are flexibleLatin AmericaSouthern EuropeSouth AsiaSoutheast AsiaNorth AmericaNorthern EuropeMany Japanese3-18Cultural IntelligenceCultural IntelligenceThe ability to separate the aspects of behavior that are based in culture as opposed


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OSU BA 352 - Organizational Behavior in a Global Context

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