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International Issues of OB

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7 views22 pages

International Issues of OB

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© © All Rights Reserved
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Organizational Behavior in a

Global Context
Dr Suman

3-1
McDonald’s
Thinks Globally and
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 Action 3-2


Forces of Globalization
Globalization – 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 resources

3-3
Culture
Shared 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.
“Many fear that unique cultures around the world will
disappear over time if the world becomes one unified
market for goods and services.”

Thoughts?

3-4
Opportunities and Challenges
Political
Political Growth
Growth
Risks
Risks

Diversification
of Risk

Economic
Economic Challenges
Challenges Opportunities
Opportunities
Risks
Risks

Economies
of Scale

Managerial Location
Location
Managerial
Risks Advantages
Advantages
Risks

Exhibit 3-1: Opportunities and Challenges for Firms with International Involvement 3-5
Internationally Focused Jobs

Individual Issues

Virtual Teams

Rapid Trust

3-6
Learning About a
International Culture
• 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 may differ
• Be careful about making assumptions regarding
cultural values and expected behaviors

3-7
Foreign Job Assignments

Expatriates Culture Shock

Building Relationships
Spousal Effectiveness Adjusting to Local Culture
Adjustment at
Developing a Feeling of
Being at Home
3-8
Training for Expatriates

• Train the entire


family, if there is one
• Departure orientation
• Key cultural
information
• Conversational
language training
• Convince busy
families of need for
training

3-9
After Arrival
• Additional training
• Continued language training
• Social support
• Reintegration process

3-10
Foreign Nationals as Colleagues
Some issues involve different:

Values Ways of Thinking

Norms Thought Patterns

Working Styles Decision Styles

3-11
Time Orientation
Monochronic Polychronic
• Prefer to do one task in • Comfortable doing more
a give time period than one task at a time
• Dislike multi-tasking • Not troubled by
• Prefer to do one task interruptions
without interruption • Time is less of a guiding
• Prompt, schedule force
driven and time- • Plans are flexible
focused
Latin America
North America
Southern Europe
Northern Europe
South Asia
Many Japanese
Southeast Asia

3-12
Ethics in the International
Context
Principles of proper conduct focused on issues
such as:

Exploitation Environmental
Corruption
of Labor Impact

3-13
Absence of Corruption Rankings
Top Five Bottom Five
1. Iceland 155. Turkmenistan
2. Finland 155. Myanmar
2. New Zealand 155. Haiti
4. Denmark 158. Bangladesh
5. Singapore 158. Chad

United States
17

Adapted from Exhibit 3-6: Absence of Corruption in Select Countries 3-14


Organisational effectiveness
• Organisational effectiveness constitutes
the ability of an organisation to achieve its
pre-defined goals and objectives with the
available re- sources.

3-15
HISTORICAL OPINIONS ABOUT
ORGANIZATIONAL EFFECTIVENESS

1. FREDERICK TAYLOR
2. HENRI FAYOL
3. ELTON MAYO

3-16
FREDERICK TAYLOR

Effectiveness was determined by factors such as production


maximization, cost minimization, technological excellence, etc.

3-17
HENRI FAYOL

Effectiveness is A function of clear authority and discipline within an


Organization

3-18
ELTON MAYO

Effectiveness Is A Function Of Productivity Resulting From


Employee Satisfaction

3-19
Levels of Organizational
effectiveness
• Individual level: This level lays emphasis on the performance of tasks by
each employee. Effectiveness of an individual depends on his/her skills,
knowledge, attitude and motivation. To assess an individual effectiveness,
organisations use performance appraisal.
• Group level: In an organisation, employees work in groups to achieve
organisational goals and objectives. Thus, it is necessary for an
organisation to assess group effectiveness by evaluating the ability of each
member of a group to achieve organisational goals and objectives
• Organisational level: This level considers both individual and group
effectiveness. To achieve organisational effectiveness, a synergy among all
employees needs to be created. Organisational effectiveness is assessed
on the basis of sales volume, productivity, labour turnover

3-20
3-21
APPROACHES TO MEASURING
ORGANIZATIONAL EFFECTIVENESS

• Goal Approach: Effectiveness is the ability to


excel at one or more output goals.
• Internal Process Approach: Effectiveness is the
ability to excel at internal efficiency,
coordination, motivation, and employee
satisfaction.
• System Resource Approach: Effectiveness is
the ability to acquire scarce and valued
resources from the environment.

3-22

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