International Issues of OB
International Issues of OB
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?
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
Building Relationships
Spousal Effectiveness Adjusting to Local Culture
Adjustment at
Developing a Feeling of
Being at Home
3-8
Training for Expatriates
3-9
After Arrival
• Additional training
• Continued language training
• Social support
• Reintegration process
3-10
Foreign Nationals as Colleagues
Some issues involve different:
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
3-15
HISTORICAL OPINIONS ABOUT
ORGANIZATIONAL EFFECTIVENESS
1. FREDERICK TAYLOR
2. HENRI FAYOL
3. ELTON MAYO
3-16
FREDERICK TAYLOR
3-17
HENRI FAYOL
3-18
ELTON MAYO
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
3-22