This document summarizes key points from Chapter 3 of the textbook "Organizational Behavior, 9th Edition" by Schermerhorn, Hunt, and Osborn. It discusses how globalization and cultural diversity impact organizational behavior. Specifically, it covers how globalization increases cultural diversity in workforces and affects areas like outsourcing. It also examines cultural dimensions like power distance, individualism vs collectivism, and time orientation. The document notes cultural diversity can introduce ethical challenges for multinational companies and stresses the importance of organizational learning from best practices worldwide.
2. Organizational Behavior: Chapter 3 2
Chapter 3 Study Questions
ďWhy is globalization significant for
organizational behavior?
ďWhat is culture and how can we
understand cultural differences?
ďHow does cultural diversity affect people
at work?
ďWhat is a global view on organizational
learning?
3. Organizational Behavior: Chapter 3 3
Study Question 1: Why is globalization
significant for organizational behavior?
ď Most organizations must achieve high
performance within a complex and competitive
global environment.
ď Globalization refers to the complex economic
networks of international competition, resource
suppliers, and product markets.
4. Organizational Behavior: Chapter 3 4
Study Question 1: Why is globalization
significant for organizational behavior?
ďForces of globalization.
â Rapid growth in information technology and
electronic communication.
â Movement of valuable skills and investments.
â Increasing cultural diversity.
â Implications of immigration.
â Increasing job migration among nations.
â Impact of multicultural workforces.
5. Organizational Behavior: Chapter 3 5
Study Question 1: Why is globalization
significant for organizational behavior?
ďGlobalization is contributing to the
emergence of regional economic alliances.
ďImportant regional alliances.
â European Union (EU).
â North American Free Trade Agreement
(NAFTA).
â Asia-Pacific Economic Co-operation Forum
(APEC).
6. Organizational Behavior: Chapter 3 6
Study Question 1: Why is globalization
significant for organizational behavior?
ďOutsourcing.
â Contracting out of work rather than accomplishing it
with a full-time permanent workforce.
ďOff shoring.
â Contracting out work to persons in other countries.
ďJob migration.
â Movement of jobs from one location or country to
another.
7. Organizational Behavior: Chapter 3 7
Study Question 1: Why is globalization
significant for organizational behavior?
ďGlobal managers.
â Know how to conduct business in multiple
countries.
â Are culturally adaptable and often
multilingual.
â Think with a worldview and are able to map
strategy in the global context.
â Have a global attitude.
â Have a global mindset.
8. Organizational Behavior: Chapter 3 8
Study Question 1: Why is globalization
significant for organizational behavior?
ďCulture.
â The learned, shared way of doing things in a
particular society.
â The âsoftware of the mind.â
â Helps define boundaries between different
groups and affects how their members relate to
one another.
â Cultural intelligence is the ability to identify,
understand, and act with sensitivity and
effectiveness in cross-cultural situations.
9. Organizational Behavior: Chapter 3 9
Study Question 2: What is culture and how can
we understand cultural differences?
ďLanguage.
â Perhaps the most visible aspect of culture.
â Whorfian hypothesis â considers language as
a major determinant of thinking.
â Low-context cultures â the message is
conveyed by the words used.
â High-context cultures â words convey only a
limited part of the message.
10. Organizational Behavior: Chapter 3 10
Study Question 2: What is culture and how can
we understand cultural differences?
ďTime orientation.
â Polychronic cultures.
⢠Circular view of time.
⢠No pressure for immediate action or performance.
⢠Emphasis on the present.
â Monochronic cultures.
⢠Linear view of time.
⢠Create pressure for action and performance.
⢠Long-range goals and planning are important.
11. Organizational Behavior: Chapter 3 11
Study Question 2: What is culture and how can
we understand cultural differences?
ďUse of space.
â Proxemics.
⢠The study of how people use space to
communicate.
⢠Reveals important cultural differences.
â Concept of personal space varies across
cultures.
â Space is arranged differently in different
cultures.
12. Organizational Behavior: Chapter 3 12
Study Question 2: What is culture and how can
we understand cultural differences?
ďReligion.
â A major element of culture.
â Can be a very visible aspect of culture.
â Influences codes of ethics and moral behavior.
â Influences conduct of economic matters.
13. Organizational Behavior: Chapter 3 13
Study Question 2: What is culture and how can
we understand cultural differences?
ďValues and national culture.
â Cultures vary in underlying patterns of values
and attitudes.
â Hofstedeâs five dimensions of national culture:
⢠Power distance.
⢠Uncertainty avoidance.
⢠Individualism-collectivism.
⢠Masculinity-femininity.
⢠Long-term/short-term orientation.
14. Organizational Behavior: Chapter 3 14
Study Question 2: What is culture and how can
we understand cultural differences?
ďPower distance.
â The willingness of a culture to accept status
and power differences among members.
â Respect for hierarchy and rank in
organizations.
â Example of a high power distance culture â
Indonesia.
â Example of a low power distance culture â
Sweden.
15. Organizational Behavior: Chapter 3 15
Study Question 2: What is culture and how can
we understand cultural differences?
ďUncertainty avoidance.
â The cultural tendency toward discomfort with
risk and ambiguity.
â Preference for structured versus unstructured
organizational situations.
â Example of a high uncertainty avoidance
culture â France.
â Example of a low uncertainty avoidance
culture â Hong Kong.
16. Organizational Behavior: Chapter 3 16
Study Question 2: What is culture and how can
we understand cultural differences?
ďIndividualism-collectivism.
â The cultural tendency to emphasize individual
or group interests.
â Preferences for working individually or in
groups.
â Example of an individualistic culture â
United States.
â Example of a collectivist culture â Mexico.
17. Organizational Behavior: Chapter 3 17
Study Question 2: What is culture and how can
we understand cultural differences?
ďMasculinity-femininity.
â The tendency of a culture to value
stereotypical masculine or feminine traits.
â Emphasizes competition/assertiveness versus
interpersonal sensitivity/relationships.
â Example of a masculine culture â Japan.
â Example of a feminine culture â Thailand.
18. Organizational Behavior: Chapter 3 18
Study Question 2: What is culture and how can
we understand cultural differences?
ďLong-term/short-term orientation.
â The tendency of a culture to emphasize future-
oriented values versus present-oriented values.
â Adoption of long-term or short-term
performance horizons.
â Example of a long-term orientation culture â
South Korea.
â Example of a short-term orientation culture â
United States.
20. Organizational Behavior: Chapter 3 20
Study Question 2: What is culture and how can
we understand cultural differences?
ďUnderstanding cultural differences helps in
dealing with parochialism and
ethnocentrism.
â Parochialism â assuming that the ways of
oneâs own culture are the only ways of doing
things.
â Ethnocentrism â assuming that the ways of
oneâs culture are the best ways of doing
things.
22. Organizational Behavior: Chapter 3 22
Study Question 2: What is culture and how can
we understand cultural differences?
ďCultural differences in handling
relationships with other people.
â Universalism versus particularism.
⢠Relative emphasis on rules and consistency, or on
relationships and flexibility.
â Individualism versus collectivism.
⢠Relative emphasis on individual freedom and
responsibility, or on group interests and consensus.
23. Organizational Behavior: Chapter 3 23
Study Question 2: What is culture and how can
we understand cultural differences?
ďCultural differences in handling
relationships with other people (cont.).
â Neutral versus affective.
⢠Relative emphasis on objectivity and detachment,
or on emotion and expressed feelings.
â Specific versus diffuse.
⢠Relative emphasis on focused and narrow
involvement, or on involvement with the whole
person.
24. Organizational Behavior: Chapter 3 24
Study Question 2: What is culture and how can
we understand cultural differences?
ďCultural differences in handling
relationships with other people (cont.).
â Achievement versus prescription.
⢠Relative emphasis on performance-based and
earned status, or on ascribed status.
25. Organizational Behavior: Chapter 3 25
Study Question 2: What is culture and how can
we understand cultural differences?
ďCultural differences in attitudes toward
time.
â Sequential view of time.
⢠Time is a passing series of events.
â Synchronic view of time.
⢠Time consists of an interrelated past, present, and
future.
26. Organizational Behavior: Chapter 3 26
Study Question 2: What is culture and how can
we understand cultural differences?
ďCultural differences in attitudes toward the
environment.
â Inner-directed cultures.
⢠Members view themselves as separate from nature
and believe they can control it.
â Outer-directed cultures.
⢠Members view themselves as part of nature and
believe they must go along with it.
27. Organizational Behavior: Chapter 3 27
Study Question 3: How does cultural
diversity affect people at work?
ďMultinational corporation (MNC).
â A business firm that has extensive
international operations in more than one
foreign country.
â Have a total world view without allegiance to
any one national home.
â Have enormous economic power and impact.
â Bring benefits and controversies to host
countries.
28. Organizational Behavior: Chapter 3 28
Study Question 3: How does cultural
diversity affect people at work?
ďMulticultural workforces and expatriates.
â Styles of leadership, motivation, decision
making, planning, organizing, and controlling
vary from country to country.
â Expatriates.
⢠People who live and work abroad for extended
periods of time.
⢠Can be very costly for employers.
⢠Progressive employers take supportive measures to
maximize potential for expatriate success.
30. Organizational Behavior: Chapter 3 30
Study Question 3: How does cultural
diversity affect people at work?
ďEthical behavior across cultures.
â Ethical challenges result from:
⢠Cultural diversity.
⢠Variations in governments and legal systems.
â Prominent current issues.
⢠Corruption and bribery.
⢠Poor working conditions.
⢠Child and prison labor.
⢠Business support of repressive governments.
⢠Sweatshops.
32. Organizational Behavior: Chapter 3 32
Study Question 3: How does cultural
diversity affect people at work?
ďAdvice regarding cultural relativism and
ethical absolutism.
â Multinational businesses should adopt core or
threshold values that respect and protect
fundamental human rights.
â Beyond the threshold, businesses should adapt
and tailor actions to respect the traditions,
foundations, and needs of different cultures.
33. Organizational Behavior: Chapter 3 33
Study Question 4: What is a global
view on organizational learning?
ďOrganizational learning.
â The process of acquiring the knowledge
necessary to adapt to a changing
environment.
ďGlobal organizational learning.
â The ability to gather from the world at large
the knowledge required for long-term
organizational adaptation.
34. Organizational Behavior: Chapter 3 34
Study Question 4: What is a global
view on organizational learning?
ďAre management theories universal?
â Answer is âno.â
â Cultural influences should be carefully
considered in transferring theories and their
applications across cultures.
35. Organizational Behavior: Chapter 3 35
Study Question 4: What is a global
view on organizational learning?
ďBest practices around the world.
â Global organizational learning should identify
best practices around the world.
â Potential high-performance benchmarks exist
throughout the world.
â Cultural diversity enriches global organization
learning.
36. Organizational Behavior: Chapter 3 36
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