michael a. hitt c. chet miller adrienne colella

organizational behavior in a

global context

KNOWLEDGEKNOWLEDGE OBJECTIVESOBJECTIVES

Define globalization and discuss the forces that influence this phenomenon.

Discuss three types of international involvement by associates and managers and describe problems that can arise with each.

Explain how international involvement by associates and managers varies across firms.

Describe high-involvement management in the international arena, emphasizing the adaptation of this management approach to different cultures.

Identify and explain the key ethical issues in international business.

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GLOBALIZATION

CULTURE

Shared values and assumptions that govern acceptable behavior and thought patterns in a country.

OPPORTUNITIES AND CHALLENGES

Exhibit 3-1: Opportunities and Challenges for Firms with International Involvement

Diversification of Risk

Challenges

Political Risks

Economic Risks

Managerial Risks

Growth

Location Advantages

Opportunities

Economiesof Scale

INTERNATIONALLY FOCUSED JOBS

Thrive on challenge

Geographically dispersed teams

Rely heavily on electronically mediated communication

Virtual electronic teams

Develop trust quickly

Swift trust

Adapted from Exhibit 3-2: Learning about a Counterpart’s Culture

LEARNING ABOUT A COUNTERPART’S CULTURE

Don’t try to identify another’s culture too quickly.

Beware of the Western bias toward taking actions.

Avoid formulating simple perceptions of others’ cultural values.

Don’t assume your values are the best for the organization.

Recognize that norms for interacting with outsiders may differ from those between compatriots.

Be careful in making assumptions about cultural values and expected behaviors based on published dimensions of a person’s national culture.

FOREIGN JOB ASSIGNMENTS

TRAINING EXPATRIATES

Convince its important

Train entire family

Predeparture orientation

Key cultural information

Conversational language training

Consider additional training after arrival

Language

Cultural exposure

Host-country support

FOREIGN JOB ASSIGNMENTS

FOREIGN JOB ASSIGNMENTS

FOREIGN JOB ASSIGNMENTS

FOREIGN NATIONALS AS COLLEAGUES

CROSS-CULTURAL WORKING

RELATIONSHIPS

High-context Cultures

Use contextual cues to understand people and their communications

Value trust and personal relationships

Low-context Cultures

Rely on direct questioning to understand people and their communications

Value efficiency and performance

CROSS-CULTURALWORKING

RELATIONSHIPSMonochronic Time Orientation

Prefer to focus on one task per unit of time

Complete that task in a timely fashion

Polychronic Time Orientation

Willing to juggle multiple tasks per unit of time

Accept interruptions and unwilling to be driven by time

CULTURAL INTELLIGENCE

Ability to separate aspects of behavior based in culture versus unique to individuals or humans in general.

INTERNATIONAL PARTICIPATION

Exhibit 3-4: Dimensions of National Culture

DIMENSIONS OF NATIONAL CULTURE

National Culture

Power Distance Individualism

Assertiveness

Humane Orientation

Performance OrientationFuture

Orientation

Gender Egalitarianism

In-group Collectivism

Uncertainty Avoidance

NATIONAL CULTURES

Adapted from Exhibit 3-5: National Culture in India, Germany, and the United States

Culture Dimension India Germany United StatesUncertainty avoidance M H MPower distance M/H M M/LIndividualism M H MAssertiveness L/M H HIn-group collectivism H L/M M/LGender egalitarianism L M/L MFuture orientation M M MPerformance orientation M M HHumane orientation H/M L M

M – Medium H – High L – Low

CULTURE AND HIGH-INVOLVEMENT MANAGEMENT

CULTURE AND HIGH-INVOLVEMENT MANAGEMENT

CULTURE AND HIGH-INVOLVEMENT MANAGEMENT

ETHICS AND GLOBALIZATION

International Ethics

Principles of proper conduct focused on issues such as corruption, exploitation of labor, and environmental impact.

ABSENCE OF CORRUPTION

RANKINGS

Top Five

New Zealand

Denmark

Singapore

Sweden

Switzerland

Bottom Five

Somalia

Afghanistan

Myanmar

Sudan

Iraq

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

STRATEGIC LENS

Check out http://wileymanagementupdates.com/ for daily articles related to management in the news .

Given the complexity and challenges in operating in foreign countries, why do organizations enter international markets?

How can understanding and managing cultural diversity among associates contribute positively to an organization’s performance?

How can being knowledgeable of diverse cultures enhance an individual’s professional career?