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General issues in Organization
behavior, O.B across cultures
Chapters 2 & 3; Session 2
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Study QuestionsWhat is a high-performance organization?
What is Human capital and how organizationsachieve competitive advantage?
What are the dimensions of high involvementmanagement?
What is multiculturalism, and how can workforce
diversity be managed?Why is globalization significant for organizational
behavior?
What is culture and how can we understand
cultural differences How does cultural diversity affect people at
work?
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Modern Organization Designs
CommunicationTechnology
Transportation
Technology
Globalization
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Transportation
Technology
Communication
TechnologyGlobalization Diversity
Cultural
Change
Demographic
Change
Effects of Globalization
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Transportation
Technology
CommunicationTechnology
GlobalizationDiversity
Cultural
change
Demographic
Change
Flexibility
Globalization and its impact on
organizations
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Transportation
technology
Communicatio
n technology
Globalization
Diversity
Cultural
Change
Demographic
Change
Flexibility
Hyper Competition
Faster pace of
change
Impact of Globalization On organizations
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Transportation
Technology
Communication
Technology
GlobalizationDiversity
FlexibilityCultural
Change
Demographic
Change
Hyper
Competition
Faster pace
of innovation
Smaller, flatter,networked
organizations
Globalization And Development of New
Organization Designs
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High Performance Organizations
High Performance organizations
(HPO) are designed to bring out the
best in people and producesustainable organizational results
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High-performance organizations.
Value and empower people, and respectdiversity.
Mobilize the talents of self-directed workteams.
Use cutting-edge technologies to achievesuccess.
Thrive on learning and enable members togrow and develop.
Are achievement-, quality-, and customer-oriented, as well as being sensitive to theexternal environment.
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High-performance organizations
Stakeholders. The individuals, groups, and other
organizations affected by anorganizations performance.
Value creation. The extent to which an organization
satisfies the needs of strategic
constituencies.
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High-performance organizations
Total quality management (TQM).
A total commitment to:
High-quality results.
Continuous improvement. Customer satisfaction.
Meeting customers needs.
Doing all tasks right the first time.
Continuous improvement focuses on two questions: Is it necessary?
If so, can it be done better?
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High-performance organizations
Human capital. The economic value of people with job-relevant
abilities, knowledge, ideas, energies, andcommitments.
Knowledge workers. People whose minds rather than physical capabilities
create value for the organization.
Intellectual capital. The performance potential of the expertise,
competencies, creativity, and commitment within anorganizations workforce.
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High-performance organizations
Empowerment.
Allows people, individually and in groups, to
use their talents and knowledge to make
decisions that affect their work.
Social capital.
The performance potential represented in the
relationships maintained among people atwork.
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High-performance organizations
Learning and high-performance cultures.
Uncertainty highlights the importance of
organizational learning.
High-performance organizations are designed
for organizational learning.
A learning organization has a culture that
values human capital and invigorates learningfor performance enhancement.
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Human Capital and Competitive
Advantage Human capital: The sum of the skills,
knowledge, and general attributes of thepeople in an organization
Competitive advantage:An advantageenjoyed by an organization that canperform some aspect of its work betterthan competitors or in a way thatcompetitors cannot duplicate such that itoffers products/services that are morevaluable to customers
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Human Capital as Source of
Competitive Advantage
Competitive
AdvantageHuman Capital
Value
Associates are capable
of performing thebasic work of the
organization
Human CapitalRareness
Skills and talents of
associates are unique
in the industry
Human Capital
Imitability
Skills and talents of
associates cannot becopied by other
organizations
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Human Capital as Source of
Competitive Advantage
Are human resources in the firm . . .
Valuable Rare
Difficult to
imitate
Competitive
implications Performance
No
Competitive
Disadvantage Below Normal
Yes No Competitive Parity Normal
Yes Yes No
TemporaryCompetitive
Advantage Above Normal
Yes Yes Yes
Sustained
Competitive
Advantage Above Normal
Supported by
effective
management
Exhibit 1.2 Human Capital and Competitive Advantage
Source: Adapted from J. Barney and P. Wright, On Becoming a Strategic Partner,Human Resource Management37 (1999): 3146.
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Dimensions of
High-Involvement Management
Exhibit 1.3 Dimensions of High-Involvement Management
Aspect Description
Selective Hiring Large pools of applicants are built through advertising, word of
mouth, and internal recommendations. Applicants are evaluated
rigorously using multiple interviews, tests, and other selection tools.
Applicants are selected on the basis of not only skills but also fit with
culture and mission.
Extensive Training New associates and managers are thoroughly trained for job skills
through dedicated training exercises as well as on-the-job training.
They also participate in structured discussions of culture and mission.Existing associates and managers are expected or required to
enhance their skills each year through in-house or outside training
and development. Often, existing associates and managers are
rotated into different jobs for the purpose of acquiring additional skills.
Exhibit 1.3 Dimensions of High-Involvement Management
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Dimensions of
High-Involvement Management
Exhibit 1.3 Dimensions of High-Involvement Management
Aspect Description
Decision Power Associates are given authority to make decisions affecting their work
and performance. Associates handle only those issues about which
they have proper knowledge. Lower-level managers shift from closely
supervising work to coaching associates. In addition to having
authority to make certain decisions, associates participate in
decisions made by lower-level and even middle managers.
Information Sharing Associates are given information concerning a broad variety of
operational and strategic issues. Information is provided through
bulletin boards, company intranets, meetings, posted performance
displays, and newsletters.
Incentive
Compensation
Associates are compensated partly on the basis of performance.
Individual performance, team performance, and business
performance all may be considered.
Exhibit 1.3 Dimensions of High-Involvement Management
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High-Involvement Managers
High-involvement managers:
Identify situations in which responsibility can bedelegated
Manage through encouragement andcommitment rather than fear and threats
Respect and value each associates skills andknowledge
Empower people in ways that are consistent withtheir uniqueness as individuals
Invest effort in building and maintaining trust
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Multiculturalism and DiversityWorkforce diversity.
Describes differences among people withrespect to age, race, ethnicity, gender,
physical ability, and sexual orientation.
Multiculturalism.
Refers to pluralism and respect for diversity
and individual differences in the workplace.
Inclusivity.
The degree to which the organizations culture
respects and values diversity.
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Multiculturalism and Diversity
Diversity biases in the workplace.
Prejudice.
Discrimination.
The glass ceiling effect.
Sexual harassment.
Verbal abuse.
Pay discrimination.
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Multiculturalism and Diversity
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Multiculturalism and Diversity
Managing diversity. Developing a work environment and organizational
culture that allows all organization members to reachtheir full potential.
A diversity mature organization is created when: Managers ensure the effective and efficient utilization
of employees in pursuit of the corporate mission.
Managers consider how their behaviors affect
diversity.Well-managed workforce diversity increases
human capital.
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Global context 0f OB
Most organizations must achieve high
performance within a complex and
competitive global environment.
Globalization refers to the complex
economic networks of international
competition, resource suppliers, and
product markets.
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Global context 0f OB
Forces of globalization.
Rapid growth in information technology and
electronic communication.
Movement of valuable skills and investments.
Increasing cultural diversity.
Implications of immigration.
Increasing job migration among nations.
Impact of multicultural workforces
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Global context 0f OB
Globalization is contributing to the
emergence of regional economic alliances.
Important regional alliances.
European Union (EU).
North American Free Trade Agreement
(NAFTA).
Asia-Pacific Economic Co-operation Forum(APEC).
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Global context 0f OB
Outsourcing.
Contracting out of work rather than accomplishing it
with a full-time permanent workforce.
Off shoring.
Contracting out work to persons in other countries.
Job migration. Movement of jobs from one location or country to
another
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Global context 0f OB
Global managers.
Know how to conduct business in multiple
countries.
Are culturally adaptable and often multilingual.
Think with a worldview and are able to map
strategy in the global context.
Have a global attitude. Have a global mindset.
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Culture & Cross cultural
Understanding
Culture.
The learned, shared way of doing things in aparticular society.
The software of the mind. Helps define boundaries between different
groups and affects how their members relateto one another.
Cultural intelligence is the ability to identify,understand, and act with sensitivity andeffectiveness in cross-cultural situations.
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Popular Dimensions of Culture
Language.
Perhaps the most visible aspect of culture.
Whorfian hypothesis considers language as a
major determinant of thinking. Low-context cultures the message is conveyed by
the words used.
High-context cultures words convey only a limited
part of the message. Western cultures are mostly low context cultures
Asian and Middle Eastern cultures are low context
P l Di i f C l
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Popular Dimensions of Culture
Time orientation.
Polychronic cultures. Circular view of time.
Time is cyclical and goes around and around
No pressure for immediate action or performance
One will have another chance to pass the same
way again. If opportunity is lost today no problem,
it may again return tomorrow.
Emphasize present and often do more than one
thing at a time
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Popular Dimensions of Culture
Time orientation. (cont.)
Monochronic cultures.
Linear view of time.
Past is gone, the present is here briefly and futureis almost upon us
Create pressure for action and performance.
People appreciate schedules and appointments,
talk about saving and wasting time
Long-range goals and planning is a way for
managing future
Pop lar Dimensions of C lt re
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Popular Dimensions of Culture Use of space.
Proxemics.
The study of how people use space to communicate. Reveals important cultural differences.
Concept of personal space varies across cultures.
Personal space can be thought of as the bubble thatsurround us
Arabs and south Americans shorter distance North Americans greater distance
Asians even further than North Americans
Space is arranged differently in different cultures.
In Polychronic cultures space is arranged in such a way thatmany activities can takes place at a time ( Italian andSpanish towns are arranged around central squaresPlazas)
In Monochronic cultures ( America) towns have traditionalmain street laid out in linear fashion
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Popular Dimensions of Culture
Religion.
A major element of culture.
Can be a very visible aspect of culture. Influences codes of ethics and moral
behavior.
Influences conduct of economic matters.
V l d N ti l C lt
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Values and National Culture Cultures vary in underlying patterns of
values and attitudes. Hofstedes five dimensions of national
culture:
Power distance. Uncertainty avoidance.
Individualism-collectivism.
Masculinity-femininity.
Long-term/short-term orientation.
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Values and National Culture
Power distance.
The willingness of a culture to accept status
and power differences among members.
Respect for hierarchy and rank inorganizations.
Example of a high power distance culture
Indonesia. Example of a low power distance culture
Sweden.
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Values and National Culture
Uncertainty avoidance.
The cultural tendency toward discomfort with
risk and ambiguity.
Preference for structured versus unstructuredorganizational situations.
Example of a high uncertainty avoidance
culture France. Example of a low uncertainty avoidance
culture Hong Kong.
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Values and National Culture
Individualism-collectivism.
The cultural tendency to emphasize individual
or group interests.
Preferences for working individually or ingroups.
Example of an individualistic culture United
States. Example of a collectivist culture Mexico.
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Values and National Culture
Masculinity-femininity.
The tendency of a culture to value
stereotypical masculine or feminine traits.
Emphasizes competition/assertiveness versusinterpersonal sensitivity/relationships.
Example of a masculine culture Japan.
Example of a feminine culture Thailand.
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Values and National Culture
Long-term/short-term orientation.
The tendency of a culture to emphasizefuture-oriented values versus present-oriented
values.Adoption of long-term or short-term
performance horizons.
Example of a long-term orientation culture
South Korea. Example of a short-term orientation culture
United States.
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Understanding Cultural Differences
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Understanding Cultural Differences Understanding cultural differences helps in
dealing with parochialism and ethnocentrism.
Parochialism assuming that the ways of ones own
culture are the only ways of doing things.
Ethnocentrism assuming that the ways of ones
culture are the best ways of doing things.
It is parochial for a traveling American business
man to insist that all his business contacts speak
English
It is ethnocentric for him to think that any onewho dines with a spoon instead of knife and fork
lacks proper table manners
Understanding Cultural Differences
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Understanding Cultural Differences A frame work developed by Fons Trompenaar
offers a vantage point in understanding and
dealing with cultural differences
He suggests that culture varies the way its
members solve problems of three major types
1. Relationship with people2. Attitudes towards time
3. Attitudes towards the environment
Trompenaar identifies five major culturaldifferences in how people handle relationships
with other people
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Trompenaars Cultural DimensionsUniversalism Versus Particularism
Universalism: ideas and practices and practices can be applied every where without
modification
Particularism: Circumstances dictate how ideas and practices should be applied.
Universalism Particularism
Emphasize and guided by strict
rules and legal contracts
United States, European Countries
Lets get down to business attitude
and not deviate from regulations
Focus more on personal relationship
and trust rather than formal rules and
contracts
Republics of former soviet union,
Asian countries
Engage in small talk to get to know
each other, flexible and not rules get
in the way of what is right thing to do
between friends
Trompenaars Cultural Dimensions
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Trompenaar s Cultural Dimensions
Individualism Versus Collectivism
Individualism Collectivism
People regarding themselves as individual People regarding themselves
as a part of group
Attribution Attributed greater personal
responsibility for success
and group responsibility for
failure
Attributed greater personal
responsibility for group failure
than success and accepted
greater personal responsibility
than individualistic managers
Self efficacy Individualistic subjects had
enhanced self efficacy and
displayed greater effort and
performance when their
training was directed
towards personal actions
and potential
Collectivist managers who took
part in individual oriented
training programs had lower
self-efficacy beliefs and
displayed lower performance
than their counterparts who took
part in group oriented training
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Trompenaars Cultural Dimensions
Attributes Individualism Collectivism
Stress Bureaucratic /formal
structure more stressful
High level of stress
when faced with making
decisions themselves
Goal Setting and
Performance
Tendency towards
commitment to
individual goals
Tendency toward
commitment to goals
that serve the best
interest of the group,participative goal setting
yield better results
Relationship and
interpersonal criteria are
more salient features
T C lt l Di i
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Trompenaars Cultural Dimensions
Neutral Versus Affective:
Neutral Culture: Emotions ate held in check and not outwardly
expressed ( Japan and British)
Affective Culture: Emotions are openly and outwardly expressed (Mexican, Dutch, Swiss). Tend to smile a great, talk loudly, greet other
enthusiastically
It should not be assumed that neutral culture are uninterested or
unmotivated because of their non-expressive demeanor, and vice versa.
In Communication and other interpersonal interactions, the nonverbal
and verbal cues have to be read differently in both the culture types
T C lt l Di i
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Trompenaars Cultural Dimensions
Specific Versus Diffuse.
Specific Culture: Here individuals have a large public space where they readily letothers enter and share a small private space which they guard closely and share only
with close friends and associates ( United states, Austria, united Kingdom,
Switzerland)
Diffuse Culture: In this both the public space and private space are similar in size,
individuals guard their public space carefully because entry into public space afford entrinto private space ( Venezuela, China and Spain)
Individuals in specific cultures are open, extroverted, there is a strong separation of
work and private life.
Individuals in diffuse culture often appear indirect and introverted, work and private
life are often closely linked
In diffuse culture, outsiders should respect a persons title, age, and background
connections and should not get impatient when people are indirect or evasive
In Specific culture, outsiders should try to get to the point, minimize the titles, play
down achievements or skills not relevant to the situation
T C lt l Di i
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Trompenaars Cultural DimensionsAchievement Versus Ascription
Achievement culture is one in which people are accorded status basedon how well they perform their functions ( Austria, USA, Switzerland,
Sweden, Germany)
Ascription culture is one in which status is accorded based on who or
what a person is. ( Venezuela, China, Japan)
Achievement cultures give high status to high achievers. Ascription
culture accord status based on age, gender, or social connections
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