Introduction

• With multinationalization and

globalization come
differences in nationality and
culture that can have major
effects on micro, meso, and
macro organizational behavior
• Today’s managers must take
international differences
seriously if they expect to
compete and succeed in
global markets

1
Globalization

A social process in which the

constraints of geography on social
and cultural arrangements recede,
and in which people become
increasingly aware that they are
receding

International O B
1-2
 What is culture?
Culture is “that complex whole
which include knowledge, belief,
art, law, morals, customs, and any
capabilities and habits acquired by
a man as a member of society
 Culture orientation

CULTURE

BEHAVIOR VALUES

ATTITUDES
 How Do culture vary?

•How people see themselves

•People’s relationship to their
world
•Individualism versus
collectivism
•The time dimension
•Public and private space
 How Do Cultures Vary?
How people see themselves
• Some people- basically Honest, Trustworthy.
Other countries- Suspicion , Distrust.
Eg/:1) People of some 3rd world countries-view US.

2) People of U.S.

• People carry values when they travel outside.

People’s relationship to their world
• Some societies-people try to dominate their
environment. Eg/: US, Canada etc.
Or
• Live in harmony. Eg/: Asian countries.

Individualism Vs Collectivism
• Encourage Individualism. Eg/: US, Canada etc.
• Encourage group harmony, unity, commitment &
loyathy. Eg/: Japan, China etc.
Eg/: Hiring practices.
Time dimension
 Some societies-people oriented towards past.
Eg/: European countries.
 Oriented towards present, future.
Eg/:U.S, Canada, Japan.

Public & Private space

 Promote public spaces. Eg/: Japanese bosses.
 Prefer private spaces. Eg/: North Americans.
Dimensions of Cultural Differences
• Examining OB across cultures & explain
differences – to look at dimensions.
• Some identified by Geert Hofstede , Dutch
researcher.
Individualism/Collectivism & Power Distance
• Individualism: Take care of oneself or ones
family.

• Collectivism : Tight social framework in which

people distinguish between their own group &
other groups.
• Power distance : degree to which employees accept
that their boss has more power than they do.
Eg/: US, Mexico.
In general,
• Wealthy countries- high individualism.
• Poorer countries-high collectivism.

Uncertainty avoidance
 Extent to which people fell threatened by
ambiguous situations & degree to which they try to
avoid these situations. Eg/: Japan , US.
Masculinity/Femininity
Masculinity: extent to which the dominant values of
a society emphasize assertiveness & acquisition of
money & other material things.
Eg/: Japanese managers- assertive, materialistic.

Femininity : extent to which the dominant values in

a society emphasize relationships among people,
concern for others & interest in quality of work
life.
Eg/: Scandinavian countries like Norway.
COMMUNICATION IN AN INTERNATIONAL
ENVIRONMENT
• Communication can be used to demonstrate the
impact of the international context.

Communication breakdown across cultures

Factors leading to breakdown:

1) Perceptual problems
 Perception – a person’s interpretation of reality
and is said to be learned.
2) Stereotyping problems
 Tendency to perceive another person as belonging
to a single class or category.

3) Ethnocentric problems
 Refers to the sense of superiority.
 All societies promote ethnocentrism through their
value structures and nationalistic spirit.
 Ethnocentrism can lead to problems & disputes
between countries.
Improving Communication effectiveness
across cultures

1) Learning about culture of the country before

going there- Culture assimilator training
programmes.

2) Providing trainee – Educational background

material on country- Social structure, religion,
values, language & history.
MOTIVATION ACROSS CULTURES
• Motivation- central in study & application of
IOB.

• Theories & approaches – mainly developed in

US.
• These theories & techniques holds across cultures,
yet differences exist.

• Cross-cultural research on motivation- content

theories such as Maslow’s hierarchy of needs ,
Herzberg’s two factors & McClelland’s
• Eg/: Maslow’s hierarchy-Chinese stress on
collective rather than individual needs.

• Hierarchy exits but ordering of needs different

across cultures.

• Same for process theories of motivation- equity,

attribution & reinforcement theories.

• Motivational process holds across cultures.

• Content & application- culture specific.
 Motivational differences across cultures
1) Role of religion
• Differing religious values – direct & indirect
impact on motivation.
Eg/: Hindus in India - allowing things to happen.
- care for others.

North Americans - try to control events.

- ensure ones success.
 2) Role of uncertainty avoidance

Able to deal with ambiguity Do not like to deal with

ambiguity
Less structuring. More structuring.
Fewer written rules. More written rules.
Org. can take diff forms. Uniform org.
Managers involved- strategy. Managers involved –details.
Interpersonally oriented, Task oriented, consistent
flexible style. style.
Individual, risky decisions. Less willing.

High labor turnover. Low labor turnover.

Ambitious employees. Less ambitious employees.
Lower satisfaction scores. Higher satisfaction scores.
 3) Role of Power Distance

Are not willing to accept Are willing to accept that

that others have more others have more power.
power.
Less centralization. More centralization.

Flatter organization. Tall organization.

Small proportion of Large proportion of

supervisory personnel. supervisory personnel.
Manual work same status White-collar jobs valued.
as clerical work.
 MANAGERIAL LEADERSHIP ACROSS
CULTURES
• Leadership-process of influencing others to direct their
efforts toward the pursuit of specific goals.
• Takes added significance due to globalization.
• Similarities & differences – leadership activities &
styles-examined cross culturally.
Personal values
• Shape perception, analysis of alternatives, decision
making.
• Followers values- loyalty, commitment, power
distance. Eg/: Indian - moralistic, less pragmatic
compared to Japanese.
Managers background
• Influence how subordinates are led.
• Educational, class & family background.
• Family upbringing.
Eg/:Turkey- managers top class.
Poland –lower middle class.
Interpersonal skills
• Study of managers by Bass & Burger – few findings:
 India- higher authority, bureaucratic rules.
 Dutch – willing to cooperate.
 U.S – Interpersonal competence.
Decision making: Choosing btw alternatives.
Eg/: Research by Heller & Yukl :
Chile, Argentina, Uruguay- rapid decisions.
US, Germany, Sweden- rational decisions.

Transnational Competent Managers

• Global perspective of business environment.
• Learn foreign cultures, tastes, trends, techno etc.
• Skillful in working with people of diff cultures.
• Adapt to live & use of cross-cultural skills.
• Interact with foreign colleagues as equals.