Globalization

Globalization

 Borderless world
 Interconnectedness (cultural, economic,
political, technological and
environmental)
 Interdependence
Impact on OB

 Increased foreign assignments

 Working with people from different
cultures (cross- culturism)
 Movement of jobs to countries with low-
cost labor
 Work force diversity
 Competitive pressures & market volatility
Strategies for OB
managers
 Need for management approaches
 New management competencies
(abilities for creating innovative work
environment, empower others,
managing conflict, team building)
 Becoming a Global Manager
1. Global perspective
2. Cultural responsiveness
3. Cultural synergies
4. Cultural adaptability
5. Cross-cultural communication
6. Broad foreign experience
 Developing cross-cultural sensitivity
 Global organization learning
 To value change over stability
Cross-Cultural Dimension

Conducted by Hofstede in 1980

Four dimensions of culture were identified by him
1. Power distance: extent to which a culture
encourages superiors to exercise power over
others in the organization. High power
distance leads to power imbalance, low trust,
passive subordinates, centralized
organizational structure and decision making
2 Uncertainty avoidance: extent to which
a culture encourages or discourages
risk taking. High UA leads to employees
looking for job security, hard working
3 Individualism-Collectivism: extent to
which a culture comprises of
individualistic features or believes in
collective or group approach
4 Masculinity-Femininity: refers to the type
of accomplishments valued by a
particular culture.
Masculinity; money, material and ambition
Femininity; cooperation, care, quality of life
Workforce Diversity

 Mental and physical qualities

 Age
 Gender
 Ethnicity
 Race
 Life experience
 Geographic location
 Behavioral style
 Education
 Work experience
 Marital status
 Religion
 First language