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Impact of Globalization on

or ganizational behavior

Bangkok University
Organizational Behavior
Second Semester, 2002
Globalization on OB
lritzel@prasena.com
May 4th, 2002

 Structure of today’s lecture


 Prasena Tips on your Final Exam
 What is Globalization?
 Impact on individuals!
Diversity Worksheet exercise
 How does it impact an employee’s life?
The importance of culture embedded in Organizations
Different levels of socializing employees (case study)
 How does it impact a manager’s work?
How to manage diversity
Implications on a diverse Workforce
Managing Expatriates
 Some tips for your final exam on OB!
 Follow up on case studies…
Tips on Final Exam

1st Part: About Textbook [25% - 30


minutes]
2nd Part: Essay About 9 Cyber-
Phenomena [50% - 60 minutes]
3rd Part: About Books, Movies and
Websites [25% - 30 minutes]
1st Part: OB Principles
This part refers more particularly to your
textbook. Your understanding of the book and
your capacity to apply such understanding to
your own environment will be taken into
consideration, as well as your critical thinking
and analytical skills.
You may choose to answer one, several or all
of the following questions, keeping in mind that
you should spend no more than 30 minutes on
this part. Quantity counts much less than
quality!
2nd Part: OB’s Current Environment
This part refers more particularly to your course
presentations and your case study. Your
understanding of these presentations and your
capacity to apply such understanding to ‘real
life’ will be taken into consideration, as well as
your creative thinking, logical thinking and
written presentation skills.
Please choose only one proposed topic,
keeping in mind that you should spend around
one hour on this part.
3rd Part: OB-Related Analyses

This part refers more particularly to the books,


movies and websites you were requested to analyze
throughout the term. Your understanding of them
and your capacity to draw lessons for your own life
will be taken into consideration, as well as your
critical thinking, vision and analytical skills.
You may choose to answer one, several or all of
the following questions, keeping in mind that you
should spend no more than 30 minutes on this part.
IMPORTANT:

In the time you have for this exam, it is


impossible that you answer properly to
all questions. It is not the objective. The
assessment will be made on which
questions you have chosen to answer,
and how you answer them.
What is Globalization?
Globalization – The difficult topic

Physical
World becomes smaller
Expatriates
Global Companies
Business Travellers

Virtual
Internet
Mobile Communication
Globalization
Power Play
Globalization

The fair chance

?
Definition

 Globalization: this characteristic of the Cybernetic


Revolution qualifies the tendency of any
entity/activity/technology to acquire a dimension that
grows beyond any "frontier" that would be imposed by
such criteria as geography, culture, religion, gender,
age, etc. Anything and/or anybody can have a worldwide
impact.
Impact on Individuals
And you?

Do you consider yourself a global


citizen?

 My partner is a foreigner, my best


friend is Catholic, my boss is younger
than me
 I prefer to be with my own kind
 I sit at home but e-chat with the whole
world
The person within!
Functional Level/
Classification

Geographic Location

Marital Work
Mgmt. Income
Status Age Content/
Status
Field

Parental Personal
Status Race Habits
Personality
Recreational Division/
Appearance Habits
Sexual Dept./
Union Ethnicity Orientation Unit/
Affiliation Group
Physical
Work Ability
Religion
Experience
Educational
Background
Work
Location Seniority
Scale
Diversity Worksheet exercise
1-10
Name> Yourself Neutral Most different Closest

Profile\/
Shy – Self
confident

Fast – Slow

Leader -
Follower

IT oriented –
Human
oriented
Why?

 Why would YOU need the


world?
 When will the word
Farang become extinct?
 When will you think about
yourself as a member of a
community than being
Thai first (Geographical
dimension only)
Why

 Why would the world need


You?
Impact on Employees
Prasena – a working day
James Fay – Washington DC
(hotel)
Isabelle Michelet – Bangkok (her house)
Philippe Kopcsan – Singapore (business trip)
Lukas Ritzel – Bangkok (in his condo)
Russell Kearnon – Bangkok (at Starbucks)
Sudarat Leelavanaval – Bangkok (office)
Sakulthip Naunkhao – Bangkok (office)
Tony Waltham – Chiang Mai (week end house)

Philippe Colin – Hong Kong

Catherine Michelet – France (at the Swimming pool)

Tom Seinige – Zurich (In the train)


Christian Cloche – Somewhere between Geneva and Brussels (airplane)
Workforce Demographics USA
Singapore

 Another melting pot


 ‘Whites’
 Malays
 Chinese
 Indians
 Different terminologies, different
categorization
 Different vision
 Different ways of addressing issues

 Is any of them really global-minded?


 What about so-far homogeneous
populations, thrown into a global world?
Impact on Managers
Barriers / Challenges to Managing Diversity

 Inaccurate stereotypes and


prejudice
 Ethnocentrism
 Poor career planning
 Unsupportive and hostile work
environment
 Lack of political savvy by
diverse workers
 Balancing career and family
issues
 Fears of reverse discrimination
 Diversity not seen as a priority
 Outdated performance
appraisal and reward systems
 Resistance to change
Specific Diversity Initiatives

 Accountability Practices
 Pertain to treating diverse employees fairly
 Create administrative procedures aimed at
integrating diverse employees into
management ranks
 Development Practices
 Pertain to preparing diverse employees for
greater responsibility and advancement
 Training programs, networks and support
groups, and mentoring are frequently used
 Recruitment Practices
 Pertain to attracting qualified diverse
employees at all levels
Competitive Advantages of Managing Diversity

 Lower Costs and Improved Employee


Attitudes
 Improved Recruiting Efforts
 Increased Sales, Market Share and
Corporate Profits
 Increased Creativity and Innovation
 Increased Group Problem-Solving and
Productivity
HR and Globalization

Definition
 The Human Resources Management is globalization-oriented
when each employee is able to (and expected to) grasp, and
adapt to, conceptual and operational realities at different levels
and in different cultures.
Ask yourselves…
 Are more than 5 nationalities represented among your employees?
 Is your corporate culture attached to a specific country's culture?

Workforce Trends
 Apparition of the “Poverty jet set", a group of people who, waiting
for globalization, are given to chronic traveling at the expense of long-
term job stability and a permanent residence
Organizations are Globalization-oriented when…

 The top management thinks beyond physical boundaries in all


aspects and when the organization's ergostructure supports virtual
work.
 It is ensured that virtualization contributes to generating more
economic value, and helps the organization increase its contribution
to the greater community.
 Technologies used are open to virtual reality and multimedia
techniques, which are viewed as means to enhance efficiency of
processes and communications.
 Employees have integrated the concept of virtual reality and use it, in
such forms as virtual teams, teleworkers, etc. to enhance expertise
and optimize synergies.
 Products/services themselves and/or the way they are
designed/promoted/distributed is virtual. Virtual shopping centers can
sell virtual products and be paid with virtual money.