Dr. N Yang - IBUS 6811 The Management of International Organizational Behavior Chapter 1

Dr. N Yang - IBUS 6812 Learning Objectives Define international organizational behavior Understand why it is important to study IOB Compare industrialization and culture as explanations for IOB Know the role of theory in the study of IOB Explain the benefits of the comparative perspective for studying IOB

Dr. N Yang - IBUS 6813 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

Dr. N Yang - IBUS 6814 Do all cultures have the same understanding of ethics? Are people in different cultures motivated in different ways? Are leadership styles the same in all cultures? How do different cultures manage diversity? Do all cultures negotiate business deals the same way? Questions for Global Managers

Dr. N Yang - IBUS 6815 What is International Organizational Behavior? The study of behavior in organizations around the world Different societies continue to have distinctive organizational arrangements IOB adds the dimension of culture to traditional OB theories originated from the West, particularly from the U.S.

Dr. N Yang - IBUS 6816 How Traditional OB Theories Differ From IOB Theories? U.S. based OB theories are not sensitive to national cultural differences U.S. based studies focus on individual roles and the functioning of groups U.S. methodology emphasizes the scientific method

Dr. N Yang - IBUS 6817 Why Study IOB? Competitive Advantage To gain a better understanding of the external environment and learn ideas and successful practices from other cultures Organizational Analysis To improve understanding of organizations and global management practices Cultural Analysis To generate insights into one’s own and others’ cultures

Dr. N Yang - IBUS 6818 Explaining IOB Industrialization Vs. Culture Industrialization as an independent variable Multiple cultures based on ethnicity, religion, social class, or some combination External and internal cultures Limitations of Cultural Explanations Difficulty in measurement Within culture diversity Other factors (e.g., information accessibility, time, costs, etc.)

Dr. N Yang - IBUS 6819 Theory and IOB Normative Vs. Descriptive Theory Value Judgments Ethnocentrism Culturally biased assessments of behavior More likely to experience culture Shock Polycentrism: A host-country oriented approach Geocentrism: A world-oriented approach

Dr. N Yang - IBUS An intellectually sophisticated approach to systematically describe and compare organizational behavior across multiple cultures Can discover differences or similarities in behavior across cultures The Comparative Perspective

Dr. N Yang - IBUS Examples of the Comparative Perspective Global processes (e.g., Sassen, 1991) Globalization of the international financial industry Urbanization and major cities as centers of power and control Management pluralism (e.g., Guillén, 1994) Cultural factors influencing management philosophies and practices

Dr. N Yang - IBUS Models of Management (Guill é n, 1994) Management Ideology and Practice U.S.U.K.GermanySpain Scientific Management Rejected Human RelationsRejected Structural AnalysisRejected

Dr. N Yang - IBUS Traditional cultural values persist even during the process of globalization Organizations are not all moving toward the same model Countries and organizations use their unique economic, political, and social advantages as leverage in the global marketplace IOB in the 21st Century

Dr. N Yang - IBUS Convergence or Divergence? Globalization of markets and production Transformation of work Technology advancement Major cities as centers of power and control Global institutions Globalization of markets and production Transformation of work Technology advancement Major cities as centers of power and control Global institutions Distinct cultural elements influence management of organizations Differences in management philosophies and practices remain as culturally appropriate Government interventions Distinct cultural elements influence management of organizations Differences in management philosophies and practices remain as culturally appropriate Government interventions

Dr. N Yang - IBUS Implications for Managers Understand how culture influences organizational behavior Distinguish between normative and descriptive theories Evaluate existing theories and gain new knowledge of effective management