1. Michael A. Hitt C. Chet Miller Adrienne Colella organizational behavior in a global context

2. K NOWLEDGE O BJECTIVES  Define globalization and discuss the forces that influence this phenomenon.  Discuss three types of international involvement by associates and managers and describe problems that can arise with each.  Explain how international involvement by associates and managers varies across firms.  Describe high-involvement management in the international arena, emphasizing the adaptation of this management approach to different cultures.  Identify and explain the key ethical issues in international business. ?

3. G LOBALIZATION Trend toward a unified global economy where national borders mean relatively little.

4. C ULTURE  Shared values and assumptions that govern acceptable behavior and thought patterns in a country.

5. O PPORTUNITIES AND C HALLENGES Exhibit 3-1: Opportunities and Challenges for Firms with International Involvement Diversification of Risk Challenges Political Risks Economic Risks Managerial Risks Growth Location Advantages Opportunities Economies of Scale

6. I NTERNATIONALLY F OCUSED J OBS  Thrive on challenge  Geographically dispersed teams  Rely heavily on electronically mediated communication  Virtual electronic teams  Develop trust quickly  Swift trust

7. Adapted from Exhibit 3-2: Learning about a Counterpart’s Culture L EARNING A BOUT A C OUNTERPART ’ S C ULTURE  Don’t try to identify another’s culture too quickly.  Beware of the Western bias toward taking actions.  Avoid formulating simple perceptions of others’ cultural values.  Don’t assume your values are the best for the organization.  Recognize that norms for interacting with outsiders may differ from those between compatriots.  Be careful in making assumptions about cultural values and expected behaviors based on published dimensions of a person’s national culture.

8. F OREIGN J OB A SSIGNMENTS Expatriate Individual who leaves his/her home country to live and work in a foreign land.

9. T RAINING E XPATRIATES  Convince its important  Train entire family  Predeparture orientation  Key cultural information  Conversational language training  Consider additional training after arrival  Language  Cultural exposure  Host-country support

10. F OREIGN J OB A SSIGNMENTS Culture Shock Stress involving difficulties coping with the requirements of life in a new country.

11. F OREIGN J OB A SSIGNMENTS Ethnocentrism Belief that one’s culture is better than others.

12. F OREIGN J OB A SSIGNMENTS Results in issues of development and knowledge for higher-level jobs Impact on human capital Glass Border Unseen but strong discriminatory barrier blocking many women from international assignments.

13. F OREIGN N ATIONALS AS C OLLEAGUES Involve Different; values ways of thinking norms thought patterns working styles decision styles

14. C ROSS - CULTURAL W ORKING R ELATIONSHIPS High-context Cultures  Use contextual cues to understand people and their communications  Value trust and personal relationships Low-context Cultures  Rely on direct questioning to understand people and their communications  Value efficiency and performance

15. C ROSS - CULTURAL W ORKING R ELATIONSHIPS Monochronic Time Orientation  Prefer to focus on one task per unit of time  Complete that task in a timely fashion Polychronic Time Orientation  Willing to juggle multiple tasks per unit of time  Accept interruptions and unwilling to be driven by time

16. C ULTURAL I NTELLIGENCE  Ability to separate aspects of behavior based in culture versus unique to individuals or humans in general.

17. I NTERNATIONAL P ARTICIPATION Transnational Firms Global Firms Multidomestic Firms

18. Exhibit 3-4: Dimensions of National Culture D IMENSIONS OF N ATIONAL C ULTURE National Culture Power Distance Individualism Assertiveness Humane Orientation Performance Orientation Future Orientation Gender Egalitarianism In-group Collectivism Uncertainty Avoidance

19. N ATIONAL C ULTURES Adapted from Exhibit 3-5: National Culture in India, Germany, and the United States Culture DimensionIndiaGermanyUnited States Uncertainty avoidance MHM Power distance M/HMM/L Individualism MHM Assertiveness L/MHH In-group collectivism HL/MM/L Gender egalitarianism LM/LM Future orientation MMM Performance orientation MMH Humane orientation H/MLM M – MediumH – HighL – Low

20. High versus Low Uncertainty Avoidance High versus Low Assertiveness Individualistic versus Collectivistic Low-power versus High- power Distance Information Sharing C ULTURE AND H IGH - INVOLVEMENT M ANAGEMENT

21. High versus Low Uncertainty Avoidance High versus Low Assertiveness Individualistic versus Collectivistic Low-power versus High- power Distance Decision Power and Individual Autonomy

22. C ULTURE AND H IGH - INVOLVEMENT M ANAGEMENT High versus Low Uncertainty Avoidance High versus Low Assertiveness Individualistic versus Collectivistic Low-power versus High- power Distance Decision Power and Self-Managing Teams

23. E THICS AND G LOBALIZATION  International Ethics  Principles of proper conduct focused on issues such as corruption, exploitation of labor, and environmental impact.

24. A BSENCE OF C ORRUPTION R ANKINGS Top Five  New Zealand  Denmark  Singapore  Sweden  Switzerland Bottom Five  Somalia  Afghanistan  Myanmar  Sudan  Iraq Adapted from Exhibit 3-6: Absence of Corruption in Select Countries

25. S TRATEGIC LENS Check out http://wileymanagementupdates.com/http://wileymanagementupdates.com/ for daily articles related to management in the news.  Given the complexity and challenges in operating in foreign countries, why do organizations enter international markets?  How can understanding and managing cultural diversity among associates contribute positively to an organization’s performance?  How can being knowledgeable of diverse cultures enhance an individual’s professional career?