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The Management of International Organizational Behavior

The Management of International Organizational Behavior. Chapter 1. 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

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The Management of International Organizational Behavior

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  1. The Management of International Organizational Behavior Chapter 1 Dr. N Yang - IBUS 681

  2. 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 681

  3. 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 681

  4. Questions for Global Managers • 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? Dr. N Yang - IBUS 681

  5. 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 681

  6. 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 681

  7. 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 681

  8. 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 681

  9. 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 681

  10. The Comparative Perspective • An intellectually sophisticated approach to systematically describe and compare organizational behavior across multiple cultures • Can discover differences or similarities in behavior across cultures Dr. N Yang - IBUS 681

  11. 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 681

  12. Models of Management (Guillén, 1994) Dr. N Yang - IBUS 681

  13. IOB in the 21st Century 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 Dr. N Yang - IBUS 681

  14. 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 Convergence or Divergence? Dr. N Yang - IBUS 681

  15. 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 Dr. N Yang - IBUS 681

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