PSY 3113 Chapter 2

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Globalization

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45 Terms

1

Globalization

-The internationalization of business activities

-The shift toward an integrated global economy

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-Advances in communication and transportation

-Growth by expansion into international markets

-Control of labor, distribution and distribution costs

-In response to increased international competition

Factors Increasing Globalization (4)

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individualism

Exists to the extent that people in a culture define themselves primarily as

individuals rather than as part of one or more groups or organizations

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4

Collectivism

on the other hand, is characterized by tight social frameworks in which people tend to base their identities on the group or organization to which they belong.

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5

Power distance (orientation to authority)

extent to which people accept as normal an unequal distribution of power

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Uncertainty avoidance (preference for stability)

extent to which people feel threatened by unknown situations and prefer to be in clear and unambiguous situations.

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Masculinity (assertiveness or materialism)

The extent to which the dominant values in a society emphasize aggressiveness and the acquisition of money and other possessions as opposed to concern for people, relationships among people, and overall quality of life

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long-term values

include focusing on the future, working on projects that have a distant payoff, persistence, and thrift

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9

short-term values

are more oriented toward the past and the present and include respect for traditions and social obligations.

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10

Diversity

refers to the variety of observable and unobservable similarities and differences among people.

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surface-level diversity

observable differences in people, including race, age, ethnicity, physical abilities, physical characteristics, and gender.

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deep-level diversity

refers to individual differences that cannot be seen directly, including goals, values, personalities, decision-making styles, knowledge, skills, abilities, and attitudes.

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separation diversity

Differences in position or opinion among group members reflecting disagreement or opposition—dissimilarity in an attitude or value, for example, especially with regard to group goals or processes

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Variety diversity

differences in a certain type or category, including group members' expertise, knowledge, or functional background

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disparity diversity

differences in the concentration of valuable social assets or resources - dissimilarity in rank, pay, decision-making authority, or status

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"like me" bias

people prefer to associate with others they perceive to be like themselves

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Stereotypes

A belief about an individual or a group based on the idea that everyone in a particular group will behave the same way or have the same characteristics.

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Prejudice

Outright bigotry or intolerance for other groups

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Perceived threat of loss

If some employees perceive a direct threat to their own career opportunities, they may feel that they need to protect their own prospects by impeding diversity efforts

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Ethnocentrism

The belief that one's own language, native country, and cultural rules

and norms are superior to all others.

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unequal access to organizational networks

Women an minorities are often excluded from organizational networks, which can be important to job performance, mentoring opportunities, and being seen as a candidate for a promotion

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22

General Observations on Culture (note only)

-Cultural and national boundaries may not coincide

-Behavior in organizational settings varies across

cultures—culture is one major cause of this variation

-The causes and consequences of behavior within

organizational settings are diverse across cultures

Organizations and the way they are structured

appears to be growing increasingly similar

-The same individual behaves differently in different

cultural settings

-Cultural diversity can be an important source of

synergy in enhancing organizational effectiveness

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Geert Hofstede's Research

-Attitudes and behaviors differ significantly because of

values and beliefs that characterize different countries

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cultural competence

the ability to interact effectively with people of different cultures

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Culture

the set of shared values, often taken for granted, that help people in a group, organization, or society understand which actions are acceptable and not.

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Global Perspective

a willingness to be open to and learn from the alternative systems and meanings of other people and cultures, and a capacity to avoid assuming that people from everywhere are the same

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Technology

refers to the methods used to create products, including both physical goods and intangible services.

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Manufacturing

is a form of business that combines and transforms resources into tangible outcomes that are then sold to others

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service organization

is one that transforms resources into an intangible output and creates time or place utility for its customers

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Ethics

A person's beliefs regarding what is right or wrong in a given situation

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Corporate Governance

Refers to the oversight of a public corporation by its board of directors

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Corporate Social Responsibility

Businesses living and working together for the common good and

valuing human dignity

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Assimilation

-The process through which members of a minority group are forced to learn the ways of the majority group

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-Homogeneity reduces awareness of diversity issues

-Perpetuation of false stereotypes and prejudices

-Dominant groups continue to make decisions based

on their own values and beliefs

-Minority groups have little say in decision-making

Assimilation Effects

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35

Governance Issues

-Proper management of the business in the best interests of the stakeholders

-Independence of the board from the business

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Information Technology Issues

-Individual rights to personal information privacy

-Abuse of information technology

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Management of Knowledge Workers

employees who add value in an organization simply because of what they know

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Knowledge Worker Employment Issues

- Unique working arrangements and performance motivation requirements

- Specifically (individually) tailored compensation packages

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Outsourcing

-The practice of hiring other firms to do work previously

performed by the organization itself

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-Helps firms to focus on core activities

-Lowers labor costs through exportation of work

Advantages of Outsourcing

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-Disaffected employees: out-of-job workers are used

train the newly-hired foreign replacements

-Reduction of domestic job opportunities

Disadvantage of Outsourcing

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-A richness of ideas and perspectives which can lead

to new product and market development and

improvement in customer services

-Workers that are valued and therefore are more

creative, motivated, and productive

-Higher productivity, better teamwork, deeper

employee commitment to the organization and its

goals

Diversity's Results

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43

-Maintaining a leadership position: technology is the basis of competition for some firms

-Coping with decreasing cycle times

Challenges for Technology Leaders

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leaner and more flexible organizations, increased collaboration, improved management processes/systems

Advantages of IT

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less personal communication, less "down time," an increased sense of communication and decision-making urgency

Disadvantages of IT

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