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Globalization
-The internationalization of business activities
-The shift toward an integrated global economy
-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)
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
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.
Power distance (orientation to authority)
extent to which people accept as normal an unequal distribution of power
Uncertainty avoidance (preference for stability)
extent to which people feel threatened by unknown situations and prefer to be in clear and unambiguous situations.
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
long-term values
include focusing on the future, working on projects that have a distant payoff, persistence, and thrift
short-term values
are more oriented toward the past and the present and include respect for traditions and social obligations.
Diversity
refers to the variety of observable and unobservable similarities and differences among people.
surface-level diversity
observable differences in people, including race, age, ethnicity, physical abilities, physical characteristics, and gender.
deep-level diversity
refers to individual differences that cannot be seen directly, including goals, values, personalities, decision-making styles, knowledge, skills, abilities, and attitudes.
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
Variety diversity
differences in a certain type or category, including group members' expertise, knowledge, or functional background
disparity diversity
differences in the concentration of valuable social assets or resources - dissimilarity in rank, pay, decision-making authority, or status
"like me" bias
people prefer to associate with others they perceive to be like themselves
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.
Prejudice
Outright bigotry or intolerance for other groups
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
Ethnocentrism
The belief that one's own language, native country, and cultural rules
and norms are superior to all others.
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
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
Geert Hofstede's Research
-Attitudes and behaviors differ significantly because of
values and beliefs that characterize different countries
cultural competence
the ability to interact effectively with people of different cultures
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.
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
Technology
refers to the methods used to create products, including both physical goods and intangible services.
Manufacturing
is a form of business that combines and transforms resources into tangible outcomes that are then sold to others
service organization
is one that transforms resources into an intangible output and creates time or place utility for its customers
Ethics
A person's beliefs regarding what is right or wrong in a given situation
Corporate Governance
Refers to the oversight of a public corporation by its board of directors
Corporate Social Responsibility
Businesses living and working together for the common good and
valuing human dignity
Assimilation
-The process through which members of a minority group are forced to learn the ways of the majority group
-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
Governance Issues
-Proper management of the business in the best interests of the stakeholders
-Independence of the board from the business
Information Technology Issues
-Individual rights to personal information privacy
-Abuse of information technology
Management of Knowledge Workers
employees who add value in an organization simply because of what they know
Knowledge Worker Employment Issues
- Unique working arrangements and performance motivation requirements
- Specifically (individually) tailored compensation packages
Outsourcing
-The practice of hiring other firms to do work previously
performed by the organization itself
-Helps firms to focus on core activities
-Lowers labor costs through exportation of work
Advantages of Outsourcing
-Disaffected employees: out-of-job workers are used
train the newly-hired foreign replacements
-Reduction of domestic job opportunities
Disadvantage of Outsourcing
-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
-Maintaining a leadership position: technology is the basis of competition for some firms
-Coping with decreasing cycle times
Challenges for Technology Leaders
leaner and more flexible organizations, increased collaboration, improved management processes/systems
Advantages of IT
less personal communication, less "down time," an increased sense of communication and decision-making urgency
Disadvantages of IT