PSY 3113 Chapter 2

Globalization

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