Global Organizational Behavior Study Terms & Definitions

Different Types of Organizations

- Global (facilities in different countries, cultural differences incorporated, decentralized decision making)

- Multinational (facilities in some countries, focus on minimizing production and distribution costs)

- International (one or few facilities in foreign countries)

- Domestic (operations within a single domestic marketplace)

Hofstede's Cultural Dimensions

- Power distance

- Individualism-Collectivism

- Masculinity-Femininity

- Uncertainty avoidance

- Short- vs Long-term orientation

9 Global Cultural Dimensions

- Power Distance

- Uncertainty Avoidance

- Institutional Collectivism

- In-Group Collectivism

- Gender Egalitarianism

- Assertiveness

- Future Orientation

- Performance Orientation

- Humane Orientation

Power Distance

the extent to which power is distributed equally

Institutional Collectivism

the extent to which individuals are encouraged for prioritizing the group (high in Japan and China)

In-group Collectivism

the extent to which people focus on their immediate groups such as families (ex: Indian multigenerational households)

Gender Egalitarianism

the extent of gender discrimination/role equality (Low: very strict roles for men vs women; High: not much distinction between "male" and "female" roles)

Short- vs Long-term Orientation

Short-term: instant gratification, self-indulgence (US)

Long-term: restraint and planning for long term success

High Context Cultures

situational and non-verbal cues carry significant meaning (ex: China, Japan, Korea, Mexico, Saudi Arabia)

Low Context Cultures

meanings primarily based straightforward communication like verbal or written (ex: US, Canada, many European countries)

Expatriates (expats)

employees assigned to work in another country that is not their native country

Considerations when using expats

selection of skills other than the standard ones, preparation and development for their success in a different country, compensation (can be complex and expensive), repatriation back to home country

Reasons why expats fail

Individual or their family cannot adapt to new country, family problems, emotional immaturity, inability to handle responsibilities, lack of technical skills, lack of motivation

Parent country

the country where a company's headquarters are located

Host country

a country (other than the parent country) in which an organization operates a facility

Third country

a country that is neither the parent country nor the host country of an employer

Expatriates (expats)

employees assigned to work in another country

International organization

an organization that sets up one or a few facilities in one or a few foreign countries

Multinational companies

an organization that builds facilities in a number of different countries in an effort to minimize production and distribution costs

Global organization

an organization that chooses to locate a facility based on the ability to effectively, efficiently, and flexibly produce a product or service, using cultural differences as an advantage; highest level of involvement in the global market

Transnational HRM system

an HR system that makes decisions from a global perspective, includes managers from many countries, based on ideas contributed by people representing a variety of cultures

Cross-cultural preparation

training to prepare employees and their family members for an assignment in a foreign country (prep for departure, assignment, and return)