Chapter 2, Challenges for Managers

Chapter 2, Challenges for Managers - Hotel School of...

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Hotel School of Administration HADM 1115, Organization Behavior Cornell University Fall 2008 Chapter Two: Challenges for Managers Competing in the Global Economy  o Globalization suggests that the world is free from national boundaries and is  borderless o Transnational Organizations: the global viewpoint supersedes national issues  Operate across long distances and employ a multicultural mix of workers  o Social and Political Changes Led organizations to change the way they conduct business and encouraged  their members to think globally However, it is hard for managers in different countries because they don’t  know the customs  Guanxi: building networks for social exchange  Once established individuals can ask favors of each other with the  expectation that the favor will be returned  This expression is in China but not special to China… many other  cultures have similar concepts  In 1993, the European Union integrated 15 nations into a single market by  removing trade barriers  By 2007 10 more had joined  o Cultural Differences You must understand and appreciate diverse cultures  Geert Hofstede researched if cultural differences translate into differences in  work-related attitudes His studies showed that national culture explains more differences in work- related attitudes than do age, gender, profession, or position within the  organization  He found five dimensions of cultural differences  Expatriate managers: those who work in a country other than their home  country  Because workplace customs vary widely, understanding cultural differences  becomes especially important for companies that are considering opening  foreign offices  Another reality affecting global business practices is the cost of layoffs in  other countries  Cultural Differences and Work-Related Attitudes  o Individualism versus Collectivism  In cultures where individualism predominates, employees put loyalty to  themselves first and loyalty to their company and work group second Cultures characterized by collectivism are tightly knit social frameworks in  which individual members depend strongly on extended families or clans  1
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Hotel School of Administration HADM 1115, Organization Behavior Cornell University Fall 2008 Group decisions are valued and accepted  o Power Distance Relates to the acceptance of unequal distribution of power  In countries with a high power distance, bosses are afforded more power, titles  are used, formality is the rule, and authority is seldom bypassed  In countries with low power distance, people believe in minimizing inequality;  people at various power levels are less threatened by and more willing to trust 
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Chapter 2, Challenges for Managers - Hotel School of...

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