Organization Development and Change

Chapter Twenty One: Organization Development in Global Settings

Thomas G. Cummings Christopher G. Worley

Learning Objectives for Chapter Twenty One

To explore the differences in OD applications in a cross-cultural context. To understand the cultural values that might impact OD applications in other cultures To examine how OD can best be applied in worldwide firms and global social change organizations
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Growth of OD in Global Settings

The rapid development of foreign economies The increasing worldwide availability of technical and financial resources The emergence of a global economy

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Cultural Values
Context Power Distance Uncertainty Avoidance Achievement Orientation Individualism

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Context
The extent to which meaning in communication is carried in the words Organizations in high context cultures tend to value ceremony and ritual, the structure is less formal, there are fewer written policies, and people are often late for appointments
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Power Distance
Extent to which members of a society accept that status and power are distributed unequally in an organization Organizations in these cultures tend to be autocratic, possess clear status differences, and have little employee participation

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Uncertainty Avoidance
The extent to which members of a society tolerate the unfamiliar and unpredictable Organizations in these cultures tend to value experts, prefer clear roles, avoid conflict, and resist change

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Achievement Orientation
The extent to which people in a society value assertiveness and the acquisition of material goods Organizations in these cultures tend to associate achievement with wealth and recognition, value decisiveness, and support clear sex roles
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Individualism
The extent to which people in a society believe they should be responsible for themselves and their immediate family Organizations in these cultures tend to encourage personal initiative, value time and autonomy, and accept competition

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Cultural and Economic Contexts of International OD Practice

Low Cultural Fit with OD Practice High India South Africa Moderate South Pacific South America Middle East

Level of Economic Development

High

Central America Eastern Europe United Kingdom Asia Scandinavia USA

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Worldwide Organizations
Offer products or services worldwide Balance product and functional concerns with geographic issues Coordination must address complex personnel and cross-cultural issues Its competitive position in one national market is affected by its global integration and local responsiveness
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The Integrative-Responsiveness Framework

High

Global Orientation

Transnational Orientation

Need for Global Integration International

Orientation

Multinational Orientation

Low Low Need for Local Responsiveness High

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Worldwide Strategic Orientations

Offer products/services in more than one country Balance product and functional concerns with geographic issues of distance, time, and culture Carry out coordinated activities across cultural boundaries using a wide variety of personnel
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Worldwide Strategic Orientations

The International The Global Orientation The Multinational Orientation The Transnational Orientation

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International Strategic Orientation

Characteristics of the International Design
Sell existing products/services to nondomestic markets Goals of increased foreign revenues

Implementing the International Orientation

OD facilitates extending the existing strategy into the new market Cross-cultural training and strategic planning

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The Global Strategic Orientation

Characteristics of the Global Design
Centralized with a global product structure Goals of efficiency through volume

Implementing the Global Orientation

OD supports career planning, role clarification, employee involvement, conflict management and senior management team building to help achieve improved operational efficiency OD helps the organization transition to global integration from local responsiveness
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The Multinational Strategic Orientation

Characteristics of the Multinational Design
Operate a decentralized organization Goals of local responsiveness through specialization

Implementing the Multinational Orientation

OD helps with intergroup relations, local management selection and team building OD facilitates management development, reward systems, and strategic alliances
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Transnational Strategic Orientation

Characteristics of the Transnational Design
Tailored products Goals of learning and responsiveness through integrations

Implementing the Transnational Orientation

Extensive selection and rotation Acquire cultural knowledge and develop intergroup relations Build corporate vision
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Global Social Change Organizations

Their primary task is a commitment to serve as an agent of change in the creation of environmentally and socially sustainable world futures They have discovered and mobilized innovative socialorganizational architectures They hold values of empowerment in the accomplishment of their global change mission They are globally-locally linked in structure, membership, or partnership and thereby exist as entities beyond the nation-state They are multi-organizational and often cross-sectoral
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Application Stages of Global Social Change Organizations

Build the local organization
Using values to create the vision Recognizing that internal conflict is often a function of external conditions Understanding the problems of success

Create horizontal linkages

Build a network of local organizations with similar views and objectives

Develop vertical linkages

Create channels of communication and influence upward to governmental and policy-level, decision-making processes
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Global Social Change Organizations OD Roles and Skills

Bridging Role Stewardship Role Communication Skills Negotiation Skills Networking Skills

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