CHAPTER 23: ORGANIZATION DEVELOPMENT IN GLOBAL SETTING

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.

Cultural Values

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.

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.
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

Worldwide Strategic Orientations

1. 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
2. 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
3. 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
4. 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
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 social-organizational
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

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

Global Social Change Organizations OD Roles and Skills

 Bridging Role
 Stewardship Role
 Communication Skills
 Negotiation Skills
 Networking Skills