Organization Development and Change

Thomas G. Cummings

Christopher G. Worley

Chapter Twenty One:Organization Development in

Global Settings

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Learning Objectivesfor 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

Cultural Fit with OD PracticeHighLow

Moderate

High

Lev

el o

f E

con

omic

D

evel

opm

ent

IndiaSouth Africa

United Kingdom Scandinavia

USA

Central America Eastern EuropeAsia

South Pacific South America Middle East

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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

Global

OrientationTransnational Orientation

International Orientation

Multinational Orientation

High

Need for GlobalIntegration

Low

Low Need for Local ResponsivenessHigh

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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 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

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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