Organization Development and Change
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Transcript of Organization Development and Change
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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 organizations that operate on a worldwide basis
• To describe the process of OD in 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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Cross-cultural Dimensions
• Power Distance
• Uncertainty Avoidance
• Achievement Orientation
• Individualism
• Context
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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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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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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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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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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 competitive position in other national markets
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Key Questions
• Does the organization see the world as one market or are there multiple markets?
• What are the keys to success in this business?
• What does the organization do better than anyone else?
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Hum anResources
Finance
R & D
ProductDivision
ProductDivision
Europe(Sales)
Brazil(Subsidiary)
InternationalDivision
CEO
International Division
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Worldwide Strategic Orientations
• The Global Orientation
• The Multinational Orientation
• The Transnational Orientation
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Alternative Worldwide Structures
Global Product
Structure
NetworkStructure
MatrixStructure
InternationalDivision
GlobalGeographic
Structure
Opportunities for
GlobalizedStrategies
Opportunitiesfor
MultinationalStrategies
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The Global Orientation• Strategy
– Goals of efficiency
– Standardized products
• Key Organization Design Features– Centralized decisions
– Strong integrated operations
– Formal control systems
• Key Staffing Issues– Home country ex-patriates
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Global Product Structure
Global Instruments
Group
Global Automotive
Group
Global Industrial
Group
Chair
Legal Engineering President Finance International
RegionalCoordinators
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The Multinational Orientation• Strategy
– Goals of local dominance
– Tailored products
• Key Organization Design Features– Decentralized decisions
– Some centralized planning
– Profit center-oriented controls
• Key Staffing Issues– Local country management teams
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Global Geographic Division
PacificDivision
EuropeanDivision
South Am ericanDivision
ProductCoordinators
Long-rangePlanning
CorporateStaff
CEO
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The Transnational Orientation• Strategy
– Goals of efficiency and responsiveness by integration
– Tailored products
• Key Organization Design Features– Some decentralized decision making– Worldwide coordination– Subtle control mechanisms
• Key Staffing Issues– Hire the “best” person
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Network Structure
HomeCountry
Foreign Region
ForeignRegion
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Issues in Worldwide Strategy Implementation
• From domestic to worldwide
• From global to transnational
• From multinational to transnational
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Domestic to Worldwide
• Choosing an Orientation– Answering the Key Questions
• Change Strategies– Test the waters– Structural change
• International Division
• Full-blown implementation
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Global to Transnational• Required Competencies
– Operate a decentralized organization– Ability to transfer knowledge, skills, and
resources
• Change Strategies– Education – Reward systems– Structural change
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Multinational to Transnational
• Required Competencies– Manage (create?) interdependencies– Ability to transfer knowledge, skills, and
resources
• Change Strategies– Task forces and other integration mechanisms– Personnel changes and transfers
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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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Developing GSCOs
• Build the local organization
• Create horizontal linkages
• Create vertical linkages
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GSCO Change Agent Roles and Skills
• Bridging Role
• Stewardship Role
• Communication Skills
• Negotiation Skills
• Networking Skills