Chapter 2 Globalization, Diversity, and Ethics PDF

Chapter 2: GLOBALIZATION,DIVERSITY AND ETHICS M G T 2 0 7 Lesson Outlook Discuss the impact of globalization as an environmental context for organizational behavior. Identify what is meant by diversity and how it has become an important dynamic in the fie...

Chapter 2: GLOBALIZATION,DIVERSITY AND ETHICS M G T 2 0 7 Lesson Outlook Discuss the impact of globalization as an environmental context for organizational behavior. Identify what is meant by diversity and how it has become an important dynamic in the field of management and organizational behavior. Examine diversity in today’s organizations and the individual and organizational approaches to effectively manage diversity. Lesson Outlook Discuss the meaning of ethics and the major factors of ethical behavior. Describe major areas of ethical concern, including “bottom-line” impact and some of the steps that can be taken to effectively address the major ethical concerns.  Globalization, Diversity and Ethics emergence of concerns and issues relating to increasing globalization, the existence of diversity in the workplace, and ethics in a global context are already part of every business organization today.  Globalization refers to the internationalization of business organizations leading to a global economy. It is a trend whereby the national boundaries become less relevant.  Home Service About Us Contact Globalization and Foreign Job Assignments Expatriates multinational firms assign employees to operate the businesses across countries. Individuals who are tasked to work outside their home countries Culture Shock common problems encountered by the expats stress brought about by the individual’s difficulties and challenges in coping with the requirements of life outside their home country Culture is a way of life, that varies from one country to another. Some acceptable behaviors in a given country may not be appropriate or morally right to the culture of other nations. High Context Cultures - tend to communicate and understand individuals through contextual elements. They consider looking at the underlying meaning, gesture, and tone of a message. They focus on valuing personal relationships and trust. Low-context cultures. This means that they communicate through an established system. purpose is to make a message clear to everyone so that it will not slow down the process Culture There are related aspects of culture such as monochronic and polychronic time orientation: Monochronic time orientation - manifested by individuals who prefer working on tasks one at a time Polychronic time orientation - people working well even with multiple tasks at a given time. International Participations Organizations that engage in foreign markets have more growth opportunities yet require an understanding of which international approaches and related organizational characteristics to consider. Multidomestics Firms Global Firms Transnational Firm International Firms International Participations Multidomestic Firm these are organizations that utilize a multidomestic strategy. operate in such a way that they respond to the needs in particular of each country. products are tweaked to suit the preferences of a specific market. Global Firms characterized by high integration and low responsiveness. strategy of the organization is to offer standards and common products across different countries and regions in the world. seek to maintain centralization in the mother country while maximizing efficiency through reduced costs. global firms oppose multi-domestic firms commonly, pharmaceutical and luxury goods companies Transnational Firms use transnational strategy in becoming highly responsive to the specific needs of a country and at the same time, high in global integration. firms somehow exhibit the characteristics of both multi- domestic and global firms. international travels and meetings and foreign job assignments are also evident in this type of firm International Firms firms are not considered strategic as they have low levels of local responsiveness and global integration. known as an exporting strategy. Dimensions of National Culture Power Distance refers to the degree to which the power and status privileges are accepted by people to be unequally distributed in society. members of this country respect their titles and status Russia is one example of high power distance. Uncertainty Avoidance refers to the degree to which people do not feel like taking risks in unpredictable outcomes. high uncertainty avoidance countries, people focus on following specific rules and put everything in order Assertiveness refers to the degree to which people are aggressive and confrontational. It reflects the strong. personality of individuals in high assertiveness countries Germany and the United States are high assertiveness countries opposed to the Philippines where people are asked and consulted before making decisions. In-Group Collectivisim refers to the degree to which people take pride belonging to their organizations and families. China exhibit a strong distinction between the members and non-members of their group or family Institutional Collectivisim refers to the degree to which integration of groups and organizations is being encouraged. countries that have high institutional collectivism oppose individualism. Japan and Singapore on the other hand have high institutional collectivism Performance Orientation refers to the degree to which excellence is recognized and rewarded. innovation and competitiveness are encouraged in countries with high performance orientation Humane Orientation refers to the degree to which people value fairness, kindness and altruism in the country. The Philippines is one nation with high humane orientation Gender Egalitarianism refers to the degree to which equality for men and women is actualized. gender egalitarianism is evident in a country, where women are given the opportunity to achieve power and positions Future Orientation it is the degree to which individuals value investing in plans for the future. people value long-term gains in countries with high future orientation Managing Diversity in the Workplace Diversity differences between and among individuals and groups are often viewed as sources of conflict in the workplace effective managers now consider diversity as an advantage. defined diversity as acknowledging, understanding, accepting, and valuing differences among people concerning age, class, race, ethnicity, gender, disabilities, etc. Barriers to Achieving Diversity Prejudice and Discrimination Prejudice is an unjustified and negative attitude of individuals towards others who belong to social or cultural groups outside their own. Discrimination is the negative behavior resulting in unfair treatment towards people based on an individual’s social or cultural membership Stereotyping refers to the generalized beliefs towards individuals belonging to a certain group. means that a person is judged based on what is perceived about a given group. Differences in Social Identity Social identity theory was proposed by psychologist, Henri Tajfel. defined social identity as a person’s sense of who they are based on their group membership the world was divided “them” and “us” such on religion, nationality, sexual orientation, and ethnic groups Power Differentials comes from the status and expertise of an individual. one seems to be of higher level than the other, say in terms of knowledge and skills, he or she may gain individual power who belong in low-status groups get frustrated as they often feel harrassed and are not free to speak up. Poor Organizational Design and Structural Integration.creates a fair distribution of authority, workload, and functions of individuals and groups within the organization. structural integration likewise shows how men and women are represented in the positions in the organization Communication Barriers and Resistance to Change miscommunication and resistance to change have also hindered the achievement of diversity. management must ensure the implementation of effective diversity management programs to recognize each of the individuals as they are  Ethical Perspective on Organizational Behavior Ethics moral principle about what is right or wrong. ethical values of individuals guide them in creating decisions and making necessary actions an issue in organizational behavior ethical values and behaviors differ from the influences that individuals consider. Ethics Cultural Influences include family, religion, and friends. how people are raised leads to personal ethics Organizational Influences company policies and practices, codes of ethics, reward and punishment system External Environment include political, legal, economic, and international developments Ethics in Globalization Context ethics can improve the reputation of an organization. ethical behaviors reflect an organization's honest and just professional endeavors and activities employees even become more productive when they think they belong and work for organizations that practice fair business activities.  Chapter 2: Globalization, Diversity and Ethics THE END M G T 2 0 7