1. society

Organization Development and Change
Chapter Twenty Three:
Organization Development
In Global Settings
Thomas G. Cummings
Christopher G. Worley
Learning Objectives
for Chapter Twenty Three
To explore the differences in OD
applications in a cross-cultural context.
 To understand the cultural values that
might impact OD applications in other
societies
 To examine how OD can best be applied in
worldwide firms and global social change
organizations

Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing
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Growth of OD in
Global Settings
The rapid development of foreign economies
 The increasing worldwide availability of
technological and financial resources
 The emergence of a global economy

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Cultural Context
 Context
Orientation
 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

Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing
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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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing
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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 gender
roles are clearly differentiated.
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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, accept competition, and autonomy
is highly valued
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing
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Economic Development

Subsistence Economies
 Primarily agriculture-based

Industrializing Economies
 Moderately developed and tend to be rich in
natural resources

Industrial Economies
 Highly developed and emphasize nonagricultural
industry
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing
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Cultural and Economic Contexts of
International OD Practice
Low
Level of Economic
Development
Moderate
Cultural Fit with OD Practice
High
South Pacific
South America
Middle East
Central America
Eastern Europe
Asia
High
India
South Africa
United Kingdom
Scandinavia
USA
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing
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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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The IntegrativeResponsiveness Framework
High
Global
Orientation
Transnational
Orientation
International
Orientation
Multinational
Orientation
Need for Global
Integration
Low
Low
Need for Local Responsiveness
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Interventions for 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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing
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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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing
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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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing
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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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing
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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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing
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Application Stages of
Global Social Change Organizations

Build the local organization




Create horizontal linkages


Using values to create the vision
Recognizing that internal conflict is often a function of external
conditions
Understanding the problems of success
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
Cummings & Worley, 9e (c) 2008 South-Western/ Cengage Publishing
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Global Social Change Organizations
OD Roles and Skills
Stewardship Role
 Bridging Role
 Communication Skills
 Negotiation Skills
 Networking Skills

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