International organization behaviour ppt

INTERNATIONAL
ORGANIZATIONAL
BEHAVIOR

International Organizational Behavior uses a global perspective to focus on business and
management interactions among individuals, groups and teams, and organizations. An international
business organization is one which expands its business activities beyond the national border.
There are similarities and dissimilarities in certain respects between national and international
organizations. As regards dissimilarities, it is mainly cultural variations across the nations that
distinguishes organizational behavior in international organization from national organization. Given
the varying cultural background across the nations, human behavior at work in them is, therefore,
inevitable to vary.
INTRODUCTION

There are a lot of differences in individual behavior among cultures. Because organizational
culture is different from nation to nation. Following are the important points by which the
differences in individual behavior among cultures can be proved.
• Individual Differences
• Individualism/Collectivism
• Power Distance
• Uncertainty Avoidance
• Masculinity/Femininity
• Motivation
INDIVIDUAL BEHAVIOUR IN INTERNATIONAL ORGANISATION

There are four key areas in which group behavior varies. Those are given below.
• Group Dynamics
• Leadership
• Power and Conflicts
• Communication
GROUP BEHAVIOUR IN INTERNATIONAL ORGANISATION

• The international context of OB is becoming increasingly significant as organizations expand
beyond their national boundaries.
• Managers of multinational firms have to manage a variety of social, political and economic
environments as well as unique individual differences.
• Managers need to be sensitive to cultural differences across different countries to achieve
their goals in the global economy.
• Many factors influence the way in which managers lead their employees - personal values,
interpersonal skills, background and the decision-making skills of the manager.
• Employees who travel to a foreign country for work find it difficult to adapt to the new culture
because of factors like parochialism, ethnocentrism and culture shock.
SIGNIFICANCE OF IOB

Hofstede specifically focused his attention on work-related values in his study of culture. He
collected data from IBM employees in 40 countries. In analyzing the data from more than 116,000
employees, Hofstede extracted four dimensions of values to explain the differences among
cultures and then later added a fifth. Although his data was collected in the 1970s, several recent
studies and data from outside Europe have generally confirmed Hofstede's findings, with minor
additions or differences.
HOFSTEDE'S DEFINITION OF CULTURE

According to Hofstede, cultures can be compared and
classified on the basis of five different dimensions that affect behavior,
organization practices, and social practices such as marriages, funerals, and
religious ceremonies:
• Individualism – collectivism : In cultures oriented toward individualism – such as the USA, the
UK, and Slovenia – people tend to emphasize their individual needs and concerns and
interests over those of their group or organization. The opposite is true in countries which
score high on collectivism, such as Asian countries like Japan and Taiwan. In a collectivistic
society, one is expected to interact with members of one's group. It is almost impossible to
perceive a person as an individual rather than one whose identity comes from groups with
which that individual is associated.

• Power distance : Some nations accept high differences in power and authority between
members of different social classes or occupational levels, while other nations do not. For
example, the French are relatively high in power distance; Israel and Sweden score very low.
In Israel and Sweden, worker groups demand and have a great deal of power over work
assignments and conditions of work. French managers tend not to interact socially with
subordinates and do not expect to negotiate work assignments with them.
• Uncertainty avoidance : While some individuals ready to accept uncertainty and, in turn, risk
to thrive in the challenging and exciting situations, there are others, who simply avoid
uncertainty. Employees of US and Australia represent the two cases respectively.

• Masculinity – femininity : Work force structure dominated by either sex has its bearing on
employee behavior at work. India is an example of highly masculine where as Sweden that of
highly feminine. The managerial belief vary across culture. For e.g. Japanese managers
believe that very purpose of having an organization structure is to make every employee
knowhis or her boss is. Whereas Indian managers believe in value based management.
• Short term – long term orientation : This dimension reflects a culture's view about the future.
The short-term orientation, a western cultural characteristic, reflects values toward the
present, perhaps even the past, and a concern for fulfilling social obligations. Long-term
thought patterns, characteristic of Asian countries, reflect an orientation toward the future,
belief in thrift and savings, and persistence.

Culture shapes the way people perceive the world, interact with others, and behave in various
situations. In the context of international business, understanding the cultural nuances is crucial
for effective communication, decision-making, and overall organizational success. Here are some
key aspects of how culture influences international organizational behavior:
1. Communication Styles:
• High-Context vs. Low-Context Cultures: In high-context cultures (e.g., Japan, China), much of
the information is implicit, relying on context and non-verbal cues. In contrast, low-context
cultures (e.g., United States, Germany) rely more on explicit verbal communication.
Misunderstandings can occur when individuals from different contexts interact without
awareness of these differences.
IMPACT OF CULTURE

2. Decision-Making Processes:
• Hierarchy and Authority: Cultures vary in their attitudes toward authority. In hierarchical
cultures (e.g., many Asian countries), decisions are often made by senior management, and
subordinates may hesitate to voice dissent. In egalitarian cultures (e.g., Nordic countries),
decisions are more participatory, and open discussions are encouraged.
3. Work Ethic:
• Attitudes Toward Work: Some cultures emphasize individual achievement and ambition (e.g.,
USA), while others prioritize collective goals and harmony (e.g., Japan). These differences can
impact motivation and job satisfaction.
4. Time Management:
• Punctuality: Cultures differ in their views on punctuality. Some cultures adhere strictly to
schedules, while others have a more relaxed attitude. This can affect meeting deadlines and
project timelines in international teams.

1. The concept of an hourly wage plays a minor role in Mexico. Labor law requires that employees
receive full pay for 365 days a year.
2. In Australia and Brazil, employees with one year of service are automatically given 30 days of paid
vacation.
3. In Japan, remuneration levels are determined using the objective factors of age, length of service and
educational background rather than skill, ability and performance. Performance doesn't count until after
an employee reaches 45 years of age.
4. In the UK, employees are allowed upto 40 weeks of maternity leave and employers must provide a
government mandated amount of pay for 18 of those weeks. In India, a woman employee is entitled for
full wages during previous 6 weeks and subsequent 6
weeks period of pregnancy.
CULTURAL BEHAVIOUR ACROSS COUNTRIES- SOME EXAMPLES

Cross-cultural communication is a critical aspect of International Organizational Behavior (IOB) that
plays a pivotal role in the success of global businesses. Effective communication across cultures ensures
that messages are accurately conveyed, reduces misunderstandings, and fosters positive relationships
among individuals from diverse cultural backgrounds. Key considerations for cross-cultural
communication are:
1. Language Barriers:
• Translation Challenges: Differences in language can lead to misunderstandings. It is important to be
aware of potential translation issues and invest in professional translation services when necessary.
• Non-Verbal Communication: Non-verbal cues, such as body language and facial expressions, can
vary significantly across cultures. Awareness of these differences is crucial to avoid
misinterpretations.
CROSS-CULTURAL COMMUNICATION

2. High-Context vs. Low-Context Cultures:
• High-Context Cultures: In high-context cultures, much of the information is implicit and relies
on context and relationships. Examples include many Asian and Middle Eastern cultures.
• Low-Context Cultures: In low-context cultures, communication is more explicit, and information
is conveyed directly. Examples include many Western cultures. Understanding these
differences is vital for effective communication.
3. Direct vs. Indirect Communication:
• Direct Communication: Some cultures, such as those in Western countries, value direct and
explicit communication. Clarity and openness are prioritized.
• Indirect Communication: Other cultures, like many in Asia, may prefer a more indirect
communication style, where messages are conveyed subtly. Understanding cultural
preferences for communication style is crucial for effective interaction.

4. Active Listening:
• Encourage Active Listening: Actively listening to colleagues from different cultures is essential.
This involves not only hearing words but also understanding the context, emotions, and
underlying messages.
• Clarification and Feedback: Encourage individuals to seek clarification when needed and
provide feedback to ensure mutual understanding.
5. Time Perception:
• Monochronic vs. Polychronic Cultures: Monochronic cultures (e.g., the United States)
emphasize punctuality and a linear approach to time. In contrast, polychronic cultures (e.g.,
many Latin American cultures) have a more flexible attitude toward time. Awareness of these
differences helps in scheduling and conducting meetings effectively.

Effective cross-cultural communication plays a crucial role in fostering understanding, collaboration, and
success in international business environments. Here are key reasons highlighting the importance of
effective cross-cultural communication in IOB:
1. Cultural Diversity in the Workplace:
• Global Workforce: Many organizations operate with a workforce that spans multiple countries and
cultures. Effective cross-cultural communication is essential for ensuring harmony and collaboration
within such diverse teams.
2. Reduced Misunderstandings and Conflicts:
• Avoiding Misinterpretations: Cultural nuances can lead to misinterpretations and misunderstandings.
Effective cross-cultural communication helps minimize these issues, reducing the likelihood of conflicts
arising from cultural differences.
• Resolution of Conflicts: When conflicts do arise, the ability to communicate effectively across cultures is
crucial for resolving issues in a respectful and constructive manner.
IMPORTANCE OF EFFECTIVE CROSS-CULTURAL COMMUNICATION

3. Building Trust and Relationships:
• Trust Building: Effective communication is the foundation for building trust among team members from
different cultural backgrounds. Trust is essential for successful collaboration and relationship-building in
global organizations.
• Interpersonal Relationships: Cross-cultural communication fosters positive interpersonal relationships
by promoting open dialogue, empathy, and understanding.
4. Global Business Expansion:
• Market Entry: In the context of international business, effective communication is vital for successfully
entering new markets. Understanding local customs, communication styles, and business etiquette is
crucial for building relationships with clients, partners, and stakeholders.
• Negotiation Success: Cross-cultural communication skills are essential during negotiations, where
awareness of cultural nuances can influence the outcome and contribute to successful business deals.

5. Employee Engagement and Satisfaction:
• Recognition of Cultural Differences: Acknowledging and respecting cultural differences through effective
communication contributes to a positive organizational culture.
• Employee Satisfaction: Employees who feel their cultural backgrounds are acknowledged and respected
are more likely to be engaged and satisfied in their work.
6. Customer Satisfaction and Service:
• Understanding Customer Needs: In industries with a global customer base, effective cross-cultural
communication is essential for understanding and meeting the diverse needs and expectations of
customers.
• Service Excellence: Providing excellent customer service requires cultural sensitivity, as customers from
different cultures may have varying expectations and preferences.

Managing diversity and inclusion is a critical aspect of fostering a positive and productive workplace
environment. Diversity encompasses differences in race, ethnicity, gender, age, nationality, religion, and
more, while inclusion involves creating an atmosphere where everyone feels valued, respected, and has
equal access to opportunities. Here are key strategies for managing diversity and inclusion in the
international organizational setting:
1. Cultural Competence Training:
• Implement cultural competence training programs to enhance employees' understanding of diverse
cultures, customs, and communication styles.
• Provide training on unconscious bias to raise awareness of potential biases and promote fair treatment.
2. Diverse Recruitment and Hiring Practices:
• Develop inclusive recruitment strategies that attract candidates from diverse backgrounds.
• Implement blind recruitment practices to reduce unconscious bias in the hiring process.
MANAGING DIVERSITY AND INCLUSION

3. Inclusive Policies and Practices:
• Develop and communicate policies that promote diversity and inclusion, including equal opportunity,
anti-discrimination, and harassment prevention policies.
• Regularly review and update policies to align with evolving diversity and inclusion best practices.
4. Flexible Work Arrangements:
• Implement flexible work arrangements to accommodate diverse needs and preferences, considering
factors such as cultural holidays, work hours, and remote work options.
• Ensure that flexibility policies are communicated clearly and applied consistently.
5. Inclusive Leadership:
• Foster a culture of inclusive leadership where leaders actively seek diverse perspectives, value all team
members, and ensure equitable opportunities.
• Train leaders to adapt their leadership styles to accommodate various cultural expectations.

A diverse workforce brings about numerous benefits that contribute to the success and effectiveness of
organizations operating in a globalized environment. Here are key advantages of fostering diversity within
an international organizational setting:
1. Enhanced Innovation and Creativity:
• Diverse teams bring together individuals with different backgrounds, experiences, and perspectives.
• This diversity of thought fosters creativity and innovation, leading to the development of novel solutions
and approaches.
2. Global Market Understanding:
• A diverse workforce reflects a variety of cultural insights and understanding.
• This diversity is valuable for organizations operating in international markets, as it enhances the
company's ability to understand and cater to the needs of diverse global customers.
BENEFITS OF A DIVERSE WORKFORCE

3. Improved Problem Solving:
• Diverse teams are better equipped to solve complex problems.
• Different perspectives contribute to a more comprehensive analysis of issues, leading to well-rounded
and effective solutions.
4. Talent Attraction and Retention:
• Organizations that prioritize diversity are often seen as more attractive to a broad talent pool.
• A diverse and inclusive workplace promotes a positive reputation, making it easier to attract and retain
top talent from around the world.
5. Increased Adaptability:
• Diverse teams are more adaptable to change.
• Exposure to different perspectives and approaches prepares employees to navigate the complexities of
a rapidly changing global business environment.

6. Competitive Advantage:
• Organizations with a diverse workforce often have a competitive edge.
• A diverse team can be more responsive to market changes, giving the organization a strategic
advantage in the global marketplace.
7. Enhanced Customer Relations:
• A diverse workforce allows organizations to connect with customers from various backgrounds on a
more personal level.
• Employees who understand and represent diverse customer bases can build stronger relationships and
trust.

While there are numerous benefits to having a diverse workforce, managing diversity also presents certain
challenges. These challenges can be particularly pronounced in global organizations that operate across
various cultural, linguistic, and geographical boundaries. Here are key challenges in managing diversity
within an international organizational:
1. Language Barriers:
• Communication Breakdowns: Language differences can impede effective communication, resulting in
miscommunication, confusion, and potential errors.
• Misinterpretation: Nuances, idioms, and cultural references may be lost in translation, leading to
misinterpretations of messages.
2. Implicit Bias and Stereotypes:
• Unconscious Bias: Implicit biases may influence decision-making, hiring practices, and daily interactions.
• Stereotyping: Preconceived notions about certain cultural groups can affect how individuals are
perceived and treated.
CHALLENGES IN MANAGING DIVERSITY

3. Resistance to Change:
• Cultural Resistance: Employees may resist adapting to new and diverse ways of working, especially if
organizational culture strongly reflects a specific cultural norm.
• Resistance to Inclusive Policies: Some employees may resist initiatives aimed at promoting diversity and
inclusion due to a fear of change or a lack of understanding.
4. Religious and Cultural Sensitivities:
• Conflicting Beliefs: Diverse religious and cultural beliefs may lead to conflicts if not managed sensitively.
• Accommodating Practices: Balancing organizational practices with the need to accommodate diverse
religious and cultural practices can be challenging.
5. Global Economic Disparities:
• Differences in Economic Status: Economic disparities among countries and regions may affect the
perception of fairness in compensation and benefits, leading to tensions among employees.

Conflict resolution in international workplaces is a critical aspect of International Organizational Behavior
(IOB). Given the diverse cultural backgrounds, communication styles, and perspectives within international
teams, conflicts may arise due to misunderstandings, differing expectations, or cultural differences.
Effectively addressing and resolving conflicts is essential for maintaining a harmonious and productive work
environment. Here are key considerations for conflict resolution in the context of IOB:
1. Cultural Awareness:
• Understanding Cultural Differences: Cultural nuances can significantly impact how conflicts are
perceived and resolved. Cultural awareness helps in understanding how different cultures approach
conflict and what communication styles are considered appropriate.
CONFLICT RESOLUTION IN INTERNATIONAL WORKPLACES

2. Open Communication:
• Encouraging Open Dialogue: Foster an environment where team members feel comfortable expressing
concerns and engaging in open dialogue.
• Active Listening: Actively listen to understand the perspectives of all parties involved.
Miscommunications can often be clarified through attentive listening.
3. Mediation and Third-Party Involvement:
• Utilizing Mediation Services: In cases where conflicts persist, consider involving a neutral third party or
mediator to facilitate resolution.
• Cross-Cultural Mediation Training: Mediators should be trained in cross-cultural mediation techniques to
effectively address cultural differences.
4. Focus on Solutions, Not Blame:
• Solution-Oriented Approach: Encourage a focus on finding solutions rather than assigning blame. This
approach promotes a collaborative and forward-thinking mindset.
• Collective Responsibility: Emphasize the idea that resolving conflicts is a collective responsibility,
involving all parties in finding mutually acceptable solutions.

Ethical considerations in international business are fundamental to maintaining trust, fostering positive
relationships, and ensuring responsible and sustainable operations Behavior (IOB). Navigating ethical
challenges becomes more complex in the global arena due to diverse cultural norms, legal frameworks, and
business practices. Here are key ethical considerations in international business within the framework of
IOB:
1. Compliance with Local Laws:
• Legal Variations: Adhere to the legal requirements of each country in which the organization operates.
Be aware of and comply with local laws and regulations.
• Legal and Ethical Alignment: While legality is a minimum standard, ethical behavior should go beyond
mere compliance and align with broader ethical principles.
ETHICAL CONSIDERATIONS IN INTERNATIONAL BUSINESS

2. Human Rights and Labor Practices:
• Respect for Human Rights: Uphold human rights standards in all business operations, including labor
practices, workplace conditions, and employee treatment.
• Avoiding Exploitation: Ensure that employees, suppliers, and partners are not subject to exploitation,
discrimination, or unfair labor practices.
3. Bribery and Corruption:
• Anti-Corruption Policies: Implement and enforce anti-corruption policies and procedures. Avoid
engaging in bribery or corrupt practices, which can damage both reputation and legal standing.
• Due Diligence: Conduct due diligence on business partners and third-party intermediaries to ensure
they share the same commitment to ethical business practices.

4. Fair Competition:
• Anti-Competitive Practices: Avoid engaging in anti-competitive practices such as price fixing, market
sharing, or monopolistic behaviors.
• Respect for Intellectual Property: Respect intellectual property rights, both in terms of protecting your
own and refraining from unauthorized use of others' intellectual property.
5.Data Privacy and Security:
• Protection of Personal Data: Ensure the protection of personal data and respect individuals' privacy
rights, adhering to relevant data protection laws.
• Cybersecurity Measures: Implement robust cybersecurity measures to safeguard sensitive information
from unauthorized access or data breaches.

Predicting future trends in International Organizational Behavior (IOB) involves considering the evolving
landscape of global business, technological advancements, and changing workforce dynamics. While the
future is inherently uncertain, several trends are likely to shape the field of IOB in the coming years:
1. Remote and Hybrid Work Models:
• The rise of remote work, accelerated by technological advancements, is likely to continue.
• IOB will need to adapt to managing culturally diverse teams working across different time zones and
locations.
2. Global Talent Mobility:
• The movement of talent across borders is likely to increase as organizations seek specialized skills and
diverse perspectives.
• IOB will need to navigate challenges related to cross-cultural integration, expatriate assignments, and
global talent management.
FUTURE TRENDS IN IOB

3. Employee Well-being and Mental Health:
• Organizations will prioritize employee well-being, recognizing the impact of work-related stress and
mental health on performance.
• IOB will need to address the cultural aspects of mental health stigma and implement strategies to
support employees globally.
4. Global Talent Mobility:
• The movement of talent across borders is likely to increase as organizations seek specialized skills and
diverse perspectives.
• IOB will need to navigate challenges related to cross-cultural integration, expatriate assignments, and
global talent management.

https://www.scribd.com/document/484982862/International-Organisational-Behaviour#:~:text=International
%20Organizational%20Behavior%20uses%20a,national%20border
https://www.researchgate.net/publication/27213282_The_impact_of_culture_on_organizational_behavior
https://www.the-international-entrepreneur.com/international-trade/culture-impacts-business/
https://www.usemultiplier.com/blog/culture-in-international-business
https://www.slideshare.net/DelwinArikatt/session-10-international-ob
https://www.universalclass.com/articles/business/the-role-of-culture-and-diversity-in-organizational-behavior-
in-business.htm#:~:text=Culture%20in%20organizational%20behavior%20tends,and%20momentum%20for
%20the%20business
BIBILOGRAPHY

Thank You Very Much!
For Your Attention
PRESENTED BY :-
SWAYAM KOTHARI
DEVAM KAPADIYA
UMA LALWANI
JAHANVI LAKHANI
RAM LAKHANI
PAARAJ KEWALRAMANI

International organization behaviour ppt

More Related Content

What's hot (20)

Similar to International organization behaviour ppt (20)

Recently uploaded (20)

International organization behaviour ppt

Editor's Notes