Od in global context (1)
- 1. ORGANIZATIONAL DEVELOPMENT IN GLOBAL CONTEXT Submitted To: Miss Anju Rohilla (Lecturer of Organizational Change and Development) Submitted By: Sneha Sindher (12020101) Manisha Dagar (12020102)
- 2. Introduction According to Fagenson-Eland and Ensher, OD is now practiced in every region of the world as the global expansion of many organizations has generated complex and rapid growth. Hofstede first developed his framework when his research on IBM employees in 40 different countries showed how differences in national cultures impact management practices. He and his son have continued to expand this research and other researchers have replicated and expanded Hofstede’s work and found support for his dimensions of national culture
- 3. Dimensions of Culture According to Hofstede, The four key dimensions of culture are: Power distance Uncertainty avoidance Individualism/collectivism Masculinity/femininity Long-term/short-term orientation
- 4. Power Distance and OD It is the extent to which individuals who are less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally. Example: High power distance nations- Philippines, Russia, Venezuela, China, India and Malaysia Low power distance nations- New Zealand, the United States, Britain and Costa Rica
- 5. Uncertainty avoidance and OD It is the extent to which organizational members do not tolerate unpredictability and ambiguity. Fagenson, et al. (2004) found that countries high in Uncertainty Avoidance such as Russia, France and Japan there is less likelihood that OD efforts that require long periods of ambiguity, such as culture change efforts, will be implemented. While, high Uncertainty Avoidance countries, as in high Power Distance countries, hierarchy is respected and decision-making is expected to be top-down. Risk-taking behaviour is discouraged and having clear and stable rules is important.
- 6. Individualism/collectivism and OD It is the extent to which people believe they should be primarily responsible for themselves as opposed to the collective. Countries with high Individualism cultures such as the U.S. and Britain, look to OD for interventions that will promote personal initiative such as executive coaching and the development of performance appraisal and reward systems to promote individual productivity. There has been an explosion of executive coaching services in these countries in recent years and this trend is likely to continue.
- 7. Masculinity/femininity and OD This was the only one of the four original dimensions where Hofstede (1991) found a systematic difference in the answers between women and men. He explains that, “a society is called masculine when emotional gender roles are clearly distinct. Men are supposed to be tough and women are supposed to be tender. A society is called feminine when emotional gender roles overlap: both men and women are supposed to be modest, tender, and concerned with quality of life”
- 8. Long-term/short-term orientation and OD Long-Term Orientation (LTO), “stands for the fostering of virtues oriented toward future rewards – in particular, perseverance and thrift” Example: China, Hong Kong, Taiwan, Japan, Vietnam and South Korea. The Short-Term Orientation (STO) is defined by Hofstede and Hofstede (2005) as, “the fostering of virtues related to the past and present” Example: European countries fall in the mid range, and the U.S., Britain, and other Anglo countries score on the short-term side.
- 9. The Role of Values for the OD Practitioner and the Client in the Global Context From the discussion of Hofstede’s (1980; Hofstede and Hofstede 2005) dimensions of culture and the application of OD interventions, it is values and the way they are held that define culture, and differences in values that determine when and what type of OD intervention is or is not appropriate. the field of OD itself is values-based, and originated in theWest. OD practitioners must continue to ask the question:
- 10. how much do OD values reflect U.S. values and how trans-cultural are they? People in high power distance cultures expect leaders to know what’s best and do not expect openness or transparency, and people in high Uncertainty Avoidance cultures do not feel comfortable with confrontation and tension. Collectivist cultures focus on the needs of families and groups, not on the needs or rights of individuals. Cultural values need to be respected and acknowledged if OD is to add value in these cultures. Practitioners must be sensitive to the cultural context, as they are working in while grounding our work in values that can guide us to make honourable and ethical decisions that help create healthy organizations.
- 11. Key things to keep in mind Most of the world’s cultures are Collectivist, not Individualist as in the U.S. Each practitioner needs to start with understanding of her own cultural beliefs and how they differ from those of other cultures. Inquire constantly about what things mean. Don’t assume you understand what is going on when working in other cultures. Partner with an in-country colleague who can be a cultural guide.
- 12. THANK YOU!