ORGANIZATIONAL BEHAVIOR ACROSS CULTURES

Conditions affecting multinational operations

The people of the world are organized into communities and nations, each in its own way according to its resources and cultural heritage. Some nations are economically developed others are just now developing their natural and human resources. The conditions of work are different because of different attitudes, values, and expectations from participants. Understanding these differences and how they influence international organizational behavior is aided by examination of key social, legal, ethical, political, and economic conditions.

• Social Conditions

In many countries the social condition is poorly developed, there are major shortages of managerial personnel, scientists and technicians and these deficiencies limit the ability to employ local labor. Needed skills must be imported from other countries while the local workers will be prepared.

• Legal and ethical conditions

In judicial system, some countries practice rapid disposition of cases, in other countries cases may drag on for years. Some countries condone the practice of bribery as way of obtaining and retaining businesses others strictly prohibit it.

Managers need to be aware of the possible differences in both laws and ethical values that define acceptable and unacceptable behaviors in foreign countries.

The managers in foreign countries need to become familiar with local customs and practices. Applying their own personal and organizational value systems, they must then decide which behaviors are compatible with both parties’ expectations and which are not. Finally, they need to recognize that the resolution of ethical issues is not always clear-cut.

• Political conditions

Political conditions that have a significant effect on organizational behavior include instability of