CH-15-16 Stress and Counseling – Organizational Behavior: Human Behavior at Work : Chapter Notes

This Document Contains Chapters 15 to 16 Chapter 15 Stress and Counseling Chapter Overview This chapter discusses stress and counseling. First, employee stress is examined. Its causes and effect on job performance are presented. Approaches to stress management are also outlined. Next, an overview of employee counseling is presented. The final section identifies several types of counseling. Chapter Learning Objectives After reading this chapter, students should understand: 1. The role of stress in employee health 2. Extreme forms of stress reactions 3. Causes and symptoms of stress 4. Organizational effects of stress 5. Actions that may prevent or reduce stress 6. Different counseling functions 7. Three types of counseling and their usefulness Discussion and Project Ideas An increasing amount of attention is being devoted to stress and its effects on worker health and productivity. This chapter is designed to help students identify stress and its effects on employees. Counseling is emphasized as a major means of helping employees cope with stress as well as other personal and work-related problems. The perspective of counseling presented here is not so much a professional counseling approach, but an approach and attitude regarding supervisors’ interactions with employees on a day-to-day basis. Under these conditions, counseling is essentially a system of listening, understanding, and respecting human values in a situation. Thus, counseling by supervisors is as much an attitude as it is a technique. If a supervisor’s value structure gives no respect to human values in a problem, all the technique in the world will not solve it. The following exercises are designed to emphasize the key points stressed in this chapter. • Role playing is an excellent vehicle for teaching counseling concepts. Ask one student to volunteer to be a manager and another to be the employee. Have the employee and the other members of the class (but not the manager) read the following role description: • You are a drill-press operator and have recently had difficulty with arriving at work on time and completing your production quota. Also, you have been absent five times in the last month. On most of the days where you have been absent or late, you had been out drinking. However, for the most part, your problem is not drinking. Your wife (husband) left you about a month ago and took the children because you had stayed out late with friends a few times in the last couple of months. You don’t think it’s fair and wish you could get back together again. Right now, you’re just going through a period of readjustment and you probably will continue to have some problems until things clear up. It doesn’t make much difference at work, as far as you’re concerned, because they never fire anybody anyway. • Have the person role-playing the manager and the rest of the class (but not the employee) read the following role description. • You are the manager of Jo (Joseph or Josephine), a drill-press operator who has been late five times and absent five times in the last month. When Jo does come in, he (she) appears tired and has bloodshot eyes. You know from other employees that Jo has been drinking a lot and suspect that the drinking is part of the reason Jo’s spouse left about a month ago. Jo’s performance is not yet poor enough to warrant termination, but it has been gradually declining. You have decided that you need to talk with Jo to see if you can get him (her) back on track. Have both the manager and employee role-play the counseling interview in front of the class, and then discuss the following: o Was the manager directive or nondirective? What percent of time did the employee talk? The manager? o Which of the six counseling functions did the manager provide? o Ask the employee how she/he felt at the conclusion of the interview. o What could be done to improve the process observed? • Use the same process as before, but do it twice, once with a manager asked to use a directive approach and once with a manager asked to use a nondirective approach. Then discuss the following: o What are the major differences between the directive versus nondirective approaches? o What are the advantages and disadvantages of each approach? o Under which approach is the employee most likely to change? • Ask for a volunteer willing to participate in two to five minutes of nondirective counseling. After the person volunteers, begin by asking the person how she is doing. Key in on whatever she says and repeat it as a question. For example, if the person says “pretty good,” you say “Pretty good. Can you tell me more about that?” Keep the person talking and analyzing what she is saying by repeating and rephrasing what she says in terms of questions. Be careful, because the process can become very threatening. Be prepared to stop if it appears that the conversation becomes too personal and analytic. Within two to three minutes you should be able to uncover some of that person’s major concerns at the time. Then it is time to stop. o Discuss the process in terms of its power to uncover problems and help begin analysis. o Discuss the advantages and dangers of the process. o Ask the person how she feels about the process. Was she comfortable or uncomfortable? • Invite someone from the local community to class to discuss stress reduction techniques, such as biofeedback or transcendental meditation. After the presentation, have two groups conduct a debate on the validity of the methods suggested, one taking the affirmative and the other the negative position. Make sure they utilize research evidence and critically analyze that research in order to support their arguments. Lecture Outline Introduction • Studies of stress among American workers reveal the following: o 39 percent of executives believe their heavy work load has adversely affected their health. o 75 percent of workers work often during their paid time off. o Work is a significant source of stress for 65 percent of employees. o 33 percent of employees report that work interferes with family or personal time. o 34 percent of workers have thought seriously about quitting their jobs as a result of stress. o 69 percent of workers reported that health problems related to stress made them less productive. o 34 percent of American workers expected to burn out on the job soon. • Many people develop emotional or physical problems as a result of stress. • The difficulties may be temporary or enduring, and they may be caused by factors at work or out of the workplace. o No one is totally immune to stress. o It can affect employees at all levels of the organization. o When it is too severe or long-lasting, it can negatively affect both the individual and the employer. • Fortunately, many programs exist for preventing or managing stress. Employee Stress What Stress Is • Stress is the general term applied to the pressures people feel in life. o The presence of stress at work is almost inevitable in many jobs. • Individual differences account for a wide range of reactions to stress. o A task viewed as moderately challenging by one person may produce high levels of anxiety in another. • When pressure begins to build up, it can cause adverse strain on a person’s emotions, thought processes, behaviors, and physical condition. o When stress becomes excessive, employees develop various symptoms of stress that can harm their job performance and health. o It can also threaten their ability to cope with the environment. • As shown in Figure 15.1, people who are stressed may become nervous and chronically worried. They are easily provoked to anger and are unable to relax. o They may be uncooperative or use alcohol or other drugs excessively. • In some situations, an organization can be held legally liable for the emotional and physical impact of job stress on its employees. o If liability is established, employees could claim benefits under workers’ compensation laws, as well as sue for financial damages. Extreme Products of Stress • Stress can be either temporary or long-term, and can range from mild to severe. • The effects on an employee depend mostly on o How long its causes continue o How powerful they are o How strong the employees’ stress-handling and recovery powers are • Employees need internal resilience: the capacity to handle short-term tensions and bounce back from difficulties. o There are four aspects to resilience—physical, mental, emotional, and social, but we are dealing primarily with the emotional dimension here. o Persons with emotional resilience are confident, less afraid of failure, and more experimental. • Burnout o Problems predictably arise when high-intensity stress continues for an extended duration without some form of relief from it.  According to Hans Selye, the human body, when faced with stress, moves through three phases—alarm (“fight or flight”), resistance (or, alternatively, adaptation), and exhaustion.  When employees are emotionally exhausted, they cannot instantly rebuild its ability to cope with future stress once it is depleted.  Hence, people become physically and psychologically weakened from trying to combat it, leading to a condition called burnout. o Burnout is a situation in which employees  Are emotionally exhausted  Develop cynicism about their work  Feel unable to accomplish their professional goals o Some jobs, such as those in the helping professions and jobs with continuous high stress are more likely than others to cause burnout.  For example air-traffic controllers, health care professionals, reporters, waitstaff, customer service representatives. o Employees who are literally addicted to work and internally driven to spend long hours there are called workaholics. o Workaholics:  Place higher priority on work than on family or recreation  Think and talk constantly about work  Have difficulty delegating to others  Worry about their careers  Often try to accomplish multiple tasks simultaneously  Place high expectations on themselves and others  Have difficulty achieving a work-life balance o When workers become burned out, they are more likely to:  Complain  Attribute their errors to others  Magnify their dominant traits  Be highly irritable o The alienation they feel drives many of them to:  Think about leaving their jobs  Seek out opportunities to be trained for new careers  Actually quit o Job burnout also leads to increased absenteeism and decreased quality and quantity of job performance. o Organizations need to identify both the jobs that lead to early burnout and the employees who are beginning to exhibit burnout symptoms. o Sometimes an organization can change the parts of a job that contribute to burnout, such as:  Reducing the frequency or intensity of interpersonal contacts  Diminishing the reality or perception of constant surveillance  Clarifying job expectations  Eliminating rotating shiftwork. o Common suggestions for personal coping include:  Becoming more realistic about career expectations  Taking periodic short breaks to refresh oneself  Developing an exercise program  Adopting a diversionary hobby  Immersing oneself in helping others (volunteering in community activities) • Trauma o A severe product of stress, called trauma, occurs following a major threat to one’s security. The event could be:  A natural disaster  An organizational crisis  Dramatic employee abuse by the employer  Personal job loss o Three types of trauma have achieved notoriety in recent years:  Workplace trauma  Layoff survivor’s sickness  Post-Traumatic Stress Disorder o One problematic disorder is called workplace trauma, which is the disintegration of employees’ self-concept and belief in their capabilities. It can arise from:  Harassment at work  Wrongful termination  Discrimination  An employee’s perceived incapacity to meet evolving performance expectations o In each case, the employee may inappropriately:  Assume responsibility for the event  Feel like a victim of circumstances  Fall into an emotional tailspin o Attitudinal clues to workplace trauma include:  Severe moodiness  Concentration difficulties  Alienation  Tardiness  Absenteeism  Accident-proneness o A common source of workplace trauma is sudden job loss with its potentially crushing effect on one’s self-esteem.  This phenomenon became widespread as a consequence of the wave of corporate downsizings following the collapse of the housing and credit markets. o Many workers suffered at least short-term shock to their self-esteem.  The individual impact was often magnified by the lack of warning and the lack of insularity felt by even high-performing employees.  Job security has lost its meaning for many employees, not just marginal ones. o Even those individuals remaining employed after mass downsizing suffer stress and some experience layoff survivor’s sickness (also known as post-layoff survivor disorder).  This syndrome causes feelings of uncertainty/insecurity, anger, guilt, and distrust.  They are simultaneously relieved and glad to have a job, guilty that their workmates were displaced—sometimes without apparent reason, and even envious.  In the meantime, the job pressures on them often increase dramatically as they try to shoulder the tasks of former colleagues.  They also wonder, “Will I be next to be cut?” o Another source of trauma, and product of stress, is to witness or be the victim of workplace violence. Sometimes a troubled employee takes dramatic and harmful physical action against co-workers, managers, or company property. These violent, anger-based acts can include:  Unprovoked fights  Destruction of property  Use of weapons to threaten, harm, or even murder others o Workplace violence has catapulted homicide into the second-highest work-related cause of death in the United States.  Workplace violence is unique in that it is often both a product of stress and the source of enormous stress on others. o Any person, who witnesses violence, receives injury from it, or lives under the fear of repeated future violence may suffer from post-traumatic stress disorder (PTSD).  The shock of sudden and dramatic violent incidents often produces immediate stress-related symptoms.  The effects may last for years and require lengthy treatment. A Model of Stress • Conditions that tend to cause stress are called stressors. o Even a single stressor may cause major stress. o Usually stressors combine to pressure an employee in a variety of ways until major feelings of stress develop. o Major sources of employee stress are evenly divided between organizational factors and the nonwork environment, as shown in figure 15.2. • Individual differences among employees may cause some to interpret these stressors as positive stress or negative stress. o As a result, either constructive or destructive consequences may arise for both the organization and the employee. o These effects may be short-term and diminish quickly, or they may last a long time. • To control stress, organizations usually begin by exploring its job-related causes. Job-Related Causes of Stress • Almost any job condition can cause stress, depending on an employee’s reaction to it. o Part of the difference lies in each employee’s experiences, general outlooks, and expectations, which are all internal factors. • Typical causes of stress on the job: o Work overload o Time pressures o Poor quality of management o Insecure job climate o Lack of control over one’s job o Inadequate authority to match one’s responsibilities o Role conflict and ambiguity o Difference between company values and ethical practices • Work overload and time deadlines put employees under pressure and lead to stress. o These pressures arise from management, and a poor quality of management can cause stress. o Examples of stress-producing factors related to management are an autocratic supervisor, an insecure job climate, lack of control over one’s own job, and inadequate authority to match one’s responsibilities. • Role conflict and ambiguity are also related to stress. In situations of this type people have different expectations of an employee’s activities on a job, so the employee does not know what to do and cannot meet all expectations. o Since the job often is poorly defined, the employee has no official model on which to depend. o A further cause of stress lies in the difference between company values and ethical practices, as often reflected in the organization’s culture, and employee ethics and values. Nonwork Stressors • A vast array of stressors also arises away from work, and these can have powerful spillover effects on work performance. Examples of nonwork stressors include: o Relationship breakdowns between spouses or partners o Parenting issues such as child care problems o Personal or family illnesses o Lengthy commutes or transportation challenges o Caregiving roles and responsibilities o Sorrow over loss of family members or pets o Financial difficulties o Psychological problems • Some managers feel that they should be increasingly tuned in to events occurring in the personal lives of their employees. • One way to accomplish this is through the use of a stress audit—which is a survey administered anonymously to employees, that solicits their responses to a variety of questions related to working conditions. Examples of topics include: o Unrealistic time pressures o Inadequate respect o Unachievable deadlines o Pressure to work long hours o Strained relationships o Unclear expectations Frustration • Another cause of stress is frustration. o It is a result of a motivation (drive) being blocked to prevent one from reaching a desired goal. • Reactions to frustrations are known as defense mechanisms. • Types of Reactions o One of the most common reactions to frustration is aggression. o Some individuals become apathetic by not responding to their job or associates. o Another reaction is withdrawal, such as asking for a transfer or quitting one’s job. o Regression to less mature behavior, such as self-pity and pouting, also is possible. o If there is a fixation, the employee might constantly blame his/her supervisor for both their own problems and the problems of others. o Some individuals may also develop a physical disorder, such as an upset stomach, or choose a substitute goal, such as becoming the leader of a powerful informal group in office politics. • Sources of Frustration o Sources of frustration include:  Management  Co-workers  The work itself  The environment o Some research suggests that the little things called hassles, rather than major life crises, produce frustration.  Hassles are conditions of daily living that are perceived to threaten one’s emotional well-being. o Common hassles include:  Having too many things to do  Losing items  Being interrupted  Having to do unchallenging work o Some of the hassles with the greatest average severity are related to either the job or the employee’s personal environment, such as:  Dealing with problems of aging parents  Facing mild prejudice and discrimination  Having insufficient personal energy o The cumulative effects of multiple hassles may well result in a feeling of unwelcome stress o Some abusive supervisors engage in sustained hostile actions that demean those around them. o These workplace bullies intentionally engage in repeated verbal and even nonverbal mistreatment of employees. o Their actions include:  Publicly ridiculing others  Throwing tantrums  Extending insults  Displaying little or no consideration  Acting rudely  Cursing  Blaming unfairly  Withholding credit  Invading one’s privacy  Practicing the silent treatment o In short, workplace bullies threaten, intimidate, and humiliate others, whether unconsciously or intentionally. o Effects of abusive behavior include:  Psychological distress  Feelings of inefficacy  Depression  Lower job and life satisfaction  Higher turnover o Organizations have a moral obligation to monitor, prevent, and stop such abusive actions. • Frustration and Management Practice o The stronger one’s motivation or drive toward a blocked goal, the stronger one’s frustration will be, other things being equal.  If motivation is lacking, then little frustration is likely to develop. o The required management role is a supportive one.  The idea is not to remove all difficulties so the assignment loses its challenge, but rather to provide enough support to make the project possible. o Counseling can help reduce frustrations by helping employees choose mature courses of action to overcome blockages preventing goal accomplishment. Stress and Job Performance • Stress can be either helpful or harmful to job performance, depending on its level. o Figure 15.4 presents a stress-performance model that shows the relationship between stress and job performance. • When there is little or no stress, job challenges are absent and performance tends to be low. o As stress increases, performance tends to increase, because stress helps a person call up resources to meet job requirements. o Constructive stress is a healthy stimulus that encourages employees to respond to challenges. o Eventually, stress reaches a peak or a plateau that corresponds approximately with a person’s top day-to-day performance capability. At this point, additional stress produces no more improvement. o Finally, if stress becomes too great, it turns into a destructive force. performance begins to decline at some point because excess stress interferes with performance. o An employee:  Loses the ability to cope  Becomes unable to make decisions  Exhibits erratic behavior o If stress increases to a breaking point, performance becomes zero. The employee has a breakdown, becomes too ill to work, is fired, quits, or refuses to come to work to face the stress. o Managers play a key role, too. When they are stressed and disengaged, employees report being less likely to stay with the firm, less innovative, less valued, and less recognized. o The stress-performance relationship may be compared to strings on a violin. When there is either too little or too much tension on the strings, they will not produce suitable music. When tension on an employee is either too high or too low, the employee’s performance will deteriorate. o The managerial challenge is to monitor tension levels and make periodic adjustments. Stress Vulnerability • Stress Threshold o Worker vulnerability to stress is a function of both internal (organizational) and external (nonwork) stressors (Figure 15.2). o One internal factor is an employee’s stress threshold—the level of stressors (frequency and magnitude) that the person can tolerate before negative feelings of stress occur and adversely affect performance.  Some people have a low threshold and the stress of a few hassles or even relatively small changes or disruptions in their work routines causes a reduction in performance.  Others have a higher threshold, staying cool, calm, and productive longer under the same conditions.  This response may stems partly from their experience and confidence in their ability to cope. o A higher stress threshold and greater resiliency help prevent lowered performance unless a stressor is major or prolonged. • Perceived Control o The second internal factor affecting employee stress is the amount of perceived control they have over their work and working conditions.  Employees who have a substantial degree of independence, autonomy, and freedom to make decisions handle work pressures better.  Since two employees may have the same actual control and flexibility, it is clearly their relative perception of that freedom that counts. o Managers can respond to this need for control through a variety of measures as:  Allowing flexible work schedules  Enriching jobs  Placing individuals on self-managing teams  Empowering employees by using participative leadership styles • Type A and Type B People o Stress vulnerability is often related to type A and B characteristics. o Type A people:  Are aggressive and competitive  Set high standards  Are impatient with themselves and others  Thrive under constant time pressures  Make excessive demands on themselves even in recreation and leisure  Often fail to realize that many of the pressures they feel are of their own making rather than products of their environment  Are more prone to physical ailments related to stress, such as heart attacks o Type B people:  Appear more relaxed and easygoing  Accept situations and work within them rather than fight them competitively  Are especially relaxed regarding time pressures  Are less prone to problems associated with stress  Can be highly productive workers who meet schedule expectations; they simply obtain results in a different manner o Some of the type A behavior patterns, such as competitiveness and a drive for career success, appear to be consistent with society’s traditional values.  At the same time, the hostility and aggression these people sometimes exhibit can make it difficult for many employees to work with them or for them.  Some studies suggest that there may be multiple forms of type A personalities.  As a result, the type A’s who are more expressive and less hostile may be less prone to heart disease.  Other type A’s apparently enjoy their success so much that they disregard the surrounding stress and do not suffer from heart attacks or other physical consequences o The distinction between type A and type B people raises challenging questions for managers:  Should an organization consider the type A or type B nature of employees when making job assignments?  Should it develop training programs to help change type A employees into type B employees (or vice versa)?  Does it have a responsibility to provide training that will help both A’s and B’s cope with the work habits and expectations of supervisors who are different from themselves? Approaches to Stress Management • In attempting to manage stress, individuals have three broad options: o Prevent or control it o Escape from it o Learn to adapt to it • Organizations can reduce or eliminate stressors for employees by: o Improving managerial communication skills o Empowering employees through participation o Redesigning jobs to be more fulfilling o Implementing organizational development programs • Employees can escape stress by: o Requesting job transfers o Finding alternative employment o Taking early retirement o Acquiring assertiveness skills that allow them to confront the stressor • Coping with stress often involves: o Cooperative efforts among employees and management o Social support o Relaxation efforts o Personal wellness programs • Common personal strategies for managing stress include: o Resist working long hours or accepting overtime. o Volunteer for flextime or other alternative work schedules. o Identify the people who cause stress and avoid them. o Maintain a healthy diet and eat regularly. o Obtain regular exercise and get enough sleep. o Avoid procrastination—now. o Set reasonable goals for yourself. o Develop a simple method of organizing things, and adhere to it. o Step back from stress and decide whether you need to fight every battle. o Consult with a trusted friend before becoming involved in new activities. o Develop a balance of physical, emotional, mental, and spiritual capacities. o Find or create opportunities to laugh—and do so frequently. • Social Support o Some people experience stress because they are detached from the world around them; they lack warm interpersonal relationships.  Individuals with a driving ambition and a strong need for independence may fail to develop close attachments to friends and colleagues  To achieve their success, they often sacrifice fulfillment of their social needs.  Their lack of social attachments may result in anger, anxiety, and loneliness—all producing stress in their lives. o Grief is the complex set of emotional, physical, and social responses to a substantial loss in one’s life. o A powerful antidote to this problem lies in the presence of social support at work.  Social support is the network of helpful activities, interactions, and relationships that provides an employee with satisfaction of important needs. o There are four types of support in a total network:  Instrumental (task assistance)  Informational  Evaluative  Emotional o Social support may come from supervisors, co-workers, friends, or family.  Its focus may be on either work tasks or social exchanges and may even take the form of games, jokes, or teasing—if done sensitively.  When employees have at least one person from whom they can receive social support, especially emotional support, they experience lower stress, higher levels of happiness, and improved overall health.  Females, in particular, not only place more value on social support but seem to feel more comfortable, and capable, in providing it to others. o Supervisors—male or female—need to develop the capacity to play this role for their employees when support is needed.  An alternative action is to simply provide opportunities for social support and encourage it to develop among a group of workers.  Managers may need to allow time for employees to develop and nurture their social support networks at work. • Relaxation o Some employees have turned to various means of mental relaxation to adjust to the stresses in their lives.  Patterned after mediation, the relaxation response involves quiet, concentrated inner thought in order to rest the body physically and emotionally.  It helps remove people temporarily from the stressful world and reduce their symptoms of stress. o The ideal ingredients of this relaxation effort involve:  A comfortable position in a relatively quiet location  Closed eyes and deep comfortable breaths  Repetition of a peaceful word, or focus on a pleasant mental image  Avoidance of distracting thoughts and negative events  Soothing background music o Practicing a simple relaxation response is like taking a time-out at work. It can be especially fruitful just before or after a tense encounter.  It is so highly regarded that some organizations have established special relaxation lounges for employee use.  Many employees who use them for momentary relaxation report favorable results regarding their capacity to deal with stress. • Sabbaticals o Whereas relaxation may help one cope with stress, sometimes it is wisest to at least temporarily remove oneself from it.  Some employers, recognizing this need for employees to escape, have created programs allowing sabbatical leaves to encourage stress relief and personal education.  Some sabbaticals provide unpaid time off, others give partially paid leaves, and a few continue full pay while employees are away.  Most employees return emotionally refreshed, feel rewarded and valued by their employers, and often bring back new perspectives gained from readings and workshops. o A side benefit sometimes reported is the cross-training that takes place among colleagues while one employee is on sabbatical is a side benefit.  This side effect adds to organizational flexibility and raises employee competency and self-esteem. • Personal Wellness o In-house programs of preventive maintenance for personal wellness, based on research in behavioral medicine, are increasingly popular. o Corporate wellness centers may include:  Disease screening  Health education  Fitness centers o Health care specialists can recommend practices to encourage changes in lifestyle, such as:  Breathing regulation  Muscle relaxation  Positive imagery  Nutrition management  Exercise o A preventive approach is preferable for reducing the causes of stress, although coping methods can help employees adapt to stressors that are beyond direct control.  The key is to create a better fit between people and their work environment.  Alternative approaches may be useful for different employees. Employee Counseling What Counseling Is • Counseling is discussion with an employee of a stressful problem that usually has emotional content in order to help the employee cope with it better. • Counseling seeks to improve employee mental health and well-being. o Good mental health means that people feel comfortable about themselves, can relate well to other people, and are able to meet the demands of life. • Counseling is an exchange of ideas and feelings between two people, nominally a manager and employee, so it is an act of communication. o Since it helps employees cope with problems, it should improve organizational performance because the employee:  Becomes more cooperative  Worries less about personal problems  Improves in other ways o Emphasis on counseling also helps the organization become more human and considerate of people’s problems. • Counseling may be performed by both professionals and nonprofessionals. o Therapists and personal physicians also counsel employees, and even an employee’s friends may provide counseling. • Counseling usually is confidential so that employees will feel free to talk openly about their problems and may involve both job and personal problems. • One employee may be experiencing the stress of new job expectations, while another may be distraught with grief following the death of a family member. Both employees are potential candidates for receiving the benefits of counseling at work. Need for Counseling • The need for counseling arises from a variety of employee problems, including stress. o When these problems exist, employees benefit from understanding and guidance that counseling can provide. • Most problems that require counseling have some emotional content: o Emotions are a normal part of life. o On the other hand, emotions can get out of control and cause workers to do things that are harmful to their own best interests and those of the firm. • Managers want employees to maintain good mental health so they can: o Channel their emotions along constructive lines o Work together more effectively What Counseling Can Do • The general objectives of counseling are to improve employees’: o Self-confidence o Understanding o Self-control o Ability to work effectively • These objectives are consistent with the supportive, collegial, and system models of organizational behavior. o They are also consistent with Maslow’s higher-order needs and Alderfer’s growth needs, such as self-esteem and self-actualization. • The counseling objective is achieved through one or more of the following counseling functions: o Advice o Reassurance o Communication o Release of emotional tension (emotional catharsis) o Clarified thinking o Reorientation • The six activities performed by counseling are shown in Figure 15.6. The Manager’s Counseling Role • Managers are important counselors because they have day-to-day interaction with employees. • Managers cannot, when an emotional upset arises, say, “This is not part of my job. Go see a counselor.” o Emotions are part of the whole employee and must be considered a part of the total employment situation for which a manager is responsible. o All managers, from the lowest to the highest levels, need training to help them understand problems of employees and counsel them effectively. Types of Counseling • Counseling can be viewed as a continuum from full direction (directive counseling) to no direction (nondirective counseling) o Between the two extremes is participative counseling (Figure 15.7). Directive Counseling • Directive counseling is the process of: o Listening to an employee’s problem o Deciding with the employee what should be done o Telling and motivating the employee to do it • Directive counseling mostly accomplishes the counseling function of advice but it may also o Reassure o Communicate o Give emotional release o Clarify thinking • Reorientation is seldom achieved in directive counseling. Nondirective Counseling • Nondirective, or client-centered, counseling is the opposite end of the continuum. It is the process of skillfully listening to and encouraging an employee to: o Explain troublesome problems o Understand them o Determine appropriate solutions • It focuses on the employee rather than on the manager’s roles as a judge and advisor. • Care should be taken to make sure that managers are not be so oversold on the nondirective approach that they neglect their normal directive leadership responsibilities. • Nondirective counseling was developed concurrently by two groups: o Elton Mayo, Fritz Roethlisberger, and others at Western Electric Company o Carl R. Rogers and his colleagues o Throughout the counseling relationship, it is important for the manager to accept feelings, rather than judge them, offering blame or praise. o Judgment and evaluation can discourage an employee from stating true feelings. • Major differences between nondirective and directive counseling are summarized in figure 15.8. • The unique advantage of nondirective counseling is its ability to cause the employee’s reorientation. o It emphasizes changing the person instead of dealing only with the immediate problem in the usual manner of directive counseling. o Non-directive counselors follow an iceberg model of counseling in which they recognize that sometimes more feelings are hidden under the surface of a counselee’s communication than are revealed (Figure 15.9). o They constantly encourage the counselee to open up and reveal deeper feelings that may help solve the employee’s problem. • Limitations o It is more time-consuming and costly than directive counseling. o Professional counselors require professional education and consequently are expensive. o It depends on a capable, willing employee. o The nondirective counselor needs to be careful not to become a crutch for emotionally dependent employees to lean on while they avoid their work responsibilities. Participative Counseling • Nondirective counseling is limited because: o It requires time, expertise, and is costly. o It is often not accepted by modern, independent employees. o The type of counseling typically used in organizations is between the two extremes of directive and nondirective counseling. • Participative counseling, also called cooperative counseling, is a mutual relationship that establishes a cooperative exchange of ideas to help solve an employee’s problems. o It is neither wholly manager-centered nor wholly employee-centered. o It integrates the ideas of both participants in a counseling relationship. • Participative counseling starts by using the listening techniques of nondirective counseling. o As the interview progresses, participative counselors play a more active role than nondirective counselors would. • Participative counselors may: o Offer bits of knowledge and insight o Discuss the situation from their broader knowledge of the organization o Apply the four counseling functions of reassurance, communication, emotional release, and clarified thinking A Contingency View • A manager’s decision to use directive, participative, or nondirective counseling with an employee should be based on an analysis of several contingency factors. • It should not be made solely on the manager’s personal preference or past experience. • Contingency elements to consider: o Degree to which the employee’s problem appears to be focusing on facts and the need for a timely logical solution (implying the use of a more directive approach) versus focusing on personal feelings and emotions (implying a more nondirective approach). o Another consideration is the degree to which the manager is willing to devote time and effort to the growth and development of a more independent employee. • An effective manager requires awareness of the alternatives available, the skills to be comfortable with each method, and the analytical ability to make a choice that fits the situation. Chapter 16 Organizational Behavior across Cultures Chapter Overview This chapter examines the nature of multinational operations, ways for an organization to integrate social systems, and ways to improve motivation, productivity, and communications when operating in less developed cultures. First, conditions affecting multinational operations are presented. Next, managing an international workforce is examined. Barriers to cultural adaptation and ways of overcoming their barriers are explored. The final section is devoted to a discussion on productivity and cultural contingencies. Chapter Learning Objectives After reading this chapter, students should understand: 1. How cultural, social, legal and ethical, political, and economic conditions vary in different countries 2. The operation of ethnocentrism and cultural shock 3. Ways to overcome barriers to cultural adaptation 4. The nuances of cross-cultural communication Discussion and Project Ideas • You are a president of a United States firm and are thinking about setting up a factory in a foreign country. Would local attitudes toward work and productivity be an important consideration in your decision? How might unfavorable attitudes toward work and productivity affect production operations? Should your firm avoid investments in countries where there are unfamiliar favorable attitudes? • Ask for a show of hands of how many students have traveled abroad. How did they prepare for their travel? What problems or difficulties did they encounter? How could these difficulties have been reduced or eliminated? Depending on the length of their stay, did they experience reverse cultural shock? • Americans are accustomed to show up on time for appointments. Joe Clark is on his first business trip to the Middle East. He learns that appointments with officials or executives may not be held promptly and he could be waiting for an hour or more. Advise him on how to prepare for this. How would you react to this different idea of promptness? • The world of business has been transformed into a global economy. More and more multinational organizations are expanding operations into other countries. Yet, there are those who advocate legislation aimed at protectionism. Ask the students to articulate the arguments for and against protectionism. • Divide the class into small groups and assign a foreign country to each. Have the groups report back to the class on their findings with regard to social distance between the foreign country and the United States and the implications of these differences for international managers. Lecture Outline Introduction • A global economy is now a reality. The shape of international trade has changed dramatically in recent years, due to: o The emergence of the European Union o Revolutionary changes in the former Soviet Union and eastern Europe o Strong markets developing in China, India, Japan, Brazil, Korea, and many emerging nations • As a result, many organizations now do business in more than one country, and these multinational organizations add powerful new dimensions to organizational behavior. o Expansion beyond national boundaries is a gigantic step into different social, legal, political, and economic environments. o Communication lines are lengthened, and control often becomes more difficult. • Cultural predicaments often arise when working in an international environment. Understanding the Context of International OB • Multiculturalism occurs when the employees in two or more cultures interact with each other on a regular basis. • Managers and technical employees entering another nation to install an advanced organizational system need to adjust the following to fit the culture of their host country: o Leadership styles o Communication patterns o Other practices • Expatriates can be: o Parent-country nationals from the nation in which the home office is located. o Third-country nationals from some other nation. • The role of expatriates is to provide a fusion of cultures in which both parties adjust to the new situation of seeking greater performance for the benefit of both the organization and the citizens of the country in which the organization operates. • An important quality for global leaders, especially expatriates, is cultural intelligence. o It is an individual’s ability to understand, accept, adapt to, work alongside, and communicate with persons of a variety of global cultures. o It can be face-to-face or via various modes of modern communication. • The people of the world are organized into communities and nations, each in its own way, according to its resources and cultural heritage. • There are similarities among nations, but there are also significant differences: o Some nations are economically developed; others are just now developing their natural and human resources. o Some are still political dictatorships; others are more democratic. o Some are educationally and socially advanced; others have minimal literacy and social development. • In each case, the conditions of work are different because of different attitudes, values, and expectations from participants. o Understanding these differences and how they influence international behavior is aided by examination of key cultural, social, legal, ethical, political, and economic conditions. • Based on his extensive research, Geerte Hofstede defined culture as the “collective programming of the mind that distinguishes the members of one group or category of people from others.” o Culture consists of the unwritten social rules that shape individual thought and behavior. It is learned through social interaction and thus shared, at least in part, by individuals who live within the same social environment. o Cultural differences can impact how managers lead, what employees expect from their work experiences, and how expatriates adapt to foreign assignments. Individual-Difference Factors • Individualism/Collectivism o Cultures that emphasize individualism tend to:  Accent individual rights and freedoms  Have very loosely knit social networks  Place considerable attention on self-respect  Place strong emphasis on a person’s own career and personal rewards o Collectivism heavily accents the group and values harmony among members.  Personal feelings are subordinated to the group’s overall good.  Employees are more likely to ask, “What is best for the organization?”  Face-saving is highly important in order to maintain one’s status in the group. o The United States has an individualistic culture.  Japan’s collectivistic culture is characterized by the proverb “The nail that sticks up gets pounded down.”  The Chinese culture accents the importance of quanxi, or relationships. • Power Distance o Power distance refers to the belief that strong and legitimate decision-making rights separate managers and employees. o Employees in the United States and in Scandinavian countries subscribe to beliefs of lower power distance and are less likely to believe their managers are automatically correct. • Uncertainty Avoidance o Employees in some cultures value clarity and feel very comfortable receiving specific directions from supervisors.  These employees have a high level of uncertainty avoidance and prefer to avoid ambiguity at work.  Employees elsewhere react in an opposite manger, since ambiguity does not threaten their lower-order need for stability and security. o Employees in the following countries have high uncertainty avoidance characteristics and often prefer structure, stability, rules, and clarity.  Greece  Portugal  Belgium o Countries lower in uncertainty avoidance include:  China  Ireland  The United States • Masculinity/Femininity o Masculine societies define gender roles in more traditional and stereotypical ways.  They value achievement and the acquisition of wealth. o Feminine societies have broader viewpoints on the great variety of roles that both males and females can play in the workplace and at home.  These cultures treasure relationships among people, caring for others, and a greater balance between family and work life. o Scandinavian countries have strongly feminine cultures.  Japan has a markedly masculine culture.  The United States has a moderately masculine culture. • Time Orientation o Cultures with a long-term orientation accent values such as:  The necessity of preparing for the future  The value of thrift and savings  The merits of persistence o This culture is exemplified by Hong Kong, China, and Japan. o Cultures with a short-term orientation:  Value the past and accent the present  Have a rich respect for tradition  Have a need to fulfill historical social obligations o This culture is exemplified by France, Russia, and West Africa • An Intercultural Comparison o Figure 16.1 highlights the differences between two countries—Japan and the United States—in these five dimensions. o Neither country has a better culture than the other; they are simply quite different. o Managers in all countries need to:  Become more aware of their own cultural characteristics  Search for the uniqueness in the cultures in other countries  Learn how to work effectively across cultures o They must avoid the tendency to stereotype people whom they do not know. This is a delicate balance to maintain. Social Conditions • When a highly qualified workforce is not available locally: o Shortages of managerial personnel, scientists, and technicians limit the ability to employ local labor productively. o Needed skills must be imported temporarily from other countries, while vast training programs begin to prepare local workers. • The lending of skilled people to a nation for training their local replacements may provide a lasting benefit to its development. o The loaned skilled people train others, and those trained locals become the nucleus for developing still more people. o There is a training multiplier (ripple) effect of self-development as shown in figure 16.2. • The occupational areas in which development will provide the greatest return are: o Scientific personnel o Professional personnel o Managerial personnel • It is important to keep in mind that a strong nationalistic drive may impel locals to desire to run their country and organizations by themselves, without interference by foreign nationals. Legal and Ethical Environment • Countries around the world vary substantially in their legal systems, and especially in their relevant employment laws and business practices. o In the judicial system, some countries practice rapid disposition of cases; in other countries, cases may drag on for years. o Penalties for seemingly minor offences may vary dramatically from culture to culture. • A major issue affecting multinational corporations has been how to deal with contrasting local mores, customs, and ethical behaviors. o Managers need to be aware of the possible differences in both laws and ethical values that define acceptable and unacceptable behaviors in foreign countries. o U.S. employees operating internationally must first be guided by the Foreign Corrupt Practices Act of 1977 (as amended). o This law governs the actions of American organizations abroad, particularly with regard to bribery of officials in attempts to win business. o They need to become familiar with local customs and practices, and they need to recognize that the resolution of ethical issues is not always clear-cut. • Major work issues revolve around the treatment of women and other minorities. o Although Title VII of the Civil Rights Act of 1964 prohibits workplace discrimination in employment based on gender and other factors, it was not until 1991 that additional federal legislation extended those rights to U.S. citizens employed in a foreign country by an American-owned company. • Because global experience is sometimes a prerequisite to promotion to senior management positions many women are interested in overseas positions offering visibility, challenge, and the opportunity for personal growth. • The workplace in many cultures remains a male-dominated domain. Political Conditions • Political conditions that have a significant effect on organizational behavior include: o Instability of the government o Nationalistic drives o Subordination of employers and labor to an authoritarian state • Instability spills over into organizations that wish to establish or expand operations in the host country. o This organizational instability leaves workers insecure, ultimately impacting their performance. • Organized labor in many nations is not an independent force but is mostly an arm of the authoritarian state. o In other nations, organized labor is somewhat independent. o However, it is oriented toward political action more than direct negotiation with organizations. o In some nations, employee layoffs are restricted by law and made costly by requiring dismissal pay. Even employee transfers may be restricted. Economic Issues • The most significant economic issues in less developed nations are: o Low per capita income o Rapid inflation o Unequal distribution of wealth • In terms of income, many nations exist in genuine poverty compared with the United States or Canada. o An average family in some nations may survive on less than $3,000 annually. o Rapid population increases coupled with a lack of national economic growth make it unlikely that family incomes will progress significantly. o As a consequence, natives of those countries may not believe that additional effort on their part will earn associated rewards. • A common economic condition in many less developed countries is inflation. o The United States has enjoyed rather moderate inflation rates over the past few decades. o Mexico and some countries in South America, Europe, Africa, and the Middle East have suffered periods of dramatic inflation. • Inflation makes the economic life of workers insecure. o It encourages them to spend quickly before their money loses its value, and this spending pattern adds to the country’s inflationary problem. o Social unrest develops and is compounded by tremendous disparity in the distribution of wealth in these nations. o Some workers passively accept their situation, while others aggressively protest. • Despite the challenges abroad and the political and economic backlash from home-country workers and consumers, some firms have moved substantial parts of their operations into countries with lower wage rates. o In essence, depressed economic conditions in another country can represent an opportunity for a firm—at least in the short term. • Looking at social, legal and ethical, political, and economic conditions as a whole, we see that these conditions can impede the introduction of advanced technology and sophisticated organizational systems. o They constrain the stability, security, and trained human resources that developing countries require to be more productive. • These limiting conditions usually cannot be changed rapidly, because they are too well established and woven into the whole social fabric of a nation. o Instead, they represent critical environmental conditions to which the managers of international operations must adapt. Cultural Contingencies • Since each nation is different, effective business practices from one country cannot be transferred directly to another. o The idea of cultural contingency means that the most productive practices for a particular nation will depend heavily on its culture. o The ideas that work in one nation’s culture must be blended with the social system, level of economic development, and employees’ values in a host country. • The difficult lesson for both expatriate and local managers to accept is that neither the home nation’s productivity approach nor the host nation’s traditional practices are to be used exclusively. o Instead, a third set of practices must be developed that integrates the most workable ideas from both nations. • Managerial Implications o The idea of cultural contingency suggests that expatriate managers must learn to operate effectively in a new environment.  Although they are guided by home-office policies, managers must also be flexible enough to respond to local conditions.  Labor policy, personnel practices, and production methods need to be adapted to a different labor force.  Organization structures and communication patterns need to be suited for local operation as well as coordinated with the home office and other branches. o The probability of achieving productivity improvements is much greater when a business and its expatriates adapt to host-country conditions. o Expatriate managers need to consider what their role will be in a local community.  Although they generally are respected figures with considerable economic power, they are in a country as guests and may not be readily absorbed into the social and power structures of a local community.  Even if they speak the local language and live in a community for years, they still may not be fully accepted into its social structure. o Looking at cultural, social, legal, ethical, political, and economic conditions as a whole, we see that these conditions create a complicated environment for managing overseas operations.  Managers of international operations must learn to adapt to today’s volatile and unique environments. Developing Managers for International Assignments Barriers to Cultural Adaptation • An expatriate manager may find several obstacles to a smooth adaptation to a new culture. • An early requirement for overcoming such obstacles is to acquire cultural awareness of the multiple ways in which cultures differ (language, religion, food, personal space, and social behaviors). o In addition to the major areas of individual differences already discussed, parochialism, ethnocentrism, cultural distance, and cultural shock can also have an impact (Figure 16.3). • Parochialism o The dominant feature of all international operations is that they are conducted in a social system different from the one in which the organization is based.  This new social system affects the responses of all persons involved.  Managers and other employees who come into a host country in order to get a new operation established naturally tend to exhibit a variety of behaviors that are often true of citizens in their homeland. o Many people are predisposed to parochialism, meaning they see the situation around them from their own (often restricted) perspective.  They may fail to recognize key differences between their own and others’ cultures.  Even if they do, they tend to conclude that the impact of those differences is insignificant.  In effect, they are assuming that the two cultures are more similar than they actually are, and give priority to their own views. • Ethnocentrism o Ethnocentrism occurs when people are predisposed to believe that their homeland conditions (ideas, policies, personnel, practices) are the best.  This predisposition is also known as the self-reference criterion.  It interferes with understanding human behavior in other cultures and obtaining productivity from local employees. o To integrate the imported and local social systems, expatriates minimally need to develop cultural empathy. It is:  An awareness of differences across cultures.  An understanding of the ways those differences affect business relationships.  An appreciation of the contributions each culture makes to overall success. o Cultural empathy is similar, on an international scale, to the idea of valuing diversity. o When demonstrated on a consistent basis, cultural empathy results in geocentric organizations.  These organizations largely ignore a person’s nationality while accenting employee ability in selection, assignment, and promotional decisions.  They seek to integrate the interests of the various cultures involved.  The attempt to build a sense of community is consistent with a supportive approach to human behavior in its productive use of all employees. • Cultural Distance o Predicting the amount of adaptation that may be required when an expatriate manager moves to another country requires an understanding of the cultural distance between the two countries. o Cultural distance is the amount of difference between any two social systems and may range from minimal to substantial.  Some measures of cultural distance from the United States are greater for countries in the Mediterranean area and Asia and smaller for Scandinavian and English-speaking countries.  Whatever the amount of cultural distance, it does affect the responses of all people to business-related issues. • Cultural Shock o Cultural shock is a feeling of confusion, insecurity, and anxiety caused by a strange new environment.  A cultural change does not have to be dramatic to cause some degree of shock.  It can even occur when moving from a small town to a big one, or vice versa.  For the unprepared, the new environment can appear to be chaotic and somewhat overwhelming. o Cultural shock is even greater when an employee moves from one nation to another. o When employees enter another nation, they may experience several reactions in a series of four phases:  Excitement and stimulation  Disillusionment  Insecurity and disorientation  Adaptation o Cultural shock is virtually universal. It occurs in response to dramatic differences in  Language  Forms of courtesy  Customs  Housing conditions  Cultural orientations in the use of space (relative emphasis on privacy)  Time (focus on the past, present, or future)  Activity (accent on life achievements versus life experiences) o In the United States, people tend to  Demand responses  Fill voids of silence with conversation  Use direct eye contact  Be driven by time, deadlines, promptness, and schedules o In other cultures, people  May show respect through averting their eyes  Appreciate silence as a time to think and evaluate a topic  Arrive late for appointments  Devote hours to developing social rapport before turning to business issues o Some of the factors most likely to contribute to cultural shock are shown in Figure 16.4. Overcoming Barriers to Cultural Adaptation • In spite of the strong evident need for expatriates to understand local culture and be adaptable, they sometimes arrive unprepared. o Their selection is typically based upon their job performance in the home country or as a prerequisite to top-management positions. o They may not know the local language and might have little interest in becoming a part of the community. o They may have been selected largely on the basis of their technical qualifications, with the employer overlooking the need for a good fit between the expatriate and the local culture. • Cultural understanding is essential to avoid the errors and misunderstandings that can be costly to an organization. o Fortunately, firms can take several actions to prevent cultural shock and reduce the impact of the other barriers. • Careful Selection o The desire to experience another culture and live in another nation may also be an important prerequisite attitude worth assessing. o Potential expatriates might be screened to determine which employees are already capable of speaking the language of the nation where they will be assigned. o Learning the attitudes of the employee’s spouse and family toward the assignment also can be vitally important to ensure there is strong support for becoming expatriates. o Cultural intelligence, an individual’s ability to adjust to new cultures, consists of:  Cognitive strategies for learning about new cultures  An intuitive sense of what is happening, and why it is occurring  The confidence that one can fit into a new culture  The motivation to suspend judgment and make necessary adaptations  Translation of knowledge, intuition, confidence, and motivation into appropriate cultural action o Cultural intelligence has become an increasingly important asset as the world accelerates its transition to a global economy. • Compatible Assignments o Adjustment to new surroundings is easier if employees, especially on their first international assignment, are sent to nations that are similar to their own.  This is more possible in giant firms that have widespread foreign operations. o Most industrialized nations can be grouped into six sociocultural clusters as shown in Figure 16.5.  Anglo-American, Latin European, Nordic, Latin American, Pacific Rim, Central European. • Predeparture Training o As a minimum, many organizations try to hasten adjustment to a host nation by encouraging employees to learn the local language.  They offer intensive language training prior to the assignment.  Some organizations give pay differentials to expatriate employees who learn the local language. o Fluency in the host language contributes to cultural adaptation in two ways:  It helps avoid the misunderstandings that can arise when communications have to be translated by someone else.  It creates a better impression of the expatriate as someone who is willing to invest personal time and effort in adapting to the local environment. o Predeparture training now often includes orientation to the target country’s:  Geography  Customs  Food  Culture  Political environment • Orientation and Support in the New Country o Adjustment is further encouraged after arrival in the new country if a special effort is made to help the employee and family get settled.  This may include assistance with housing, transportation, and shopping.  It is especially helpful if a mentor can be assigned to ease the transition. o Mentors to the expatriate can be:  The previous jobholder, who stays for a short period to share useful experiences and make appropriate introductions before moving to a new assignment.  A local national working for the same organization who is available to answer questions and provide advice regarding culturally acceptable behavior. o Transferring to a new culture can result in intensified need deficiencies.  The lack of basic goods and services can be a major problem.  The assignment may cause financial difficulties, inconveniences, insecurities, and separation from relatives and friends. o To induce employees to accept such assignments in other nations:  Extra pay and fringe benefits may be needed to compensate for the problems they will experience.  Employees also need to be assured that they will receive comparable or better positions within the organization upon their return to the homeland and that their foreign experiences will be appreciated. o The organization’s willingness to value the expatriate’s experience is especially important to document in advance, since some at-home managers suffer from xenophobia, a fear, and even rejection of ideas and things foreign to them.  The effect of this fear (among colleagues and executives) can be disastrous for the returning expatriate, whose international experiences may be discounted or even rejected by the xenophobic manager. • Preparation for Reentry o Employees typically return to their home country after working in another nation for one to three years and need to be smoothly blended into the organization and effectively utilized there. This process is called repatriation.  The process of cross-cultural reentry can cause reverse culture shock as shown in Figure 16.4.  This situation is made more difficult by the multitude of changes that occurred since they departed.  Expatriates are likely to idealize the positive aspects of their homeland while they are away, only to be surprised at the reality they later find. o Expatriates often enjoy higher status, better pay, and special privileges in the host country. o Back home, they may be of equal rank with many others. Colleagues who remained at home might have been promoted, leaving returning employees with a feeling that they were bypassed and therefore have lost valuable advancement opportunities. Cross-Cultural Communication • To be effective in international situations, expatriates need to gain an appreciation for important differences in verbal and nonverbal communication. o If they do not, they risk making serious errors that might damage their relationships with employees, partners, customers, and suppliers. • Areas in which orientations to cross-cultural communication may differ: o Contrasts in language o The relative value placed on time efficiency o Thought patterns o Values placed on seeing the future o The need for personal space o Eye contact o Physical appearance o Posture o Gestures o The meaning of silence o The legitimacy of touch • High-context cultures, such as Arab countries, China, Korea, and Japan tend to: o Emphasize personal relations o Place high value on trust o Focus on nonverbal cues o Defer to societal status o Accent the need to attend to social needs before business matters o View silences as positive o Place a high value on learning the intentions of others • Low-context cultures, such as Germany, the United States, and Scandinavian countries tend to: o Rely on precise meanings of spoken words as well as those in written rules and legal documents o Conduct business first o Value expertise and performance o Pay close attention to details o Often express themselves in direct and explicit fashion. • When people define and use the same word or phrase differently, it causes communication breakdowns. This is called bypassing. Transcultural Managers • Eventually, a cadre of employees with cross-cultural adaptability can be developed in organizations with large international operations. o These employees are transcultural employees because they operate effectively in several cultures. o They are low in ethnocentrism and adapt readily to different cultures without major cultural shock. o They usually can communicate fluently in more than one language. • For a firm to be truly multinational in character, it should have ownership, operations, markets, and managers truly diversified without primary dominance of any one of these four items by any one nation. o Its leaders look to the world as an economic and social unit, but they recognize each local culture, respect its integrity, acknowledge its benefits, and use its differences effectively. Instructor Manual for Organizational Behavior: Human Behavior at Work John W. Newstrom 9780078112829, 9781259254420