Managing Global Organizations
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Managing Global Organizations

A Cultural Perspective

Rabi S. Bhagat, Harry C. Triandis and Annette S. McDevitt

The globalization of business is a reality that confronts organizations of all sizes from different nations and cultures. This book serves as a comprehensive guide for understanding the nature of cultural variations that affect important aspects of organizational behavior.
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Chapter 7: Cultural variations, work, and organizational stress and coping

Rabi S. Bhagat, Harry C. Triandis and Annette S. McDevitt


Globalization, which has been a major trend during the past 30 years, has created considerable economic prosperity in both advanced and emergent countries. Globalization has two important facets: economic and sociocultural. Economic globalization is primarily concerned with the spreading of economic activities and transactions across dissimilar nations and cultures. Social and cultural globalization tends to accompany economic globalization and sometimes follows it. A major consequence of the social aspect of globalization is the continuous pressure on multinational and global organizations to align their organizational structures, networks, and processes on a continuous basis in order to compete successfully in the global marketplace. A recent survey of 11,000 companies in 13 countries by the Regus Management Group found an increase of 58 percent in work and organization stress from 2007–09. In particular, Chinese workers reported an 86 percent increase in work stress in this period (The Economist, 2009). Qualitative as well as anecdotal evidence from Indian call centers suggests that stress is due to long hours, excessive demands, and repetitive jobs, as well as low compensation. Turnover of female employees soared to 45–50 percent in 2005 (Bhagat, Segovis, & Nelson, 2012).

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