Environmental Context of 0B

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Globalization creates ample opportunities for the employees for personal and professional growth within and abroad the nation. This has changed the workforce composition and ethics of the people. 0B environment is thus composed of globalization, workforce diversity, and ethics. 0B environment is being a key source of behavioral change in employees.


Globalization is the essence of political, legal, economic, socio-cultural, and technological integration throughout the world. Globalization has connected the world market through a free flow of goods and services. Organizations are extending their operation in different countries which created an excess of free flow of people. This creates challenges of managing people at the workplace by means of varieties of their behavior. Organizations are following the market-driven strategies which basically accepts the fact that organizational success is possible only through consumer satisfaction. For this, the behavior of each person involved in an organization plays a vital role. Culturally diverse human resources have to face problems in understanding the needs and expectations of consumers, proper communication, coordinating with fellow workers and colleagues because of varieties of language barriers are really complex matters as an output of globalization. Increasing ethical issues in local, regional, and global perspectives are demanding a higher level of job excellence. Differences in the behavior of employees may shift the organizational values, cultures, and beliefs.

Managing multinational companies is the concern of OB-globalization. Employee recruitment and selection, growth opportunities, team and group work culture, communication and participation, individual and collective grievance and conflict management, managing behavioral issues are common agendas in globalization. Socio-cultural globalization, economic globalization, and technological globalization have changed the investment, production, trade, and market expansion dimension of multinational and transnational organizations. Managers should understand, predict and control the attitude, values, beliefs, and behavior of globally diverse people fit for satisfying local and regional consumers.

Workforce Diversity

Variation or heterogeneity in employees of any organization is workforce diversity. Diversity in gender, age, skills, and culture are the most prominent variation in modern and global organizations. Political change throughout the world has increased the number of female employees and even the third gender employees at the workplace. Differences in age of employees differ the behavior as they carry different expectations and goals. Likewise, cultural variation and skill diversifications influence work attitude and behavior. Group synergy, group politics, team dynamism, leadership style, communication network, and systems have been changed because of such diversification. Such things have brought changes in an organizational environment. Diversity can enhance organizational productivity if it is properly managed and adds complexity if not. These things are possible to manage only through developing multicultural organizations.

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Ethics is the set of moral principles and thoughts of people regarding what is right or wrong good or bad while making decisions. They are reflected in the behavior of people as respect, mutual faith, honesty, fairness, equity, and transparency. The ethical behavior of people associated with an organization is the foundation of organizational success. Many organizations around the globe are declared to fail because of the unethical behavior of managers. Ethical conducts are necessary to set up in the organization and needs to be followed. Organizations conducting business with morality towards society, and consumers are better to attain the organizational goals.

With the increasing realization of ethical behavior in organizations, business schools and universities are also pressurized to design and effective implementation the course on the behavior field. It is claimed that injustice, corruption, bribe, exploitation, negligence, and lack of transparency are the unethical behavior of employees and poor management of organizations. Such behaviors can be controlled and avoided only through the practice of good organizational behavior.

Good morality and ethical behavior of owners and managers positively affect the morality and honesty of middle-level and operating-level employees. Ethics increases the extent of social responsibility behavior as to make a decision keeping social benefit at the crux. As they used to deal with consumers directly, their good conduct and ethical behaviors make the consumers satisfied and loyal. Thus, ethical leadership is one of the emerging concepts in leadership management. Such concepts are the essence of globalization which affect on the organizational behavior environment.

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