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In recent years, theory and research have been increasingly devoted to understanding organizational behavior in cross-cultural and global contexts, with particular attention being paid to the appropriateness of various human resources management (HRM) practices because practices that may be effective within one cultural context may not be effective in other cultural contexts. This chapter argues that a multi-level perspective is needed to explain the interplay between HRM practices and employee responses across cultural contexts. Specifically, the multi-level framework developed in this chapter elucidates the importance of fit between HRM practices, individual values, organizational values, and societal values. Societal values play a key role in the adoption of HRM practices, and the effectiveness of these HRM practices will depend largely on “fit” or alignment with the values of the societal culture in which the organization is operating. HRM practices also shape the collective responses of employees through organizational climate at the organizational level and through psychological climate at the individual level. For positive employee attitudes and responses to emerge, the climate created by the HRM practices must be aligned with societal and individual values. Building on these notions, the strength of the societal culture in which the organization is operating serves as a mechanism that links relationships between climate, value fit, and attitudes across levels of analysis. The chapter concludes with some recommendations for future research and implications for practice.

We offer a conceptualization of third culture in intercultural interactions and describe its different forms as well as its antecedents and consequences. Third culture is a multicultural team's shared schema that contains not only team and task knowledge, but also a shared set of beliefs, values, and norms grounded in the national cultures of the team members. We develop a typology to distinguish third culture schema form on two dimensions: third culture strength and third culture content. We then propose both team process and team composition variables that influence the emergence of these different forms. Furthermore, we use social identity formation and sensemaking mechanisms to propose the effects of these third culture forms on team performance.

Aumann and Ostroff proposed a very comprehensive framework that attempts to identify the antecedents, mediators, moderators, and consequences of human resource management (HRM) in cross-cultural contexts. It is an ambitious framework that spans three levels of analysis (society, organization, and individual) with mechanisms of fit occurring at both the macro- and microlevels, focuses on both structure and process, and identifies cross-level interactions. The authors considered organizational and psychological climate as the key integration between culture and employee responses, and in this process inadvertently dismissed the function of organizational culture. We propose an organizational perspective on multi-level cultural integration and discuss its implication for cross-cultural HRM, highlighting the role of organizational culture as the major focus for integration with a host country's societal culture and its local employees’ values. The analysis is enriched by considering the strength of both organizational and societal culture and the cultural distance between the home and host country of the multinational firm. We identify how our approach has both augmented and simplified Aumann and Ostroff's framework to facilitate future research.

In this response, we address the thoughtful commentaries by Chen and Tsui, and Erez and highlight three overarching themes emerging from their contributions. First, we address the challenge of balancing complexity and parsimony in our model of values, HRM practices and fit in cross-cultural contexts. Second, we provide further explanations of the linkages between societal and organizational values. Third, we address the question of whether culture and climate should be treated as separate constructs in the model. In doing so, we hope to stimulate future progress in multi-level and cross-cultural perspectives of HRM and fit.

Organizational culture is defined as the shared values and beliefs that guide behavior within each organization, and it matters because it is related to performance. While culture is generally considered important, it is mysterious and intangible to most leaders. The first step toward understanding organizational culture is to measure it properly. This chapter describes methods for measuring culture in health care organizations and how these methods were implemented in a large academic medical center. Because of the consistent empirical link between the dimension of communication, other culture dimensions, and employee satisfaction, special attention is focused in this area. Specifically, a case study of successful communication behaviors during a major “change management” initiative at a large academic medical center is described. In summary, the purpose of this chapter is to demystify the concept of culture and demonstrate how to improve it.

While there is an increasing understanding of the challenges that can emerge in integration processes of cross-border mergers and acquisitions, there is a scarcity of research on how the different integrative activities should be temporally sequenced. Based on an in-depth analysis of three acquisitions, we find that structural and cultural integration are intertwined. We find that cultural integration will begin only once structural integration is in progress. Cultural differences can, however, impede structural integration if structural integration is done in conflict with the existing culture of the acquired company. Thus, structural integration should come first, but it should be done in appreciation with the acquired company’s existing culture. Cultural change is then facilitated in an iterative manner over time by the new structure. Our chapter contributes to an improved understanding of the temporal dynamics of integration by demonstrating the mutually reinforcing effects of structural and cultural integration in cross-border acquisitions.

Traditionally, organizational theory has been a receptacle of methods and mechanisms from network theory. In this paper, we argue that organizational theory can also be an active contributor to network theory’s conceptual development. To that end, we make explicit a theoretical strategy that has only been used informally by network theorists so far, which – following Vaughan (2002) – we refer to as analogical theorizing. Using the basic correspondence between dyadic relationships as the most minimal form of “organization,” we show that processes and mechanisms extracted from various theoretical strands of organizational theory can be mapped onto the dynamics of social relationships. This allows us to build novel theoretical insight as it pertains to issue of relationship emergence, maintenance, and decay in social networks.

Using corporate value statements of the top Fortune 300 firms for the year 2012, we examine relationships among the stated values of these companies, their industries, and their Corporate Social Responsibility (CSR) performance measures. We classify stated values into 21 broad categories. We find that corporate values exhibit strong industry affiliations. Correspondence analysis and regression models indicate that 19 out of 21 values are related to at least one performance measure and while some values are associated with improved performance (e.g., ethics), others (e.g., safety) have a negative impact. Further, while some values have the anticipated impact on performance (e.g., the shareholder value is positively associated with financial performance), some show no relationship (e.g., the environment value is not associated with environmental performance). Finally, our findings also suggest possible CSR washing in some cases. Overall, the study finds corporate values do affect their performance.

Organization change (OC) is increasingly important in today's volatile world. Understanding OC is a growing emphasis of management and organization (M&O) research and the singular focus of OC scholarship and practice. We show how selected M&O theories inform OC at the organization level. These theoretical perspectives diverge on issues central to OC. We explore what these conceptual differences mean for OC study and practice going forward.

Several comprehensive reviews are united in drawing the conclusion that the cumulative research evidence on work team diversity is equivocal. Rather than review the extant state of diversity research, in this paper we redirect attention to the context of workplace diversity as a possible explanation for these mixed findings. We discuss how diversity context may be conceptualized, specify various aspects of this context at multiple levels of analysis, and consider how contextual variables can shape the outcomes of work team diversity. We present findings from a literature review (1999–2006) to identify key trends and patterns of results reported in recent research as well as contextual factors that have received attention to date. This paper also considers how the non-significant, positive, negative, and curvilinear effects of diversity reported in studies can be explained by the contextual factors outlined. Implications for future research are also discussed.