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Globalization and international management
Impact of globalization on the management of organizations
Impact of globalization on the management of organizations
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IMPACT OF MANAGEMENT IN THE GLOBALIZATION OF BUSINESS
Management in all business activities is portrayed as the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. This is done through effective planning, organizing, staffing, leading and directing plus controlling of an organization. (Business Maters, 2013). Whereas globalization of business depicts the change in a business from a company associated with a single country to one that operates in multiple countries while globalization is the changes in the world where one moves away from self-contained countries toward a more integrated country. (Study, 2003). As managers integrate into a wider and more globalized business environment comes the impact as explained herein.
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Globalization of business in the contemporary world has indeed amalgamated different managerial style from different region or countries or at time created a drift. Both the difference and slight similarity in managerial styles have cons and pro in the international business. Looking at the difference in management style between Saudi Arabia and United States of America which basically equates to the west and the east ideologies of management . As might be expected in a culture where organizations are run along hierarchical lines in Saudi Arabia managers tend to be very instructive in their approach. Subordinates view it as the boss role to take decisions and to convey those decisions down the chain for implementation. However, the leader will often include his group in a consensus style discussion being taken by the leader. (Business Culture, 2013).This is utterly different from the managerial styles in U.S.A that are based on individuality and personality rather than the eastern ideology that rotates around the hierarchical
Globalization can be defined as “making worldwide in scope or application”(1). In this comparison of the global corporate culture of Northwest Airlines and American Airlines several areas will be addressed. The strength of the global culture with-in the companies. The fit of the company to the global marketplace, and the adaptive ness or the empowerment of the employees will be examined and compared. Perhaps more important, than whether they currently have a global atmosphere, is whether they can improve or create this atmosphere. A comparison between the two airlines will be made on their mission statements, information dissemination, global-mindedness, career paths, and the use of cultural differences as an asset and if a worldwide training system is in place. A conclusion will then be made as to which corporation has the best organizational composition to compete in the global market.
Hollander (1985) defined leadership as the process of influence between a leader and followers to attain group, organizational, or societal groups. Some leaders are innate, however now a days most of the leaders develop himself/herself by education. Education system takes a great place to develop leadership quality in context of globalization. “Students are now consumers who define quality education from a global perspective” (Drucker, 1995). Current education system has been changed in Asia basically in Thailand to create more efficient and effective leaders. There are lots of multinational and international organizations that are operating their businesses all over the world. Because of globalization cross-cultural workplaces has become a challenge for the organization. The culture of multinational or international organization has shared by the members of the organization. The individual level, the intra-organizational level and the inter-organizational levels are the three levels of contrast for cross-cultural organization. (Rhein, 2013)
With the proliferation of the internet international Business transactions are more common today than ever. Globalization is now a key factor when creating a business strategy for most companies whether they are small family own businesses or huge corporations. Globalization however does not just involve selling a product in other countries. There are legal and cultural concerns that must be addressed. The legal aspects are fairly simple because in most places the laws are spelled out. It's the local customs, and regional way of doing things that can be tricky. Research on globalization has shown that it is not an omnipotent, unidirectional force leveling everything in its path. Because a global culture does not exist, any search for it would be futile. It is more fruitful to instead focus on particular aspects of life that are indeed affected by the globalizing process. (1). In this new economy, as it has been in the past, it will be the people not the machines who will determine a company's success. Having an effective Human Resource Management team that effectively analyze your company's current and future personnel needs is key in any business organization.
Management is an important aspect in today’s global society because it helps in controlling the interdependence of the relationship between businesses and the society. The management of this interdependence is increasingly important for managers in today’s corporations, public administration, and organizations. Preparations to be effective as a manager would require management education that provides knowledge regarding management principles and functions. In light of the increased globalization in today’s society, the most important skills a manager should possess include strategic thinking, emotional intelligence, collaboration, critical thinking, communication, motivation, feedback, and coaching. Moreover, managers need to see the world not only as a group of national marketplaces, but a source of knowledge, competence, and information (Churchwell, 2003). In order to improve these skills, I will undergo formal training in a university while consulting management journals and articles for more information.
Globalisation allows individuals, groups, corporations, and countries to reach around the world farther, faster, more deeply, and more cheaply than ever before. Most large local companies regard globalisation as opportunity, thereby exploring overseas markets for maximum market share and optimum business strategies. However, managers would face a series of challenges caused by leadership models, cultural backgrounds, political and economic risks, HR management, etc. To study multinational management skills is very useful for my future career. In this essay, I will set goals for this subject, identify the skills I have honed and need to improve, and explain my strategies for achieving goals.
Management styles differ with each country, region and industry. From varying leadership styles, religious beliefs, geography to social mores to gender differences, there are many challenges facing managers in today’s global economy. I work for a global medical device and software industry where we have offices and regional management structures across the globe. I’ve had the privilege of working with managers and team members in the UK and European markets and have noticed many differences between how we manage staff, resources and clients. While we have commonalities in the product we’re implementing or presenting to clients or even the language we speak, in the end, we conduct business differently depending on the country or region we’re from.
Svensson, G., 2001. 'Globalization' of Business Activities: A 'Global Strategy' Approach, Management Decision, 39(1), pp.6-18.
In recent decades, the process of globalization has accelerated and the world economy has become increasingly interdependent. The rise in the number of businesses that extensively operate in more than one foreign country, which is known as multinational corporations, plays an important role in the ongoing procedure of globalization. The United Nations has reported that multinational corporations hold one-third of world’s productive assets and control 70 percent of world trade (Schermerhorn et al., 2014). As there is a considerable growth in international businesses, worldwide economy is becoming more highly competitive. The global economy not only offers great opportunities for multinational enterprises but also on the other hand, creates many difficulties for them. Therefore, success in the large-scale economy requires a number of elements. One of the major determinants is dependent on global managers. In the operation of organizations, managers may encounter different international management challenges that restrict their business development. These challenges often include issues associated with the host countries, the global workforce diversity management, management across cultures, difficulties in competitive global business environment as well as in the process of global planning and controlling. This essay is going to discuss the above international management challenges in a broad sense and giving illustration in aspects of each challenge.
It is true to say that globalisation is a two-way street. As international business and trade continue to grow, models of organisations and approaches to management are beginning to merge; nevertheless it remains imperative for firms to understand and govern across the myriad of cultural differences which still exist. These differences seem most apparent in China, where managerial values are deeply rooted in archaic and powerful culture. Some authors argue that even with a certain degree of convergence between Chinese and Western cultures, such convergence does have its restrictions.
As Per section 6(3) of the Income Tax Act, any company which is incorporated in India is always considered as resident company or during the year control and management of its affairs situated wholly in India.
In this turbulent and contradictory global environment, global management skills development is essential for the global managers. Global managers have to think globally, not only standing the country in which they live. Through continuous learning different global management skills, to avoid the impact of cultural differences and manage the intercultural business more effectively. Global mindset, cross cultural competence and intercultural sensitivity, all these major global management skills, if the Wal-Mart can effectively implement in transitional business, believes it will able to significantly improve the problems its face in Japan business. Wal-Mart also can use the previously described methods to execute global management skills development, enable organization to effectively development global managerial skills.
A globalizing business sector advertises viability through rivalry and the division of the work it permits individuals and economies to keep tabs on what they specialize in. It also allows people to go globally. Globalization has stretched the assets, items, administrations and markets accessible to individuals. The increasing set of reliable connections around individuals from distinctive parts of a world that happens to be separated into countries.
The marketing team of International Consultants Inc. (ICI) began an analysis of the feasibility of expanding the sales of American Training Incorporated (ATI) products into international markets. Mexico and Canada appeared to be the logical initial markets; however, the study showed that other Latin American country should also be considered further
Miroshnik, V. (2002). Culture and international management: a review' The Journal of Management Development 21(7): 521-544
According to Caligiuri and Dragoni (n.d., p.227), a successful global manager has the competency of self-managing in a sense that he has a higher tolerance of ambiguity and believes highly in his ability to accomplish a task. And when integrated with a cultural curiosity competency, it is likely to formulate a global leader who is readily to learn