In the last century, globalization has become a very tangible part of how business is conducted. Technological advancement allows international trade and commerce to happen rapidly and easily while the advancement in how goods are transported and how people communicate have had a drastic effect on the globalization of business. Management practices and culture also has a bearing on how international enterprise has is conducted. Managers have to adapt to different management practices, adjust to a new culture, and sometimes face ethical issues in a foreign field. Management is an important role in finance and enterprise that has far reaching consequences on the globalization of business.
In every country, there are often differences that make
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In doing so, however, they may find they experience a significant amount of culture shock. Culture shock is defined as "the feeling of disorientation, loneliness, insecurity or confusion that can occur when someone leaves his or her home country to live in a new culture"(Harzing, para. 1, 2016). Culture shock happens in stages, usually starting with a feeling of euphoria at being chosen to move to the new country, as well as the desire to soak in and learn everything one can about the new country and culture. However, this period is temporary and descends into a low period, characterized a feeling of homesickness. Managers in this stage may become irritable and react to small inconveniences and differences dramatically (Four Common Stages of Cultural Adjustment, 2016) They may feel as though they do not have significant support from the company they work for and contemplate moving back to their home countries. This has a negative effect on the work performance of the manager, and in turn, has a negative impact on the welfare of the company in the foreign market. Because of this, many companies begin implementing a training program to help management prepare for and adjust to life in a foreign country. Such programs may include learning the work culture as well as the social norms and mores of the host country, and also how to balance work life and home life. In this way, managers and their employees would have an easier time adjusting to the culture shock of their host countries (Kottolli, 2006). But in adapting and conforming to the culture of a host country, could a manager find themselves in a difficult
The article I chose to review describes how to adapt you behavior across different cultures. Molinsky mentions that the choice of working globally was more of personal interest rather than an academic decision. The interview describes that adapting to a new culture is not only difficult cognitively but more difficult psychologically and behaviorally. Andy Molinsky mentions he was quick to realize that most academic literature fixates on differences and knowing things at an abstract level does not help you adapt culturally. Molinsky describes
Culture Shock 1 Definition of Culture Culture as the most complex terms has countless different definitions ranging from complicated phrases to the simple statement describing culture as "the way we do things around here". The widely used definition of culture is that of Meads (1951), "A body of learned behaviour, a collection of beliefs, habits and traditions, shared by a group of people and successively learned by people who enter the society"(Joynt and Warner, 1996, P. 33). Hofstede(1980) created the very illustrative definition of culture as "the collective programming of the mind which distinguishes the members of one group or category of people from another". Again to Hofstede's option, culture is learned not inherited, it is not impossible to learn new cultural traits and to unlearn old ones (Manz, 2003, online). Therefore, it must be feasible to integrate cultural differences.
Culture shock is personal incomprehension a person may feel or experience when in an unfamiliar culture or way of life as a result of a visit to a new place or immigration, a movement amid social environments. Culture shock mostly affects individuals who have relocated to foreign environments. It is a process that an individual undergoes in experiencing a new environment; it is categorized into four phases that are honeymoon, crisis, adjustment, and recovery phases. The common problems associated with it arelanguage barrier, generation gap, homesickness, information overload, boredom, technology gap and cultural response ability among many others (Macionis 2010, 26). Cultural differences affect individuals differently. Therefore, there is no definite way of preventing culture shock.
Ahlstrom, D., & Bruton, G. D. (2010). International Management: Strategy and Culture in the Emerging
Thomas, D. C., and Ravlin, E. C.,1995. Responses of employees to cultural adaptation by a foreign manager. Journal of Applied Psychology, 80(1),pp.133–146.
The global economy enables all sizes of businesses to connect with foreign companies. For example a U.S. based store can import material from companies in china through the web on a website called Alibaba.com. Managers are affected by globalization because it changes the planning function of the 4 factors of management. Rather then only focusing on domestic operations, managers must now look into opportunities brought by global partners. Also global companies can drive competitive forces into the domestic marketplace. If consumers can order cheaper products directly from foreign suppliers, domestic managers will need to use the controlling function to adapt to these competitive forces that are
In my attempt to discuss the impact of management in the globalization of business I looked at the terms “business management” and globalization”.
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.
The main objective of this paper is to understand, analyze, and explore globalization and discuss factors that influence the global business environment. There are many strategic intricacies in the global environment, which will be evaluated in this report. Furthermore, the effects of structures, cultures, and functions on the global environment will be explored. The paper will also cover the changes that globalization makes in an organizational decision making.
Pedersen (1995) describes culture shock as process of primary adjustment to unfamiliar environment, in which the adjustment process takes in its sentiment, behavior, cognitive and physical impact on individuals. (Pedersen, 1995:2-3) The term culture shock is established by Kalervo Oberg (1969) he classifying as individuals losing all familiar signs and symbols of social interactions. Personally it is unpleased feeling in living in new culture as well as arriving new
There are many factors that can affect the management in globalization of business, which are the multinational corporations, the difference in cultures, ethical issue, fair trade and the managerial styles.
As a conclusion international business best described as a Globalization. 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 reliant connections around individuals from distinctive parts of a world that happens to be separated into countries
Nowadays, business is set in a global environment. Companies not only regard their locations or primary market bases, but also consider the rest of the world. In this context, more and more companies start to run multinational business in various parts of the world. In this essay, companies which run multinational business are to be characterized as multinational companies'. By following the globalization campaign, multinational companies' supply chains can be enriched, high costs work force can be transformed and potential markets can be expanded. Consequentially, competitive advantages of companies can be strengthened in a global market. Otherwise, some problems are met in the changed environments in foreign countries at the same time. The changed environments can be divided into four main aspects, namely, cultural environment, legal environment, economic environment and political system problems. All the changed environments make problems to multinational companies. In particular, problems which are caused by changed culture environment are the most serious aspect of running a multinational business. This essay will discuss these problems and give some suggestions to solve them.
Due to increasing trade and cultural exchange, the world is getting more interconnected day by day. This process is widely known as Globalization. The effects of Globalization in business have reflected so rapidly that new concepts and related theories have been developed and are specifically known as ‘Global Business Management’. The relatively new business concepts adopted in regard to the globalization are generally a blend of strategic management and the universal business which are intended to be developed worldwide as effective b¬usiness methods for international business entities.
Some of the culture shocks experienced by managers working abroad include disorientation and uprootedness. These could lead to overwhelming adjustments made by the changes. They maybe feeling uprooted from their home country and suddenly have to deal with new ways of life in their new living