Impact of Management in the Globalization of Business

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Recommended: Overview of globalization

Globalization is the increased productivity of a business by using international borders to increase and multiply their output and profit. It has grown in enormous amounts in the 20th century and is expected to keep growing because of its rapid popularity. Primarily, globalization of a business is moving or building a branch of a company in a different country to expand consumer demographics, to take advantage of that country’s more affordable costs and fees, and it’s slightly less strict rules and regulations. Management in the globalization of business has become more complicated due to different restrictions on management and employee relationships because of this internationalism. Even though this poses as a serious problem, if the right steps are taken, it can be handled.

First off let’s talk about multinational corporations or MNC’s. These are the basic and primary physical characteristic of globalization. Investopedia defines MNC’s as, “A corporation that has its facilities and other assets in at least one country other than its home country”. This means that corporations can open service facilities and manufacturing plants in other countries. While this can be a positive by providing job opportunities to developing countries and access to a variety of products it can also turn into negative by not providing jobs to people in their home countries and eventually exploiting the developing countries resources. This is where managerial problems arise. Managers have to go through culture shock when being sent to an abroad corporation location while making sure employees are paid fairly and maintaining the ethical duty of their post.

Culture shock is probably one of the hardest things management has to f...

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...iness. Retrieved April 15, 2014, from http://www.insidebusiness360.com/index.php/effects-of-globalization-on-leadership-and-management-12513/.

Management Styles, Group & Motivational Orientation. In Saudi Arabia Culture Profile. Retrieved April 15, 2014, from https://sites.google.com/site/moensaudiarabiamgt755/management-styles-group-motivational-orientation.

Multinational Corporation - MNC. In INVESTOPEDIA. Retrieved April 15, 2014, from http://www.investopedia.com/terms/m/multinationalcorporation.asp.

Sharon Thomas. (2001). The Culture Shock Phenomenon. In LSC. Retrieved April 15, 2014, from http://www.educ.utas.edu.au/users/tle/journal/articles/Thomas/Thomas.htm.

undefined. (2006). The Impact of Globalisation on Human Resource Management in Zambia. In OSSREA. Retrieved April 15, 2014, from http://www.ossrea.net/index.php?option=com_content&view=article&id=374.

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