The influences of globalization can be felt in every city around the world. Technology has enabled individuals as well as organizations the ability to immerse themselves into another culture virtually at the speed of light. Understanding of different societies and cultures has become one of the leading processes of business. Primarily there has been a greater focus on understanding the various cultures because of its ability to affect business on a global scale. Nevertheless, organization such as IBM, McDonald’s and Coca-Cola seem to have grass the understanding of the great importance in dealing with unlike cultures. By understanding the different cultures, enables the organization to more effectively deal with the influences of globalization, for example, e.g. Political, economic, regulations, etc. Each of these components will exhibit some form of influence depending on the various type's cultures in which the organization’s conduct business.
There are many influences of globalization affecting organizations such as e.g. IBM, Walmart and Coca Cola, etc.... According to Schiller (1976), influences of globalization are identifiable in a multitude of business models. This is true even if you were to investigate the changes within local business, e.g. Business design, hiring practices and the use of technology. When looking at organizations, perhaps one can identify the influences as they propagate their effect upon the organization.
Perhaps if a targeted analyst on the aspect of operations one would find it intertwines deeply in the framework, therefore, requiring a study of the system as a whole as well as subsystems. Conceivably, the question is rather or not an organization can facilitate the business systems with...
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Geert Hofstede, Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations. Second Edition, Thousand Oaks CA: Sage Publications, 2001
The world we live in today is going through enormous changes in economics, technology, culture, politics, etc. The effects of the changes are not so clear, since it is hard to predict how each sector would affect the other and how society will be affected. However, analyzing past and present occurrences provides some information for experts to interpret society’s reaction in the future to different transformations. Globalization can be seen as a process in which societies around the world come together and expand through the combination of different forces. This paper will explore the effects of globalization on US companies, US society and economy, and the implications for other countries in the post-industrial world.
Geert Hofstede’s research in this area has been largely accepted as the standard for understanding culture within nations for study in many different disciplines including sociology and management research, among others. His studies because of their vastness in scale, gathering data from more than ”60,000 respondents in seventy different countries,” makes his research extremely reliable and foundational to research in this area (Hofstede, 1984, 1991, 2001).”
Value systems across cultures can help to explain the differences in behaviour amongst people from different countries (McCort and Malhotra, 1993), which tend to stay with people over time. There are many different cultures and in order for an organisation to be successful, they need to take many different into account to ensure that they are successful in different countries and cultures. Cultural values appear to have considerable effects on management decision making processes (Clark, 1990; Ken, 1985; Picken, 1987; Shane, 1988; Swierczek, 1991). Culture is defined as “the set of distinctive spiritual, material, intellectual and emotional features of society or a social group, and that it encompasses, in addition to art and literature, ways of living together, value systems, traditions and beliefs” (Unesco, 2002).
Steger, Manfred B. Globalization: A Very Short Introduction. 3rd ed. Oxford: Oxford UP, 2013. Print.
Geert Hofstede, a behavioral scientist, his most remarkable work is in developing cultural dimensions theory that provides a structure for intercultural communication. With factor analysis, the theory states the impact of culture on values under the work-associated context, and how these values influence human behaviors. Hofstede has defined “culture” as “the collective programming of the mind that distinguishes the members of one group or category of people from others” (Hofstede, 2011). According to his definition, culture is a collective phenomenon which can connect with different others. After a decade of research, Hofstede initially proposed four independent dimensions of national culture differences that could distinguish one culture
The differences in other cultures vary from beliefs to ways of life, or norms, of the different societies. The importance of understanding and sensitivity to other countries’ differences is crucial to a business’ success. “Lack of familiarity with the business practices, social customs, and etiquette of a country can weaken a co...
Globalization is a process in which it allows mixing and collaboration from the consumer to the companies, the government, and internationally benefits. Globalization takes its toll on a lot of thing such as the environment, economic develo...
In the article, Cultural constraints in management theories, Geert Hofstede examines business management around the globe from a cultural perspective. He explains how he believes there are no universal practices when it comes to management and offers examples from the US, Germany, France, Japan, Holland, China and Russia. He demonstrates how business management theories and practices are very much subject to cultural norms and values and by understanding these differences, it can give managers an advantage in global business practices.
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.
Globalization’s history is extremely diversified and began during the beginning of civilization. Now we live in a world that is constantly evolving, demanding people to use resources in locations that are very difficult to obtain certain resources. This could make it completely impossible to operate in these specific parts of the world. However, globalization allows people across the world to acquire much needed resources. Globalization creates the opportunity for businesses to take advantage and exploit the ability to take part of their business to a different country. Nevertheless, globalization is part of today’s society and will be involved in virtually all situations.
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.
The interrelation and the integration of people, companies, governments and nations can be described as globalization. Globalization was produced due to international trade and investments with the help of technology. In today’s world, globalization is very essential. The advancements and technology help the process needed it for globalization. Many countries and organizations similarly are affected by this phenomenon, on the other hand, smaller countries have benefit from larger contributors in the world’s market.
The Hofstede model of national culture differences, based on research carried out in the early seventies, is the first major study to receive worldwide attention. This influential model of cultural traits identifies five dimensions of culture that help to explain how and why people from various cultures behave as they do. According to Hofstede (1997) culture is Ù[ collective programming of the mind? This referring to a set of assumptions, beliefs, values and practices that a group of people has condoned as a result of the history of their engagements with one another and their environment over time. In this study, culture refers to a set of core values and behavioural patterns people have due to socialisation to a certain culture. The author̼ theoretical framework will be applied to compare differing management practices in China and the West. The five measurements of culture identified by the author are:
Al-Rodhan, Nayef. Definitions of Globalization:A Comprehensive Overview and a Proposed Definition. Geopolitical Implications of Globalization and Transnational Security . Geneva: GCSP, 2006.