The human society around the world, over a period of time, has established greater contact, but the pace has increased rapidly since the mid 1980’s.The term globalization means international integration. It includes an array of social, political and economic changes. Unimaginable progress in modes of communications, transportation and computer technology have given the process a new lease of life. This paper is an attempt to outline the growth of Indian economy, effects, culture, technology, driving force and transformation that India is going through due to globalization, liberalization and privatization.
The world is more interdependent now than ever before. Multinational companies manufacture products across many countries and sell to consumers across the globe. Money, technology and raw materials have broken the International barriers. Not only products and finances, but also ideas and cultures have breached the national boundaries. The concept of globalization was first introduced by Adam Smith, the father of modern economics in the year 1776 through the book titled, “Wealth of the Nations”, and since then the globalization has been liked yo-yo.
In the days of yore, British, Chinese, Indians and Mughals were involved in global business. The Chinese used to sell silk to the world and buy dynamites. The British used to come to India to buy condiments and in return India used to buy ammunition.
So, the point is that - globalization is not a new concept. In the good old days, globalization even more prevalent because Indian spices, silk handicrafts, gold, silver jewelry, etc., were ubiquitous everywhere in Europe.
GLOBALIZATION – GROWTH OF MNC’S
According to Guy Brainbant, the process of globalisation not only includes opening up of world trade, development of advanced means of communication, internationalisation of financial markets, growing importance of MNC's, population migrations and more generally increased mobility of persons, goods, capital, data and ideas but also infections, diseases and pollution. These processes are being driven by a combination of economic, technological, socio-cultural, political and biological factors.
Growing interconnections brought about by this process requires that both managers and organisations expand on traditional repertoire of roles. For organisational leaders as well, the challenge is to manage tradition and change. . Global firms take shape by borrowing best practices and new ideas from multiple cultures, but they must at the same time create an internal culture that infuses unity and provides direction.
Thus, global management skills and competencies are integral to all organisations. The most important competencies in handling it are –
1.Managing Self & across culture
Managing Self and Across Cultures
Globalisation has caused cultures of different nations to interact with each other. This heterogeneity has brought about changes in the organisational culture. However, such interactions can sometimes lead to cultural clashes if not handled delicately. At the individual level also, it may become evident when people from different cultures work with each other. Thus in this light managing, perceiving, appraising, and interpreting accurately oneself, others, and the immediate environment is very necessary. This in turn equips us with the ability to recognize and embrace similarities and differences among nations and cultures and then approach key organizational and strategic issues with an open and curious mind.
Example- Indians on a professional call accept gifts whereas Japanese consider gifts as an offence. Culture also frames our sense of right and wrong. Most cultures interpret behaviour depending on their own cultural frames. This can lead to cultural misunderstandings.