The term ' globalization ' is now commonly used and familiar to everybody. Now, globalization is not just a matter of trade and economic interdependence. It also relates to our whole life. Globalization is a process. The purpose of this essay is to discuss the impact of globalization on organizational behaviour. There are three parts of this essay. First, there are two sides of the definition of globalization.Second, this essay will illustrate the role of globalization of organizational behaviour. Third, there is a discussion of the scholarly disagreement on the existence of globalization.
Two sides of the definition of globalization
On one side, there is the mainstream approach.The expansion of global market improves the efficiency and living standards of organization. From this perspectives, organization can use adequate rational decision making to resolve the increasing internationalization problems. The Nike corporation and its products are well known throughout the word. After some experiments, Nike moved toward a subcontracting system, reaching agreements with independent manufacturers to produce the shoes and other goods. This gave Nike a high level of flexibility as they could increase or decrease overall production according to market demand without carrying unnecessary overhead costs, for example, they can set up some tight conditions and contracts. On the other side, there is the critical approach. It exposes that we need to concern the cost of globalization. A few people who have the power to influence on the process in terms of social power and concentration of economic . And it reveals that how groups are struggling inside the organization. From a critical perspective, Nike reveals the multinational firms contribute to global inequality. If they produce shoes in the US, they have to cut its profit margins substantially because US employees are paid quite high wages. In contrast, producing the shoes in China reduces the costs significantly....
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