Systematic Study of Organizational Behavior
Understanding the dramatic changes currently taking place in organizations has never been more important for managers than it is today. (Robbins & Judge, 2007). Some of the most critical issues confronting managers include increased globalization and greater diversity within organizations. Both of these issues, along with the manager’s use of intuition, influence the manager’s role within an organization. Globalization
In order for a business strategy to be relevant and effective, management needs to pay attention to the changing commercial environment. One of the most significant new challenges for businesses is globalization, which can be explained as the merging of national economic systems into one huge global marketplace. (Marsden, 2008). Because organizations are no longer constrained by national borders, the tastes and preferences of consumers from around the world are beginning to converge. Globalization has also led to the interdependence of national economies; a change in the economy of one country can quickly affect the economies of other countries. Through advances in communications and the removal of trade barriers, multinational companies have been able to access new markets as well as cheaper capital, materials, and labor. Production is often located where labor is cheapest, and satellite TV and the internet have aided global marketing campaigns. (Marsden, 2008). Due to the increased convergance of consumer demands, many companies have adopted a global strategy, which means greater economies of scale due to lower production and marketing costs. (Marsden, 2008). However, where cultural differences exist, companies must be willing to customize their products for different markets, which will in turn increase costs. Management needs to realize that it is to the organization’s benefit to act globally whenever possible, but must adapt to local customs when necessary to meet consumer’s demands. When located in a foreign country, managers need to realize that the workforce is likely to have different needs, aspirations, and attitudes from those at home. (Robbins & Judge, 2007). Even in the manager’s home country, they will be working with individuals who were born and raised in a different culture, so therefore often have different motivators, communication styles, and customs. In order to effectively manage abroad or to manage a diverse workforce at home, managers need to understand how to adapt their management style to difference created by individual’s culture, geography, and religion. Because the global marketplace will continue to get more competitive in the next decade, managers should be compelled to make their organizations more agile, productive, innovative, and technologically advanced. (Welch & Welch, 2008). Effective managers need to have ambition, interest, a global mid-set, and be willing to work abroad for several years. In a global environment risk-taking and growth are essential to survival. Marshall (2007) emphasizes that top management support and implement thorough and prudent risk management practices when making the decision to extend the organization’s reach to overseas markets. Some key factors to managing risk in emerging markets include: understand the individual markets, use local expertise, establish strong local relationships, understand local laws, understand the culture, be cautious and vigilant, maintain open two-way communication, be flexible in response to changing conditions, and think long-term. (Marshall). Intuition
Management decisions are typically thought of as being rational decisions based upon hard facts and figures used to make logical plans and predictions. Rational, analytical decision making helps managers solve problems based upon knowledge that is explicit and is best suited to highly structured tasks. Conversely, intuitive decision making is more effective when decision makers are facing tasks that are poorly...
Please join StudyMode to read the full document