Impact of Globalization on organizational behavior
Introduction to Globalization
Globalization has become an ever-present expression in the past few years; it is defined as the integration of culture, politics and economies between different countries. It is essentially how one culture affects or impacts another on multiple levels, for example on an individual level; in the United States a person my drive a Swedish car home to watch a French movie on a Japanese television whilst eating Mexican food. This is an effect of globalization, but it also has an affect on a larger scale. Globalization can be two or more governments working together towards a common goal, such as reducing carbon emissions. Globalization has become more and more present in business, as many companies are expanding their operations to other regions and countries. Also companies from different parts of the world are working together to develop products. There are many advantages to globalization due to the various opportunities in which businesses can expand to international markets. The speed in which globalization has grown in recent years has been brought on by the advancement in technology, especially in communications and logistics. This advancement has greatly increased the demand for different products on an international scale. (Morley) Globalization has essentially opened doors and lowered barriers to business between different countries, this has allowed many nations to become more competitive on a global scale and helping them to develop and diversify their products. The arrival of globalization has completely transformed some aspects of various organizations; it has had effects on the structure, leadership and planning strategies that organizations adopt. All of these changes are associated with the globalization of organizations, such as the appearance of global managers, diversity in the workplace, cultural differences and the restructuring of hierarchy. One large factor of globalization is outsourcing, this is especially present in manufacturing, IT and customer service. These operations are the parts of a business that require a high amount of workers and are often the most costly part of an operation. Outsourcing abroad is popular due too significantly lower manual labor costs in countries such as China, Taiwan, Philippines and India.
Challenges of globalization
The unification of corporate culture has long been the norm when companies have grown and expanded within a country, but globalization is challenging this system, it is causing organizations to readdress their organizational culture, as the relevance of global culture becomes more of an important factor. This means that companies have to incorporate a culture that fulfills the demands of a global market.
This can be challenging because organizations have to have their organizational culture aligned with global trends. Having to do so may have a negative effect on the unification of corporate culture, threatening what is unique and ultimately defines the organizations success. Thus meaning that the main challenge is to find the balance between the global trends and corporate culture, therefore it is possible to argue that globalization could threaten the whole nature of the organization; its values, customs and direction that helped build it in the first place.
When a multinational company is expanding globally it has try to maintain its corporate culture whilst keeping up with global culture, finding the right mix can be difficult. It has overcome a headquarter-centric mindset where it avoids approaching the development of a global culture as a single process designed by corporate headquarters, whilst being careful that the core values do not fail to reflect diverse and cultural values.
It is possible to categorize global organizational cultures into three primary dimensions; firstly where core values and practices are...
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