Organizations’ Perspective on Globalization

ORGANIZATION’S PERSPECTIVE

Organizations have received access to wider markets and also help in worldwide economic development.  Apart from the increase in competition organizations have to face many managerial challenges. Such as, optimization of manufacturing supply along with the distribution network or supply chain and the enhancement of international products. This requires evaluating local interests along with global benefits. Local interests include products that measure up to the local needs, investments and employment in the local economy. Global benefits revolve around economies of scale gained through concentration of resources from the utilization of standard practices and standard technologies within the organization. These interests can be balanced by organizations with the support of centers of excellence, organization wide teams and associations with other companies.

A major hassle for an organization is adapting people whose views don’t match or who are different. This can be difficulty can be easily overcome by recognizing and understanding the differences in values. Diversity if used carefully can yield a number of positive results such as uniqueness and creativity within the organization.

Globalization is known to increase barriers between developed and developing countries. Some of the countries are infamous for imposing their ideas and values to other countries. This the major reason why certain developing countries do not reveal or give out any information regarding environment, production or labor issues because they feel that their innovations and ideas will be used or stolen by the westerners.

The domestic sector of the industry may face some decline in the number of jobs. Global corporations have set a benchmark within their own as well as other countries. However unhealthy globalization can lead to abrasion of a country’s production base.

In order to be effective a company, three organizational competencies are required. The first one involves, learning how to manage alliances. As the organization grows, it must learn how to cooperate with its competitors; this involves sharing of risks. However, many companies do not know how to handle such professional relationships. Certain research shows that 63 to 75 percent of associations are unsuccessful. There are numerous reasons for such a large failure rate. The main reason still remains the inability to understand the interests of their business partners. The ability to comprehend interests of individual members and collective interests in global organizations can lead to huge amounts of success. Local as well as global interests should be looked into and a balance should be maintained between both of them. The balance can be maintained with the help of teamwork and collaborations with other countries.

The second one comprises of creation of operative and efficient teams which are able to excel in functional, market and geographical structures. This secures the organization from minor problems in geographic dispersion, size and cultural variance.

The third problem global companies’ face is the inefficiency in their leadership skills. These companies require leaders in large numbers. The leaders should be capable of appreciating ideas and beliefs of their fellow co workers from other cultures. They should master skills that influence rather than control through power. Many managers continuously work towards spreading what they feel. However, if any business partner or colleague shows any form of resistance they relate it with their inability to grasp concepts.

Traditional models of supervising the organization must be changed. International companies require a unique species of leaders who are able to lead without the support of line authority. They should be good learners and good teachers. They should learn how to obtain cooperation from their partners and they should be shrewd in allocating resources for various business needs.

Old models of training, hiring, rewarding and deploying should be altered. The entire process of organizational development and learning must be conducted with great care, since the earlier models will serve until the new ones are learnt.

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