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Globalization in organizations
Globalization in organizations
How Does The Culture Of An Organisation Affect The Organization
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Introduction
According to the Scholte’s book entitled “Globalisation: a critical introduction”, the explanation of the word “Globalisation” is summarised in five aspects, that is, internationalisation, liberalisation, universalisation, modernisation, supraterritoriality (Scholte, 2000). In a simple way of thinking, Globalisation is towards to connect every country in the world together in both positive and negative way.
Samson and Raft (2005) defined that Organisational culture as a: ‘system of shared meaning within an organisation that determines, in large degree, how employees act’.
It relates to the group beliefs and values within the organisation focus on the common characters of the employees, and make the business differs to each other.
The organisational cultures approach to the different way as the development of globalisation. Due to the research work from Clayton and Fisher (2006), the organisational cultures could be affected by the environment. Globalisation is major issue in the world stage as well as influence people’s daily life.
Pheysey(1993) stated that there is no way that every organisation stands alone in the society. Oppositely, it has already become the fundamental element of the societies, economies, and countries. This essay will emphasize on the cultures of different organisations in the worldwide is becoming distinctive from each other under the pressure of globalisation.
Content
First of all, the general environment is different in the world stage for each country. The concept of general environment also known as external environment is composed by several elements, that is, international, legal-political, economic, social cultural and technological factors which would hav...
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Just as there are cultures in larger human society, there seem to be cultures within organizations. These cultures are similar to societal cultures. They are shared, communicated through symbols, and passed down from generation to generation of employees. Many definitions of organizational culture have been proposed. Most of them agree that there are several levels of culture and that these levels differ in terms of their visibility and their ability to be changed.
The concept of organizational cultures was first raised in 1970s, and soon became a fashionable topic. Organizational culture is the shared beliefs, values and behaviours of the group. Theorists of organizations believe that organizational culture represents the pattern of behaviours, values, and beliefs of an organization. Hence, studies around organizational culture have been seen as great helpful and essential for understanding organizations and their behaviours. Additionally, organizational culture has been considered to be an important determinant of organizational success. Therefore, leaders and managers pay more than more attentions on this topic, focusing on constructing and managing organizational cultures.
While organization culture can be defined in many ways. Here are presented some of the meaning of organizational culture according to some members, according to Wood, Wallace, Zeffane, Schermerhorn, Hunt , Osborn (2001:391), organizational culture is a reliable and value system developed by the organization where it leads the behavior of members of the organization itself . While, according to Tosi, Rizzo, Carroll as quoted by Munandar (2001:263), organizational culture is the ways of thinking, feeling and reacting based on certain patterns that exist in the organization or is in the parts of the organization . Whereas according to Robbins (1996:289), organizational culture is a common perception shared by the members of that organization.
Culture is “a system of shared beliefs and values that develops within an organisation and guides the behaviour of its members” (Schermerhorn et al. 2011). It plays an important role in any organisation. For instance, in Woolworths we can se...
Organisational culture is a system of values and beliefs shared by a common group of people. It develops within an organisation and guides the behaviour of its members to maintain consistent patterns of social systems. It forms integrated behavioural traits used to survive in the ever-changing environment (Denison, 1990; Schein, 1992) Organisational structure is a hierarchal arrangement of authority, it determines how the power, roles and responsibilities are controlled, assigned and coordinated, and how information within an organisation flows from one area of management to
Organisational culture is one of the most valuable assets of an organization. Many studies states that the culture is one of the key elements that benefits the performance and affects the success of the company (Kerr & Slocum 2005). This can be measured by income of the company, and market share. Also, an appropriate culture within the society can bring advantages to the company which helps to perform with the de...
In recent decades, the process of globalization has accelerated and the world economy has become increasingly interdependent. The rise in the number of businesses that extensively operate in more than one foreign country, which is known as multinational corporations, plays an important role in the ongoing procedure of globalization. The United Nations has reported that multinational corporations hold one-third of world’s productive assets and control 70 percent of world trade (Schermerhorn et al., 2014). As there is a considerable growth in international businesses, worldwide economy is becoming more highly competitive. The global economy not only offers great opportunities for multinational enterprises but also on the other hand, creates many difficulties for them. Therefore, success in the large-scale economy requires a number of elements. One of the major determinants is dependent on global managers. In the operation of organizations, managers may encounter different international management challenges that restrict their business development. These challenges often include issues associated with the host countries, the global workforce diversity management, management across cultures, difficulties in competitive global business environment as well as in the process of global planning and controlling. This essay is going to discuss the above international management challenges in a broad sense and giving illustration in aspects of each challenge.
DeCarlo, S., and Nicolas Rapp, N. (2016, July 20th). This Chart Shows the World’s 500 Largest Companies. Retrieved from http://fortune.com/global-500-companies-chart/
Miroshnik, V. (2002). Culture and international management: a review' The Journal of Management Development 21(7): 521-544
This essay will set out to define what is organisational culture, examine the main attributes that characterise it and how cultural originate and develop within it. At the same time, this essay will also assess the importance of organisational culture to the financial performance and continued survivability of firms.
As all the countries are on the way to globalize with each other, business is not the exception. Globalization in business definitely brings a lot of great opportunities for many countries. However, in order to make the best of the globalization in business, management is the golden key to that success.
In this essay, author is concerned as to how corporate organization and their management decisions are affected by diversity in culture and related differences in expectations, norms and behaviour of particular groups of managers, colleagues, customers or employees (Earley, 2006). Few examples will be quoted in this essay by author wherever needed for proper understanding of viewpoint. In starting author will give a brief overview on topic covered. This will later be supported with discussions on globalization and challenges international organizations face in its launch in various countries, organizational culture and its implications, implication of national culture on an organization and how management of organization in international context is impact by organizational and national culture. At the end essay will be concluded with an analytical conclusion of topics discussed.
To be successful in today’s global market, managers and leaders need to understand more than just technical skills. Managers and leaders should also understand globalization and organizational behavior. Globalization is the tendency of businesses, technologies, or philosophies to spread throughout the world, or the process of making this happen. The global economy is sometimes referred to as a globality, characterized as a totally interconnected marketplace, unhampered by time zones or national boundaries (Search CIO). Organizational behavior is a field of study that studies individuals groups, and structure. Organizational behavior applies the knowledge gained about individuals, groups, and the effect of structure on behavior in order to make organizations work more effectively (Robbins,2014).Gaining an understanding of globalization and its effect on organizational behavior is crucial to interacting effectively in the modern global economy. Globalization affects an organization’s behavior in several ways like stimulating hyper competitive pricing for a product or service, perpetuating continuous operations and communicating around the clock and globe, capitalism is replacing governmental control and organizations are no longer constrained by borders, and corporations are becoming more heterogeneous and adapting to people who are from different nationalities and cultures. To be successful in a global economy, professionals should have a thorough knowledge of sociology, psychology, communication, and management.
Globalization encourages worldwide business. Globalization is an efficient process by which all the nations of world will commonly try to set regular universal standards & regulations (both created & recommended) which will encourage business around different nations. Business around nations or elements crosswise over different fringes is called universal business.
Organisational culture is a key issue in any organisation, according to Mats (2012), it is central in all dimension of an organisation. Culture focuses on values, beliefs and expectation that company members come to share (Joanne, 2002). Corporate culture receives attention most times; however, there is lack of deeper understanding of how organization functions in terms of culture (Mats 2012). Schein (1985) suggested the view of culture in three levels, from the shallow to deepest. The three levels were Artefacts (which is the most visible of the organisation’s culture), Values (great level of awareness) and finally Assumptions (the part of culture that is most ignored). Schein (2010), further explained culture as a pattern of basic that has worked well enough to be considered valid and therefore, to be taught to new members as the current way to perceive, think and feel in relation to these problems. In addition, Culture is hard to explain precisely as it is developed over a period of time, which has an impact on individuals and group behaviours and actions (Mullins and Laurie 2013). There are different views of culture; however, the two major ones are Managerial and social science views (Pia 2013). The managerial view sees culture as an object; they see culture as a tool of management, which can be manipulated to achieve performance. While the social science see culture as a metaphor; which is an awareness of diversity of cultural assumptions & values underpinning different behaviours. Mullins and Laurie(2013) explained that organizational culture is formed based on factors such as History behind the creation of company, Primary function and technology, leadership, environment and strategies.