The Process of Globalization

Globalization is a process through which different cultures and economic systems around the world integrate with each other. This happens due to the influence of large transnational corporations and improvements in the field of communication. Globalization assists in the management. It provides support to an organization in the planning and allocating the resources that may be required. Globalization, therefore, has a good effect on management. Globalization has both its positive and negative effects.

Advantages of Globalization

  1. Free trade between nations has increased.
  2. Investors from the developed nations can bring up businesses in the developing nations.
  3. The speed of transporting both goods and people has increased.
  4. There is no likelihood of the rich nations coming to war.
  5. Global village effect has come to existence due to the cultural acceptance.
  6. Communication is now enhanced and fast. Now information can reach all nations.
  7. Corporations can carry out their transactions across the borders.

Disadvantages of Globalization

  1. Diseases are likely to be spread faster without their people being aware of them .
  2. High rate of movement of skilled and non- skilled labour going from rich to poor countries.
  3. If one nation’s economy has a problem, all economies are  affected.
  4. Violence may occur when some people claim to stick to their culture. They may not want change.
  5. Spread of the materialistic outlook and the way of life that may seem cruel to some people.

Globalization has both good and bad effects. The negative effects can be reduced if  various authorities try to control them. It is not an ‘evil’. The Euro zone crisis has caused great impact on the world economy. Currently, China and India have the major economic powers. Managers will have to come to terms with the global economy. It may require them to consider transferring their operations overseas and adopting new styles of operations. No one knows for how long the current global economic crisis will last. Both developing and third-world countries are likely to experience the effect of the global economy.

Global economy is about the expansion of economies all over the world. When the global economy is low, management becomes hectic. Resources and funds become a problem. When the global economy is high, management may be easy to allocate, and resources are all available.

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Organisation orientation can be described as a variety of ways in which people perceive their work and the place they work. It also affects if people are not motivated. It’s adopted from the theory of organizational behaviour by Presthus in 1962. 

There are 3 types of organization orientation. They may include:

  1. Upward mobile organization orientation.
  2. Indifferent organization orientation.
  3. Ambivalent organizational orientation.

Upward mobile orientation is the most recognised. It involves working very hard for  improvement so as to be ranked high in the seat as the new head. Such employees also are usually concerned a lot about the company and can do anything  to help. The indifferent employees are committed to their jobs because of  earning. They compose  the highest percentage of workers. They are only concerned about the payment and can never do any other work unless they are paid to do.

The ambivalent workers are highly critical of their jobs. They keep on moving from one job to another. They are often quick to temper and, therefore, maintain poor relationship with other  workers. They often require the sense of feeling secure.

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Globalization will affect organization orientation positively. People will work freely and be paid accordingly. On the other hand, the jobs may require well-committed workers. In this case, the ambivalents and the indifferent will be left unemployed.

Strategic orientation can be divided into five levels namely:

  1. To participate in strategic discussions
  2. After discussion, the outcomes can be summarised into a strategic plan.
  3. To measure the possibility of the plan coming into action.
  4. A strategic calendar to keep track of the events and plans.
  5. Eventually, the integration of the strategic discussion.
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