Responding to Globalization

Discuss the emergence of international management and its impact on organizations.

Perhaps the most significant source of change impacting many organizations today is increasing
globalization of organizations and management. Globalization is the internationalization of business
activities and the shift toward an intergrated global economy.
The movement along the continuous growth from domestic to international business is due to four
forces. First, improved communication and transportation have advanced dramatically over the past
several decades. It allow managers to send emails and messages around the world in seconds as oppose
to the days it took just a few years ago. And new applications like Skype and Facebook have made global
communications even easier. In short, it is simply easier to conduct international business today.
Second, businesses expanded international to increase their markets. Domestic markets were too small
to sustain such growth and therefore moved into the international arena. Now, even small firms
routinely buy and/or sell products and services in other countries
Third, more and more firms are moving into international markets to control costs, especially to reduce
labor costs. Companies have discovered cheaper labor costs and built more efficient plants that are
closer to international markets.
Finally, ma organizations have become international in response to competition. If an organization starts
gaining strength in international markets, its competitors often must follow to avoid falling too far
behind in sales and profitability.
Since the primary concern of this topic is human behavior in organizational settings, now we turn our
attention to managers responding to international management. An organizational setting does indeed
vary across different countries. Thus, employees in companies based in Japan, United States, and
Philippines are likely to have different attitudes and patterns of behavior. The behavior patterns are also
likely to be widespread and pervasive within an organization. Managers must be comfortable in
interacting with colleagues and other business associates from all parts of the globe and walks of life.

Many people today work long hours, face constant deadlines and are subject to pressure and stress. On
the organizational level, stress can affect performance and attitudes or cause withdrawal and burnout.
Supervision can play an important role in managing stress. Supervisors are source of work overload.
They should be aware of their potential for assigning stressful amounts and keeping workloads
reasonable.



RESPONDING TO GLOBALIZATION
Globalization is playing a major role in the environment of many firms today.. Globalization is the
internationalization of business activities and the shift toward an integrated global economy. It focuses
on differences among people from different countries. There are four basic reasons of this growth: (1)
communication and transportation have advanced dramatically over the past several decades; (2)
businesses have expanded internationally to increase their markets; (3) firms are moving into
international markets to control costs, especially to reduce labor costs;(4) man organizations have
become international in response to competition.
Since the primary concern of this topic is human behavior in organizational settings, now we turn our
attention to managers responding to international management. Organizational setting does indeed
vary across different countries. Thus, employees in companies based in Japan, United States, and
Philippines are likely to have different attitudes and patterns of behavior. The behavior patterns are also
likely to be widespread and pervasive within an organization. Managers must be comfortable in
interacting with colleagues and other business associates from all parts of the globe and walks of life.
Example :
Reference: Reprinted from International Studies of Management and Organizations, vol XII, no. 1-2,
Spring Summer 1983, by permission of M.E Sharpe, Inc., Armonk, N.Y. 10504
In general, these differences relate to managerial beliefs about the role of authority and power in
organization. For example, managers in Indonesia, Italy, and Japan tend to believe that the purpose of
an organizations structure is to let everyone know who his/her boss is. Managers in the United States,
Germany, and Great Britain, in contrast, believe that organizational structure is intended to coordinate
group behavior and effort. Managers in Japan strongly believe that a manager should be able to answer
a question he/she is asked. Swedish managers, who have the least concern about knowing all the
answers. In general, these managers are becoming more career oriented, better educated, more willing
to work cooperatively with labor and more willing to delegate.

IMPROVING CUSTOMER SERVICE
Employees interaction with the organizations customers is a substantial key in determining whether
the business will succeed or fail. Many organizations have failed because its employees failed to please
customers. Creating customer- responsive employees who are friendly, courteous, accessible, prompt in
responding to customer needs is something organization must do. Knowledgeable employees are
something competitors dont have and our customers couldnt get anywhere else. Organizations
strategy is commitment to customer, thus, reaching its customers through its employees. Being a great
workplace for the employees is the best way we can take care of our customers. Productivity and
efficiency boils down with motivated employees who can render customer satisfying results.

Example :
Reference: Jon Springer, Denny Wegman, Supermarket News, Jul y 14, 2009, http://
supermarketnews.com on January 19, 2010; Sharon Linstedt, Wegmans Ranked Fifth Best Place to
Work by Fortune Magazine.
Wegmans food markets, a family- owned East Coast chain, has reputation as a great place to work has
helped the firm build a committed and motivated workforce. These Wegmans employees are having a
team meeting before their store opens. It prides itself on its commitment to customers and it shows
because it ranks at the top of the latest Consumer reports survey of the best national grocery stores.
Wegmans strategy calls for reaching its customers through its employees. Its employees enjoys the
best benefits package thats why the turnover at Wegmans is about 6 percent only. In 2009, Fortune
Magazine 100 Best Companies to work for, Wegmans placed fifth, no.1 in 2006 and no. 3 in 2008.
According to Danny Wegman, being a great place to work is the best way we can take care of our
customers.
HELPING EMPLOYEES BALANCE WORK LIFE CONFLICTS
In order to retain the best and the brightest, we have to be flexible in how, when and where the work
gets done. Kristen Stockton, Director of Workplace Solutions, Inc.
Given that stress is widespread and so potentially disruptive in organizations, it follows that people and
organizations should be concerned about how to manage it more effectively. Organizations are also
increasingly realizing that they should be involved in managing their employees stress. There are two
basic organizational strategies for helping employees manage stress are institutional programs and
collateral programs. Institutional programs are undertaken through organizational mechanisms.
Properly designed jobs and work schedules can ease stress. Shift work can cause major problems
because they constantly have to adjust their sleep and relaxation patterns. On the other hand, collateral
programs may be stress management programs, health promotion programs and fitness programs.
People have numerous dimensions to their work and personal lives. When these dimensions are
interrelated, individuals must decide for themselves which are more important and how to balance
them.
Example:
Reference: Corporate Executive Board The increasing Call for Work-life Balance, BusinessWeek,
March 27, 2009, www.businessweek.com on Februar 18, 2010
Republic of Tea is a small, privately held company that promotes healthy lifestyles. The firm added
comprehensive program called Health Ministry. A nutritionist provides free counseling to employees,
employees get $500 credit for gym memberships and a workday walking program encourages
employees to walk 10 to 15 minutes walks on company time, they are also provided with high quality
walking shoes. The firm says that its health management efforts have boosted efficiency b 11 percent,
accuracy b 7percent and decreased absenteeism and turnover.