GLOBALIZATION

BY:Ravi Bhati

Topics to be covered: Globalization and its historical background Effects of globalization What is an Organization Effects of globalization on organizations What is Project GLOBE

GLOBALIZATION Globalization means “International Integration“.

It is the process of unification of the whole world, which can be in terms of: Economic unification Social unification Cultural unification Technological unification

and much more………

History of Globalization Globalization is not new phenomena. For thousands of

years, people and civilizations have been buying from and selling to each other in lands at great distances, such as through the famed Silk Road

The advent of globalization can be divided into 3 eras : Pre-World War Era During World Wars Post world War Era

Note : Globalization paced up after the World wars

Spheres Effected By Globalization

Organization

A group of 2 or more people who work together in a structured way to achieve a specific set of goals.

For example -: a musical group, a cricket team or a civic organization etc.

What is a Goal ?

Purpose that an organization strives to

achieve. It can vary from entertaining an audience

to selling a product – depends on the

organization

How Globalization effects Organizations ?

The advent of Globalization has entirely changed the way

in which an organization performs. Some of these are: Change in Planning strategy Change in Leadership strategy Change in Structure

The various factors which resulted in these changes are: Cross cultural differences Workforce diversity Availability of level playing field Emergence of global managers

Changes In Planning Going global requires “an assessment of your

plans”. There isn’t a ‘one-size-fits-all‘ strategy Every business requires approaches that should

be backed by logic careful planning realistic assessment of capabilities

For example: Case of Apollo International in China (2002)

Changing In Leadership Emergence of Global Managers Global Manager : A manager who can understand

and respond to the needs of International Business Key attributes of a Global Manager:

Geocentric mindset Sensitivity to different cultures Mental toughness Thorough understanding of company's corporate purpose Interpersonal and communication skills Willingness to travel frequently

Selection of a manger depends on the type of market also. › Emerging markets Flexibility, entrepreneurship› Large markets Strong public relations skills› Slow growing markets methodical approach, analytical

Cultural & Workforce Diversity Culture : acquired knowledge used to interpret

experience and generate social behavior ; it is acquired by learning and experience

workforce diversity : Similarities and differences among employees in terms of age, cultural background, physical abilities and disabilities, race, religion, sex, and sexual orientation.

Difficulties in policy designing & implementation

Dimensions of Organizational Culture given by Geert Hofstede:1.) Power Distance 2.) Individualism3.) Uncertainty avoidance 4.) Masculinity

Managing of Cultural changes

Structural changes

Process changes

Human resources change

GLOBE Project GLOBE stands for ‘ Global Leadership & Organizational

Behavior Effectiveness ‘ – a cross cultural research effort.

Conceived by Robert J. House in 1991, GLOBE involves : 170 ‘country co-investigators’ 62 Societal cultures & 10 Societal Clusters Collection of data from 17,300 middle managers from 951

organizations 27 research hypothesis were tested

3 phases of GLOBE research project : Phase I - the development of research instruments Phase II - assessed nine cultural dimensions, of both societal and

organizational cultures & their impact on societal cultures Phase III - Study of effectiveness of specific leader behaviors on

subordinates’ attitudes and performance. 

Societal Cultures & Clusters

Societal Cultures - All the business-oriented societies ranging from Albania to Zimbabwe are divided into 62 groups

Further grouped into 10 Societal clusters • Anglo – 8• Latin Europe – 6• Nordic Europe – 3• Germanic Europe – 5• Eastern Europe – 8• Latin America – 10• Sub-Saharan Africa – 5• Middle East – 5• Southern Asia – 6• Confucian Asia - 6

Standards Of Measurement

9 Cultural Dimensions :• Performance Orientation• Uncertainty Avoidance• Humane Orientation• Gender Egalitarianism• Future Orientation• Power Distance• Institutional Collectivism• In-Group Collectivism• Assertiveness

conceptualized in two ways: practices or “as is,” and values or “should be.”