How might globalization of the economy impact OD efforts across the world - Admission/Application Essay Example

How might globalization of the economy impact OD efforts across the world? Introduction Organizational development isconcerned with the improvement of an organization’s performance and individual development of its employees. This means that while an organizational is constituted by several parts, it works as a coherent system. Organizational development is a process that involves methodologies for organizational design, strategic planning, leadership development, diversity, coaching and balance between work and life.

However, in the wake of increased globalization of the economy, organizational development has felt the impact. The impact of globalization on organizational development stems from human resource management.Globalization and its Impact on ODPlainly, globalization can be described as the integration of people in the world. Basing the definition on social theory, globalization involves the flows of commodities, technology, ideas, capital, cultural forms and people across national boundaries through a global networked society.

This has led to a global economy and free markets whereby investors can do business in any part of the world. The result of this is the proliferation of multinational corporations and organizations which have established their presence in many countries in the world. However, this has had an impact on organizational development in terms of human resources. According to Oyeyemi (1), human resources management is the organizational function that is involved with issues such as compensation, performance management, hiring, employee motivation, safety, communication, benefits, administration, and training.

Overall, it is a function of organizational development. An important observation to make is that management is moving away from traditional personnel, administration and transactional roles which are increasingly outsourced with the increasing pace of globalization. According to Green (1), globalization has resulted in corporate reorganizations, with organizations or companies being downsized, flattened, formation of strategic alliances and mergers as well as acquisitions. Also, franchises are expanding at a very high rate so that presence can be felt across the continents.

As these corporations venture into new markets, they require the right personnel or human resources to carry out their organizational functions. However, a shortage of talent in developing countries has posed a great challenge for such corporations. These organizations have thus resulted to talent acquisition through elaborate training programs for graduates. It is now common to come across job advertisements of management trainees or future leaders programmes. These programs are designed to enable organizations attract, equip and retain talent or professionals.

This is because many organizations view talent as a source of sustained competitive advantage. One problem for organizations has been the retention of qualified professionals. Companies are always competing for the best personnel and this has led to competition for talent. This inability to retain employees has negatively impacted on the organizational development of some companies. In addition to the reorganization of the hiring or recruitment processes, there has been a need for the centralization of human resources by multinationals and global enterprises so as to enhance global competitiveness as well as empower employees for global assignment (Akram 293).

Organizations also have to be aware of the corporate cultural differences as they approach the global marketsConclusionThe increasing prevalence of globalization has been spurred by a number of factors which include shortage of talent especially in developing countries, global cost forces, global market forces and technological forces. These factors have in turn impacted on organizational development for the many multinational corporations as well as local companies. The major impacts of globalization on organizational development are based on human resources and they include staffing policies, selecting and retaining talented employees, and training and development.

Works CitedAkram, Muhammad. Globalization and its Impacts on the World Economic Development. International Journal of Business and Social Science, 2011; 2(23): 291-297.Green, James. How Does Globalization Affect an Organization’s Business Approach. Chron, 21 April 2010. Web. 12 April 2013.Oyeyemi, Kayode. Impact of Globalization on Human Resources management. Science Journal of Business Management, 2012; Issue 3; 1-4.