A global organizational theory for the 21st century - Assignment Example

?A Global Organizational Theory for the 21st Century Table of Contents Overview 3 Research ment 3 Organization Behavior and Leadership of 21st Century 3 Management Theory 5 Scientific Management Approach 5 Administrative Theory 6 Behavioral Management Theory 6 Management Science Theory 7 Organizational Environment Theory 7 Contingency Theory 7 Theory Z 8 Issues Facing Global Organizations in the 21st Century 9 Issues of Ethics in Global Organization 9 Issues of Politics in Global Organization 10 Issues of Cross Cultural Communication 10 Issues of Ethnocentricism and Parochialism 11 Ways of Implementing Organizational Change 12 Overview Organizational theory, in the present era has become imperative for effective functioning of the organization in global environment. Organizational theory provides modern treatment to the managers to perform better task in the organization for attaining specific objectives of the organization and deliver goods or services to consumers in such a way that there is maximization of profit at the end of the transaction. Research Statement This paper tries to cover the brief description of global organizational theory in the 21st century embracing all the modern management theories. The rest of the project includes all the recent issues related to ethics, politics, cross cultural communication and parochialism and ethnocentricism. Lastly it emphasizes on the results of implementing new things in the organization for global relations and interconnectedness. Organization Behavior and Leadership of 21st Century Organizational Behavior can be defined as the study of what people think, feel and do in and around the organizations. It is the activities of the people who are working together in an organization to reach common goals or objectives. Organization consists of people with attitudes, cultures, beliefs, norms and principles. The Organizational Behavior facilitates the procedure of explaining, understanding, predicting, and maintaining and altering employees’ behavior in organizational surroundings. Leadership in the 21st century brings changes in conceptualize thinking, personal practice, organizational application. Leadership qualities develop in the individuals who have the capacity to influence, motivate and inspire others. 21st century leadership is holistic in nature and is related to mind, heart, spirit and energy of the individuals. Leadership development shifts from the individual to the group of people. In the present scenario, leaders always try to keep them update and overcome the weakness by understanding them (Sandmann & Vandenberg, 1995). Global Organizational Theory An organization is a designed social structure where groups of individuals work collectively to meet certain common objectives. Organizational theories are the backbone of the field of organizational studies. This has the purpose for analyzing the resources of the organization particularly human resources for understanding the structures, the functions and the properties for increasing the productivity and gratification. It is the study of organizations to solve problems, meet the needs of stakeholders and maximize the efficiency and output.  Classical theory put forward that there is a single way to generate and run an organization. But current theory set diverse approach of the organization based on its size, technical requirements, situation, environment and nature of industry. Since the organizational theories are interdisciplinary in their approach, diverse fields such as sociology, anthropology, economics, psychology and political science are described in this theory. Organizational studies apply facts and modeling with other social science for proper functioning of the organization (ISCID, 2005). Management Theory The modern management theory was evolved in the nineteenth century and in the twentieth century revolution, the management theory changed from traditional theory to the Japanese management approach. Through these theories managers of the organization are trying to find better ways to satisfy customer requirements and wants. Scientific Management Approach Fredrick pioneered the scientific management approach. It is based on the idea of setting up of work to attain effectiveness, consistency, specialization and generalization. This approach is to amplify output through mutual faith between management and workers. It is generally focused on technical part of efficiency from both perspectives: individual and organizational basis. There are four principles of scientific management such as the science not rule-of-thumb, the worker scientific selection, the labor cooperation and management rather than conflict and the workers scientific training. Administrative Theory Administrative theory was introduced by French industrialist Henry Fayol and is based on different principles of management. Basically it deals with various aspects such as technical, commercial, financial and managerial functions of the organization. This approach is based on creation of the organizational structure that leads to efficiency and effectiveness. Fayol’s fourteen principles of management are as follows: Division of Labor, Authority and Responsibility , Unity of Command, Line of Authority, Centralization, Unity of direction, Order Initiative, Discipline, Remuneration of Personnel, Stability of the term of Personnel, Subordination of Individual Interest to the Common Interest, and Esprit de Corps. Behavioral Management Theory Behavioral management theory is based on the fact that how the managers motivate the employees towards completing the task at high level and is committed towards the attainment of the goals of the organization. Management Science Theory Management Science Theory is a mathematical and quantitative measurement approach which visualizes the management as logical entity. This technique helps managers to make maximum use of organization’s resources for production of services and goods. This approach also covers decision making, system analysis and certain other aspects of human behavior. Organizational Environment Theory In this approach the ability of the managers for acquiring the resources are affected by the forces that have been set for operating beyond an organization’s boundaries, but it affects managers’ ability to acquire and utilize resources. In this context the behavior of managers’ influence within the organization and role played by them for controlling the organization’s relationship with the external environment. Contingency Theory The contingency or situational approach defines that systems of the organization are interconnected with their surroundings. Different environments need different organizational relationships for successful working of the organizations. In this theory, resources of the organization are obtained by its capability which is influenced by the environment. A social organization encompasses complications, degrees of inter-dependence between sub-systems, sincerity, balance and diversity of purposes, functions and objectives. Goals have been set to stimulate performance and provide control to the organization. For smooth functioning of the organization, coordination and incorporation are used. The organizational process involves power, decision making and communication. Power is the ability of the individual or group to acquire or obtain certain thing and it facilitates to set goals of the organization. In decision making process of an organization it generally starts with setting of goals, alternatives are identified and evaluated and then the criteria is selected. Communication is generally used to attain coordination of various activities in an organization. Theory Z Transcending self-actualizers are called theory Z people. The characteristics of theory Z people are that they are simple, speak naturally without thinking and see the sacredness in all things. They are intimate and have mutual understanding and can communicate in both verbal and non-verbal ways. The people prefer to beautify all things. They have esthetic responses more easily than other people. The transcenders are innovative and can discover new things and are reconciled with evil things. This implies that a better understanding of it should create both greater empathy and less ambivalent and more unyielding light against it (Food and Agricultural Organization of United Nation, n.d.). Issues Facing Global Organizations in the 21st Century There are several issues in different fields that have been faced by the global organizations in the 21st century. Those issues will be demonstrated in this section. Issues of Ethics in Global Organization Ethical issues in the global organization often compel to meet the muddy difference between correct and wrong things. People often faced ethical deficiencies in their activities while confronting ethical issues. Global warming is no doubt an ethical issue that everyone faces. In the 21st century, scientific advances in software and hardware are providing importance to prevent unethical activities of the organization. Various measures can be implemented for preventing unethical behavior and certain policies can be developed which can recognize ethical boundaries of the organization. In the 21st century, ethical as well as unethical behavior must be understood properly otherwise hazardous global opinion can hamper the growth of the organization. Ethical behavior in the organization can avoid misunderstandings and legal action among the employees, e.g., language barrier may create confusions and misunderstandings among the employees (Reinke, 2010). Issues of Politics in Global Organization The managers are acquainted with the power and political strength of a country. The evolution of politics in the global environment caters opportunities for constructing a global democratic community and planetary-level organization in the long period of time. They suffer from the global leadership of the organization with structural weaknesses. The rise and fall of global powers has drawn considerable attention among members of the organization of world politics and societies (Modelski, 2008). Major cause of human rights abuse is arms trade. Many governments are spending more on military goods rather than the development of the society, infrastructure and health unit. Arm trade should be changed in order to maintain the safety and security of the nation. It is one of the corrupt trades which are raising the poverty in the countries. Landmine use has also been banned by most of the non-governmental organization, but still few countries are using the landmine. These are reasons for corruptions (Shah, 2010). Issues of Cross Cultural Communication The global environment proved to be useful for today’s managers to be aware of doing business in different cultural environment. For being successful globally one must be acquainted with the cross cultural environment. Cross Cultural issues is affecting both international and global market. Cultural knowledge is compulsory for those who are working with foreign customers, bankers and suppliers and at the same time it is essential for those who are dealing in domestic market. Adopting various cultures will help the people to work in cross-cultural communication situations. Even after applying all good quality efforts, miscommunication between persons of different cross culture arise, especially when there are huge cultural differences between communicators. Miscommunication may lead to conflicts which may result in chaos in the organization (Information Science Today, 2009). Issues of Ethnocentricism and Parochialism Ethnocentrism is defensive attitudinal affinity to observe the values and norms of the culture which is superior to other cultures. Intercultural communication is hindered by high levels of ethnocentrism. Ethnocentrism is often related to positive as well as negative benefit. It makes fake assumptions regarding cultural differences and leads to cultural misunderstanding and distorts communication between human beings. It guides people to make immature judgments about others and lead to severe racial clash (Culbertson, 2001). The theory of Parochialism emphasized on the fact that in order to limit the geographical basis there should be restrictions to individual’s moral and legal field. In the recent period of political-correctness, individuals are related to provincialism with narrow-minded principle and assume that it is inevitably a bad thing. It is seen that narrow-minded people lead a happy life, have steady relationships and are least involved in government interference. Parochialism stated that society is a trade-off and deals in negotiating with politics for satisfying all the parties in a political or ideological conflict in order to put space between them and allow them to live and rule appropriately. To impose on social, political, cultural and moral standards for respecting the rights of the community, geographic limitation on that authority is imposed (Bowles & Gintis, 2000). Ways of Implementing Organizational Change Organizational change requires leadership quality and outstanding management skills. It is the responsibility of the managers to allow change in the organization and bring them successfully. They help people to understand the situation and abilities based on their aims and way of responding. Problems arise in the situation when organization implements new things. At that moment management training are essential for improving the organization. The changes in the organization should take into account the organizations as well as individual benefits (Chapman, 2010). Before implementing any change managers must interact with all the employees and make them aware of changes in the organization so that the managers can know their need and make them fulfill. They try to guide the employees through the changes in the organizational process. At times the organizational change do not bring positive outcome due to changes in the working system. Therefore, It is important for managers to calculate the overall changes before implementation that how far it is going to be beneficial or not. The major changes that companies have implemented in recent years are Acquisition and Mergers, E-commerce, Six Sigma quality programs, Lean manufacturing, Continuous improvement initiatives, new company culture, and new organizational structure (Chaudron, 2011). References Bowles, S. & Gintis, H., (2000). Parochialism. Optimal Parochialism: The Dynamics of Trust and Exclusion in Networks. Retrieved Online on January 10, 2011 from http://www.santafe.edu/media/workingpapers/00-03-017.pdf Culbertson, H., (2001). Ethnocenticism. Why Is Ethnocentrism Bad? Retrieved Online on January 10, 2011 from http://home.snu.edu/~HCULBERT/ethno.htm Chapman, A., (2010). Organizational and Personal Change Management, Process, Plans, Change Management and Business Development Tips. Change Management. Retrieved Online on January 10, 2011 from http://www.businessballs.com/changemanagement.htm Chaudron, D. G., (2011). Approaches to Implementing Organisational Change. Articles from the Business Forum Journal. Retrieved Online on January 10, 2011 from http://www.bizforum.org/Journal/www_journalDC001.htm Food and Agricultural Organisation of United Nation, (No Date). Organizational Theories. Organisation. Retrieved Online on January 10, 2011 from http://www.fao.org/docrep/w7503e/w7503e03.htm Information Science Today, (2009). Introduction. Cross Cultural Issues in 21st Century. Retrieved Online on January 10, 2011 from http://www.infosciencetoday.org/type/research-type/cross-cultural-issues-in-the-21st-century-marketing.html ISCID, (2005). Organizational Theory. Encyclopedia. Retrieved Online on January 10, 2011 from http://www.iscid.org/encyclopedia/Organizational_Theory Modelski, G., (2008). The Evolution Global Politics. From Leadership to Organisation. Retrieved Online on January 10, 2011 from https://faculty.washington.edu/modelski/ORGANIZATIONrev08c.htm Reinke, D. A., (2010). The Role of Ethics in 21st Century. We Lead Online Magazine. Retrieved Online on January 10, 2011 from http://www.leadingtoday.org/Onmag/2010%20Archives/July%2010/dr-july10.pdf Shah, A., (2010). GeoPolitics. Global Issues. Retrieved Online on January 10, 2011 from http://www.globalissues.org/issue/65/geopolitics Sandmann, L. R. & Vandenberg, L., (1995). Introduction. A Framework for 21st Century Leadership. Retrieved Online on January 10, 2011 from http://www.joe.org/joe/1995december/a1.php Read More