Impact of Factors in the 21st Century Organization - Assignment Example

? The 21st Century Organization Table of contents Introduction 3 Three readings that are interesting 3 How literature can be applied to future work 5Theory of virtual teams that would be useful in the organization 7 Conclusion 8 References 9 Introduction In the 21st century, rapid globalization and advancing technology have emerged as major drivers of change that necessitate organizations to become flexible and develop strategies for competitive advantage. The transforming socio-cultural and economic dynamics of current business has prompted businesses to evolve and incorporate the changes that significantly impact business environment and productivity. Indeed, external environment is intrinsically linked to the business performance and organizational leadership must be able to identify and exploit their potential for the organization’s advantage. The three articles: Why Few Organizations Adopt Systems Thinking by Ackoff; How to be a truly global company by Prahalad and Bhattacharya; and Putting Organizational Complexity in Its Place by Birkinshaw and Heywood, are highly relevant as they provide a huge insight into the factors that are having an impact on organizations in the 21st century. Three reading that are interesting Ackoff (2005) in his article is distinct in its philosophy that system thinking is vital ingredient of organizational success or its failure when it is not part of organizational strategy. According to him, there is a distinct lack of dynamic decision making that takes into account the changing environment and organizational management’s willingness to learn from its failure or wrong decisions. These are important factors because organizational culture does not allow failures thereby not only restricting creativity within organization but also failing to take risk that could provide the organizations with competitive advantage. It is important that one takes the risks and commits mistakes and learns from it. System thinking broadly encourages responsible decision-making and allows its workforce to err in order to make a successful decision next time. In the contemporary environment of competitive business, new challenges need to be faced with equanimity and as new opportunities of growth. Prahalad and Bhattacharya (2011) have given important clues to become a global company with success. They emphasize that organizational restructuring greatly helps to inculcate trust in the stakeholders across the globe. Meeting local demands through customization of products and using local resources is very important for business to gain the trust of the local people where they are doing business. McDonalds’ has customized its products to suit local requirement across its global outlets. Exploiting local talents and cultural competencies become the highlight of truly global companies which thrive on global competitive businesses. Globalization has given a big thrust to industrialization and development through expansion of business across geographical boundaries. In globalization, inter-dependency of resources has become a reality. Thus, flexible approach and acting local with global vision provides the individuals and organizations with greater leverage to compete and gain leverage. Birkinshaw and Heywood (2010) have raised very pertinent issues of organizational complexities within and outside its offices across different geographical areas which emerge due to changing dynamics of business environment in the 21st century. The outdated business processes, ambiguity in roles, conflicting ideologies of pluralistic workforce etc. are vital obstacles that hinder growth. The institutional complexities and individual complexities need to be addressed and managed effectively for higher productive outcome. Institutional complexities are major issues which considerably impact employees’ performance. The complexities like role ambiguity, identifying obstacles like poor processes, product alignment with current demand etc. must be addressed and redefined to accommodate changing preferences of the customers and meeting new challenges. The authors assert that complexities need to be removed urgently as they do not add value to the organization and detract its progress. Moreover, workforce needs to be equipped with new skills and knowledge to face new challenges effectively. These are important imperatives that influence global firms How literature can be applied to future work in doctoral specialization The literature is highly relevant in the contemporary environment of global competitive business. In the 21st century, gaining competitive advantage is hugely important for organizations because they provide the firms with unique value proposition that is not used by competitors (Barney, 2002). Most importantly, it also helps the firm to constantly look for new opportunities of growth through innovative approach and being flexible in its business strategies. The dynamic strategies facilitate in incorporating the changes that occur in business environment and help the companies to meet new challenges (Montgomery, 2008). The various inter-related units like workforce, machinery, infrastructure etc. are assets that can be exploited for competitive advantage. At the same time, knowledge management helps the organizations to gain leverage in the cut throat market. Managerial leadership, shared learning and efficient feedback system are intrinsic part of knowledge management that creates linkages for developing processes within and outside the organizational capabilities, helping firms to gain leverage and optimize performance. Sirgy et al. (2004, p. 253) have broadly defined globalization as ‘the diffusion of goods, services, capital, technology, and people (workers) across national borders’. Technology has greatly facilitated movement of goods and people across the globe and provided firms and individuals with wider scope of growth. The inter-dependency of resources has greatly strengthened the requirements of globalization and provided firms with new incentives for expanding business. As such, the global companies are thinking globally and acting locally to meet the demands of the local people. The uniformity of goods and business processes across the globe are being changed to suit local environment. It helps the global company to gain the trust of the stakeholders and maintain its leverage in the market. In the era of diversity, promoting facilitating environment of common goals and collective vision helps to promote cohesive system thinking that thrives on new challenges. As Ackoff (2005) says that systematic thinking is important facilitator of ensuring that failures are used as stepping stones for success, management needs to encourage workforce to learn from their mistake and identify and explore new opportunities of growth and development. Creative thinking helps to forge new ways of thinking and motivates workforce to experiment with new ideas that can provide firms with distinct leverage in the market. Global business environment has redefined traditional business practices in terms of new strategies that incorporate not only laws and regulations of host countries but also take into considerations the cultural compulsions of the business partners in the host countries. As such, global companies must act as local companies that cater to local demands (Mackay, 2004). The literature therefore is very helpful for organizations and would greatly facilitate doctoral specialization. Theory of virtual teams that would be useful in the organization In the era of advancing technology and cyber communication, virtual teams have become very important part of global businesses. Zeira (1974) emphasizes that constant learning environment is essential ingredient to effectively manage the changing business equations. In global businesses, workforce and people communicate through internet that not only expedites communication but also facilitates wider understanding of problems and new ways of tackling conflicts. Moreover, virtual team helps to exploit the local talents globally for optimal productivity. Prokesch (2009) believes that teams need to think critically and overcome the barrier of change through being flexible. He emphasizes that management must encourage building of local team leadership that can interact virtually to gain experience and learn new ways that can be incorporated within the team work. Indeed, team leaders need to be trained to prepare team members to work within global values. Shared goals and common vision is communicated across team members where roles of team members, process and procedures for work is defined. The interpersonal relation becomes the most crucial issue that emphasizes understanding of cross-cultural values as the teams have to work together on a virtual platform. This is a good approach as teams across the globe learn to interact and achieve greater understanding of cross cultural values and how cultural competencies can become competitive advantage for global companies. Conclusion The literature greatly disseminates critical information that can be employed by organizations when they expand their business globally. The various paradigms of globalizations have become inherent part of contemporary businesses as they technology has widened the scope of development across the globe. Indeed, organizations in the 21st century need to exploit new opportunities and critically apply and explore knowledge area to gain leverage in the market. Most importantly, while the literature helps organizations to succeed in the era of globalization, it would also be hugely facilitating in meeting the goals and requirements of my doctoral specialization which addresses the topic. (words: 1369) Reference Ackoff, Russel, L. (2006). Why Few Organizations Adopt Systems Thinking. Systems Research & Behavioral Science, 23(5), 705–708. Barney, Jay B. (2002). Gaining and Sustaining Competitive Advantage. 2nd ed. Reading: Addison-Wesley. Birkinshaw, Julian and Heywood, Suzanne. (2010). Putting Organizational Complexity in Its Place. McKinsey Quarterly, 3, 122–127. MacKay, Hugh. 2004. “The Globalisation of Culture?” In A Globalizing World? Culture, Economics Politics, ed. David Held, 48 – 84. New York: Routledge. Montgomery, Cynthia A. (January, 2008) Putting leadership back into strategy. Harvard Business Review, 86(1), 54-60 Prahalad, C. K., and Bhattacharyya, Hrishi. (2011). How to be a Truly Global Company? Strategy and Business, 64, 54–63. Prokesch, Steve. (2009). How GE Teaches Teams to Lead Change. Harvard Business Review, 87(1), 99–106. Sirgy, M. J., D.J. Lee, C. Miller and J. E. Littlefield. (2004). The impact of globalization on a country’s quality of life: toward an integrated model. Social Indicators Research, 68, 251-298. Zeira, Y. (1974). Training the top management team for planned change. Training and Development Journal, 28 (6), 30-36. Read More