Globalization Influence on Big Companies Management - Research Paper Example

 Globalization influence on big companies’ management Management activity has existed since a very ancient time, probably, since the time when first human communities have come in need of organization of their social life. And as well as political and military management, economic management is one of the earliest forms of organized social relations. Naturally, it has been practiced long before the Industrial Revolution of 19th century, but specifically after the industrialization a “golden age” of management has come, and a lot of schools and strategies on a subject of company’s organization and administration have been developed. However, in latter 20th century managers have faced some new challenges coming along with age of information, and particularly, globalization. Nowadays, globalization has influenced big company’s management on levels of organization and administration making specific impacts and bringing certain ramifications in managers’ work. On a field of economy and business, for big companies, globalization is “a process of interaction and integration” among companies from different countries around the world, a process, which is “driven by international trade and investment” (Globalization101, 2015). Globalization reasons most of the innovations and renewals, which world companies come through, because under the conditions of globalization business competition increases omnidirectionally. Globalization also “forces” companies to interact, and be open to the word market, because national economies of world countries (especially, developed ones) are deeply involved in process of globalization too. Thus, in the world market all the internal companies’ organizations as well as companies’ business-to-business partnerships are in need to be reorganized according general modern tendencies (Globalization101, 2015). The case is that along with the modernization, big companies face the new sort of dependency. Earlier “dependency” implied a kind of business relationships when peripheral economic areas were subdued to core national economic where big companies usually came from. “With globalizing tendencies taking over”, a current situation is changing “from dependence on interdependence” (Zafarullah and Huque, 2012). Subdual is replaced by cooperation. National economic development starts to matter less for big companies, because they are organized according to regionalization tendency (Zafarullah and Huque, 2012). It means, companies are looking for world regions where conditions for the business are most suitable, where companies may have better human and primary resources and also, new markets. Earlier goods or services were produced and sold on national domestic markets primary, but now the process of production can be divided on parts, on several departments, and a single company may work in distant regions and produce goods for different markets. With the globalization, barriers on trade markets as well as on labor markets are fading. Companies are focused on international development, and they have opportunity to choose better regions than national ones (Green, n.d.). The activity of a company than, is usually organized in multilevel and multisectoral ways (Zafarullah and Huque, 2012). And development can be planned with “specific requirements” on every level, or sector (Green, n.d.). Thus, organizational strategies of big companies become more flexible, and for now depend on individual characteristics of regional markets as much as on general companies’ strategies. Globalization implies a flexibilization for companies which work in different cultural and business environments (Zafarullah and Huque, 2012). Companies’ international activity in different cultural regions than, is in need of individual strategies. At the same time, general accountability is essential. Therefore, qualified managers and directors of departments are in need in those regions. “More and more employers start transferring their experts from country to country” (Herrmann, 2012). But primary, it’s a fair tendency only for a managerial personnel. Other personnel are usually hired from regional local markets for reasons of cheapness. On these conditions, big companies are concerned about careful taking into account the regional cultural differences within internal personnel of a single department, and generally, within the company. Cross- cultural borders bridging is a key for business success. Thus, big companies are looking in regional employees not only for professional skills, but also for values and interests which are accordant to general companies’ goals. At all accounts, upon the conditions of regionalization big companies are no longer mono cultural. They become either multicultural and transfer their employees on working positions to other regions and other cultural environment, or they are becoming mixed cultural and personnel are hired from regional labor markets. In both cases, managers are facing the problem of cultural adaptation as one of the main problems caused by a globalization. For multicultural approach, trainings and preparatory programs are widely practiced among personnel with a view to adapt workers to new working conditions. For mixed cultural approach flexibility is essential. Thus, company’s regional department managers develop a balanced strategy, which is based on getting benefits from both cultural environments (Herrmann, 2012). However, the goal is to link regional (level and sector) special aspects of organization and plans of development to a general strategy of development for a whole company. Globalization is, primary, a cultural phenomenon, and within big companies workers are bearers of different cultural traditions. Thus, a lot of challenges are faced by managers from human resources departments. Instead of internal issues, as they used to be focused on earlier, HR managers now are orientated on “broader approach”. They value balance above cultural superiority, and welcome “adding initiatives” (Kapoor, 2011). Role and responsibilities of HR managers now are focused on long- term objectives, because companies are tending to be concentrated on short- term earnings no longer (Kapoor, 2011). It should come with no surprise that managers themselves now are required to have certain skills, because they are first to manage cross-cultural differences. Among those needed skills are “language skills, knowledge about different communicational styles, knowledge of social behavior of each regional society and etc.” (Herrmann, 2012). It’s almost necessary for managers of regional departments to have these skills, and thus, trainings on cultural adaptation in regional departments are widely spread among managers as well as among transferred personnel. Such a great attention paid by big companies on cross-cultural differences, and attempts to bridge them, discover one more feature of globalization, informatization (Zafarullah and Huque, 2012). Companies now are concerned with gathering as much full and as much current information on business environment as possible. This becomes also a managers’ concern, to provide directors and personnel with needed information. Summing up all the above said, we can conclude that for big companies globalization is a current multitask challenge, which “forces” them to come into the world market. It’s a complex and constantly dynamic process, which requires modernization, regionalization, multilevel and multisectoral divide, flexibilization and bridging cross-cultural differences from companies. From managers globalization requires extra skills, because they are executive stuff whose main current task is to “manage” a multicultural workforce and resources. References Green, J. (n.d.). How Does Globalization Affects an Organization’s Business Approach? Chron. Retrieved from http://smallbusiness.chron.com/globalization-affect-organizations-business-approach-20077.html Herrmann, A. (2012, May). Globalization and its Effect on International Business. Paper presented at the Global Awareness Society International 21st Annual Conference, New York City. Retrieved from http://orgs.bloomu.edu/gasi/2012%20Proceedings%20PDFs/Herrmann2012-06%20Globalization%20and%20its%20Effect%20on%20International%20Business%20-%20Publication.pdf Kapoor, B. (2011). Impact of Globalization on Human Resource Management. Journal of International Management Studies, vol. 6, n. 1. Retrieved from http://www.jimsjournal.org/pi.html What is Globalization? (2015). Globalization101. Retrieved from http://www.globalization101.org/what-is-globalization/ Zafarullah, H. and Huque, A. S. (2012). Managing Development in a Globalized World: Concepts, Processes, Institutions. CRC Press. Read More