Globalization Impact on the Managers Job - Research Paper Example

What is ‘globalization’ and what could be its impact on the manager’s job? Discuss critically, drawing on a range of theories of globalization. Tableof Contents Table of Contents 2 Introduction to Globalization 3 Globalization also called Internationalization 4 The Global Village 5 Economics of Globalization 6 Role of Managers within the Global Tenets 8 Strategic Planning by Managers 9 Managing Business Change Regimes 11 Manager’s Duties and Goals under Globalization 14 The Legalities of Globalization for Business 16 The Business Consumer Discussion 17 Conclusion 19 Bibliography 21 Introduction to Globalization Globalization is a term which encompasses a number of difficult series of economic, social, technological, cultural and political changes that have been happening from time to time on the global front. These changes have seen some serious strides that have been made with regards to increasing interdependence as well as mergers and interacting units between people from different locations and companies with diversified interests. The term started to take form in the year 1944 but it was not before the year 1981 that the economists actually started using it. The main person responsible for coining the term globalization is considered to be Theodore Levitt. He wrote an article for the Harvard Business Review in the year 1983 titled ‘Globalization of Markets’ in which he emphasized the whole phenomenon and as to what he actually meant by coining this term in the first place. (Levitt, 1983) With the passage of time, the phenomenon has grown at a steady rate whereby the setting under which it is held is one that focuses on the global patterns related with the sociological findings. (Vanin, 2005) This paper will discuss the basis of globalization and its linkage with the local communities present within the business circles. Further, it will take a deep and incisive look at examining the intricate regimes of the working methodologies related with a manager. The roles that this manager plays, his responsibility in the wake of strategic planning and change, the legal aspects and the business-consumer discussion have also been outlined within the length of this paper. Globalization also called Internationalization Globalization, for that matter, is also remarked as internationalization since the nature of the two terms is on a worldwide scale more than anything else. However, on the part of the two terms, the one thing common however is the fact that these have identified themselves well with the changing (and growing) trends, where most of these are credited on the shoulders of the World War II, after which there has been a resurgent rat race nonetheless. (Pieterse, 2004) The movement of commodities, people, information, money, technological developments, organizational infrastructures, legal frameworks and so on and so forth have only proved to all and sundry that globalization is a phenomenon and it is one that is here to stay for long. (Korzeniowski, 2001) Some definitions of globalization include: “Globalization is the worldwide movement toward economic, financial, trade, and communications integration”. (http://www.businessdictionary.com/definition/globalization.html) “The term “globalization” describes the increased mobility of goods, services, labor, technology and capital throughout the world. Although globalization is not a new development, its pace has increased with the advent of new technologies, especially in the area of telecommunications”. (http://canadianeconomy.gc.ca/english/economy/globalization.html) The Global Village The world has become a global village due to globalization and it is a good omen if seen in the proper perspectives, which would be delved further in this paper. Globalization entails within it the changing technological innovations, the improvement in structures and different infrastructures, the advancements in basic thinking mindset of man, his ability to break loose from the ordinary and reach out towards the unknown and in all essence do something which can bring about an ultimate change, for the better. (Bell, 2004) Having said that, one needs to understand that globalization is not just a phenomenon, it is the science of human evolution and since man has for long held fast to this belief, there can be no reason as to why he should not comprehend the basis of the phenomenon of globalization. It is a paradigm shift or a movement as one might call it, one that brings more stability within the ranks (where it is applied) and unison in the efforts and activities of all concerned. More often than not, there have been seen improvements within the present day systems owing to globalization and it is because of this very perspective of change that one would see world bodies doing their utmost to reach out to far flung areas and explore hidden markets for the betterment of nearly everyone. Economics of Globalization Globalization in the coming times will leave an even more lasting impression in the different spheres of life than is present at the moment. In an economic zone, globalization plays a significant role at increasing trade on an international front which as compared to the global economy, is much faster and ahead of its time. Furthermore, one can predict an increase in the flow of capital that has been coming from the global regimes which might include for the foreign direct investment as being one part of it. (Galbraith, 2000) Then there are the agreements which are signed on a global scale that eventually lead to world bodies like the World Trade Organization (WTO) and others. Global financial systems also come to light as their developmental work gets thumbs up. International transactions speed up as the world bodies like WTO, WIPO, IMF and the like play their role in a more coherent and active manner. (Kohler, 2003) Economic practices like global sourcing or outsourcing, off-shoring and others increase courtesy the multinational concerns. (Foss, 2005) Since this discussion is on understanding what the future holds for the globalization regimes, there is a need to comprehend the fact that when distances are minimized between regions and people as such, this could create a number of other problems which the mankind does not foresee at the beginning. In fact it calls the same contract of human beings as a blessing since things are done in a quick period of time and there are less communicative loopholes in reaching far-off destinations. (Young, 1997) What they forget is the fact that it leaves a hole in the real-life scenarios of people. The people are more prone to seeing the benefits of this globalization drive and forget the social and collective aspect that globalization has taken away from one and all. There is less interaction of people on a one-to-one level which is of a physical stance and more technological handshakes are making the rounds, coming directly under the globalization’s advantages. The world is forgetting its roots and this is one aspect that surely does not go down well with the purists – the people who know the value of life and the social interactions which have benefited the care and concern aspect for humanity. (Duke, 2003) Thus proper attention is a buzzword under these regimes and the anti-globalization leaders are somewhat correct in their stance which is aimed at society mingling within its own self and relying less on the benefits that machines bring to the human beings. (Tannenbaum, 2003) Role of Managers within the Global Tenets Within the globalization tenets, managers for the business domains work solely for the different functions in the various departments and it is up to these people as to how they execute their undertakings and measures on a regular basis. The basic purpose is to bring the whole list of activities and tasks of the organization on a common platform, a place from where the top management is better able to draft its policies and eventually execute the manner in which these policies are basically run after the decisions are made on those very aspects of consideration. (Cappelli, 1999) In line with the proposition as to whether these managers discern ways of enacting responses from the relevant quarters when it comes to products, services and their related operations, one finds that their role is immense and they have to bring about activities right from scratch. In other words, they are the actual fathers of different processes and activities which are going on within an organization and with which there are a lot of hopes and wishes attached. The whole idea of extracting the benefits and achieving the laid objectives rests on their shoulders and this is indeed a very significant proposition on their part, from a globalization standpoint. (Hall, 2002) Managers bring with them a whole list of different undertakings and steps, though accountable at many different levels yet open for judgment on the part of one and all. With this, they ensure that the different policies and steps are in line with the organization’s basic values, core mission and vision statements and more than anything else, in line with the ethical and moral grounds in which the particular business operates globally. (Thomas, 1999) Strategic Planning by Managers Similarly managers need to plan in a sound manner the different things, control these activities and tasks and make them plot against short term gains rather than having a long run perspective and integrate all these activities so that there is a complete mesh in the related ranks and the synchronization is pretty apparent at the end. They must make sure that they are adopting the global angle rather than the local flavor most of the times. (Barr, 2000) Managers have the task of maximizing profits in a global perspective but not at the peril of losing the shareholders which are present in partnership with the organization, locally as well as globally. The different activities being planned, controlled and integrated in distinct fashions makes them look as a complete whole more than anything else. This means that these activities, tasks and processes are complete and they give a view of wholeness when one talks about the organization whilst looking at the products and/or services which are brought out for the general customers. (Dunning, 2001) For the induction of these new products and/or services in the market places worldwide, one understands that the synchronization process might just be a difficult process to undertake in the first place and it is because of the persistent efforts of the manager himself that the same becomes readily possible. The manager has to plan things accordingly and place priorities over processes either in a sequential manner or in the form of significance attached to the very same. (Miller, 1994) When there is a talk about the activities in the whole related schema one finds that the control aspect, as discussed before is pretty much significant and this has to be ensured even at the most feasible of times. The same is imperative since system breakdowns at any level can happen any time within the process and there could be urgencies attached with the whole ideology nonetheless. The integration of activities at different locations of the world similarly is one significant aspect that has to be studied time and again because it brings together all the related processes, activities and tasks coming under the manager’s regime on a single platform and thus this forms as the point of focus and attention as far as the whole organization and its tilt is concerned. (Sawai, 1999) With respect to the new products and/or services that are being introduced under the organization’s umbrella, one has to ascertain as to the exact basis of their operating activities and then go along finding out the eventual patterns on which the change would be made in the realms of the very organization, be it at a single location of spread in different countries globally. It is up to the manager as to how best he meets the needs of the system that is already in place and which control and planning activities he brings forward every now and then. The end result is something that holds a lot of significance and value. (Cooper, 2004) Managing Business Change Regimes Managing change globally within an organization is one of the most significant aspects that come under its sound functioning regimes. Only the companies which are able to come to terms with the new norms and practices are the ones that succeed not only in the short term but also in the longer scheme of things. This means that the company has to devise certain ways and means through which it can manage change, measure it and effectively counter the problems that come in its way all this while. (Berberoglu, 2005) The learning process, meanwhile on the part of the organization is immense since it finds out the exact mechanisms and procedures through which change is going to affect the employees’ and stakeholders’ relationship with the company’s central essence, which is the top management, making all the decisions that would eventually benefit the company in the long run. (Randall, 2004) A number of organizations globally have time and again changed and altered their strategies so that they can reap the benefits of both the short term as well as the long one. This, they do in order to guarantee that the stakeholders remain satisfied with the workings of the organization as well as to ensure that its products and/or services are in the recall set of the target audience. (Whicker, 1990) However much more than this is needed to keep the organizations on track as well as serve in the best interest possible for all concerned. This would mean that organizations have to invest in not only a change in strategy over a period of time but also carry out related activities like proper methods of hiring, removing inefficient employees, investing a little more on the units which are ready to default as well as strengthen the cash cow strategic unit of the company, all the same. (Reeves, 2000) Thus a culture of managing change from the globalization standpoint and indeed accepting it in the truest sense is imperative not only on the part of the managers but also the organization’s employees who should know that the new culture would only benefit for their own selves and would provide more room for their growth in the immediate future. (Cronshaw, 1999) The basis of all strategies and structural changes that usually happen from time to time is on the shoulders of the top management where they have to decide whether or not the adopted strategy be the source of light in the coming quarters or years for that matter. It is only upon their insistence to have the same within their ranks that the new strategic planning is done in the first place. If the top management is not ready, it is very difficult for the knowledge organization, which really is the middle management of present times, to do even an iota of struggle. The multinationals for that matter depend a lot on the parental concerns, which at times, might be located off shores and there is no easy access to them as well. But then again it is all about finding out what the goals of the real organization are in essence. (Handy, 2005) Manager’s Duties and Goals under Globalization Thus the goal of a manager under the globalization ranks must be to ascertain the amount of complexities he will face when he thinks of satisfying the needs of the shareholders and the customers alike. Then he has to discern the exact requirements under which he can work through towards achieving the goal that he has been bestowed with, on the job. This means that he needs to understand for his own self what barriers and problems might arise if he tries to step in the zone that is full of risks and related problems. Profit must indeed be a goal for him but the manager has to understand that it is not the be-all, end-all for him and his organization. (Shiplett, 2000) Building a solid rapport with the shareholders is much more significant than anything else. Objectives could only be achieved when there is a solid basis of understanding each other’s concerns and when there is genuine interest amongst the managers when it comes to finding out the issues that the shareholders and the customers might have, say at some point in time in the near future. Thus speaking realistically from a global standpoint, managers need to aim to set the goals which are easily achievable however the focus must not rest only on the profits and the returns that are extracted over a period of time. (Kay, 1995) These could even go off towards the satisfaction in terms of profits that will be given to the shareholders from time to time or in a lump sum format. The same is devised with the facilitation of the different departments working under the auspices of the organization. Profits thus are not the ultimate objective for this organization and manager must think from the strategic perspective than being a bridge between profits and the firm itself. The work culture within the domains of a manager must suit the interests of the organization in the best form possible. (Boddy, 2005) For this to happen, it is necessary to understand that technology has got an immense role to play in the manager’s repertoire. Also there should be a comprehension that managers work in a global world where technology has of late been instrumental at dramatically changing the way one perceives the events that govern people’s lives. The accession of technology to managers around the globe means that the same has resulted in the amalgamation of technological expertise and the like for a wide number of business processes and activities. (Wells, 1998) Seen in the related scheme of things, a manager has been a product of his own environment and thus in the proper frame of the idea, the technological basis has on the other hand customized the total environment in which the managers do their jobs in the best manner possible. The basic dogma on which the dot com companies work is to reach out to the greatest amount of people and make those people as their clients within a short duration of time. (Sims, 2002) This would be on the expense of not being at concern related with the loss in the stock prices. The culture which was adopted by these managers was of ‘get large or get lost’ in the whole frame of things. Only the technological basis makes the very same possible and a work culture of such magnitude under the manager’s auspices is necessary to put things into proper perspectives. (McLaren, 2001) The Legalities of Globalization for Business Further pinpointing the legal stance within globalization, one needs to focus on the increase in the number of different standards worldwide, which in all essence must be made use of. These include copyright laws, privacy obligations, patenting and others which somehow or the other mesh along well with the legal framework of different multinationals and institutions as a result of the same. (Aase, 2004) Furthermore, the legal angle also helps in the identification of different legal procedures as they are prevalent across a cross section of countries, starting from Fiji and ending in Alaska within US, just to quote as an example of its diversified nature. There has been some work done in the name of advocacy raised for setting up international criminal courts as well as movements which are run on the global front for the sake of providing justice to one and all. Globalization helps improve cultural exchange across a wide cross section of regions scattered all over the world. It helps in playing its due part in the multiculturalism concept where the individuals within it have easy access to the cultural diversities of one another. There is a lot to learn and adapt in the wake of the same. (Lowe, 2004) At times, the imported culture literally takes over the reigns and the basis of the local culture of the time within a place or region for that matter and this is a testament big enough to prove of the origins of globalization and the same playing its full effect in the related scheme of things. Then there is the travel and tourism concept which comes under the globalization regime and not to forget the immigration subjects which are discussed every now and then. By having a global system in place which looks after the different countries sitting at a single location, the issue of illegal immigration within countries has also decreased as a result which is surely a positive sign. (Cyert, 1963) The Business Consumer Discussion The local consumer products are introduced in far flung areas and this accounts to the progress thus made under the globalization regime. Across the various points that have been discussed, there is the induction of world wide fads and trends which seem to hit the global stage like anything. These play their due role at highlighting what is in at a present moment of time and what is considered as absolute hit within a particular region and adopted similarly in another region, continent or world zone in absolute essence. (Benton, 1994) This essentially speaks volumes of the rapid progress that has been made in the relevant quarters. Lastly, one finds out that from a cultural stance, the growth of sports like the FIFA World Cup and Olympic Games is a step in the right direction as this gives the whole world a solid platform where they can raise their voice and message in a single, unified manner. The world comes to a standstill when a match within the football grounds is played, watched by millions the world over and followed by just about everybody. (Amin, 2001) Ethically speaking, globalization has created illegal avenues of getting one’s work done from outsourced units which are spread all over the world. This means that a technically equipped individual who is good at doing a particular task would be easy to get from a third world country where economy is not that strong and labor is cheap. This would be comparatively lesser than an individual who can carry out the same job for a much higher amount situated in America or United Kingdom for that matter. (Lerch, 2005) Thus there is always the option of choosing the person from the third world country to bring in more options as well as getting things done quickly and with lesser costs. However what is more important here is the fact that ethically there could be debates in this whole related discussion. The employer might not at times know that his workers are getting their work done from offshore locations whilst being paid for their work at their sites. Moral aspect needs to be considered in the debate of globalization as well as how the same issue would eventually shape up the very future of mankind. Conclusion Globalization has offered to the modern world a number of drawbacks as well. This means that globalization is not something that can be looked upon in entirety but has to be centered on the minuses that it offers as well. (Akande, 2002) For starters, they bring new and fresh challenges to the local markets as they have to meet the expectations as laid down by the reforms and works of the global companies and industrial units. For others, this may mean that they have to let go of their traditional norms and cultural values so that they can adjust in accordance with the globalization’s developments. The effect of this regime thus brings in an atmosphere of finding out the foreign entities more than their own personal selves which is indeed a drawback to say the very least. (Mercer, 1991) There is decimation in the ranks of the local cultures as is apparent in the case of third world countries where influence of West is pretty clear for one and all to see. Similarly, within Africa this has been the norms for decades now. In all essence, the commercialization of culture is one significant thing that comes to mind under this discussion. This has an impact on people’s thinking, their values, their habits and behaviors. In fact the commercialization of culture makes one thing for sure; it keeps the local culture in cold storage and tries to show off the innate qualities, whether there or not in reality, to its adopters. (Varey, 2001) Bibliography 1. AASE, Sara. (2004). Is Globalization a Powerful Force for Good or a Means of Exploitation? New World Order UMN News 2. AKANDE, Wole. (2002). The Drawbacks of Cultural Globalization. Global Policy Forum 3. AMIN, Samir. (2001). Imperialism and Globalization. Monthly Review, Vol. 53 4. BARR, Pamela S. When Firms Change Direction. Oxford University Press, 2000 5. BELL, John R. (2004). New Socialisms: Futures beyond Globalization. Routledge 6. BENTON, Ted. (1994). Social Theory and the Global Environment. Routledge 7. BERBEROGLU, Berch. (2005). 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