Perceptions, Culture, Power: Global Challenges for Organisations - Literature review Example

Perceptions, Culture, Power: And Global Challenges for Organisations (By Introduction As organisations rely on directing the collective enthusiasm of the individuals towards a common goal, the human resources need to be managed by considering the importance of organisational aspects like worker perception, culture and power. The need for analysing these factors arises in the globalised environment of business in which diverse workforce and changing competition strategies are a routine reality before the managers. The modern business at the international level requires the managers to anticipate risks while they plan for actions based on the market drift at a given point of time. This paper will critically evaluate the influence of the strategic aspects like employee perception, culture and power by examining the global challenges for today’s organisations. Perception, Culture and Power; Changing Definitions The traditional structure of business management was a leader-centered, result- oriented one which was away from the idea of globalisation and related requirements for frequent changes. According to an observation, the modern days of human resources management is on the evolution path from the traditional approach with prioritised attention for operational issues to the modern style leadership that focuses on the importance of the idea of strategic partnership to ensure the participation of the entire stakeholders in the organisation (Curz, 2006). Transforming the traditional style of leadership will definitely require the managers to adopt new techniques to fit themselves in the new strategic management model in order to make sure that they have their position in the global market of the changing management concepts. A reliable source of management literature suggests that, perception as a psychological construct affects the human behaviour and it plays a vital role in the individual process decision making (Vithessonthi, p.28). Perceptions are the psychological agents that create the awareness among individuals about their circumstances and surroundings. They have direct influence on the way in which employees prepare for a decision, and thus perceptions can affect the quality of the outcome. Moreover, the changing trends in the globalised organisational environment realise that perceptions have a critical role in the employee turnover rates because of the increasing chances of workers to quit their job for fear of perceived insecurity at workplace. According to a finding, the chances of improving the quality of performance are more when the employees perceive that the HR practices are committed to quality and employee welfare (Center for Advanced Human Resource Studies, 2011, June). The globalised arena of business management observes the aspect of culture as a key player in the organisation of diverse workforce. The term culture in the organisational context means the collective behaviour of individuals with regards to the organisational goals in accordance with the collective values and principles based on the history and nature of the business. According to an observation by Leland, “it implies structural stability and is embedded throughout the organisation’s language, customs, traditions, ritual and policies” (Leland, n.d.). As such, the disciplinary doctrines within the organisational culture define the overall behaviour traits of the individuals, and so it is an essential factor for survival. A study suggests that the increasing competition among the business units settled home and abroad requires the management to adopt a sensitive approach towards various cultural practices in order to stabilise their position in the market (Nataatmadia, 2005). As a result, the managements of modern organisations are looking for resources to build inter-cultural relationships by recruiting employees from other culture and by extending collaborations with the investors from different countries for their growth and expansion. The aspect of power in an organisational structure means the formal authority of the individuals in the superior positions upon those in the lower levels. Power plays an important role in the organisational structure and the person enjoying it has to maintain the standards and strategies to hold it (Ball et al, 2008, pp.8-10). The aspects of power and leadership go hand-in-hand. However, the amount of power one holds depends on the position one has in the organisation. The traditional views about power made the leaders authority to punish or reward their subordinates. According to a finding, from among the various sources of power, the most acceptable ones are expertise, information and relationships which can bring positive effect in the organisational behaviour of the employees (Ball et al, pp.8-10). The application of power is the easiest and the most popular tool for the leaders to enable, empower and exploit the workforce. However, the essence of a leadership based on power lies in the knowledge managers possess to utilise it for motivating the employees rather than dictating them. Various Global Challenges Along with the plenty of choices for growth and expansion to the organisations, globalisation has also brought a number of challenges before the managers. The proportionate increase in the scope of operations brought by the globalisation of organisations has resulted in a complex management environment in most enterprises. There are many individual stories that showcase the success of organisations in the global atmosphere with technological development as their basis for excellence. However, there counter stories to prove that a large number of companies are facing consistent issues related to their adaptability in the globalisation process due to various reasons. A hawk’s eye view of the challenging scenarios around the global companies indicates a general problem associated with the inconsistency they have in addressing the changing market conditions. The problems are not limited to business set ups and they reach the boundaries of other organisations also. According to a report, “one of the major challenges being faced by international organisations is integrating developing countries on various measures.” (Economy Watch, June 29, 2010). The challenges before the managers of globalised business organisations essentially arise from cultural diversities. The most common leadership challenges in the new environment arise with regards to skill development, motivation, team development and change management etc. which comes as essential parts of strategic management. Gentry et al (2014) suggest that the challenges at the global level is subject to varying political and geographical influence; and managerial effectiveness is the biggest challenge in China, India and the US, but for in some other countries, inspiring others, employee development and team leadership are the top challenges. In this context, the global business managers have to look for the best possibilities by realising that the aspects like finding right talents and devising right strategies are essential for sustainability. The modern business world is fighting out all strength to negotiate the ever-increasing demand for finding the global talent. According to a finding by Saunders and Nieto, the modern trend of globalisation of the labour market and the global mobility of the highly skilled workforce stand a potential challenge for the global business managers (Ariss, 2011, p.108). Diverse Workforce and Globalisation of Challenges In the changing environment, modern business has essentially made a complex relationship between employee perceptions and challenges under the influence of cultural barriers and the ineffective handling of power in the organisations. The employee perception factor has great influence in accumulating the pressure on management in dealing with motivation drivers meant for improved productivity. The globalised environment of modern business is exposed to the challenges of diversity particularly those arise from the failed practice of cultural tolerance in the organisation. As culture is the demonstrated model of human behaviours guided by the group objective, and as it is the persona of the organisation, the managers of the today’s environment are exposed to frequent risks of miscommunication and conflicts. According to a direction, ‘Employers are responsible for their workers’ physical and psychological wellbeing and should encourage tolerance and respect or cultural differences in the workplace” (Equal Opportunity Commission SA, 1 July, 2011). As such, the potential challenge to the global organisations with regards to cultural diversity under inferior protection for cultural tolerance. However, an effective mechanism at function with the technical tool-kit to address the issues and train the leaders and the employees in cultural competency programs can promote cultural harmony among the individuals in the organisation. Another potential contributor to the adding challenges is the misuse of power in the organisations. The centralisation of power to certain classified positions in the organisational structure can result in polarisation and defensive politics which create conflicts in interest. This observation gives relevance to the quote of historian Lord Acton (as quoted in Forbes), “Power corrupts and absolute power corrupts absolutely” (Zenger, 2012). The impact of power corruption is a multidimensional threat to every organisation as it can affect its credibility and culture. Conclusion Human endeavour needs the backing of inspiration to boost the performance for accomplishing each task. The required amount of inspiration can be achieved from various resources depending upon changing circumstances. The modern business management has redefined the fundamental aspects like employee perception, organisational culture and power of positions in the organisational hierarchy. Negative employee perceptions and unlimited power of the leaders can have an equally adverse impact as cultural incompetency on the entire organisation. Hence these depressing elements can intensify the magnitude of the challenges facing the globalised managements of modern organisations. References Ariss AA (2014) Global Talent Management: Challenges, Strategies, and Opportunities. US: Springer Science & Business. Bal V et al (2008) The Role of Power in Effective Leadership. Centre for Creative Leadership, 4-20. Available at: http://www.ccl.org/leadership/pdf/research/roleOfPower.pdf Cruz, ES (2006) Traditional to strategic HR management. Business World, 1-4. Center for Advanced Human Resource Studies (2011, June) Perception is reality: How employees perceive what motivates HR practices affects their engagement, behavior and performance (CAHRS ResearchLink No. 14). Ithaca, NY: Cornell University, ILR School. Economic Watch (29 June 2010) International Organisations. Available at: http://www.economywatch.com/international-organizations Equal Opportunity Commission SA (1 July, 2011) Cultural differences in the workplace. http://www.eoc.sa.gov.au/eo-you/workers/work/cultural-differences-workplace Gentry WA (2014) The Challenges Leaders Face Around the World More Similar than Different. White Paper, Center for Creative Leadership. Available at: http://www.ccl.org/Leadership/pdf/research/ChallengesLeadersFace.pdf Leland SM (n.d.) organizational culture: Understanding theoretical and practical applications. Public Administration and Public Policy, 1. Available at: http://www.eolss.net/sample-chapters/c14/e1-34-01-05.pdf Nataatmadia I & Dyson LV (2005) Managing the Modern Workforce: Cultural Diversity and Its Implications. Managing Modern Organizations Through Information Technology, Proceedings of the 2005 Information Resources Management Association International Conference.Idea Group Publishing. Available at: http://www.irma-international.org/viewtitle/32666/ Vithessonthi C (2005) A Perception-Based View of the Employee: A Study of Employees’ Reactions to Change. Dissertation no. 3040 of the University of St. Gallen. Available at: http://www1.unisg.ch/www/edis.nsf/SysLkpByIdentifier/3040/$FILE/dis3040.pdf Zenger J (June 20, 2012) Ethics in Leadership: The 8 Rules to Prevent Misuse of Corporate Power. Forbes. Available at: http://www.forbes.com/sites/jackzenger/2012/06/20/ethics-in-leadership-the-8-rules-to-protect-corporate-power/ Read More