Challenges Managers Face from Globalisation in Managing People and Organisations - Coursework Example

Title Insert Name Tutor Date Challenges Managers Face from Globalisation in Managing People and Organisations. Introduction Currently, the world has transformed into a single village under the same umbrella breaking away from economical, cultural and geographical boundaries that had existed in the past years. With such a phenomenon, people and organizations have integrated around the globe with each other irrespective of their cultural backgrounds, color and race. Because of this, managers are compelled to shift the management of their organizations to accommodate the global needs so as to compete favourably on international markets (Bradley, 2008) As a result they face challenges such as adapting to global marketing strategies that are convincing to different backgrounds across the world, adapting to leadership style that covers a diverse background of employees to maintain a healthy organisational culture, adopting a compensation criteria that is fair to employees depending on home economic, political and taxation structures. Adopting global marketing strategies Globalisation has now become a reality and any firm that wants to survive in the 21st century must conform to the force of globalisation for it to survive. From a broad range of companies from food to automobiles, businesses are facing global pressures of competing locally and internationally. Choosing to stay away from global markets is not an option for any business that wants to grow and sustain its profit margins. According to (Bradley, 2008) all companies irrespective of their size have to design marketing strategies that cut across the world to anticipate, react and adapt to dynamic nature of these markets. Organisations have the challenge of remaining responsive to domestic markets while achieving international efficiency via integrating and coordinating their operations across global markets. The organizations that are newly entering international markets have to first learn about the nature of such markets, how they will select the appropriate competing arena and figuring out how to leverage major competencies in global markets. Once they have entered they have to create their position by establishing a firm local presence by designing new products and conforming to local preferences of the customers while developing other frameworks of meeting global tastes. (Keen, 1999) writes that the increasing intensity of competition in world market is a major challenge facing managers and organisations in the today’s world. As pressures of competition increase, managers notice that they have to develop a strategy that will be geared towards securing and maintaining competitive advantage their product and service markets. The managers are therefore compelled to create the current competitive position of the company and identify the skills and potentiality required to leverage it further in the future advancements of the market. In particular, competitive platform has changed and increasingly turbulent environment prove the need for new ways and wider views of how the businesses should react to altering conditions in the environment such as globalisation. Technology is speedily changing the existing competition in many organisations. World proliferation of relatively cheap computing power and international linkages of computer networks via telecommunications have led to better information in the organization. Computer networking and telecommunicating has altered the way managers do their work and interrelate, provide links between abroad centered organizations, and permit technology to rapidly be shared and transfer learning over the entire organization. The technological knowledge and a fast product development process is the foreseen benefit of achieving global market sustainable competition. Managers also are concerned with the effect of the business to the environment which is an additional way of contracting business today. Packaging new forms, and the desire to recycle business and create more user friendly products. Adopting a leadership style that covers diverse background of employees for healthy organizational culture One of the important tasks of a leader is to establish a totally fresh organization culture which will satisfy each employees needs. Globalised business environment present a diverse group of employees from different parts of the world. In other words, employees from Germany, Singapore, Iran and Greece should take on rules and regulations of an American company which is regarded common to all the employees of the firm regardless of their different cultural backgrounds. The creation of a corporate culture can be challenging for the organization to run its operations effectively. Managers therefore understand that in order to create an effective organizational culture, they have to look for a balance in employee`s cultural needs and their peculiarities represented by their individual ethnic groups such as, a company with Iranian, Singaporean, German and Greek. (Wiseman, 2005) points out that this challenges the managers to create an organisation culture that is neutral to the existing ethnic groups, that is, a culture neutral to Greek, Iranian and German. This new neutral culture should con –currently be able to engage employees, shape their identity to hat of members working in a certain team with a common organisational goal. Hence the managers are compelled to develop clear and understanding principles which can establish the basis for neutral organisational culture. However, for the managers to implement these principles wholly, they should basically recruit employees who can adopt such principles easily. In the recruiting process, it is advisable to let the manager recommend professionals from diverse backgrounds, which could be tolerant in respect to other cultures and their beliefs. In fact, employees who are liberal and tolerant are the most recommended for companies that operate in an absolute global environment such as American companies where you will find employees of different cultural backgrounds. For instance, a manager is supposed to prefer Iranian and Singaporean applicants who achieved their degrees in Europe in the face of a diverse background organisation, and should prefer German and Greek applicants who have experience in working in Asian companies preferably in Iran and Singapore. Thus the managers, have a challenge of recruiting employees who have more familiarity or little familiarity with a given foreign culture and that they are already accustomed to the differences of the foreign culture from their own culture. ( Zack, 2006) reviews that the managers also face the challenge of making the employees acquainted with the primary principles o the culture of the organisation which should be simplified and easy to comprehend but most importantly they should avoid the risk of offense leaders who are of different cultures. The explanation of this thought should be grounded on primary values that are humanistic, universal and acceptable by the individuals irrespective of their cultural background and originality. For instance, mutual respect of workers can be one of the organisations challenges, especial when they are from different backgrounds. Another challenge to the organisation can be their equality and subordination to the team leader who has to meet the Iranian traditions and employees from Singapore who are used to authoritative leadership. The principle further does not contradict the German’s cultural norms or contradict the Greek culture that get used to a given social hierarchy. In addition, workers should be given the right to air out their opinions without any restrictions as long as the other workers, company or other leaders are not offended. In the contexts of the American company with diverse background from Singapore, Iran, German and Greek, the European employees will discover their initiative without getting other employees offended while avoiding to undermine the leader’s authority. Employees from Europe get used to relations that are more liberal and they feel individual success if they realize their own ideas. On the contrary the Asian employees are more submitted to their subordination to their leader. Lastly, the managers are challenged by wrangles and contradictions that arise within the organisation which should be discussed by means that will possibly resolve the controversies that arise between the workers. (Brewster, 1999) postulates that the managers are therefore supposed to ensure that employees cultural peculiarity are taken into consideration to create an organisational culture that is in accordance with acceptable universal values that are represented by the different cultures of the employees. The culture of the organisation should satisfy the desires and traditions of every employee in the organisation. Simultaneously, the culture of the organisation that the managers promote should evoke emotions of unity of individuals working in the multicultural company, in my context, the American company with different employees from diverse cultural backgrounds. Challenge of deriving a global compensation system Organisations with workers of cross multiple jurisdictions meet unique challenges. They must advance the correct remuneration for complex situations while at the same time meeting reporting requirements to domestic tax authorities and managing costs while motivating employees. This will need creation of infrastructure that is overarching over border coordination with constant monitoring and updating to ensure efficiency and effectiveness. (Bradley, 2008) writes that in order to know the compensation rate in a given global organisation, it is mandatory to first realize the prevailing differences and similarities within the multiple contexts in which the organisations operates, then be in a position to handle the found differences accordingly. Worker compensation strategy depends on the variation provided by factors such as economic, individual, institutional and organisational. The alterations, be they minimal or great, these factors are imposed in different nations and are reflected in the changes that the managers in a company will have to undertake when stipulating various compensation systems in various units in which it will have to work. Each factor that determines the compensation system of a given individual is accompanied by other sub factors. For instance, institutional factors depend on individual’s home political structures and power of the trade union .the economic factors depend on the competitiveness level and market development degree and the taxation system. The employee’s degree of autonomy, strategic aims, innovation and technological level determines the organisational influence on compensation system (Bradley, 2008) further points out that managers have the challenge of adherence on individual employees so as to come up with an individual compensation system so as to come up with a fair compensation rate. An analysis of compensation on global context needs special attention so as to focus basically on all the determining factors. Conclusion In conclusion globalisation has presented several challenges to organisations which have made them restructure their strategies to accommodate the needs of the markets so as to stand the international competitions. As a result of globalisation firms have been forced to adopt strategies that will make them enter international markets and be able to maintain a position that is strong enough to compete with other international firms. Managers are also faced with the challenge of hiring employees of different cultural backgrounds which ahs compelled them to create a neutral organisational culture that will accommodate the diverse cultural backgrounds without evoking confrontations from the employees. Because of the different economic political and taxation structures of different nations of origin of employees, managers have to systematically analyse and drive a fair rate of compensation to their employees. References Bradley, J. (2008).Global Compensation Management. A Review of Management. 45(4) 23-29 Brewster, C. (1999) International Human Resource Management. Global Contemporary Issues. 4(6) 16-22 Keen, P. (1999) Challenges Facing Global Markets. A Journal of International Management. 34 (6) 34-46 Wiseman M. (2005) Challenges of Globalisation to Organisations. An Assessment and Outlook Journal of Management. 23(6) 91-111 Zack, L. (2006) Institutional and Theories of Organisation. Annual Review of Management. 13 (11) 444-451 Read More