Management Principles - Essay Example

What are the international management challenges of globalisation? The main challenges in globalisation context come from management, cultural adaptation, and economic framework. Globalisation has resulted in emergence of increased numbers of multinational corporations. These MNCs have great difficulty in implementing parent company management principles and policies framed in other parts of the world. Secondly, managers and other employees that are appointed for setting up businesses in other locations find it extremely difficult to understand and adapt to the cultures of new locations.

Thirdly, on one hand, organisations are trying to take advantage of globalisation by setting up their businesses in multiple locations, and on the other hand, varying economic statuses and governmental regulations are creating disturbances in wealth distribution across different countries. These are further creating inflation, unemployment, competition and privatization (Schermerhorn, 2010). What are the forms and opportunities of international business? In order to sustain globalisation and competition, organisations have adopted a variety of business strategies.

Based on these, businesses can be categorized into market entry strategies and direct investment strategies (Schermerhorn, 2010). Businesses based on market strategies include global sourcing, export and import businesses, and licensing and franchising businesses. Global sourcing firms base their strategies on purchasing patterns of their materials or services. Export-import businesses are conducted by selling to or acquiring products/services from other countries. Licensing involves provision of rights to make or sell the company’s products in other locations.

Franchising involves provision of all requirements for conducting a specific business in other countries. Joint ventures and wholly owned subsidiaries are the direct investment forms in which the former involves setting up business in foreign locations in partnership with local partners; the latter involves setting up businesses in other locations that are completely owned by the parent company. What are multinational corporations? Multinational Corporation (MNC) is a business that has been set up in many locations throughout the world.

The ultimate aim of setting up MNC is to grow internationally, improve profits, and enhance employee learning and development. What is culture and how does it relate to global diversity? Culture is defined as the share set of beliefs, values and patterns of behavior common to a group of people. These set of beliefs, values and patterns of behavior often tend to cause significant confusion among people working in foreign locations because they cannot understand the behavior, beliefs and values that stem from other cultures.

For example, in the US, individual rewards are given importance whereas team appreciation is followed in Japan (Lande & Conte, 2009). How do management practices and learning transfer across cultures? Management practices and learning can be transferred across cultures by training the expatriate managers appropriately on corresponding cultures as well as educating them on the political and legislative norms. These managers should be careful while adopting home country management in foreign locations.

What are the challenges of change and innovation in the 21st century? While change and innovation are necessary to sustain in the 21st century, there are few challenges too. The change and innovation should be able to produce good economic gains for the organisation. Secondly, effective leadership is essential in the process of change. Moreover, the change/innovation must adhere to regulations and external factors governing the organisation/business (Verloop & Wissema, 2004). What is the nature of organisational change in an increasingly globalised and integrated economy?

Organisational change in contemporary business setup is constant and organisations need to continuously respond to the factors causing change. Factors causing change include technological advancement, economic pressures, and employee knowledge and expectations. How can planned organisational change be managed in a rapidly changing world economy? Effective leadership and the process are essential for managing in a planned organisational change in rapidly changing economy. Factors to be considered in a planned change include tasks, people, culture, technology, and organisational structure.

Lewin’s force-field theory identifies three phases in the change process: Unfreezing phase during which people are made aware of the need for change and situation is created. Secondly, the change phase during which change in tasks, people, culture, technology are implemented. Finally, refreezing phase involves stabilizing the changes once desired results are achieved (Schemerhorn, 2010). What is organisation development and organisational transformation? Organisation development is the process of achieving an overall improvement in organisational ability to continuously grow and sustain in the competitive market.

Organisational transformation deals with complete change in organisation’s vision and structure. How do you build career readiness? Career readiness can be built by preparing oneself to the potential changes in organisation by acquiring the required skills and making others aware of the newly acquired skills that will help in tackling the new challenges. References Lande, F.J and Conte, J.M. 2009. Work in the 21st century: An introduction to industrial and organisational psychology. 3RD Ed.

New Jersey: John Wiley and Sons. Schermerhorn, J.R. 2010. Management. 10th ed. UK: John Wiley & Sons. Verloop, J and Wissema, J.G. (2004). Insight in innovation: Managing innovation by understanding the laws of innovation. CA: Elsevier.