Globalization In Context Of Ob 2 1f4268

The importance of organizational behaviour (OB) has accentuated subse­quent to glo balization and the consequent changes in business practices. Since the term globalization has many ramifications, we need to first under­stand its different d imensions and then try to attempt a compact definition. Organization behavior is a subject that analyzes the behavior of people in group and attempt to create efficient and effective business environment. Globalization is the process that improves the interaction through integration o f society, culture, politics and business across the world. Globalization is the integration of any market with the global economy. In short, Globalization refers to the complex economic networks of international competition, resource suppliers, and product markets. Before the globalization national borders were perfectly insulated and businesse s were free from any foreign competition. Today world is a global village where multinationals are spreading their business across the world. At the same time l arge pool of workforce are chasing down job opportunities across national border s. As globalization has fostered the thought of multiculturalism, the relationship between culture and organizational behavior has become increasingly valued. Today organizations become more global; workforce of an organization made up of people belongs to different nation and different culture. This diversity in wor kforce has created a large shift in organization behavior. Global organizations bring diverse people together. These diverse persons have different values, beli efs, and ethics. Besides, there are gender, age, race, ethnicity differences amo ng them. Management of diverse people gives new roles to the leaders in the orga nizations. Globalization has many dimensions. The most general is the economic globalizatio n. OB studies are now increasingly becoming complex due to the effect of globali zation. Some of the important areas of concern are changing technology with a sh arp increase in cross-border technology transfers, the mobility of organizations and people in the global world, the competition for markets and customers on a global scale, etc. In the economic context, globalization is interpreted as a worldwide phenom­enon o r process. Some economic and monetary policies together facilitate the process o f globalization. Some of the economic dimensions of globalization are expansion of international trade, cross-border labour migration, cross- border flow of inv estments, etc. From the OB point of view, the biggest con­cern for globalization is the impact an d influence of multinational and transnational companies. Participation of these companies in trade, invest­ment, and production, expanded the international commu nication and im­ported various cross-cultural issues. Nowadays, even to operate lo cally, In­dian organizations need to track these issues and regularly renew their busi­ness practices, changing the mind-sets of their people.

Cultural diversity is geared toward having a deep respect and understanding of t he various people in the organization. This aspect of the organization is streng thened by having , teamwork, team-building activities and interpersonal communication. During such engagements, individuals are able to interact and app reciate each other s culture; consequently, an accommodating culture and organizat

ional behavior is established within the organization. Globalization and Leadership: Leadership might be universal in of a kind o f social process but that the content of leadership was affected by the culture. Different cultures would lead to different contents, styles and effectiveness o f leadership. In most situations, leadership styles might not reveal leaders pers onal will, but reflect the culture and tradition of the societies they are in. Moreover, the effectiveness of leadership would also be influenced by local soci al context. For example: Defining, measuring and rewarding performance in the sa me way does not work well across functions, business units and occupations (See R ewarding Performance: Guiding Principles; Custom Strategies ). In a diversified wo rkforce employees have varied beliefs, ethics, values, priorities and perception . So to keep that diversified workforce as a whole unit, compatible with the ove rall organizational strategy is huge challenge for leaders. Today in a globaliz ed scenario cross-cultural management must give more emphasis on 3R ruleRecognize cultural difference Respect people s right to differ Reconcile the issues differences create Multi cultural Team: Multicultural team can provide strategic advancement for an organization. However some researchers argued that transnational team (cultural difference, electronic communication, lack of monitoring etc.) reduces the sali ence of team identity which leads to team-withholding behavior. However cultural ly diverse team, work as or more effectively as a homogeneous team when leadersh ip helps to prevent communication breakdown. In fact global virtual teams are mo re effective when they impose formal temporal coordinating mechanism and develop norms for meaningful participation. However there is a high chance that identit ies become salient in a multicultural team when either most or very few of their fellow belongs to a particular country of origin. But highly heterogene ous teams sometimes outperform moderately heterogeneous team because they avert subgroup fictionalization and faultiness. The patterns of behavior in the organization are influenced by the nature of int eractions and degree of diversity within the organization. The business, therefo re, should seek to create an organizational culture that not only enhances the d iversity of its workforce composition but also boosts individual performance. Th e positive influences of cultural diversity not only enable the organization to increase the scope of its reach the business also receives favorable exposure fr om every sector of the population due to its multicultural approach. The modern world is smaller yet global market that undergoes rapid change. Today , we are confronted with the scenario of a changing workforce that is multicultu ral and diverse in beliefs, ethnicities and behaviours. For instance, in the Uni ted States one-quarter of the American workforce is represented by minorities wi th this figure expected to grow in the future. Also, women for fifty per cent of the paid workforce in the United States. Globalization can be taken to mean the increasing trend to interact beyond physi cal boundaries. The causes of globalization include deregulation and privatizati on of public sectors in certain countries, technological convergence, and increa sed competition. Furthermore, globalization has taken many forms such as foreign investment and international partnerships. From the perspective of business organiza­tions, there are three different types o f globalizations multinationals, global, and international companies. The cascadin g effect of globalization even transcends to the tasks or the operational enviro nments of business organiza­tions. Changes in the operational environment not only require focus on new products or

service developments, but also on the skills and competency sets, attitudes, va lues, and cultures of the people. Such changes are primarily at­tributable to the shift in the expectations of customers and the behaviour of competitors. The consequential effect of globalization on organizations is an increase in all iances and partnerships rather than on authority and control. This is characteri zed by the breakdown of tall hierarchies, increase in use of teams, reorganizati on of functional departments into cross-functional groups, reduction in centrali zed control, and allowing more local autonomy. Another key aspect, from the perspective of a business organization, is the harv esting of the knowledge of the people. This is facilitated by knowledge manageme nt practices, using various tools, techniques, and values. Through knowledge man agement, organizations can acquire, develop measure, distribute, and provide a r eturn on their intellectual assets. Globalization has also changed the nature of managerial work, requiring managers , in the globalized era, to increase their judgmental power, use of persuasion a nd influence, shaping of the behaviour of the people, etc. This diversity presents organisations with both opportunities and unique challen ges. A diverse workforce in a global market is great advantage, but while the be nefits are obvious, there are also various issues that diversity throws up, thes e issues need attention for work to take place in peaceful and efficient manner. In this modern world that has been shrunk through transport and communication it is paramount for work teams to consist of employees with different traits and b ehaviours. It is the job of a manager to effectively manage these varied individ uals and mould the behaviours to bring about harmony and benefit the organisatio n keeping in mind the company s core values and business aims.