Impact of globalization on organizational behaviour

One of the other major environmental context impacting organizational behavior is globalization.
Today, well-known U.S.-based multinational corporations have more than half their assets overseas.
With trends toward similar clothes, entertainment, material possessions, and recognition that English is the international business language, people around the world still think and behave in different ways.
The starting point of how the globalization environment affects and is affected by organizational behavior is culture.

1. Impact of Globalization on Organizational Behaviour Presented by: A.Raj Shravanthi

2. Introduction One of the other major environmental context impacting organizational behavior is globalization. Today, well-known U.S.-based multinational corporations have more than half their assets overseas. With trends toward similar clothes, entertainment, material possessions, and recognition that English is the international business language, people around the world still think and behave in different ways. The starting point of how the globalization environment affects and is affected by organizational behavior is culture.

3. Definition Globalization means to increase their base of operations, expand their workforce with minimal investments, and provide new services to a broad range of consumers

4. Two Sides of the Definition of Globalization Mainstream Approach : The expansion of global market improves the efficiency and living standards of organization. From this perspectives, organization can use adequate rational decision making to resolve the increasing internationalization problems. The Nike corporation and its products are well known throughout the word. After some experiments, Nike moved toward a subcontracting system, reaching agreements with independent manufacturers to produce the shoes and other goods. This gave Nike a high level of flexibility as they could increase or decrease overall production according to market demand without carrying unnecessary overhead costs, for example, they can set up some tight conditions and contracts. Critical Approach: It exposes that we need to concern the cost of globalization. A few people who have the power to influence on the process in terms of social power and concentration of economic . And it reveals that how groups are struggling inside the organization. From a critical perspective, Nike reveals the multinational firms contribute to global inequality. If they produce shoes in the US, they have to cut its profit margins substantially because US employees are paid quite high wages. In contrast, producing the shoes in China reduces the costs significantly.

5. Effects of Globalization Industrial - Emergence of worldwide production markets and broader access to a range of foreign products for consumers and companies. Financial - Emergence of worldwide financial markets and better access to external financing for borrowers. Economical - Realization of a global common market, based on the freedom of exchange of goods and capital. Political - Politically, the United States has enjoyed a position of power among the world powers; in part because of its strong and wealthy economy. With the influence of globalization and with the help of The United States’ own economy, the People's Republic of China has experienced some tremendous growth within the past decade.

6. Effects of globalization continued… Competition – To survive in the new global business, market calls for improved productivity and increased competition. Industries have to upgrade their products and use technology skillfully for facing the competition and increasing their competitive. Cultural - Growth of cross-cultural contacts; advent of new categories of consciousness and identities embodies cultural diffusion. Informational - Increase in information flows between geographically remote locations. This is a technological change with the advent of fiber optic communications, satellites, and increased availability of telephony and Internet.

7. Threats of Globalization Increase of unemployment Diversity The multinational have only handful of shareholders Health sector

8. OPPORTUNITIES Growth & development . push the exports abroad and foreign investment is much more convenient. Increase trend of outsourcing HUMAN RESOURCE functions Free TRADE TRANSNATIONAL REGULATORY

9. Advanced Globalization Sourcing resources Delivering Information exchange

10. Global Workforce in Some Indian Firms COMPANY TOTAL EMPLOYEE TOTAL SENIOR MOST JUNIOR MOST TATA MOTORS 22,000 950 R&D ENG SHOPFLOOR WORKER ASIAN PAINTS 4,600 1,400 COUNTRY MANAGER PAINT FACTORY WORKER INFOSYS 46,196 1,300 HEAD CONSULTING BUSINESS INTERN GLOBAL EMPLOYEES

11. Thank you for your attention!