Organizational development and the impact of globalization
1. BANGLADESH ARMY INTERNATIONAL UNIVERSITY of
SCIENCE and TECHNOLOGY
Cumilla Cantonment, Cu
Department of Business Administration
Level
Course Code: HRM 4808
Course Titl
Mohammad Tarek Aziz.
Lecturer of Management
DBA, BAIUST. HRM
Topic: Organizational Development and The Impact of
Submitted to;
Submission D
BANGLADESH ARMY INTERNATIONAL UNIVERSITY of
SCIENCE and TECHNOLOGY
Cumilla Cantonment, Cumilla.
Department of Business Administration
Level-4 Term-1
Course Code: HRM 4808
Course Title : Organizational Development
Nargis Akter
ID: 4104031
DBA, BAIUST. HRM
Organizational Development and The Impact of
Globalization.
Submitted
Submission Date: 05-08-2020
BANGLADESH ARMY INTERNATIONAL UNIVERSITY of
Nargis Akter
ID: 4104031
DBA, BAIUST. HRM
Organizational Development and The Impact of
Submitted by:
2. What is organizational development?
Organizational development is an often-heard term and a key organizational function. In this
complete guide, we will take a closer look at a concept that many have heard of but are
unfamiliar with. We will dive into what organizational development is, its goals, examples of
common organizational development interventions and techniques, and the OD process. By
the end of this guide, you will have a good understanding of what OD is, and the techniques
that can be used to improve organizational effectiveness.
There are a few elements in this definition (adapted from Cummings & Worley, 2009) that
stand out.
Critical and science-based process. OD is an evidence-based and structured process.
It is not about trying something out and seeing what happens. It is about using scientific
findings as input and creating a structured and controlled process in which assumptions
are tested. Lastly, it is about testing if the outcomes reflect the intention of the
intervention.
Build capacity to change and achieve greater effectiveness. Organizational
development is aimed at organizational effectiveness. It, therefore, has a number of
(business) outcomes. These can differ between organizations, but usually, they do
include financial performance, customer satisfaction, organizational member
engagement, and an increased capacity to adapt and renew the organization. These are
not always clear-cut. Sometimes it is about building a competitive advantage, in
whichever way that is defined. We will explore these outcomes later in this article
Developing, improving, and reinforcing strategies, structures, and processes. The
last part of our definition states that organizational development applies to changes in
strategy, structure, and/or processes. This implies a system-approach, where we focus
on an entire organizational system. This can include the full organization, one or more
locations, or a single department.
What is globalization?
Globalization is the spread of products, technology, information, and jobs across national
borders and cultures. In economic terms, it describes an interdependence of nations around
the globe fostered through free trade.
On one hand, globalization has created new jobs and economic growth through the cross-
border flow of goods, capital, and labor. On the other hand, this growth and job creation is
not distributed evenly across industries or countries.
The impact of globalization:
Globalization creates greater opportunities for firms in less industrialized countries to tap into
more and larger markets around the world. Thus, businesses located in developing countries
have more access to capital flows, technology, human capital, cheaper imports, and larger
export markets
3. As an effect of globalization, businesses are able to therefore aim their products/services to a
wider range of individuals through operational strategies in order to gain higher levels of
profit and market share and ultimately a lesser chance of product failure due to adequate
research of products and countries.
Globalization and Innovation
How are innovation and globalization related? Any team must develop a broader sense of
cultures with which it interacts. Food products are a good example here. If you’re considering
multiple markets, you need to speak with experts on local food traditions and taboos to
understand both the raw material available to you and how your market eats it.
It’s also worth asking what each culture sees as its challenges and opportunities, and what
tools they’re willing to use to overcome them. A recent example is the General Data
Protection Regulation, a law passed by the EU that is one of the most detailed privacy laws
on the planet. Clearly, the challenge seen by European authorities is the impact of data
collection on its citizens, and any data product you design should consider that beyond just
complying with the law.
Political concerns will also play a role. One of the downsides of a global economy is that, for
better or for worse, we’re all connected. A wobble in one country is felt in another, and this
makes politicians and regulators nervous. After all, they’re the ones who will pay for another
country’s mistakes if their economy gets pulled down. This may impact everything from
shipping regulations to how and where you can do business in a certain market.
Globalization, like any approach, has benefits and drawbacks. However, tying ourselves more
closely to each other seems to be more likely to be the rule rather than the exception, and that
should be a central driver of your innovation strategy. To learn more about innovation
strategy and globalization,
Globalization and Innovation Strategy
Globalization brings us closer and closer. What does this mean for the globalization of
innovation?
Ever since the rise of the multi-national corporation, bridging cultural, social, and political
differences has become an increasing concern. Yet, innovation might be the most powerful
vector driving these differences, while offering the tools to cross them.
Innovation Builds Economies
One of the undeniable advantages of globalization is that new ideas and technologies can
quickly spread across the world. It’s been found that emerging markets that have access to the
innovation driven by developed markets drove up productivity by 0.7 percent a year and
accounted for 40 percent of productivity gains in individual sectors. Good ideas spread, and
globalization lets them spread farther.
4. Conversely, more time spent with different cultures and their perspectives drive innovation.
The American auto industry learned quickly from its Japanese counterparts, for example, and
built on their innovation. Seeing challenges from a different perspective is the soul of
innovation, and globalization tends to bring more perspectives into the team meeting.
Globalization also presents different challenges that require different forms of innovation. An
idea that works in Britain, which has roughly the population of Oregon as of this writing, may
not make sense in the United States or may need to be modified. And of course there are
cultural differences; if you make food products, for example, you have to consider what local
custom and practice hold as edible.
The impact of globalization on business:
Increased competition - this is caused by more foreign investment flowing to countries, de-
regulation which allows businesses to enter markets from which they once precluded.
Greater awareness and reactions to customer needs - the consumer is now very selective on
such essentials as quality, service and price.
Economies of scale - by selling across many continents business can acquire economies of
large-scale production. This makes them very competitive.
Location flexibility - many modern production techniques and service provisions can be
allocated almost anywhere. This allows to them gain the advantages of low cost labour and
other resource charges.
Increased mergers and joint ventures - allowing access to bigger markets and associated cost
advantages.
Globalization and distribution:
According to Deloitte, in 2004, the top 10 world distributors could be characterized as the
increased internationalization of trade was generated by:
external factors, such as: the saturation of national markets, the restrictive legislation
in certain countries, the price fall of transportation, the existence of groups of
international consumers having the same homogenous needs regarding trans-cultural
products;
internal factors, such as: the search of superior growth and profitability levels to those
in the home countries, the geographical distribution of risks connected with
multinational exploitation, the strong belief in an exportable know-how, and the
distributor’s desire of power growth, both when it comes to sales and the capacity to
negotiate with international producers.
The interest of more and more distributors in creating relations with transnational companies
is determined by:
5. The power and dependency of relations – transnational companies are the suppliers
having the most important negotiation power in their relations with distributors. The
power of transnational companies resides in the products offered on the market and
their notoriousness in the relation with distributors. Their power is considered by
specialists to be a contribution to the distributor’s turnover. The increasing
investments of transnational companies in marketing and logistics in order to develop
a distributed administration on supplies, marketing or merchandising, have almost
succeeded in generating a dependency of distributors, while suppliers benefit from
the advantage of being almost indispensable to the latter.
Common goals for suppliers and distributors – common projects are undertaken in
marketing, merchandising and logistics.
Trust – Trust is mainly based on competencies awarded to the partner and is basically
limited to the technical aspects of a partnership.
Globalization and marzer:
Over this quarter century, research into the net effect of globalization on the environment has
matured, although there remain many outstanding questions. Moreover, there has been little
(to no) effort exerted at linking up the two broad literatures concerning the direct and indirect
effects of globalization on our natural environment.
The direct effects include emissions and environmental damage associated with the physical
movement of goods between exporters and importers. This includes emissions from fossil
fuel use, oil spills, and introductions of exotic species. At the same time, growth in trade and
foreign direct investment has numerous indirect effects.
These indirect effects are often classified as falling under one of three categories: the scale,
composition and technique effects. I begin this chapter with a summary of patterns and rates
of growth in international trade and foreign direct investment (FDI), followed by an overview
of early research into the relationship between globalization and the environment.
I then offer a summary of extant knowledge of globalization‘s indirect effects, focusing
largely on current estimates of the size of the scale, composition and technique effects. I
conclude the chapter with a brief discussion of the various direct effects of globalization,
notably transport related emissions and biological invasions, and attempt, however modestly,
to put these into the broader context of overall effects.
Globalization and the strategic alliance:
A Strategic Alliance is a voluntary arrangement between firms that involves the sharing of
knowledge, resources and capabilities with intent of developing processes, products, or
services (Rothaermel 2012). It is a relationship between two or more parties to pursue a set of
agreed upon goals or to meet a critical business need while remaining independent
organizations.
A strategic alliance exists whenever two or more independent organizations cooperate in the
development, manufacture, or sale of products or services. The alliance is a co-operation or
collaboration which aims for a synergy where each partner hopes that the benefits from the
alliance will be greater than those from individual efforts. By the turn of the 21stcentury, the
top 500 global companies had an average of 60 alliances each and this kind of joint
development of new strategies has become increasingly popular (Johnson, Scholes and
Whittington 2008). This is because organizations cannot always cope with increasingly
complex environments or strategies from internal resources and competences alone.
6. Firms enter many types of alliances, from small contracts that have no bearing on a firm’s
competitiveness to multibillion dollar joint ventures that can make or break the company.
An alliance, therefore, qualifies as strategic only if it has the potential to affect a firm’s
competitive advantage (Rothaermel 2012). The international business literature has
acknowledged a number of positive outcomes for companies actively engaged in strategic
alliances, such as higher return on equity, better return on investment, and higher success
rates, compared with integration through mergers and acquisitions. It is an acknowledged fact
that there is little understanding among business executives regarding the formation
processes, the dynamics and evolution of inter-corporate relations, and what are the factors
that determine the success rate in strategic alliances.