This document discusses how the world of work is changing due to globalization. It notes that most developed countries transitioned from agrarian to industrial societies by the 1960s and then to a new information and knowledge-based economy by the 1970s. This has led to a global marketplace and the rise of multinational corporations and transnational companies. It also discusses how globalization presents challenges for managers in dealing with different national cultures, citing Hofstede's cultural dimensions model which identifies individualism, power distance, uncertainty avoidance, and quality versus quantity of life as key cultural factors.

1. Changing WorldChanging World
By sujith bhaskar RBy sujith bhaskar R

2.  Lean , fast ,and flexibleLean , fast ,and flexible
 Quality , organize work team , create ethicalQuality , organize work team , create ethical
environments ,minimize hierarchical overhead , andenvironments ,minimize hierarchical overhead , and
exhibit entrepreneurial skillsexhibit entrepreneurial skills

3.  Understanding the Changing world of workUnderstanding the Changing world of work

4. Changing EconomyChanging Economy
 Before1890’s – 90% of people were employed inBefore1890’s – 90% of people were employed in
agriculture – related jobs .agriculture – related jobs .
 After 1890 till 1960s most of the developed countriesAfter 1890 till 1960s most of the developed countries
moved from agrarian societies to Industrial Societiesmoved from agrarian societies to Industrial Societies
 By 1970s a new age that is based on InformationBy 1970s a new age that is based on Information

5. Knowledge WorkersKnowledge Workers
 Workers whose jobs are designed around andWorkers whose jobs are designed around and
application of informationapplication of information

6. A Global MarketplaceA Global Marketplace
 Global Village – Concept of boundary less world ;theGlobal Village – Concept of boundary less world ;the
production of and marketing of goods and servicesproduction of and marketing of goods and services
world wideworld wide

7. MNCsMNCs
 Companies that maintain significant operations inCompanies that maintain significant operations in
two or more countries simultaneously but are based intwo or more countries simultaneously but are based in
one home countryone home country

8. TNCTNC
 A company that maintains significant operations inA company that maintains significant operations in
more than one country simultaneously andmore than one country simultaneously and
decentralizes decisions making in each operations todecentralizes decisions making in each operations to
the local countrythe local country

9. Borderless organizationBorderless organization
 A management structure in which internalA management structure in which internal
arrangements that impose artificial geographicarrangements that impose artificial geographic
barriers are broken downbarriers are broken down

10. Stages of Going Global
Stage 1
Passive Response
Exporting to
foreign countries
Stage II
Initial Overt Entry
Stage III
Established International
Operations
Hiring foreign representation
or contracting with foreign
manufactures
Licensing /
Franchising
Joint
Ventures
Foreign
Subsidiary

11. What effect does globalization haveWhat effect does globalization have
on Mangerson Mangers
 Challenges for managers – cultural factorsChallenges for managers – cultural factors
 Managing in a country there’s different nationalManaging in a country there’s different national
cultureculture

12. Hofstede’s Cultural DimensionsHofstede’s Cultural Dimensions
 Geert Hofstede surveyed over 116000Geert Hofstede surveyed over 116000
employees in 40 countries all of them workingemployees in 40 countries all of them working
with IBMwith IBM
 He indicated that in general national cultureHe indicated that in general national culture
has a major impact on employees’ workhas a major impact on employees’ work
related values and attitudesrelated values and attitudes

13. Hofstede’s Cultural DimensionHofstede’s Cultural Dimension
 IndividualismIndividualism
 Power DistancePower Distance
 Uncertainty AvoidanceUncertainty Avoidance
 Quantity versus quality of LifeQuantity versus quality of Life

14.  Individualism - A loosely knit social frame work inIndividualism - A loosely knit social frame work in
which people are supposed to look after their ownwhich people are supposed to look after their own
interest and those of their immediate familyinterest and those of their immediate family

15.  Power Distance – A measure of the extent to which aPower Distance – A measure of the extent to which a
society accepts the fact that power in institutions andsociety accepts the fact that power in institutions and
organization is distributed unequallyorganization is distributed unequally
 Employees shows great deal of respects for those inEmployees shows great deal of respects for those in
authorityauthority
 Titles and rank carry a lot of weightTitles and rank carry a lot of weight

16.  Uncertainty avoidance – Organizations areUncertainty avoidance – Organizations are
likely to have formals ruleslikely to have formals rules

17.  Quantity versus Quality life – Some cultureQuantity versus Quality life – Some culture
emphasize the quantityemphasize the quantity
 Some culture emphasize the quality of life that isSome culture emphasize the quality of life that is
placing importance on relationships and theplacing importance on relationships and the
expression of sensitivity and concern for the welfareexpression of sensitivity and concern for the welfare
of othersof others