it will impart knowledge regarding what is globalization and how it affect organization

2.  What is globalization and its effects on organizations?
 Managing global organizations. Classic concepts in today’s
workplace.
 Making ethical decisions in today’s workplace.

3.  An important issue that managers face is
globalization. Globalization is the trend, which
has increased significantly over the last two
decades, of companies operating almost
anywhere in the world.
 Managers need to adapt to be successful in this
global environment and continue to foster an
understanding of cultures, systems, and
techniques that are different from their own.

4.  Globalization means “International Integration“.
 It is the process of unification of the whole world, which can
be in terms of:
 Economic unification
 Social unification
 Cultural unification
 Technological unification
and much more………

5. Global village- boundaryless world where goods
and services are produced and marketed worldwide
Global
 Exchanging goods and services with consumers
in other countries
 Using managerial and employee talent from other
countries
 Using financial sources and resources outside
home country

6.  Globalization is not new phenomena. For thousands of years,
people and civilizations have been buying from and selling to
each other in lands at great distances, such as through the famed
Silk Road
 The advent of globalization can be divided into 3 eras :
 Pre-World War Era
 During World Wars
 Post world War Era
Note : Globalization paced up after the World wars

7. A group of 2 or more people who work together in a structured
way to achieve a specific set of goals.
For example -: a musical group, a cricket team or a civic
organization etc.
 What is a Goal ?
Purpose that an organization strives to
achieve.
 It can vary from entertaining an audience
to selling a product – depends on the
organization

8.  Multinational corporation
Any type of international company that maintains
operations in multiple countries. MNC has three types;
 Multidomestic corporation
 Transnational organization
 Global corporation

9. “Which product is right for you?”
Multidomestic corporation:
An MNC in which management and other decisions
are decentralized to the local country in which it is
operating.
 Rely on local employees to manage the business.
 Tailor strategies to each country’s unique
characteristics.
 Used by many consumer product companies.

10. “We don’t want people to think we’re based in
any one place.”
Transnational (borderless) organization:
An MNC where artificial geographical boundaries
are eliminated.
 Country of origin or where business is conducted
becomes irrelevant.
 Increases efficiency and effectiveness in a
competitive global marketplace.

11. “This decision we’re making at headquarters has
company-wide, world-wide implications.”
Global corporation:
An MNC in which management and other decisions
are centralized in the home country.
 World market is treated as an integrated whole.
 Focus is on control and global efficiency

12. When organizations go global, they often use different
approaches, as we see here.
 Managers who want to enter a global market with
minimal investment usually start with global
sourcing(also called global outsourcing), which
means purchasing materials or labor from the
cheapest source in order to maintain a competitive
edge.
 Moving beyond global sourcing involves more
investment and risk for the organization. Exporting
and importing entail less investment and risk than
other steps in globalization.

13. A global world brings new challenges for managers,
especially in managing in a country with a different
national culture.
Parochialism is a narrow focus in which managers
see things only through their own eyes and from
their own perspectives; they don’t recognize that
people from other countries have different ways of
doing things or that they live differently.
“A person with a parochial attitude cannot
succeed in today’s world.”

14. The advent of Globalization has entirely changed the way
in which an organization performs. Some of these are:
 Change in Planning strategy
 Change in Leadership strategy
 Change in Structure
 The various factors which resulted in these changes are:
Cross cultural differences
Workforce diversity
Availability of level playing field
Emergence of global managers

15.  Going global requires “an assessment of your plans”.
 There isn’t a ‘one-size-fits-all‘ strategy
 Every business requires approaches that should be backed by
 logic
 careful planning
 realistic assessment of capabilities
 For example: Case of Apollo International in China (2002)

16.  Emergence of Global Managers
 Global Manager : A manager who can understand and
respond to the needs of International Business
 Key attributes of a Global Manager:
 Geocentric mindset
 Sensitivity to different cultures
 Mental toughness
 Thorough understanding of company's corporate purpose
 Interpersonal and communication skills
 Willingness to travel frequently
 Selection of a manger depends on the type of market also.
› Emerging markets  Flexibility, entrepreneurship
› Large markets  Strong public relations skills
› Slow growing markets  methodical approach, analytical

17.  Culture : acquired knowledge used to interpret experience
and generate social behavior ; it is acquired by learning and
experience
 workforce diversity : Similarities and differences
among employees in terms of age, cultural background,
physical abilities and disabilities, race, religion, sex, and
sexual orientation.
 Difficulties in policy designing & implementation
 Dimensions of Organizational Culture given by Geert
Hofstede:
1.) Power Distance 2.) Individualism
3.) Uncertainty avoidance 4.) Masculinity

18.  One of the most influential approaches to
analyzing cultural differences among countries
was developed by Geert Hofstede
 in the 1970s and 1980s.Hofstede surveyed more
than 116,000 IBM employees in 40 countries
about their work-related values and found that
managers and employees vary on five
value dimensions of national culture:

19. 1. Power distance, which is the degree to which
people in a country accept that institutional power
is distributed unequally
2. Individualism versus collectivism, which is the
degree to which people in a country prefer to act as
individuals or as members of groups.
3. Quantity of life, which values assertiveness,
materialism, and competition, versus quality of life,
which values relationships and sensitivity and concern
for others’ welfare

20. 4. Uncertainty avoidance, which is the degree to
which people in a country prefer structured over
unstructured situations and whether they are willing to
take risks.
5. Long-term orientation, which is the degree to
which people look to the future and value thrift and
persistence, versus short-term orientation, which is
the degree to which people value the past and present
and emphasizes respect for tradition andfulfilling social
obligations.

21.  GLOBE stands for ‘ Global Leadership & Organizational Behavior
Effectiveness ‘ – a cross cultural research effort.
 Conceived by Robert J. House in 1991, GLOBE involves :
 170 ‘country co-investigators’
 62 Societal cultures & 10 Societal Clusters
 Collection of data from 17,300 middle managers from 951 organizations
 27 research hypothesis were tested
 3 phases of GLOBE research project :
 Phase I - the development of research instruments
 Phase II - assessed nine cultural dimensions, of both societal and
organizational cultures & their impact on societal cultures
 Phase III - Study of effectiveness of specific leader behaviors on
subordinates’ attitudes and performance.

22.  Societal Cultures - All the business-oriented societies
ranging from Albania to Zimbabwe are divided into 62 groups
 Further grouped into 10 Societal clusters
• Anglo – 8
• Latin Europe – 6
• Nordic Europe – 3
• Germanic Europe – 5
• Eastern Europe – 8
• Latin America – 10
• Sub-Saharan Africa – 5
• Middle East – 5
• Southern Asia – 6
• Confucian Asia - 6

23.  9 Cultural Dimensions :
• Performance Orientation
• Uncertainty Avoidance
• Humane Orientation
• Gender Egalitarianism
• Future Orientation
• Power Distance
• Institutional Collectivism
• In-Group Collectivism
• Assertiveness
 conceptualized in two ways: practices or “as is,”
and values or “should be.”

24. Ethics commonly refers to a set of rules or principles that defines
right and wrong conduct. While most people recognize that
something illegal is also unethical, what about questionable
“legal” areas or strict organizational policies?
Suppose you managed an employee who worked all weekend on
a rush project. You told the employee to take two days off
sometime later and mark the days as “sick days” because your
company had a clear policy that overtime would not be
compensated for any reason. Would that be wrong?
As a manager, how will you handle such situations?
To better understand what’s involved in managerial ethics, let’s
look at three different perspectives on how managers make
ethical decisions.

25.  The utilitarian view of ethics says that ethical decisions are
made solely on the basis of their outcomes or consequences. The
goal of utilitarianism is to provide the greatest good for the
greatest number of people.
 In the rights view of ethics, individuals are concerned with
respecting and protecting individual liberties and privileges such
as the right of free consent, the right to privacy, and the right of
free speech. Under this view, making ethical decisions is simple
because the goal is to avoid interfering with the rights of others
who might be affected by the decision.
 Lastly, under the theory of justice view of ethics, an individual
is equitable, fair, and impartial in making decisions. For instance,
such a manager would pay individuals of similar skill,
performance, or responsibility level the same wage and wouldn’t
base that decision on gender, personality, or favoritism.

26.  Morality
 Values
 Personality
 Experience
 Organization's culture
 Issue being faced