This document provides an overview of globalization and its effects on organizations. It discusses the historical background of globalization and how it has accelerated after World Wars. Globalization has changed how organizations are planned, led, and structured. Factors like cultural differences, workforce diversity, and availability of global markets have impacted organizations. The document also discusses Project GLOBE, a major cross-cultural research study that identified 9 cultural dimensions to analyze national cultures and leadership.

1. BY:
Ravi Bhati

2.  Globalization and its historical background
 Effects of globalization
 What is an Organization
 Effects of globalization on organizations
 What is Project GLOBE

3.  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………

4.  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

6. 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

7. 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

8.  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)

9.  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

10.  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

11. Structural changes
Process changes
Human resources
change

12.  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.

13.  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

14.  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.”