IMPACT OF

GLOBALIZATION
ON ORGANIZATION
BEHAVIOR

FROM
WASEEM AHMED
IMAN
ANNUSHREE
MOHD YASEEN
 Globalisation is the process by which the people of the world are unified into a single society

and function together. the process of globalisation not only includes opening up of world trade,

development of advanced means of communication,

internationalisation of financial markets, growing importance of MNC's, population migrations

and more generally increased mobility of persons, goods, capital, data and ideas but also

infections, diseases and pollution. These processes are being driven by a combination of

economic, technological, socio-cultural, political and biological factors .Growing interconnections

brought about by this process requires that both managers and organisations expand on traditional

repertoire of roles. For organisational leaders as well, the challenge is to manage tradition and

change. Global firms take shape by borrowing best practices and new ideas from multiple

cultures, but they must at the same time create an internal culture that infuses unity and provides

direction. Thus, global management skills and competencies are integral to all organisations.
Today’s business is mostly market driven; wherever the demands exist

irrespective of distance, locations, climatic conditions, the business operations are

expanded to gain their market share and to remain in the top rank etc. Business

operations are no longer restricted to a particular locality or region. Company’s

products or services are spreading across the nations using mass communication,

internet, faster transportation etc. An Australian wine producer now sells more

wine through the Internet than through outlets across the country. More than 95%

of Nokia hand phones are being sold outside of their home country Finland.

Japanese cars are being sold in different parts of globe. Sri Lankan tea is exported

to many cities across the globe. Executives of Multinational Corporation are very

mobile and move from one subsidiary to another more frequently.

Implications for Managers:

Globalization affects a managerial skills in at least two ways:

i) An Expatriate manager have to manage a workforce that is likely to have

very different needs, aspirations and attitudes from the ones that they are
used to manage in their home countries.

ii) Understanding the culture of local people and how it has shaped them and
accordingly learn to adapt ones management style to these differences is
very critical for the success of business operations. One of the main
personality traits required for expatriate managers is to have sensitivity to
understand the individual differences among people and exhibit tolerance to
it.
1.Managing Self 
2.Managing Communication
3.Managing Diversity
4.Managing Across culture
5.Managing Teams
6.Managing Change
7.Managing Ethics
THREATS OF GLOBALIZATION
 INCREASE OF UNEMPLOYEMENT

 DIVERSITY

 THE MULTINATIONAL HAVE ONLY

HANDFUL OF SHAREHOLDERS

 HEALTH SECTOR
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
ADVANCED GLOBALIZATION

 SOURCING RESOURCES

 DELIVERING

 INFORMATION EXCHANGE
Other factors
Socio-
1)Employment Economic Political
law cultural factors
Environme- factors
factors
2)Monopolies ntal factors 1)Foreign trade
3)Legislation Technological 1)Social regulations
1)Environmental 1)Business
factors mobility and
4) Cultural protection laws cycles 2)Taxation
lifestyle
and legal 2)Inflation policy
1) New 2)Lifestyle
.
discoveries
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.

 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.
 DISSCUSSING THE IMPACTS OF
GLOBALISATION
Globalization is a very debatable topic as it has goods and the
bads to the people. It depends upon the person whether the
Globalization is good or bad or it has :

• Positive Effects

• Negative effects
POSITIVE EFFECTS
1.Exposure to different cultures:

Due to Globalization the managers are able to learn about

different cultures – as they get to mingle with people from
various walks of life – and thus, increase their knowledge.
2.Larger Market:

Due to Globalization the customer base has increased

greatly. People travel not only for holidays, but business,
health and various other purposes too.
4.Technology Advancement:
upgrade and improve their products and services

Example: Singapore Flyer, using faster and newer technology

in hotels to so that the customer is satisfied.

5.Promotes Creativity:
Organizations are constantly thinking of new and creative
ideas

6.More Job Opportunities:

Due to Globalization, more visitors come into our country
and thus more people are needed to serve and cater to
their needs. So, with the advent of globalization, there are
a lot of more jobs available for people within industry
NEGATIVE EEFECTS
1.Language Barriers:
Due to Globalization in the we can employ people from
different countries – as it is usually cheaper – they may
sometimes have problems in communicating with
the customers. Many customers get quite irritate as a
result of this.

2.Cultural Barriers:
As there are people from various cultures, one needs to
be careful not to offend them. For Example, a Muslim will
not eat pork – one needs to make sure not serve food
which
contains pork.(unless specifically asked). Whats
acceptable by
one culture may be frowned upon by another.
3.Events/Disasters in other Countries:
A disaster or event taking place in one country may affect
our country (the home country) also. For example, the financial
crisis makes less people want to spend money or travel; due to
increase in terrorism some visitors get are not ready to travel to
certain countries.
4.Seasonal Employment:
During peak periods, a lot of jobs are available but as soon
as the tourists go back the jobs disappear as
well. For example: Goa – India; the locals in Goa get their
income only during the peak season, (Dec- Feb and April – July)
after which they have no jobs and no income.
5.Increasing use of technology to communicate:
Due to international barriers, there has been a steady increase
in the use of technology for communication (through the internet,
voice recordings). This removes the human touch.
6.Bad Habits:
People from other countries sometimes influence the local
youth in a bad way. Increase in drugs and promiscuous
behaviour, etc.
THANK YOU