BY: Ravi Bhati

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

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

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

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


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

Going global requires an assessment of your plans. There isnt 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)

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

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

Structural changes

Process changes

Human resources change

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.

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

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.