THE GLOBAL MANAGEMENT IN 21 st

CENTURY
Learning Objectives
• The New Business Environment
• The Global Village
• Expansion of International and Intercultural Relationships
• Types & Roles of Manager
The New Business Environment

As Sklair (2002) suggests, there is only one dominant

global system structured around, more and more, the
transnational corporations, a transnational capitalist
class and the culture-ideology of consumerism.
Transnational corporations (TNCs) or multinational
corporations (MNCs) are companies that operate in more than
one country. Unilever, McDonalds and Apple are all examples
of TNCs. TNCs tend to have offices and headquarters located in
the developed world.
The transnational capitalist class (TCC), also known as
the transnational capitalist network (TCN) - is the global 
social stratum that controls supranational instruments of the
global economy such as transnational corporations and heavily
influences political organs such as the World Trade Organization.

Global corporations like Walmart are an extreme example of

globalized capitalism when they source and distribute products
from suppliers all over the world without producing a single item
themselves. Labor can be sourced around the world.
The culture-ideology of consumerism refers to the
transformation of excessively above-subsistence
consumption from a sectional practice of the rich
throughout human history to a globalizing
phenomenon directed at the mass of the population.
Globalization marks:
 the hegemony of transnational capitalism in
general, and the institutional primacy of the
transnational corporations, in particular;
 the internationalization of finance, production and
the free movement of capital and workforce
around the world;
 the increasing volatility of markets.
According to Burke and Cooper (2003), some of the
dramatic changes affecting organizations throughout the
world are:
 the increased global competition.
 the impact of information technology
 the re-engineering of business processes.
 the shift from making a product to providing a service.
 the increasing disappearance of the job as a fixed
collection of tasks.
In addition, Kotler (2003) highlights:
 digitalization and connectivity;
 disintermediation and reintermediation.
 Customization and customerization;
 industry convergence.
 CHANGE

CONFLICT

COMPETITION
Drucker (1999), a forerunner in knowledge
management, stressed the growing importance of
information and explicit knowledge as an
organizational resource. The creation and utilization
of knowledge become the fundamental engine of
wealth of the modern corporation.
On the other hand, knowledge management needs to
be approached from the perspective of the knowledge
consumer. Every employee must better understand
the specific needs of knowledge consumers. In this
respect, the organization’s management must ensure
that all employees become more educated.
Global Village

Globalization, access to greater markets and

coordination help in making a global village. Global
village can be defined as a phenomenon of the world
becoming more independent because of progress and
technological advancement.
Scope of international and intercultural relationship is
rapidly expanding
• Offers the ability to deal across cultures, which is
increasingly important, as the world gets smaller.
Getting smaller doesn't mean the world is becoming
identical, it means having more and more contact with
people who are culturally different.
Types and Roles of Global Managers
Types of Managers

• A Country Manager
• A Functional Manager
• Leadership Capacity
A Country Manager

Responsible for business development in a new

country or region. They are particularly important for
companies that are expanding internationally, as they
deal with the launch, development, and management
of local service/product offerings from production to
marketing on distribution networks.
A Functional Manager

Manages and owns the resources in a specific

department, such as IT, engineering, public relations,
or marketing, and generally directs the technical
work of individuals from that functional area who
are working on the project.
Leadership Capacity

The ability to think and then act in ways that are more
effective during times of increasing VUCA (volatility,
uncertainty, complexity, ambiguity) and rapid change.
Increasing leadership capacity (rather than just teaching
competencies) is known as vertical development.