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Organizational decision making Essay

The 21st century innovations which started way back in the 20th century have led to increasing information sharing and increased business opportunities on the global arena. These transformations have been brought about by globalization coupled by the technological advancement which has brought about the varying and complex changes in the business world. The current world is characterized by speedy, remarkable, and often unstable changes which have impacted on the performance of duties by the workers working for different organizations.

There is no doubt that change has been regarded as part and parcel of organizational life in the modern environment. This paper shall look at how globalization might impact on the organizational decision making and the recent trends in the global business. Globalization The concept of globalization has become a common phenomenon in the day to day life in modern times. The term has taken precedence in the media and the social circles within the modern society. Globalization has been defined as the integration and interdependence that has come to characterize the world leading to development of a single and yet complicated culture.

Globalization has therefore traversed the business world and led to interlocking of the world economy into one large market. The

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globalization phenomenon has gained a lot of momentum in the recent past and this has greatly transformed the manner in which businesses operate on the global front. Globalization and information technology has played a vital role in the definition of the world organizational environment though the impacts of the two factors on the decision making process in business organization has not been well explored (Newell, 2002). Impacts of Globalization on Organization’s Decision Making Process:

Globalization has led to an expansion in business and international trade and this linkage has been of importance to the business industry. Initially, most businesses have been doing business transactions locally but as the industry developed, coupled by the globalization phenomenon, the structure of the businesses has become more complex in regard to scope, ownership and management of the business organizations. The investment in the business organizations that comes from outside the proprietor’s country of origin comes with some challenges which are deemed to impact on the organizational strategies and performance of the company.

Some of these environmental factors that might affect the business entity in a globalized arena include: political factors, such as foreign trade regulations, taxation policy; economic factors such as business cycles and inflation; socio-cultural factors like social mobility and lifestyle changes; technological factors like new discoveries; environmental factors, such as environmental protection laws and legal factors, such as employment law, monopolies legislation and cultural factors (Zhenjia, 2005, p 69).

The impact of globalization on the organizational culture has been tremendous in the various multinational businesses. Most business organizations insist on doing businesses in the manner that has been sanctioned by the company. This is to say that business organizations often insist on adherence to the corporate culture which is described as the shared beliefs, expectations and values within the organization. Corporate culture is usually transmitted from one generation of employees to another in any given business organization.

When a business organization wishes to establish an international establishment, the corporate culture must be adjusted so as to be accommodative of the diversified cultural environment in the new work setting. The new work setting therefore becomes enhanced by the cultural diversity that prevails and organizations should be better placed to meet the needs of the diverse customer and employee requirements. The concept of Equal Opportunity becomes a vital factor in this regard for ensuring that discrimination of any kind is prevented and that all the employees are treated with equality (Zhenjia, 2005).

Impact of globalization on the management style is also worthy noting considering that organizational culture is implemented mainly through the actions that are usually taken by the management. It must therefore be noted that style of managerial leadership is vital in enhancing insights which would support cultural values thus influencing the organizational strategy. Managers are usually classified depending on the styles employed in decision making and we therefore come up with the authoritarian, democratic, and the laissez-faire types.

Multinational organizations may employ the democratic management style as opposed to the authoritarian management style because it relates to diverse employees from various parts of the world. The Six-Continents PLC is one of the largest hotel chain groups in the world and it employs the ‘Disclosure Procedure’ which utilizes the democratic style of management. In this company, employees are given broad responsibilities and are free to discuss any issue with the relevant authority without any fear (Zhenjia, 2005).

Despite the increasing influence from globalization, some issues in the multinational business setting require some element of localization. This is important so as to meet some unique requirements for the local employees. It must be appreciated that local employees may be having different requirements in comparison to the expatriates working for the same business organization. With such a reality, the multinationals have to change the management style so as to adapt to the local requirement.

This is the case with the scenario as presented in China and Australia. The scenario presented in these two counties is strikingly different as in Australia; there has been a call for a reduction in the number of working hours per week with a promise to pay for the overtimes as a means to reward them. On the other hand in China workers are rewarded by offering higher salaries and promotions as opposed to vocations and/or leaves to spend with family (Zhenjia, 2005).

Globalization has also impacted on organizational structure since all organizations are dependant on the environment for their structure. It is therefore imperative to note that a dynamic environment shall impact more on the organizational structure compared to a static environment. Essentially, organization structure can be defined in terms of “formal divisions of the entity into subunits, location of the decision making responsibilities within that structure and the establishment of integrating mechanism” (Zhenjia, 2005, p 70).

Therefore it is worthy noting that in the global business criteria there is nothing like a global manager but “rather we have the business managers, country managers and functional managers” (Zhenjia, 2005, p 70). In addition to the three specialists, there are top executives at the headquarters who facilitates the composite relationships between the specialists. Challenges and Management of Workplace Diversity in the Global Business Environment Work place diversity in the world of business presents one of the unique challenges that have come with globalization.

The success of the global business in any organization is to be found in the proper management of diversity which happens to be inherently embedded in the globalization. If well exploited, diversity brings with it the diversified talents responsible for inventive ideas, perspectives and views to the business organization. The challenges that come with the diversity that faces the global business entities can be turned around to become strategic organizational assets only if the respective organization is capable of capitalizing on the delicate issue of diversity.

Diversity presents a scenario where an organization can respond to the business opportunities with some urgency and a creative mind (Lingham, 2008). Multinationals risks loosing special talents to their competitors if diversity is never part of their policy framework. There is need for managers to employ the ‘think globally and act locally’ approach in most instances to exploit the diversity that globalization presents. For effective management of the workplace in the diversified environment, there is need for a change of how the management approaches some issues.

There needs to be a shift from the ethnocentric perspective to a more culturally relative perspective being adopted by the management. This philosophical shift has to be ingrained in the managers for them to be able to confront the diversity issue that has come up with the globalization effect (Lingham, 2008). Conclusion In the modern times, globalization has taken the world by storm and organizations have to adapt new strategies and approaches that could enable them withstand the challenges of globalization and emerge with success in the business world.

This may require an overhaul in the conventional ways of conducting business for the organization in an effort to maintain competence in the ever-changing business world. Globalization is forcing organizations to adopt a fluid tendency where they have to be adaptive thereby being able to plan for change and improbability of the future. This is necessary for globalization has come with challenges which require to be addressed with speed and decisiveness for one to realize any success in business.

Bibliography: Lingham, Leo, 2008, Human Resources – challenges of cultural diversity in HRM, Retrieved on 19th July from; http://en. allexperts. com/q/Human-Resources-2866/2008/5/challenges-cultural-diversity-HRM. htm Newell, Peter, 2002, Globalization and the future state, Retrieved on 19th July from; http://www2. ids. ac. uk/gdr/cfs/pdfs/wp141. pdf Zhenjia Zhang, 2005, Impacts of Globalization on Hotel Companies’ Internal Operation Environment. Canadian Social Science, Vol. 1 No. 3, pp 68-71

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