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Impact Of Globalization On Organizational Culture

Feb 1,22

Impact Of Globalization On Organizational Culture

Question:

Discuss about the Impact of Globalization on Organizational Culture.

Answer:

Introduction

In this report, the discussion about the impact of globalization on organizational culture will be conducted effectively. The globalization is related to conducting business across the borders in which trading of goods and services, flow of investment, technology acceptance, movement of people an information can be seen on the priority basis. Globalization also describes the culture, population, economy of the world and other things that have large impact on business operations in the global market (Radovic-Markovic, 2012). These factors of globalization also impact the organizational culture when operating its businesses in several countries. In global business environment, many differences and even opposing value systems can be identified that impact the organizational culture as changing the communication process and diverse working environment.

Organizational Culture:

The organizational culture is associated with the collection of value, expectations and practices of the employees. Organizational culture also assures proper behavior of employees within the organization in which shared belief and values are established by leaders. The communication of leaders and the use of various methods are important to the perception of employees and their behaviors with understanding. At this stage, organizational culture is the combination of values, expectations, experiences, sociology, and psychology of the organization (Radovic-Markovic, 2012). Organizational culture is important to make the organization structured and promoting employees’ performance, productivity and their engagement effectively and efficiently.

Impact of Globalization on Organizational Culture:

The impact of globalization on organizational culture imposes significantly that can be generally identified as changing the communication process of the organization and certain transformations in the management system. The globalization raises transition in the different countries and facilitates the communication between organizations for the similar activities. There are major consequences in the world that have transmogrification of traditional religions and belief systems (Radovic-Markovic, 2012). Therefore, the globalization of an organization face challenges as the beginning of the traditional social fabrics and its disintegration. The shared norms in the global market can also be seen as consumerism, cyber-culture, and newfangled religions that affect the organizational culture on the priority basis. Globalization also affects the organizational culture as changing work ethics and work rhythms.

Further, business operations of an organization exist in a variable environment at the global level. In global environment, there are different social changes and national culture that affect the organizational culture effectively because the process of globalization in business operations has direct impact. The ethical behavior and values in the organization have capabilities to lead to many social changes. However, in global context, it is necessary adopt global environment to take its advantage more than the organizational culture (Lidija & Marjan, 2016). At this stage, it is the needs of the organization to cooperate frequently with global environment to increase the value of the organization culture.

There are many development opportunities because of economic globalization that serve the organization to conquer the global market through business expansion and increasing sales of the products. Therefore, the connection between globalization process and its impact on the organizational culture have long-term strategic aspects. The use of new business approach of the organization at the global level is not easy because of different situation of global environment that always impact the organizational culture as diverse work environment (Lidija & Marjan, 2016). The strong will of organizational change can be supported, but the global market is filled with demand that cannot be fulfilled without acceptance of the national culture and norms.

The impact of globalization on organizational culture can be determined as alteration of mental model of the employees about global thinking. The action in the world related to working process and activities are tied with strong culture of the country. It is necessary to adopt global culture when come in contact with different traditional values, the work, family and religion. The effect of globalization on the organizational culture has mainly on the nature managerial work and behavior of employees (Lidija & Marjan, 2016). The judgmental power of managers in globalized era can be increased because of persuasion and influence of changing environment. The globalization has capability to change and shape the behavior of the people according to the traditional value, norms, laws and regulations of different countries.

The globalization impact on organizational culture is also based on the global economic growth and industrial productivity. The global economic and industrial productivity play essential role that can be seen as the driving force of the organization. These are major consequences of globalization that have impact organizational culture due of depletion of natural resources and deforestation. Apart from this, the environmental consequences at the global level, such as the destruction of ecosystems and loss of biodiversity impact the organizational culture as increasing responsibility to maintain corporate social responsibility (Lidija & Marjan, 2016). Apart from this, there are greater levels of workplace diversity because of increasing globalization of the organizations.

In globalization, an organizational culture, such as value and preferences changes after diversifying a range of potential business partners. Both side partners need to take benefits in business partnership and both of which open the doors in order change more impactful cultural value. The organizational culture of an organization has opportunities to achieve workplaces access to more resources because of Globalization (Chatterjee & Pereira & Bates, 2018). This way of globalization provides assistance to the organizational culture, such as preference of the employees to increase their potential working capability, expectations, experiences, sociology, and psychology needs. The globalization makes driving change in organizational culture that can be seen as changes in workforce composition on the priority basis.

The adoption of global communication of an organization has large impact on its organizational culture that helps to get more business opportunities. There are direct impacts of globalization on the organizational culture in which removing cultural barriers and increasing understanding about a global reach are possible. In order to improve the organizational culture, it is necessary to adopt the global communication because it has also direct impact on the business environment, political environment and economic elements of the world (Chatterjee & Pereira & Bates, 2018). The impact of globalization can also be seen on team work in businesses. With the help of globalization that is more prevalent in the business processes, an organization can deal with increased cultural diversity within the workforce.

At this stage, globalization has positive impact on the organizational culture basically in the case of increased cultural diversity at the workplaces. Globalization provides benefits to the organizational culture through increasing many new insights about the different cultures. These new insights about different culture are beneficial for management and marketing point of view in the global market (Chatterjee & Pereira & Bates, 2018). At this stage, globalization is beneficial to the organizational culture to learn more about different perspectives of other countries and achieve opportunities in business expansion easily. 

Conclusion:

After discussion of about the impact of globalization on organizational culture, it can be stated that globalization describes the culture, population, economy of the world and other things that have large impact on business operations in the global market. Organizational culture also assures proper behavior of employees within the organization in which shared belief and values are established by leaders. The impact of globalization on organizational culture imposes significantly that can be generally identified as changing the communication process of the organization and certain transformations in the management system. The globalization raises transition in the different countries and facilitates the communication between organizations for the similar activities. The impact of globalization on organizational culture can also be determined as alteration of mental model of the employees about global thinking.

References

Chatterjee, A. & Pereira, A. & Bates, R. (2018). Impact of individual perception of organizational culture on the learning transfer environment. International Journal of Training and Development, 1-19.

Lidija, S. & Marjan, T. (2016). THE IMPACT OF GLOBALIZATION ON ORGANIZATIONAL CULTURE. Indian Journal of Commerce and Management Studies, 7(3), 1-6.

Radovic-Markovic, M. (2012). Impact of Globalization on Organizational Culture, Behaviour and Gender Role. USA: IAP.