Globalization and Management: Impacts and Roles

Posted on Jan 19, 2025 in Public Administration, Management, and Governance

Pros and Cons of Globalization

Globalization is the absence of borders and barriers to trade, according to Ohmae (1995).

Why the Upsurge in Globalization?

  1. Increased customer demands and access to competing products and services:
    • More for less!
    • Global brands vs. local brands
    • Access to global distributors
  2. Increased technological innovation and application:
    • Improved ICT
    • Access to markets, partners, and global networks
  3. Increased power and influence of emerging markets and economies
  4. Increased globalization of financial markets
  5. Shared R&D and global sourcing:
    • Companies spread their research across multiple countries
    • Outsourcing (more of a rule than an exception)
  6. Evolving government trade policies: Governments try to attract foreign investments

What are the Consequences of Globalization?

Pros

  • Free trade objective (no borders, fewer tariffs, low prices, cost reduction, open markets)
  • More employment (new jobs, internationalization of products)
  • Development of poor countries or regions
  • Communication improvements (open lines of communication, we all gain a greater perspective about the world, everything is nearer to us (products, places, etc.))
  • Improved labor conditions

Cons

  • Rich become richer, poor become poorer
  • The majority of new jobs are from underdeveloped countries
  • Political systems where the bigger and the richer have the power
  • Security problems because of the global image and communications development
  • Lack of identity; we all become the same

10 Management Roles (Mintzberg)

1. Interpersonal Roles

Building and leading effective groups and organizations

a. Figurehead

In some countries, it has symbolic value, but in others, being a figurehead is not seen as a compliment.

b. Leader

  • Individualistic cultures prefer take-charge leaders
  • Collectivistic cultures prefer collaborative leaders

c. Liaison

Some countries prefer informal contacts based on long-standing personal relationships; others prefer to use official representatives.

2. Informational Roles

Collecting, organizing, and disseminating useful information in a timely fashion

a. Monitor

Culture often influences both the extent of information monitoring and which specific information sources receive the greatest attention.

b. Disseminator

In some cultures, the context surrounding a message is more important than the message itself; in others, the reverse is true.

c. Spokesperson

Culture often influences who is respected and seen as a legitimate spokesperson for an organization.

3. Decisional Roles

Making strategic and tactical decisions and securing broad-based support for such actions

a. Entrepreneur

Some cultures are highly supportive of innovation and change; others prefer the status quo and resist change.

b. Disturbance Handler

Some cultures resolve conflict quietly; others accept and at times encourage a more public approach.

c. Resource Allocator

  • Hierarchical cultures support differential resource allocations
  • Egalitarian cultures prefer greater equality/equity in distributions

d. Negotiator

Some cultures negotiate all items in a proposed contract simultaneously; others negotiate each item sequentially.

Cultural Differences in Supervisory Roles

Rethinking Management Models:

  • Germany: Supervisor as overseer and expert; technical competence (Meister)
  • UK, USA: Supervisor as boss; formal authority (Supervisor)
  • Japan: Supervisor as organizer, role model, and parent; social authority (Kacho)
  • Mexico: Supervisor as patron and boss; personal authority (Capataz or Jefe)