Introduction:
Rapid development of globalisation is acting as a driving force among the companies to be more diverse in order to run business in the global environment. The global companies are taking special care towards operating business in more than one country which is the key factor in increasing rate of profitability (Cavusgil et al. 2014). This is the way, through which the cross-border transaction of products and services can also be initiated. This paper deals with managing business in the global environment. The changing view of globalisation will be discussed in the paper. Moreover, this paper will also shed light on the usefulness of cultural web model in changing organisational culture.
Week 2
Activity 2: Pankaj Ghemawat on Globalisation
1. Changing view of globalisation:
Globalisation has changed the entire perspective of human being. However, According to Pankaj Ghemawat, it is not a recent phenomenon. The very term globalisation has been fist floated by David Livingstone during 1850. This term has been popularised by Thomas Friedman. Reports are showing that, due to the rapid development of globalisation, the rate of internet telephony has been increased by 7% (Buckley and Ghauri 2015). One of the greatest aspect of globalisation is that, it has attracted immense foreign direct investment. As per the official data across the world, the rate of Foreign Direct Investment has been increased by 30%. However as discussed by Pankaj Ghemawat, the rate of foreign direct investment can vary. It is true that drastic emergence of globalisation has resulted in free movement of products and services across the borders (Evrard 2017). The activity of Japan in terms of supplying products in China can have a firm impact on increasing the rate of foreign direct investment. Such free movement of products and services can have a firm impact on increasing the rate of foreign direct investment. Ghemawat has also put ample pressure on the techno-trances. This can be regarded as the analogy human being, which can lead them to hear the techno music for a long time. This is one of the most significant brainwave activity. Based on the discussion, it can be said that, technology is ruling the lives of human being due to the sustainable development of globalisation.
Strong trading between US-China and US-Canada is one of the most significant aspects of globalisation. The rate of imported products from China is higher than that of US. However, US is not too much concerned in terms of trading exporting products to China. Rather the trading pattern between US and Canada is more balanced. However, US has more aggregate trading relationship with China (Coker 2014). Globalisation has also resulted in healthy interaction in between the countries apart from Trade. Globalisation also include easy transaction between human resources, economics and several other factors.
2. Issues of globalisation among people:
It has been observed that, due to the rapid development of globalisation, the attitude and perception among people is also changing promptly. Globalisation can have both positive and negative impact on the lives of human being. This is affecting the rate of local employment by enabling the companies to access cheaper labour market. It is important to lower the triggering rate of unemployment (Rupert and Smith 2016). It is the view of Ghemawat, the entire world is 10-20% globalised and it is important to undertake necessary changes in the national regulation in order to reduce the negative impact of globalisation.
Week 3:
Activity 5: Cultural web and its use in practice
1. Effectiveness of cultural web model in changing organisational culture:
Healthy organisational culture comprises of effective values and behaviour which can have a firm impact on promoting unique psychological environment in an organisation. This is the key factor for protecting the mission, vision and values of an organisation which is highly required in order to attain desired business outcome (Elsmore 2017). Initiating effective organisational culture requires exclusive leadership. Therefore, it is the prime responsibility of the leaders of corporate entities to generate a strong aspect of change throughout the organisation with the assistance of strong framework. Cultural web is one of the most significant model, influencing the internal culture of an organisation (Al Saifi 2015). There are six different elements of this cultural web model which include power structures, organisational structures, rituals and routines, symbols, control systems and myths and stories.
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Figure 1: Cultural Web Model
(Source: Laforet 2016)
According to this model, it is imperative for the management of organisations to initiate a strong power structure. The team managers must have ample knowledge in order to deal with the employees with utmost efficiency. Organisational structure is another important factor of this model which stresses on the organisational chart as the major aspect to perceive the most valued component of an organisation. Control System can be referred as the way, through which the organisation is being controlled. Symbols are considered as the visual representation of an organisation such as its logo. Strong symbols create a positive vive among the employees. The previous history of an organisation plays a significant role in strengthening commitment among the employees (Douglas 2018). This is the way, through which great view can be generated among them. On the contrary, the typology type of corporate culture puts ample stress on the significance of creative thinking on initiating healthy culture throughout the organisation.
2. Benefits of typology of organisational culture:
According to this framework, there are four different typologies of organisational culture which include, power culture, role culture, task culture and personal culture. The inclusion of a strong power culture can serve an organisation with the ability to promote speed in their business process by lowering the dysfunctional conflict. This is the mode of controlling the human resources with utmost efficiency. Promoting role culture throughout an organisation is highly imperative in enabling the employees to understand their responsibilities and work accordingly to satisfy the requirements of employers. Role culture benefits the management to govern the functionality of employees.
Task culture supports in building proactive team in an organisation and monitoring the activity of individual team members. Through this way, healthy communication can be maintained among the staffs which is the key of maintaining consistency within a team. Personal Culture is considered as the belief and perception of individual employee (Alkhoraif and McLaughlin 2018). This culture allows the individual employees to take part in decision making process.
Conclusion:
Based on the discussion, it can be concluded by saying that, globalisation is driving the corporate entities to run business across multiple. Globalisation can have a firm impact on changing the lives of people. This is also increasing the rate of foreign direct investment which is the key factor for amplifying global economy. Organisational culture is the key factor of maintaining effective psychological ambience in an organisation. Cultural web model is a significant factor which can serve an organisation with the ability to redefining the core culture of an organisation which is very much needed to maintain healthy working environment.
Reference List:
Al Saifi, S.A., 2015. Positioning organisational culture in knowledge management research. Journal of Knowledge Management, 19(2), pp.164-189.
Alkhoraif, A. and McLaughlin, P., 2018. Organisational culture aspects that facilitate lean implementation: a pilot study. International Journal of Agile Systems and Management, 11(2), pp.103-125.
Buckley, P.J. and Ghauri, P. eds., 2015. International business strategy: theory and practice. Routledge.
Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014. International business. Pearson Australia.
Coker, C., 2014. Globalisation and Insecurity in the Twenty-first Century: NATO and the Management of Risk. Routledge.
Douglas, C., 2018. Adapting to Organisational Culture: a Staged Adaptation Model. CRC Press
Elsmore, P., 2017. Organisational Culture: Organisational Change?: Organisational Change?. Routledge.
Evrard, A.Y., 2017. Modernity at Large: Cultural Dimensions of Globalisation. Macat Library.
Laforet, S., 2016. Effects of organisational culture on organisational innovation performance in family firms. Journal of Small Business and Enterprise Development, 23(2), pp.379-407.
Rupert, M. and Smith, H. eds., 2016. Historical materialism and globalisation: Essays on continuity and change. Routledge.
