Contemporary Issues in Management - Essay Example

? Contemporary Issues in Management Introduction The business environment in which nearly all businesses operate in or ought to operate in is immensely defined by several factors, and those which greatly impact on the business activities of such businesses. The two main forms of such factors that have been forthrightly identified and overtime subjected to various studies; and to which this study will be based upon are globalisation and organisational culture and change. The events that have recently taken place in the spheres of business have greatly shown how vulnerable the business society is especially with the rampant changes that have consistently arisen as a result of these two factors. In this study, the main theme will be the analysis of the impacts of both globalisation and organisational change and culture on the field of business management; especially with regard to the contemporary issues affected as a result of the same. To be able to achieve this, this essay shall focus on a structured format that will first briefly describe the concepts and then give an understanding of their impacts on the dynamic business environment. Brief description of the concepts of globalisation and organisational culture and change The definition for the concept of globalisation can be in various forms but, in the case of this essay, two profound definitions shall be adopted. The first is that it refers to the progress achieved towards the spreading out of financial viability and social ties among different countries in the course of the broadening of commercial institutions and the industrialist philosophy leading to the withdrawal of the world in trade and industry. A view of globalisation in this manner would imply to it as a wave of movement that is based on the capitalist philosophy that encompasses the expansion of social and economic ties between countries in the global scale. Subsequently, the concept of globalisation can be perceived to be the process of integration and movement of goods, people, money, business, culture, ideas and services on a global scale across national boundaries. In this definition, globalisation is perceived as a global coverage of the spread or increase in the global flow of goods, services, knowledge and resources worldwide. This is combined by the emergence of complimentary organisational set of structures that manage the expansion of the network of economic transactions and activities in an international scale. This idea espouses on the realization of the fact that, through globalisation, a global economy may easily allow for the operation of financial institutions and firms trans-nationally (AL-Hyari, Alnsour, Al-Weshah & Haffar, 2012.p.157-160). The significance of this in the global economy would be that the factors of production, goods and financial assets would be nearly perfect substitutes on a global scale hence, continue accelerating the growth prospects among developing nations. As such, it can be acknowledged that there are various dynamic propositions through which the impact of globalisation on the business environment can be analyzed. One such way can be through the analysis of the effects on the increased competition and achievement of competitive advantage. Another important aspect through which the impacts of globalisation can be analyzed is in consumer behaviour in which various firms and individualities have sought to enhance the business environment. This has been through the realization of various theories and their impacts on the global consumer trends. One such theory is the Hofstede’s dimension of culture. The second concept as will be discussed in this essay is organisational culture and its impact on the dynamism of business environments on a global scale. Businesses are made up of diverse people who are endowed with different personalities, talents and capabilities. Therefore, the likely expectation would that of a diverse business culture in every organisation. In most of the cases, these aspects of business culture undergo through numerous changes, which in essence have an effect on the nature and vitality of the business atmosphere likely to be operated in by the organisation. The simplest and straightforward definition of organisational culture is that it refers to the observable behaviour patterns as exhibited by an organisation’s personnel. These behaviour patterns have profound impacts on the nature of activities conducted by the organisation and the impact of the same to the business environment in which the organisation operates. In most instances, the application of organisational customs can be accredited to the implementation of globalisation in the conduct of business activities among organisations in the world. The main benefit that is derived from the enhancement of good organisational culture is the ensured integration of the values and principles that guide an organisation. This is because the organisation’s culture anatomy will greatly influence the potentials for success or failure by the organisation. Additionally, the effectual ability of an organisation through its leaders to cope up with the change in the business setting and promotion of modernization in the organisation will further enhance the understanding of the missions of the organisation. Therefore, organisational culture analysis will greatly reveal that there is a close relationship between it and organisational change, particularly with regard to the acceptability of forms of change in the organisation’s business environments. What is being witnessed today is an unimaginably fast changing business environment, which is largely influenced by a constant change in the business environment operated by most organisations. Through the combination of globalisation and market liberalization, organisations have been able to prepare for the rapid changes in the perspectives of business dynamics. In respect of this, most organisations are being slowly forced to the acceptance and realization of the varying changes and demands experienced in the business environments they operate in, particularly in the global business environment. For instance, it is extremely difficult for an organisation in this modern era of esteemed growth in technological means of production to be sustainable in its operations without the adoption of adequate technological means of production. Since organisation culture and change is this essential to the sustenance of a business in this global dynamic environment, it will require the consideration of certain critical business management aspects. First, it should be clearly shown how an organisation treats its staff or employee, conduct its business activities, treats its customers and the wider immediate and global community in which it operates. Second, the process of decision making within an organisation and the extent to which freedom for doing the same is allowed should be identified. Consequently, it is imperative that an understanding of how the development of new ideas and the realization of informational flow through the available organisational hierarchy are achieved. Finally, the commitment of the organisation’s employees towards the collective objects such as marketing strategies, advertising practices, creation of new products, customer satisfaction and ensured safety and the measuring of quality of the products. The impacts of globalisation to the dynamic business environment Globalisation impacts can be both positive and negative depending on the adaptability of an organisation or country to organisational changes. For example, in certain organisations and countries the adoption of globalisation has been receding due to the perceived negative influences associated with it. Due to globalisation, there have been experienced a swift change in the setting in which organisations operate in. This has been enhanced by the representation of divergent business processes through the convergence of high speed organisational communication and the convergence of the different tastes of consumers. In certain countries and organisations, the changes in the business environment as a result of globalisation have been slowly gradual but, promising. This has been due to the associated persistent problems as a result of globalisation. The main impact of globalisation is that it has led to the implied increase in interdependence among countries and organisations such as multinational corporations through the enhanced cross-movement or flow of goods, services, information, ideas, finance, technologies and people among companies and across nations. This has greatly transformed the business environment in the sense that there is heightened competition among countries and companies for the production and acquisition of the best factors in terms of personalities, goods, services, technologies e.t.c since the same can be easily achieved in the globalised international economy. Second, through globalisation, there has been an increase in the impacts of an economic nature such as the increased demand or competition for products and a space in the global market for the same. This aspect of economic globalisation can be mentioned to be significantly related to the rapid pace of economic integration because of the central role played by economic integration towards the enhancement of globalisation. The effect of this economic form of integration has been core to the interlinking of world economies and markets in the demand for the synchronization of national economic policies. The central argument in this has been the need to maximize on the potentials of globalisation across economies through the enhancement of global reforms on structures of governance and the international dynamism of business environments. As such, it is important that the sensitivity of the multilateral business environment to the financial needs of organisations is sufficiently ensured. Consequently, a third impact of globalisation can be stated as that which has enhanced the creation of new liberalized business opportunities that have greatly enhanced the generation of economic growth; hence, the attainment of sustainable consumption of economic and environmental resources. This aspect of analyzing globalisation can be termed in reference to the ecological perspective of globalisation. For example, a look into companies today and their relations to ecological issues in their analysis of strategic equations reveals that most of them have experienced increased environmental impacts as a result of globalisation. As a result of this, most business executives had to learn new or alternative methods and processes of strategic management for effectively dealing with the associated uncertainties, instability and discontinuity in the organisational change prospects. As a negative impact, the critiques of the concept of globalisation have argued that it has immensely led to increased degradation in the environment and enhanced poverty prospects in the world scale. This is because most of the multinational companies that operate in the foreign countries, as well as the some of the local companies, have consistently failed to adhere to the regulatory set standards for environmental reservation but, engaged in acts such as pollution and deforestation, all of which have devastating effects on the environment. Human resource management and globalisation In the current global market, a consensus has been attained among various scholars and business practitioners on the basis that the business environment has become quite competitive as was experienced in the recent past due to the effects of globalisation. Therefore, the requirement for a business in the face of this is to concentrate on its competitive strengths and advantages. This greatly enhances the development of long term economic strategies by the business thus, enhancing quality and cost effective leadership, as well as attainment of innovative techniques in business (Markovic?, 2012.p.125). The understanding of globalisation and the impacts it has on the human resource base of nations is that, even though it may be feasible for other businesses to copy and adopt the competitive advantages of another organisation as fronted by technological development, the same cannot be true when the same involves the human resource of an organisation. Thus, in ensuring sustainable development, in spite of the effects of globalisation, the core organisational competencies of a business can be achieved through the effective provision of the traditional management services of human resources. Consequently, the same can be resolved through the engagement of macro concerns like management and corporate culture development. The reason in support of this is that the availability of an adequate human resource can enhance growth in the business environment through the acquisition of the required expertise and skills in the human resource. The argument according to most scholars who have studied the impacts of globalisation with regard to maintenance of sustainable human resource base is that there have been occasions of documented brain-drain or brain washing. In this, the viable and active minds of professionals from the less developed and developing countries are increasingly attracted to developed countries where the means of remuneration are better and fair. This transfer of skills and knowledge across national borders as enhanced by globalisation has consequently led to a shortage of the same in the developing countries; thus, derailing the growth and development processes. This is because no enhanced economic sustainability and development can be achieved when the workforce is uninformed adequately for the same, especially in the face of rapid uptake of technological means of production by most organisations and government agencies across the world. The obviously eminent reason for this mass movement of human resource as had been witnessed in the past is as a result of the incapability of the urbanized countries to produce enough personnel to cater for their needs. Such includes teachers, doctors, nurses, and engineers among others. According to the research that was conducted by the OECD, in as much as the emigrants remit huge amount of money to their countries, which greatly help their poorer relations, the same cannot be equated to the great economic deficiency that the countries encounter due to the absence of these professionals who would have greatly contributed to the national development projects in their particular countries. Ideally, the emigration of the highly skilled workforce from the less industrial countries to the industrial countries may ideally prevent the poor less developed nations from meeting the essentially required mass target of human resources that is required for the fostering of long term development projects (Jones, Jimmieson & Griffiths, 2005.p.370-377). Finally, globalisation has critically impacted on the business environment through the presentation of economic growth opportunities to businesses. However, this has been at the extent of subjection of the same businesses to harsh competitive conditions; thus, leading to the rise of a digital divide that can be hardly ignored by organisations that seek to analyze globalisation from the perspective of strategic management. This new trend has led to the thriving of social issues in the business environment which have also led to the expression of doubts whether the same can be handled by the less developed nations that will likely be affected by the global economic dispensations rising from the social issues, which are also being felt by the business institutions in those countries. This aspect of globalisation, therefore, presents its devastating results such as marginalisation of organisations, growing inequalities and increased poverty levels. However, while all these scenarios are analysed, it is increasingly becoming obvious that, through globalisation, both developed and developing or less developed countries will be interlinked by the effects of information and communication technology, which has majorly fueled the same globally. Therefore, the management of competitiveness through the understanding of adequate knowledge standards is a major core strategic competency through which businesses can achieve strategic success in the global business environment. The impacts of organisational culture and change on the dynamic business environment Quite often than not, it is heard among an organisation’s employees the statement that the organisation’s culture is the source of its downfall or success. In most instances, the complaints of not being productive and innovative in the face of the ever challenging and growing business environment is as a result of the poor organisational culture and change strategies applied. In such instances, it is imperative to realise that the complaints may be justified hence, the need for an understanding of their impact on the dynamic business environment in which the organisation operates within. The dynamism of organisational cultures is expressed in the realisation of the fact that the same may not be encompassing or may absolutely lack the broad links that are essentially required in the definition of one’s understanding in such an environment. As stated earlier in the introduction, an organisation’s culture may be quite interpretive hence, make it necessary that the applied organisational structure easily adapts and changes to new inferences in the organisation. The significance or magnitude of organisational culture In every organisation, the structure of its culture should be three-tiered. The foremost driving force in this level is the inspiration received by the employees from the organisation’s management hence, determination of the efforts put towards maintenance and improvement of growth. In the second level, the management is likely to be seen concentrating on the relationship that exists between employees and the formation of group identities. In the final level, the main aim is the construction or development of an efficiently run organisation in the dynamic business environment (Fairfield-Sonn, 2001.p.456). Based on this, it is important that an organisation recognises the essence for a thriving growth and development culture that can enhance organisational change. The main reason in support of this is that the business environment is hugely being impacted upon by the concept of globalisation and considering too that technological advancements are the core drivers of the said globalisation; employees can easily seek for jobs in other areas where they perceive the organisational culture and change to be very positive. Therefore, it is important that organisational culture is importantly esteemed by all businesses since it can lead to the creation of sustainable development goals by an organisation and enhance cohesion among the business’ employees. The influence of organisational culture and change The first main aspects under which organisational culture and change may impact on the dynamism of the business environment is through the encouragement of the individual efforts exhibited by acts of motivation among employees. Through the sufficient motivation of employees, an organisation will be able to satisfy its production limits since employees will work to ensure that they have achieved their best. Second, organisational culture and change may impact on the business environment in the sense that membership in any organisation is the most essential component for the well being of that particular organisation. For that reason, the stability of an organisation will be quite important for its continued sustenance and survival in the face of a competitive business environment. This stability may only be possibly achieved through a good organisational culture that will allow for easy communication and coordination of activities among different personalities in the organisation. Consequently, the same concept when applied in a similar line will easily lead to the differentiation of the non-members from the members in the organisation. Organisational culture and change can also impact on a business environment through its enhancement of how effectively the resources in the organisation are utilised. This is because, with an ensured organisational culture there will be an enhancement of the process of completion of projects by employees due to the availability of an adequate structure that addresses their needs sufficiently. These aspects are commonly defined by the goals and missions of an organisation; hence, it will be commonly evident that the good coexistence among employees themselves and with the management will lead to enhanced harmony and a balanced working culture that will subsequently create a good business environment. Additionally, with a good business environment fronted by the organisational culture, the clients or customers of the organisation will be more pleased to relate with it thus, ensured business gains in terms of profitability and good reputation. It is commonly witnessed among organisations that have stringent business norms that solidarity among all persons is enhanced thus, improved performance by the members. Existing types of organisational cultures There are four main types of organisational cultures that exist, and which have greatly defined the dominance of an organisation in a particular business environment. The core purpose for the identification of the culture existent and practiced in an organisation is that the same will determine the manner in which the organisation fits into the competitive business environment, as well as the meeting of its own organisational goals and objectives. These types of organisational culture are power culture, role culture, achievement culture and a support culture. In the first type, a charismatic leader is required to lead the organisation because they will act unilaterally but, decisively in the best interest of the organisation. In the second type, the business environment is highly structured, and the organisation has clear objectives and goals to achieve. In this, an employee is judged by how best they meet these targets. The achievement culture requires people to work hard. This culture mostly entails highly motivated employees who need little or no supervision to work. The final type requires employees to support each other, and enhance cooperation amongst them. These typologies in management can be effectively grouped into both sociability and solidarity dimensions (Murray, Murray, Poole & Jones, 2006.p.410). Conclusion In this essay, the focus has been on the impacts of the two concepts, globalisation and organisational culture and change to the dynamic business environment. In the two, it is evidently shown that there can be both positive and negative impacts depending on how each is applied. In the case of organisational culture, it is shown that most of them will adapt and respond to the challenges in their business environments such as competition, ambiguity and uncertainty by the reassertion of their own organisational behaviours. As for globalisation, this essay widely notes that the contemporary issues that affect dynamism of business environments is in relation to their strategies towards globalisation (Markovic?, 2012.p.140). 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