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The Impact Of Globalization On Leadership And Management

1211 words - 5 pages

"Globalization, both as an ideology and process, has become the dominant political, economical and cultural force in the 21st century." Quote from "Globalism: The New Market Ideology" by Manfred D.Steger Merriam-Webster defines globalization as “the act or process of globalizing: the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor market.” Before the recent increase in globalization, organizations usually considered their customer base and market to be their country of origin, however with the rapid spread of diversity, organizations can now consider the entire world their market and available customer base. In an attempt to remain competitive, increase revenue, production and services, organizations have expanded across the globe to tap into additional human resources. Therefore, these changes have impacted the roles of leaders and managers within these organizations. Due to globalization, the fabric of the American workplace had changed and will continue to change as long as organizations feel there is a need to expand services, increase revenue and recruit the best and brightest individuals from all over the world in an effort to remain successful and keep their competitive edge.
With the rapid expansion of globalization, leadership has been impacted through market and customer base, international employee transfer rates, competition and increase opportunities. Although globalization has also increased the need for great leadership, it has also left many leaders to question the complexity of the task and their abilities to lead multinational organizations (Adamson, Ahn, Dornbush, 2004). It’s not enough to provide the company’s vision, or re-state the mission to motivate and empower a diverse group of people. According to Adamson, et al (2004), managers must display skills of strong business knowledge, must have an awareness and sensitivity to cultural differences and standards, and must show courage, commitment and integrity (p. 54). Anyone can be a ‘good leader’ but if you are a leader with a great sense of work ethic, personal and professional integrity and determination for success, then managing a large diverse group of people wouldn’t poise such a challenge.
As organizations change, leadership must find ways to adapt and adjust to those changes. Many times it’s the inability of being open-minded to new ideas, beliefs, thoughts and cultures that prevent individuals from moving forward. Saner (2004) states, “Increased globalization and integration of information technology have brought about a fundamental rethinking of how to conduct business and how to lead a complex organization for continuous improvement and reinventing of the organization” (p.654). In any organization, change brings resistance, but with positive...

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