The paper "Globalization in the Management Context" is an outstanding example of management coursework. Globalisation has become a buzzword in the modern world. It has also become a battlefield for opponents who believe that globalisation is disadvantageous and proponents who maintain that globalisation is advantageous to business and countries. Globalisation refers to the incorporation of a country’ s economy to the global economy. It entails the international incorporation of intercultural perspectives, ideas, technology, culture and products and services. Globalisation is attained by promoting the inward flow of foreign technology and funds, internationalising corporations and markets and opening up the system of investments and trade.
Many scholars and managers believe that globalisation of business is both highly desirable and inevitable. Yet for other business owners, individual workers and managers, the globalisation of the workplace have established more problems than opportunities. However, many of the disadvantages and advantages depend upon an individual viewpoint. This essay outlines the meaning of globalization in relation to management and identifies the conditions needed for globalisation to be advantageous. This essay contends that globalization is commonplace in society as are its impacts.
For management, there are pros and cons from globalization and these can depend on the type of organisation and/or the location of the organisation. Globalisation is beneficial for SMEs. Globalisation means the opening of nationalistic and local perspectives to a wider outlook of an interdependent and interconnected world with free services, goods and capital transfer across national boundaries. It is the procedure through which people become interconnected in all aspect of their lives, environmentally, culturally, technologically, economically and politically. According to Cornelius (2001), globalisation is the concept of a world economy founded on the augmenting transactions and interdependence between national economies and amid international and sub corporate actors.
The key management need has been for global integration and cross-market coordination. The ease of internationalisation is linked to swift technological communication and transportation. Globalisation allows the formation of a central international exchange system that helps firms to establish practical relationships worldwide with reduced costs and time investments. A firm’ s management must strive to make sure that resources are accessible to workers and are well leveraged to optimise the physical reach of a firm’ s operations.
Therefore, in relation to management, globalisation implies a great amount of diversity management given that globalisation allows interconnection of people. Due to globalisation, firms employ people from different cultures, geographical regions and demographics. As a result, managers need to establish a globally recognised perspective that considers geographic needs, customs and values in which their businesses operate Small medium-sized firms play a crucial role in the economic growth of nations. Globalisation has made businesses and economies to become interdependent for growth and survival. This situation promotes the role of SMEs in economic growth and job creation.
Policymakers recognise the entrepreneurial and innovative capabilities and potential of small medium-sized firms in producing services and goods required by society and establishing jobs that lead to economic growth. Notwithstanding that SMEs are a major source of job creation and economic growth, these organisations seem to be under-represented in the global economy compared to their contribution in local and national economies. Scores of problems facing SMEs efforts to globalise are known and they include lack of finance, management skills and effective planning besides establishment of dependable partners.
Nearly all economies at present offer a package of programmes and services designed to help firms to internationalise. According to OECD (2008), the past twenty years have seen the development of academic interest and policy in the role of SMEs within the global milieu. SMEs contribute between fifteen and fifty percent of exports, and between twenty and eighty percent of small medium-sized enterprises are active exporters (OECD, 2008). According to OECD, the great bulk of SMEs are subject to the globalisation pressures although they may not be internationally active.
However, SMEs enjoy opportunities in the global economy. The smallest of firms are internationalising at a great rate. Entrepreneurs are focusing more on international business as global transportation and communications become more effective, and as trade agreements open national markets to foreign nations. Several studies have confirmed that the size of a firm does not inevitably restrain a firm’ s international activity (OECD, 2008). SMEs can become global competitors and exploit their unique resources.
Cornelius, N.(2001). Human resource management: A managerial perspective. UK: Cengage Learning.
Dubrin, A.(2008). Essentials of management. USA: Cengage Learning.
OECD 2008. Removing barriers to SME access to international markets. UK: OECD Publishing.
The Diplomat 2008. Australia’s Top 100 Global SMEs 2008, The Diplomat. Retrieved from http://thediplomat.com/2008/11/australias-top-100-global-smes-2008/