Systematic Study of Organizational Behavior
Understanding the dramatic changes currently taking place in organizations has never been more important for managers than it is today. (Robbins & Judge, 2007). Some of the most critical issues confronting managers include increased globalization and greater diversity within organizations. Both of these issues, along with the manager’s use of intuition, influence the manager’s role within an organization.
Globalization
In order for a business strategy to be relevant and effective, management needs to pay attention to the changing commercial environment. One of the most significant new challenges for businesses is globalization, which can be explained as the merging of national economic systems into one huge global marketplace. (Marsden, 2008).
Because organizations are no longer constrained by national borders, the tastes and preferences of consumers from around the world are beginning to converge. Globalization has also led to the interdependence of national economies; a change in the economy of one country can quickly affect the economies of other countries. Through advances in communications and the removal of trade barriers, multinational companies have been able to access new markets as well as cheaper capital, materials, and labor. Production is often located where labor is cheapest, and satellite TV and the internet have aided global marketing campaigns. (Marsden, 2008).
Due to the increased convergance of consumer demands, many companies have adopted a global strategy, which means greater economies of scale due to lower production and marketing costs. (Marsden, 2008). However, where cultural differences exist, companies must be willing to customize their products for different mark ...