Globalization has been defined in business schools as the production and distribution of products and services of a homogenous type and quality on a worldwide basis.

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                                             Table of Contents

Introduction        

Literature Review        

Analysis        

The “Global” factor        

Culture and organization        

Conclusions        

Recommendations        

References        


Introduction

Globalization has been defined in business schools as the production and distribution of products and services of a homogenous type and quality on a worldwide basis. Believe it or not, to define globalization is not as easy as the definition appears since nowadays the tag of globalization is applied to almost every ongoing trend, and as a result, it is hard to embrace all the meanings and implications in the term. Globalization rocked the environment in which organizations operate. Social and demographic forces have dramatically changed the make-up of today's workforce which is now the most educated and ethnically diverse in history. These developments are profoundly affecting the way in which organizations structure themselves, just as they are influencing individuals' attitudes to and expectations of both organizations and work.

In meeting the challenges of globalization, many organizations have recognized the need for cultural change. It becomes a common phenomenon that employees work in international teams or projects. Then there is also the need to create new, flexible organizational structures. In response to this need, many multinational companies (MNCs) have restructured itself from a multidivisional conglomerate into a holding company consisting of focused and market-driven, decentralized businesses that are responsible for their global operations. In a global environment, companies that consistently outperform the competition in their core businesses and capitalize on new opportunities are more likely to succeed into the 21st century.

Culture Shock can be difficult to deal with at times, but always keep in mind that this is a perfectly normal reaction for a human being who is taken from his familiar environment and placed in a foreign setting.”

For more than a century now, our society has experienced numerous changes. Numerous is probably too weak to describe a century that have seen the greatest inventions. The discoveries emerge at a tremendous pace and the era of communication slowly fades away at the benefit of the era of telecommunication.

In these decades of renewals, those very same discoveries open new perspectives in the commercial, industrial, political, economical and human relations between communities, cities, countries and broadly between cultures.

Indeed, using the phone, watching television, sending a fax, surfing the internet and emailing people, teleconferencing, virtual teams and virtual organization are just a few of those invention that ultimately make the world a smaller place.  It is not only a smaller place to live in, to interact with other peoples but also a smaller place to do business.

This assignment focused on the impact of globalization brings on organizational culture and structure in international organizations. Inevitably, at times, the impact results in the organizational cultural change and even restructuring. The assignment is made up five main parts of introduction, literature review, analysis, conclusions and recommendations.

Literature Review

By the market point of view, the creation of globalization can be understood as a three steps process, (Joag, 2000). At first, after the end of Word War II, the acceptance of free market system by the world governments. Then came the creation of regional free trade areas and, at last, the event of the general agreements on tariffs and trade (GATT) and the world trade organization (WTO).

Organizational culture has been an important theme in management and business research for some two decades. One reason for this is that organizational culture has the potential to affect a range of desired outcomes by individuals and organizations. Ritchie (2000) notes that, from the time of the earliest writers on organizational culture (including, for example, Deal & Kennedy, 1982; Ouchi, 1981), “it has been suggested that organizational culture affects such outcomes as productivity, performance, commitment, self confidence, and ethical behavior”. Similarly, more recent writers have repeated the assumption that “organizational culture impacts significantly on an organization, its employees’ behaviour and motivations and, ultimately, that organization’s financial performance” (Holmes & Marsden, 1996). Organizational culture has been argued to be relevant in a variety of contexts including the adoption of innovative technologies and workplace practices (Detert, Schroeder & Mauriel, 2000; McDermott & Stock, 1999), information systems integration (Weber & Pliskin, 1996), strategy implementation (Cabrera & Bonache, 1999), and planning initiation (Harris, 1999).

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Analysis

While studying diversity in a regional context is critical, one should bear in mind the impact that globalization has had on countries across the regions. The globalization of business activities is changing the labour market and pushing issues of diversity to the foreground. One of the effects of globalization is to increase the diversity of the workforce. Organizational leaders cannot simply acknowledge and accept diversity; they also have to manage it. Managers must work to challenge the assumptions that the needs and interests of different social groups are mutually exclusive and instead look for ways to find ...

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