Organizational/Case Analyses Number One
In a broad sense, globalization it is a multifaceted process which includes: politics, culture, environment, economics, religion, and ideology that constantly reshape the world while "deepening global connections" (Steger, p.18). While globalization encapsulates all of these social processes, capitalism and globalization are inherently connected. Globalization, as it is defined in narrower terms, is a trigger event that has caused “the inevitable spread of irreversible market forces driven by technological innovations” (p.99 Steger) which allows any potential company to compete in the “interdependent, global marketplace” (p.13 Spector). The ever-changing features and definitions of globalization construct it as an adaptable global entity.
When Thomas Friedman claimed that the world was “flat” he wasn’t trying to discredit any efforts made by Christopher Columbus, he was simply referring to the leveling of the global economic playing field from globalization 3.0. This declaration, much like the years in Spain after Columbus discovered America, is not yet fully realized by all organizations within the United States. This flattening will undoubtedly have effects on individual, group, and organizational levels – ready or not here it is.
The current era of globalization 3.0 would not exist without the efforts of Columbus in 1942 at the dawn of globalization 1.0, in which countries such as Spain used brute force to conquer other countries; triggering global integration. Globalization 2.0 began in the 1800 and lasted for 200 years; driven by multinational companies. The Second Industrial Revolution fueled the growth in communication and transportation, alleviating prior constraints on the global marketplace. Innovations in hardware that ranged from railroads and telephones to computers were the dynamic forces during this era of globalization (p.10 Friedman). Innovations in Scientific Management also fostered communication and economic growth during the Second Industrial Revolution. Pioneers in Scientific Management such as Daniel McCallum, the General Superintendent for the Erie railroad system, “increased efficiency at the same time he reduced the working force” by creating organizational charts and providing six general principles for workers to follow (Chandler 1965).
Globalization 3.0, the current era of globalization, “is shrinking the world from a size small to a size tiny and flattening the playing field at the same time”, by giving individuals the technologies and resources to participate on a global scale. Communication has transformed economic and social relationships throughout the world, and any model whether business, political, personal must adapt accordingly. This transformation is pointed out by Friedman as a movement from “vertical” to “horizontal” because one company can collaborate outsourcing, off-shoring, open-sourcing, supply chaining, insourcing, and informing through the turbocharged digital community. Operating a successful business in this age of globalization calls for “high levels of integration and coordination across organizational and national boundaries” (p.14 Spector).
According to Friedman, entrepreneurs and small businesses can benefit greatly during this era of globalization “by being quick to take advantage of all the new tools for collaboration to reach father, faster, wider, and deeper” (p.449 Friedman). Whether a company is large or small in size, they have to think globally. A sourcing arrangement with an outside supplier “can greatly enhance the ability of a company to implement transformational change and achieve its financial and non-financial business objectives” (http://findarticles.com/p/articles/mi_qa4140/is_200704/ai_n19511003). Without focusing on the daunting day-to-day duties of a business, an organization can make the most of their resources and time.
There are also organizational changes that can be made within the organization, ensuring a business’ success in this era of globalization. A way in which both most businesses and individuals can survive in this “knowledge” world is by fostering education. Education will give us the tools we need to understand how and why we must adapt to the ever-changing globalized world. While there have been changes in Scientific Management, the basis of implementing what is best for every aspect of an organization is still in practice.
Organizations must view themselves as “open systems” with the desire and ability to adapt to the external and internal forces in the same ways as globalization. Spector touches on the importance of an ongoing “open dialogue” between the individual, group, and organizational levels to successfully adapt to these forces. With help from specialized consultants, organizational leaders can foster “Institutionalizing dialogue and diagnosis so that they become an organic and ongoing part of the organization’s activities” (p.56 Spector). Proper motivation and coordination between the subunits are the pillars of organizational change because, “Organizations are composed of multiple parts and components that must be aligned in their efforts” (p.48 Spector). Open communication is the motivating tool needed for participants to engage in understanding; generating the appropriate attitude and understanding for proper alignment across all levels. The ability of a system to be open is essential in implementing organizational change because of its nature as an ongoing process, similar to the nature of globalization.
Chandler, Jr. Alfred D. “The railroads: Pioneers in modern corporate management,” Business History Review 39:1 (1965): 16-40
Friedman, Thomas L. 2007. The World Is Flat: a Brief History of the Twenty-First Century. New York: Picador/ Farrar, Straus and Giroux.
Nagel, Trevor W. “The Impact of Globalization on Structuring, Implementing, and advising on sourcing arrangements”. Georgetown Journal of International Law. Spring 2007. FindArticles.com. (07Mar.2008).http://findarticles.com/p/articles/mi_qa4140/is_200704/ai_n19511003
Spector, Bert. 2007. Implementing Organizational Change: Theory and Practice. Upper Saddle River, NJ:
Steger, Manfred B. 2003. Globalization: A Very Short Introduction. Oxford: Oxford University Press.