Globalization Affects Organization Behaviour

The term ' globalization ' is now commonly used and familiar to everybody. Now, globalization is not just a matter of trade and economic interdependence. It also relates to our whole life. Globalization is a process. The purpose of this essay is to discuss the impact of globalization on organizational behaviour. There are three parts of this essay. First, there are two sides of the definition of globalization.Second, this essay will illustrate the role of globalization of organizational behaviour. Third, there is a discussion of the scholarly disagreement on the existence of globalization.

Two sides of the definition of globalization
On one side, there is the mainstream approach.The expansion of global market improves the efficiency and living standards of organization. From this perspectives, organization can use adequate rational decision making to resolve the increasing internationalization problems. The Nike corporation and its products are well known throughout the word. After some experiments, Nike moved toward a subcontracting system, reaching agreements with independent manufacturers to produce the shoes and other goods. This gave Nike a high level of flexibility as they could increase or decrease overall production according to market demand without carrying unnecessary overhead costs, for example, they can set up some tight conditions and contracts.
On the other side, there is the critical approach. It exposes that we need to concern the cost of globalization. A few people who have the power to influence on the process in terms of social power and concentration of economic . And it reveals that how groups are struggling inside the organization. From a critical perspective, Nike reveals the multinational firms contribute to global inequality. If they produce shoes in the US, they have to cut its profit margins substantially because US employees are paid quite high wages. In contrast, producing the shoes in China reduces the costs significantly. Therefore, Nike's products are well away from the high cost and high regulations of western societies.

Multinational corporation(MNC) is a business firm that has extensive international operations in more than one foreign country. MNCs are global concerns such as SONY. The process of transnational organization is the new information technology which allow organizations to operate globally. The MNCs have enormous economic power and impact. Their activities can bring both benefits and controversies to host countries.

Why is globalization significant to organizational behaviour?
Globalization , with its complex worldwide economic networks of business competition, resource supplies, and product markets, is having a major impact on businesses, employers, and workforces around the world
There is an increasing number of organizations tend to do business abroad,the domestic workforce is becoming multicultural and more diverse
Nations in Europe, North America ,and Asia are forming regional trade agreements, such as APEC, to gain economic strength in the highly competitive global economy.

three broad schools of thought
The hyperglobalizers and the transformationalists represent an attempt to understand and explain this social phenomenon.
Hyperglobalizers argue that economic globalization is bringing about a ‘denationalization’ of economies through the establishment of transnational networks of production, trade and finance.Economic power and political power, in this hyperglobalist view, are becoming effectively denationalized and diffused such that nation-states, whatever the claims of national politicians, are increasingly becoming ‘a transitional mode of organization for managing economic affairs’ (Ohmae, 1995, p. 149).

Transformationalist : Giddens illustrated globalization is a central driving force behind the rapid social, political and economic changes that are reshaping modern societies and world order .Rosenau said contemporary processes of globalization are historically unprecedented such that governments and societies across the globe are having to adjust to a world in which there is no longer a clear distinction between international and domestic, external and internal affairs.In this respect, globalization is conceived as a powerful transformative force which is responsible for a ‘massive shake-out’ of societies, economies, institutions of governance and world order.
In comparison with the sceptical and hyperglobalist accounts, the transformationalists make no claims about the future trajectory of globalization; nor do they seek to evaluate the present in relation to some single, fixed ideal-type ‘globalized world’, whether a global market or a global civilization. Rather, transformationalist accounts emphasize globalization as a long-term historical process which is inscribed with contradictions and which is significantly shaped by conjunctural factors. Hyperglobalizers Transformationalist
Power of national Declining or eroding Reconstituted,/restructured governments In terms of business ethics issues, which raised by globalization. From employees' standpoint, corporations outsource production in developing countries can reduce costs in global marketplace. But it raises some problem like exploitation of employees through poor working conditions.
From Consumers' standpoint, global products provide social benefits to consumers across the globe. On one hand, it provides the cheaper price to consumers; on the other hand, the vulnerable consumers would suffer from the exploitation by MNCS.
From government and regulation's standpoint, globalization weakens government and increase the responsibility for jobs,welfare.
From Suppliers and competitors' standpoint, suppliers in developing countries face regulation by MNCS, and the small-scale competitors exposed to powerful global players.

Globalization is a key content for business ethics , it concerns about three elements: cultural issues,legal issues, accountability issues