Management and Organisations in a Global Environment

This report discusses the impact of globalisation on business and the importance of organisational culture in management. It explores the nature of globalisation and its various factors, including economic, political, legal, and cultural. It also examines the significance of cultural differences in business and how to manage them effectively. The report includes case studies of SMEC Holdings and Macquarie Group to illustrate the importance of cultural awareness in global business.

Running head: MANAGEMENT AND ORGANISATIONS IN A GLOBAL ENVIRONMENT
Higher Education Faculty
Assignment Cover Sheet
Subject Title Management and Organisations in a Global Environment
Subject Code HI6005
Lecturer LecturerName
Assignment Title Research Paper 1
Due Date Friday Week 5
Contact Details Student ID YourStudentID
Student Name YourName
Student e-mail address [e-mail]
I acknowledge that:
1. This assignment is my work. I acknowledged and disclosed fully any assistance received in
its preparation and cited any sources from which I used data, ideas, words, either quoted
directly or paraphrased.
2. This assignment was prepared by us specifically and only for this subject.
3. This assignment is identical with the work submitted via Self-Check on Blackboard.

2
MANAGEMENT AND ORGANISATIONS IN A GLOBAL ENVIRONMENT
Table of Contents
Executive Summary...................................................................................................................3
E-learning Activities..................................................................................................................4
The nature of globalisation:....................................................................................................4
Organisational culture and management:...............................................................................5
Conclusion:................................................................................................................................7
References:.................................................................................................................................8

3
MANAGEMENT AND ORGANISATIONS IN A GLOBAL ENVIRONMENT
Executive Summary
Globalisation is the process of trading without any barrier or very less barrier.
Globalisation plays an important role in business. Also, the organization culture is an aspect
of successful organization. In this report globalisation and organization culture will be
discussed. The way organization culture play important role in developing an organization
and its various dimensions will be presented below in the discourse. Globalization and the
way business is related to globalization including the benefits will also be discussed below.

4
MANAGEMENT AND ORGANISATIONS IN A GLOBAL ENVIRONMENT
E-learning Activities
The nature of globalisation:
Globalisation is the process of through people can transfer information, money, goods
and services, trades with no barrier or very limited barrier. In business it is trading without
any border and unhindered by national boundaries (Burbules and Torres 2013). Globalisation
is directly connected with technology, the advance technology leads to better and convenient
ways of globalizing. Other than technology as a broader aspect there are other factors
affecting globalisation today in business. The other factors are economic factors, political or
legal factors and cultural factors. The economic conditions play vital role as it gives the
capability to afford various means to reach worldwide. The government policies, revenue and
taxations are under the legal factors that influence globalisation. Cultural factors include the
degree at which a culture is open to foreign culture for any business purpose.
Cultural differences in business is crucial, it can act as positive as well as negative
factor in business. The management team of an organization needs to consider to norms,
values, ceremonies, rituals, practices and artefacts’ of the regions before expanding its
branches (Moran, Harris and Moran 2014.). It is important to be aware of the other associated
region’s culture differences and be flexible.
It is often debated that globalization is deeply controversial. Often poor countries and
their citizen get the opportunity to raise their standards of living and often it is only beneficial
to the multinational companies who have the capital to use components of globalization.
However, according to Anthony Gidden, it is an equalizing process through which local
cultures are influenced by the international cultures.
Hofstede’s study is considered as a significant contribution to understanding
importance of culture in business. According to his theory, there are six cultural dimensions

5
MANAGEMENT AND ORGANISATIONS IN A GLOBAL ENVIRONMENT
and they are, power distance, individualism and collectivism, time orientation, quantity
versus quality of life and uncertainty avoidance (Venaik and Brewer 2013). Also, Fons
Trompenaars has given seven dimensions of culture that helps in understanding the cultural
differences. The seven dimensions are: universalism versus particularism, individualism
versus communitarism, neutral versus emotional, specific versus diffuse, achievement versus
ascriptions, sequential versus synchronic and internal versus external (Katan 2014).
SMEC Holdings is a globally well-known company that provides consulting services
mainly on infrastructure projects. The company is present around the globe hence; it needs
implementation of the rules of globalizations. The company needs to be well aware of the
countries where it is expanding and their cultural differences. It is advisable to analyse the
cultural differences based on Hofstede’s cultural dimensions to avoid any cultural disputes.
The policies should be flexible and more acceptable of changes as well.
Organisational culture and management:
The basic pattern of behaviour shared and followed in an organization including the
underlying beliefs, assumptions, values, patterns of interacting that contributes to the
organization’s environment. Symbols, language, behaviour, practices and custom of an
organization moulded with traditions, beliefs, priorities, assumptions and values for the
employees and consumers (Crane 2017). The organization culture manifests organization’s
expectations, experiences, values and philosophy.
Louis Vincent Gerstner is known worldwide for his ability to same IBM which was a
near bankrupt company. When Gerstner arrived in IBM the company was suffering from
depletion of resources and it had lost direction being unable to compete with other
competitors. He was well aware about the aspects that needed change in IBM. He faced
problem in approach, in management, and cost. The company lacked in decent marketing

6
MANAGEMENT AND ORGANISATIONS IN A GLOBAL ENVIRONMENT
technique and PR policies, no proper connection between market and company research and
strained relationship with customers. The management problems were mainly the collegial
atmosphere, lack of connection between customer and executive (Ehrhart, Schneider and
Macey 2013). The high overhead costs and excess employees than needed were additional
issues. Roles played by Gerstner were based on cost reduction, manager’s accountability and
ownership and creating one IBM instead of splitting IBM into many companies. Other
measures taken by him were remaking the brand, changing management and other required
changes in the organization. He focused on customer service, excellence of work, team work
and shareholder value.
Seven dimensions of organisational culture on which the organization depends are:
innovation and risk taking, attention to details, outcome orientation, people orientation, team
orientation, aggressiveness and stability. The seven dimensions are highly significant as each
one plays vital role. It is important to take risk in business, the management needs to
brainstorm innovative ideas and implement them while taking the risk of loss or profit.
Paying attention in details is important for it can reflect on customer satisfaction. Also,
setting target helps in growth of a business however, it should be practical and realistic and
team oriented. An organization’s decisions are heavily influenced by culture, where cultural
dimensions are the main components.
The organization culture has surely proven to be unavoidable factor and therefore, it
will be a priority to any organization. Since Macquarie Group is a globally present company
that is present in more than20 countries, it should be able to manage its organization culture
keeping the counties in mind. It should be able to develop strategies concerning the cultural
differences existing between the home country and the foreign country. The values, norm and
traditions of both the countries needed to be carefully managed.

7
MANAGEMENT AND ORGANISATIONS IN A GLOBAL ENVIRONMENT
Conclusion:
An organization is a combination of various aspects working to achieve its goals. To
do so, two of the important concerns are globalisation and organization culture. A company
cannot run without proper organizational culture and to create the appropriate organization
culture it is crucial to consider the cultural aspects. In the process of globalization as well, it
is the culture that plays the key role. Therefore, along with strategies to achieve the targets
and create brand image in the market, achieve customer loyalty and other traits of successful
organization. The organization’s prime aim should be analysis of market and culture
differences.

8
MANAGEMENT AND ORGANISATIONS IN A GLOBAL ENVIRONMENT
References:
Burbules, N.C. and Torres, C.A., 2013. Globalization and education: Critical perspectives.
Routledge.
Crane, A., 2017. Rhetoric and reality in the greening of organisational culture. In Greening
the Boardroom (pp. 129-144). Routledge.
Ehrhart, M.G., Schneider, B. and Macey, W.H., 2013. Organizational climate and culture: an
introduction to theory, research, and practice. Routledge.
Katan, D., 2014. Translating cultures: An introduction for translators, interpreters and
mediators. Routledge.
Moran, R.T., Harris, P.R. and Moran, S.V., 2014. Managing cultural differences. Routlegde,
London–New York.
Owoyemi, O. and Ekwoaba, J.O., 2014. Organisational Culture: A Tool for Management to
Control, Motivate and Enhance Employees’ Performance.
Venaik, S. and Brewer, P., 2013. Critical issues in the Hofstede and GLOBE national culture
models. International Marketing Review, 30(5), pp.469-482.