Globalization and Business Management: Assessing the Need for Changes

This report comprehensively examines the impacts of globalization on business management, focusing on the need for strategic changes in response to global trends. It explores various facets of globalization's influence, including price fluctuations, job security, and the transfer of global knowledge. The report delves into how information technology, decision-making processes, and human resource management are reshaped by globalization. It highlights the importance of adapting management styles, leveraging new technologies, and understanding cultural differences to maintain a competitive edge. The methodology includes literature reviews and questionnaires to analyze globalization's effects on business operations, organizational behavior, and ethical considerations, concluding with recommendations for businesses to thrive in the global market.

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Need for Changes in the Business Management in the era of Globalization
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Table of Contents
Introduction.................................................................................................................................................5
Aim of the Study......................................................................................................................................5
Research Questions.................................................................................................................................5
Problem Statement.................................................................................................................................6
Justification of the Proposal....................................................................................................................6
Literature review.........................................................................................................................................7
The Concept of Globalization..................................................................................................................7
Reasons why Business organizations have to change the management styles in the era of Globalization. 8
Fluctuation in Prices................................................................................................................................8
Job Insecurity in Business........................................................................................................................8
Global Knowledge Transfer into Business Management.........................................................................9
Global Knowledge and New Technologies in Creating Competitive Advantage....................................10
Information Technology and Business Management............................................................................11
Decision Making Process in Business Management..............................................................................11
Types of Decisions.............................................................................................................................12
Globalization on Human Resource Management..................................................................................13
Globalization on the Professional Development...................................................................................14
Human Theory...................................................................................................................................14
The Dependency Theory....................................................................................................................15
Globalization on the Organization Behavior......................................................................................15
Globalization on the management of Laws across Jurisdictions............................................................16
Globalization on Business Morality.......................................................................................................17
Methodology.............................................................................................................................................18
Population and sample..........................................................................................................................18
Semi -Structured Questionnaires...........................................................................................................18
Interviewer............................................................................................................................................19
Literature Review..................................................................................................................................19
Data analysis..........................................................................................................................................19
Ethical consideration.............................................................................................................................20

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Conclusion.................................................................................................................................................20
List of References......................................................................................................................................21

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Introduction
In the 21st century, globalization has brought numerous changes in various aspects such as
human behavior, human consumption, infrastructure, and technology among others. Economies
of a large number of countries are changing from self-contained entities towards the large
existence across borders hence merging the national economies into one global economy.(Rudra
& Skillman 2015,pp.662) Through the integration of the savings, investment, trade,
telecommunication, transportation, exchange of culture makes the world to look into a more
similar thing.
The growing integration of national entities around the world has become a critical aspect in
today's new world order. Globalization poses strong forces that tend to influence everything by
changing the nature of happening from people, food, objects, and business. In the business area,
the globalization has transformed aspects such as communication, production process, sales and
marketing, and the organizational behavior.
Aim of the Study
The aim of the proposal is to study the need of changes in business management in era of
globalization.
Research Questions
 R.Q 1: What are the effects of globalization on business?
 R.Q 2: How does globalization affect business management?
 R.Q 3: What changes are there in business management as a result of globalization?

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Problem Statement
Globalization has led transfer and exchange of knowledge, intercultural interaction, development
of communication skills and technology that all have a significant impact on daily human lives.
The exchange of expatriates and the high rate of different background of employees within
business enterprises pose different issues that arise from cultural difference. These issues when
not well solved may result in more profound problems.
The interaction between business entities in different geographical areas also needs proper
control strategies that have change management styles and approaches for the more pop success
of business organizations. These management styles and strategy must conform to the
globalization requirements. Therefore, it is imperative for to understand the impact of
globalization on business to determine the appropriate management changes that are required to
ensure that the organization remain relevant in the competing market.
Justification of the Proposal
At the business operations, success is determined by the ability to adapt to the changes in the
process, technology, human resources market availability and raw material availability among
others (Martens et al. 2015, p.220. These changes have been facilitated by the effects of
globalization into the lower level, unlike the previous centuries when globalization only affected
the multinational organizations. Therefore in the today's world of globalization, business entities
whether small or large, cannot outplay the need to think and act globally since business
competition has been brought down to the doorstep. The challenges and changes brought by

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globalization, therefore, force every business management set of about change for them to
remain relevant in the market.
Literature review
Globalization is the process of interaction and interaction of people from different background
and companies to bring change in knowledge, behavior, growth, and development. According to
(Jayaid & Siahmardy 2017, p.29) globalization refers to the force that shapes the contemporary
globe by changing the operations of business, environment, and society through connecting the
capital flows and transfer of knowledge. Globalization is an ongoing process has intertwined
how people think, behave and operate. The impact has greatly affected the operations of business
by changing the management style, production, supply, marketing and sales of goods.
Globalization is a process that took effect a hundred year ago and only increased its impact over
the past half-century.
The Concept of Globalization
Globalization has historical background even before the World War I about 1870 and 1914 there
were trades among communities however the globalization concept came into full realization on
the 20th century as the multinational enterprises went across borders into other nations(James &
Steger 2014,p.419). However, globalization has history from the 16th century when the European
countries were struggling to establish empires in the world. In the 18th century, a good number of
the firms from the European countries started setting up business extensions in the states that
were under their colonization with the principal aim of extracting raw materials for their home
firms (Marsella 2012, pp.454). In the 19th century, a good number of the United States also went

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global by setting up business enterprises in the various parts of the world hence enhanced the
movement of people, capital, knowledge products services and technologies across multiple
borders in the world.
Reasons why Business organizations have to change the management styles in the era of
Globalization
Fluctuation in Prices
Globalization has an enormous impact on the prices of goods and services, through globalization.
The business operator has the capability of selling their products and services across boards, an
aspect that is as a result of nation’s signing multinational Trade Agreements that remove barriers
to trade (Jaumotte, Lall & Papageorgiou 2013, and p.281). Through this, various product and
service ranging from quantity and quality are available to the customers, who are the determinant
of prices in an open market. A large number of suppliers forces every business to rethink the
costs of their products, to able to attract a considerable amount of customers that would make the
industry survive in the competing market. Such competitions result into fluctuation of prices, a,
move that is advantageous to consumers. Therefore, every business marketing management has
to conform and follow the trend of globalization impacts on the consumer behaviors.
Job Insecurity in Business

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Globalization has great impact on job security and mostly in the developed countries. The
increasing completions among firms have forced various business organizations to outsource
there in developing countries, a move that has resulted to a reduced number of jobs in the
developed countries as stated by Srivastava (2013,p.329). The stiff completion makes some firms
to have inadequate raw material, have less market share and even poor competitive advantage
hence pushes them to the level of collapsing.
Such business does relocate to less competitive areas to save the situations, such, mostly in the
developing countries that aloes tend to have adequate raw material and potential market. The
move is always advantageous to the developing countries to some extent, mainly when there is a
gap for such products, a might disadvantageous to the developing nations when there is a host
business of the same, the host business too will have inadequate raw materials, reduced market
share, and generally low revenue collection.
With the reduced performance of the host business, some of the workforces might lose their jobs
as a result of retrenching and yet cannot be absorbed by the foreign business maybe as a result of
small experience. On the other hand, the forewing business relocation also reduced the
availability of jobs in their home countries (Wang & Youn 2017, p.35). So either way, the
business has to change the way of management to remain relevant in the competing market.
Global Knowledge Transfer into Business Management
Globalization has enabled the transfer of knowledge from one country to another, through
various mean such as educational tours and hiring of expertise among others. Education has
different perceptions, for example, according to Gaur (2015, p.110) state that knowledge as

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remains of thinking and result of information and experience application during contemplation.
Countries are known as a reality in the human brain, a creative attitude that offers new solutions
to problems. Regarding organization, knowledge refers to the ability to add more values through
active influence on the operations of organizations(Dukes 2017,p.556). The new international
understanding enables organizations to manage multidisciplinary activities that affect the daily
running of the business such as cultural diversity, communication skills, and management
personality.
Global Knowledge and New Technologies in Creating Competitive Advantage
In the 21st century, globalization has exposed many business organizations into stiff competition.
Most of the organization's competition results from new technologies: Businesses that use and
efficiently manage the new technologies experience considerable growth over others hence
obtain a competitive advantage (Carolina, Zonta & Amal 2018, p.69). Knowledge created
scientifically has become the primary source of business operations in the today's error such as in
telecommunications, use of social platforms for marketing among others.
Therefore, Knowledge management is an aspect that current business can afford to avoid since
new aspects of business management tend to pop up in daily publications and newspaper, that
when followed by managers foster efficient management of resources. Organizational knowledge
management entails organizing, fiction, finding storing and triggering knowledge to different
levels and departments for individual gain that eventually translates to the entire organization.
In the current world, it is evidential that states and organizations that have a significant inverse in
the knowledge management have become economically successful. That has been facilitated by

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the development of innovation process based on the implementation of new organizational
solutions with the use of new technologies and management strategies, that in turn make the
organizations gain more significant competitive advantage both local and the global market.
Information Technology and Business Management
Business management depends on the styles and expertise power exhibited by the leaders. A
business operation with the manager will good managerial skills enjoys favorable conditions that
make it more successful than others. A top qualified person tends to create a strong base for the
social and cultural use of knowledge in the organization, and this is only achieved when an
informational environment is well established(Sarker 2016, p.831). The informational
environment is well established through globalization that allows the spread of hardware and
software that make the management of knowledge very easy.
It is evidential that business organizations that implement new informational technologies
usually use less time its operations since computer and telecommunication systems have
facilitated that(Skiver 2015,p.361). In today's world, internet use in the business management is
inestimable since most managers use these platforms as communication and advertisement tools.
These platforms enable business offsite business management such as the use of teleconference,
electronic mailings, video calls and many others
Decision Making Process in Business Management
In every business management, decision making is a critical aspect as it determines the directions
of resources. Effective and quick decision-making process enables business operations to run

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smoothly and evade any challenge that might hinder growth and development. In the 21st
century, business management seems to be more difficult than ever before (Welch 2015, p.368).
The contemporary managers tend to confront numerous challenges that are brought about by the
globalization effect. Hence changes in the quality of management have to be considered and
applied.
In this context, decision making refers to the most general function of the administration: the
essence of the manager's responsibility, since it is the manager's ability that determines the
success or that failure of an organization and thus its existence in the market In the new era of
globalization. Only the competent, well informed and motivated managers are capable of making
respective companies to surveys the global market competition, and this is achieved through
proper and effective decisions on the expenses and profit-making strategies. This has become
more difficult for the contemporary managers who work in unbalanced environments since most
of them have poor design making strategies.
Types of Decisions
In the management field, there is a slight difference between decision making and the decision-
making process. According to Camero and Gomez (2016, pp.13), decision-making process tends
to be more comprehensive concept than the act of selection of an option. Camero and Gomez
denote that it is the process of identifying and defining the nature of the situation and making the
appropriate decisions by evaluating the available alternatives. Therefore apart from the act of
picking the best option, it includes analysis of the location.
However, according to Jonassen (2012,p.342), states that active decision-making process entails
the following conditions: one has to realize that every problem is generic and the solution can