Management And Organizations In The Global Environment: A Study

Contributions of Different Academic Fields to Management

Discuss about the Influence of National Culture on Trust.

The study focuses on the management and the organizations in the global environment. Over the past few decades, there has been rapid change in organization planning and global management regarding socio- political and technological perspective. The management strategies are generally rethinking by every kinds of enterprise such as military, research and development, healthcare, education etc. Owing to some main issues faced by the organizations including competition over scarce resources, high quality demand, they are implementing these strategies in order to operate efficiently in challenging global market.  

Different academic fields of study including anthropology, economics, philosophy, political science, sociology, psychology influences the management within a particular organization. Anthropology refers to the study of societies, human behavior and cultures in past and present. This study makes contributions to different areas of management involving- expats management, wellness management, change management and recruitment and selection process (Schermerhorn 2014). The study of economics involving allocation and distribution of scarce resources also impacts the management since they are wholly responsible for allocating resources effectively for matching the target of enterprise. Philosophy study impacts the management in employees rehabilitation, good governance, improvement in morale, culture etc. Political science study reflects attitude and behavior of managers and employees impacting the work culture and management practices. The study of psychology explains the change of human behavior, which influences the management as it helps to understand change in employee’s behavior towards work. Sociology study helps to evaluate managerial process in different kinds of societies.

The history of management theories highlights that in Egypt there were subordinates who used to organize their slaves and subordinates for building pyramids and cities. Even the Egyptian pharaohs had their long term advisors as well as planners like that of contemporaries in China. In China, the military organizations used these principles in their early dynasties. Sun Tzu have emphasized on the importance of planning in his military strategies for wining a war. Few aspects of Sun Tzu military strategies are also used by firms for achieving larger competitiveness. Even Chanakya Kautilya teachings were basically applicable for the modern management principles. The management style adopted by Chanakya Kautilya is hiring staff through the interview procedure. Adam Smith observations about division of workers from the management perspective are vital as a means of enhancing productivity as well as efficiency. Furthermore, there are various kinds of management theories that enterprises uses in managing business operations. Some of them includes- scientific management, general administrative theories, quantitative approach and organizational behavior. Scientific management refers to the management theory that assesses as well as synthesizes workflows (Nwagbara and Reid 2013). Its basic objective is to improve efficiency in economy especially productivity of labor. This management is also known as Taylorism after the name of founder Winslow Taylor. This theory is based on three principles including- observation, experimentation and rational motivation (McGrath and Bates 2017). General administrative theory was developed by Fayol and was given bureaucratic approach by Weber. Fayol theory has been considered to be applicable for managing personnel in enterprise. Fayol’s management function involves planning, organizing, commanding, coordinating and controlling. The management theory of Fayol was based on few principles involving- division of work, authority, discipline, unity of command, unity of direction, subordination of people’s interest to common interest, personnel remuneration, centralization, scalar chainorder, equity, stability of personnel tenure, spirit de corps. Max Weber general administrative theory was based on bureaucratic approach. The principles of Webers’s approach was based on the few principles involving-chain of command, selection of the personnel, application of complete rules, selection as well as promotion of individuals  based on qualifications. Quantitative approach to the management mainly incorporates several numeric as well as analytical techniques into the management methods. One of the areas that is considered in the qualitative management theory is management science also known as operations research. This specific area applies statisyical techniques and mathematical models in management decision making. Organizational behavior approach involves early advocates, Hawthorne studies, human relations movement and behavioral science theorist. Hawthrone studies were mainly conducted with laborers at Hawthrone plant. This plant consist of illumination experiments, relay assembly test room, interviewing program and bank wiring observation room. According to this study, physical work condition was not affected by the production level. Human relation movement signifies the researchers of enterprise development who mainly studies behavior of laborers in groups. Behavioral science theorists involve theory of both sociologists and psychologists. Psychologist theory includes leadership, job design and employee’s motivation approaches while sociologist theory involves power, conflict and enterprise design. The integration of management theory in organization involves three approaches – process, systems and contingency approach (Lasserre 2017). The present trends in management practices involve total quality management, workforce diversity, innovation, spirituality etc.

History of Management Theories

Globalization influences business approach of every organization mainly that operates on global scale. There are few factors that impacts globalization including- economic, cultural, and legal political (Baylis et al. 2017). The economies of the specific sector or trade are a vital factor that affects globalization. The political problems of the nation usually make globalization channelized according to political bosses. However, the agreements of regional trade influence globalization. National cultural and national value also affects globalization. Both the domestic nation’s as well as foreign nation’s culture affects the globalization (Kofman and Youngs 2008) For example, Ganong Brothers one of the Canda’s oldest candy manufacturers has made free trade agreements with US in an attempt to sell their product such as jelly beans. As tariff has not been applied on this product owing to free trade agreements, this enterprise was influenced by globalization. Similarly, Rio Tinto a transnational mining as well as resource group also faced several challenges due to globalization. Cultural differences still continues despite globalization of markets. These differences often pose huge difficulties in foreign negotiations as well as marketing management. For instance, the nation culture differences highlights that value in US culture on hard work leading to success is different from  alternate value of other nations on hard work not prerequisite for success of enterprise (Isiaka, Sulaiman and Issa 2016). However, this differences impact the motivation and reward of employees provided by enterprise. Additionally, the difference between US culture and other nations culture on honoring commitment of employees also impacts negotiation with organization. Furthermore, differences in US culture and other nations on effective management of time affects long and short term planning of firms. The impact of loyalty commitment and motivation in US firms is different from that of other nations. This is because in US culture organization is basic obligation while in other nation family is basic obligation. There are four factors that leads to globalization trend involving- business expansion, pressure from industrialized countries, improvement in communication and business methods. Different experts have different views on globalization. James Shikwati views that globalization is trade and not aid while Anthony views that globalization affects capital market performance, effect on personal lives and scale of application. Pankaj Ghemawat view is that economic integration and national integration leads to semi- globalization. Hofstede framework of nation culture has fee dimensions including- power distance, uncertainty avoidance, time orientation, individualism vs collectivism , quantity vs quality of life. Trompenaar framework on national culture is based on seven variables involving- specific vs diffuse, universalism vs particularism, neutral vs emotional, individualism vs communitarians, sequential vs synchronic and internal vs external (Bãlan and Vreja 2013).

Conclusion

The activity 1 reflects that the present trends in the management practice are better than historical management practice. The different approaches adopted by management at present helps to improve productivity and performance of organizations. It also helps these firms to expand their business in the global market. The activity 2 reflects that differences in national culture impacts the operations of management of the enterprise. The effect of globalizing the cultural trends on varied national cultures has been becoming the major issues at present. However, Hofstede and Tromprenaars framework of culture must be used by enterprise to understand culture of natiosn.

References

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Baylis, J., Smith, S. and Owens, P. eds., 2017. The globalization of world politics: an introduction to international relations. Oxford University Press.

Doney, P.M., Cannon, J.P. and Mullen, M.R., 1998. Understanding the influence of national culture on the development of trust. Academy of management review, 23(3), pp.601-620.

Isiaka, S.B., Sulaiman, A.A. and Issa, O., 2016. National Culture Dimensions: A Review of Precepts Affecting The Nigerian Management Context. AL-HIKMAH MANAGEMENT REVIEW, p.82.

Kofman, E. and Youngs, G. eds., 2008. Globalization: Theory and practice. A&C Black.

Lasserre, P., 2017. Global strategic management. Palgrave.

McGrath, J. and Bates, B., 2017. The Little Book of Big Management Theories:… and how to use them. Pearson UK.

Moran, R.T., Abramson, N.R. and Moran, S.V., 2014. Managing cultural differences. Routledge.

Nwagbara, U. and Reid, P., 2013. Corporate Social Responsibility (CSR) and Management Trends: Changing Times and Changing Strategies. Economic Insights-Trends & Challenges, 65(2).

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