Management for Globalization Essay Example

  • Category:
  • Document type:
  • Level:
  • Page:
  • Words:



Globalisation Benefits and Challenges in a Contemporary Management Context


Globalisation according to Al-Rodhan (2006) entails knowledge and policies transfer across the borders; economic integration; the power relations; cultural stability; as well as the creation of the global market. Globalisation can be defined as international borders opening to allow flows of immigrations, information foreign direct investments (FDI), trade, and technology (Edwin & Okpara, 2015). In the early 90s, globalisation was described as the final phase of development in the field of international management. Globalisation created need for managers to manage the responsibilities and challenges of the purported global market. Decades later, the situation has considerably changed since globalisation has given the large corporations a remarkable level of power that has consequently made international management a key concern not just to managers and business companies, but also to institutions including the governments. Since its emergence, globalisation has continually demanded for more resources, skills, and efforts from both public and private organisations across the globe so as to facilitate managers to handle a new reality as well as the ensuing challenges. The essay seeks to examine the present events associated with globalisation and assess the benefits and shortcomings of globalisation with examples in management context.


Competitive advantages at the global level are achieved through creation, transfer and exploitation of competences across locations and operations globally. As a result, multinational companies have started to redesign their strategies with emphasis on core businesses, but still with a global scope. According to Meyer (2009), internationalisation and de-diversification are as a result complementing one another in global focusing process. Globally, businesses are continuously facing a competitive environment. Scores of companies in the 1980s emphasised more on their national markets, but still they served various industry segments. Globalisation in the 21st century has made companies to rarely focus on their domestic markets since international integration together with globalisation have transformed the nature of competition. Doole and Lowe (2008) argue that globalisation has enabled businesses to face improved opportunities for global growth, but the benefits for industries growth at domestic level have shrank. Globalisation has enabled conglomerates to concurrently fast-track their internationalisation while lessening the diversification of their products. That is why internationalisation and diversification are complementing one another in global focusing process. According to Meyer (2009), this process is steered by changes in the relative transferability of competences and resources across countries as well as industries because of globalisation of business models, resources, markets and supply chains. Such changes in corporate strategies bring about challenges to both policy makers as well as business leaders. In the current business context, business leaders not are expected to manage competition at international level and also to pursue strategies, which generate and exploit connections and complementarities in their global operations network. This creates needs for changing corporate strategies, which requires competences and can be challenging to execute. Meyer (2009) posits that policy makers are facing businesses, whose operating levels is supra-national levels, and therefore are not inclined to respond to policies at the national level. Still, endowments of national resources, particular human capital, is still attracting business operations and consequently, national competitiveness.

According to Enz (2009), operating at the international level offers companies with opportunities that generate capabilities, which may result in competitive edge. Basically, such opportunities materialise when exposed to diversity of regulatory regimes, resources and markets. By connecting operations across various locations, companies are able to generate competitive advantages. Enz (2009) argues that the exchange of competences, experience and operational knowledge linkages has offered companies a possible source for new competencies as well as innovations. Globalisation has enabled companies to create and share human capital as well as databases across operations companies; in consequence, generating a pool of global knowledge capable of supporting everyone’s operation. Business leaders are tasked with initiating and implementing corporate change; therefore, the experiences and competences of such leaders play an important role in the creation of the corporate strategies. Essentially, the experiential and educational knowledge is crucial for managers these days since they influence how managers assess the potential of the existing resources. This knowledge has been changed by globalisation considering that the new cohort of business leaders often go to international schools far from their own country. This as a result, has enabled them to be exposed to different experience horizons to effectively comprehend the opportunities of international businesses. For this reason, they are well equipped to identify business opportunities for efficiency growth and improvements through penetrating markets in different locations or through integrated global operations.

Kapoor (2011) asserts that human resources (HR) departments are changing as contemporary organisations continue to experience different multifaceted challenges as well as exploiting opportunities. Nowadays, the HR transformation calls for swift changes in the organisations because of globalisation-related factors. Globalisation has connected the world, and therefore, organisational decision making has turned out to be more and more complicated and complex (Mikušová, 2010). The new globalised world has broadened the talent pool for both marginal and brilliant workforces as well as for fluid and permanent employees. The talent within the organisation talent may be a basis for a sustainable competitive advantage and may impact crucial outcomes in the organisation like employee performance, survival, productivity, and level of customer satisfaction. Essentially, human resources should capitalise on data analytics and technology so as to create a global information system which gathers and stores information for different sources. The system according to Kapoor (2011) will assist in data analysis so as to offer business acumens, forecast future needs as well as create strategies that will help meet those needs. Organisations that can predict and manage sustainably the needs of their human resources, particularly for high skills have achieved crucial competitive advantage. Currently, the talent global supply has failed to meet the long-term demand, and this gap has become challenging for managers everywhere. Globalisation is expected to increase the current shortage between the supply and demand of talent, especially for highly-skilled workforces as well as for the next generation of senior and medium managers (Guedes & Faria, 2007). The majority of emerging economies that have big populations such as China, Russia, India and Brazil find challenging to sustain a huge labour force having right skills for longer. Globalisation has forced companies to focus on way of attracting human capital instead of financial capital. For the reason that capital is largely accessible from lenders and investors, and duplicating innovations can be somewhat quicker and easier, successful HR management is therefore an effective way of differentiating a company form others.

In this regard, development of global leadership and global staffing are the main elements of global human resources. In the current globalised markets, only companies that are ready to acclimatise their HR practices to the changing conditions in the global labour market conditions can attract, nurture as well as retain talent. These companies are also inclined to become successful in the global competition. Multinational companies’ managers in emerging economies according to Kapoor (2011) experience variations in suitability, especially in positions such as general-management and engineering. McKinsey Global Institute in their survey as cited by Kapoor (2011) established that only merely 19 per cent of 33 million graduates in developing economies can work in a multinational company, mainly because of low education quality, poor language skills as well as lack of cultural fit. In addition, only a few persons are able or willing to move to different countries for employment. Besides that, managers face a bigger challenge in managing a diversified learn the local ways of conducting business as well as comprehend the local consumers’ needs. Besides that, managers are expected to generate a global mind-set amongst their workers. Globalisation has created need for multinational companies to learn how to integrate different value systems as well as adapt shared values for global work so as to generate a work environment where all employees can coordinate and communicate their undertakings to realise a common goal. Human resources must play new roles and responsibilities in leading the organisation in uncharted waters of globalisation.

Edwin and Okpara (2015) posit that the present outstanding changes within the global arena with regard to economic, political, technological, and social progress is undisputable. This revolution is steered by technology as well as advancement of global communications system that is plagued with various challenges, which are dominating and shaping the current global businesses developments. Currently, the utilisation of computer systems, which according to Edwin and Okpara (2015) important part of globalisation have resulted in advancement as well as expansion in international business integration and operations. Besides that, globalisation provides companies across the globe the opportunities of generating affluence in terms of technologies and new ideas. Every facet of global development is influenced by globalisation and also presents a lot of opportunities to all companies globally regardless of the size. Edwin and Okpara (2015) further emphasise that utilisation of Internet has facilitated the global businesses to easily access new technologies, products and ideas. Irani and Noruzi (2011) globalisation has lessened the barriers that exist between international market and businesses through utilisation of the internet. Such declines in barriers have resulted in opportunity for growth in exports across the world. Correspondingly, companies experiencing limited domestic market can expand to other markets thanks to globalisation. Imperatively, scores of developing economies have been enriched culturally, economically and scientifically by globalisation.


In conclusion, the essay hasexamined the present events associated with globalisation and the benefits and shortcomings of globalisation with examples in management context. As argued in the essay, it is without doubt that globalisation is a process that is irreversible that has resulted in benefits and challenges in equal measure. Even though the discomforts brought about by different aspects of globalisation cannot be denied, efforts have been made to ameliorate the negative effects associate with globalisation and also to improve its positive effects. This is in the view of the fact that globalisation is here to stay and all managers from small to large businesses must face it. The globalisation increasing prevalence has been steered by a number of factors such as talent shortage in both emerging and developed economies, accessibility of cheap labour, the growing number of consumers in developing economies, as well as advancement in technology. In spite of the economic recession as well as the growing rate of unemployment, the majority of developed economies are facing long-term shortages of talent, mostly because the baby boomers are ageing and retiring. The number of workers joining labour force in such countries is shockingly low. On the positive side, globalisation result in competitive advantage and facilitates expansion into profitable markets.


Al-Rodhan, D. N. (2006). Definitions of Globalisation: A Comprehensive Overview and a Proposed Definition. Geneva : Geneva Centre for Security Policy.

Doole, I., & Lowe, R. (2008). International Marketing Strategy: Analysis, Development and Implementation. New York: Cengage Learning EMEA.

Edwin, A., & Okpara, A. (2015). Strategic review of the impact of globalisation on the sustainability of communities and business organisations. International Journal of Business and Management Invention, 4(4), 55-62.

Enz, C. A. (2009). Hospitality Strategic Management: Concepts and Cases. New York: John Wiley and Sons.

Guedes, A. L., & Faria, A. (2007). Globalisation and International Management: In Search of an Interdisciplinary Approach. BAR, 4(2), 20-39.

Irani, F. N., & Noruzi, M. R. (2011). Globalisation and Challenges; What are the globalisation’s contemporary issues? International Journal of Humanities and Social Science, 1(6), 216-218.

Kapoor, B. (2011). Impact of Globalisation on Human Resource Management. Fullerton: Cal State University, Fullerton.

Meyer, K. E. (2009). Corporate Strategies under Pressures of Globalisation: Globalfocusing. Bath, North East Somerset: University of Bath.

Mikušová, M. (2010). CHALLENGES OF GLOBALISATION: Selected Features Of New Economy And Its Impact On Business Management. Perspectives of Innovations, Economics & Business, 6(3), 7-11.