Managing Global Organizations

Managing Global Organizations

A Cultural Perspective

Rabi S. Bhagat, Harry C. Triandis and Annette S. McDevitt

The globalization of business is a reality that confronts organizations of all sizes from different nations and cultures. This book serves as a comprehensive guide for understanding the nature of cultural variations that affect important aspects of organizational behavior.

Chapter 13: Emergent issues in managing the global organization

Rabi S. Bhagat, Harry C. Triandis and Annette S. McDevitt

Subjects: business and management, international business

Extract

We live in the era of globalization. With tremendous increases of foreign direct investments in various parts of the world since the 1990s, there has been a corresponding growth of research directed at understanding and improving the functioning of multinational/global organizations. Top managers of multinational corporations are confronted with challenging issues regarding cultural differences in the way subsidiaries are designed and managed in different countries. Along with designing subsidiaries whose structures and processes are in general agreement with the broad macroeconomic environment of the host countries, it becomes crucial to develop an accurate and comprehensive body of knowledge regarding distinctive ways of motivating and leading culturally dissimilar employees. In addition, work groups of all major multinational–global corporations are being routinely composed of members belonging to different religions and cultures. To make matters even more complicated, these teams often must work longer than the typical 1950s to 1970s work teams did in most manufacturing organizations, even though the members are geographically dispersed. Taken together, the challenges that confront multinational–global organizations are many and growing in complexity.

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