One of the other major environmental context impacting organizational behavior is globalization. Today, well-known U.S.-based multinational corporations have more than half their assets overseas. With trends toward similar clothes, entertainment, material possessions, and recognition that English is the international business language, people around the world still think and behave in different ways. The starting point of how the globalization environment affects and is affected by organizational behavior is culture.

1. Impact of Globalization on
Organizational Behaviour
Presented by:
A.Raj Shravanthi

2. Introduction
• One of the other major environmental context impacting organizational
behavior is globalization.
• Today, well-known U.S.-based multinational corporations have more
than half their assets overseas.
• With trends toward similar clothes, entertainment, material
possessions, and recognition that English is the international business
language, people around the world still think and behave in different ways.
• The starting point of how the globalization environment affects and is
affected by organizational behavior is culture.

3. Definition
• Globalization means to increase their base of
operations, expand their workforce with
minimal investments, and provide new
services to a broad range of consumers

4. Two Sides of the Definition of
Globalization
• Mainstream Approach: The expansion of global market improves the efficiency and living standards of
organization. From this perspectives, organization can use adequate rational decision making to resolve the
increasing internationalization problems. The Nike corporation and its products are well known throughout the
word. After some experiments, Nike moved toward a subcontracting system, reaching agreements with
independent manufacturers to produce the shoes and other goods. This gave Nike a high level of flexibility as
they could increase or decrease overall production according to market demand without carrying unnecessary
overhead costs, for example, they can set up some tight conditions and contracts.
•
Critical Approach: It exposes that we need to concern the cost of globalization. A few people who have the
power to influence on the process in terms of social power and concentration of economic . And it reveals that
how groups are struggling inside the organization. From a critical perspective, Nike reveals the multinational
firms contribute to global inequality. If they produce shoes in the US, they have to cut its profit margins
substantially because US employees are paid quite high wages. In contrast, producing the shoes in China
reduces the costs significantly.

5. Effects of Globalization
• Industrial - Emergence of worldwide production markets and broader
access to a range of foreign products for consumers and companies.
• Financial - Emergence of worldwide financial markets and better
access to external financing for borrowers.
• Economical - Realization of a global common market, based on the
freedom of exchange of goods and capital.
• Political - Politically, the United States has enjoyed a position of power
among the world powers; in part because of its strong and wealthy
economy. With the influence of globalization and with the help of The
United States’ own economy, the People's Republic of China has
experienced some tremendous growth within the past decade.

6. Effects of globalization continued…
• Competition – To survive in the new global business, market calls
for improved productivity and increased competition. Industries have
to upgrade their products and use technology skillfully for facing the
competition and increasing their competitive.
• Cultural - Growth of cross-cultural contacts; advent of new
categories of consciousness and identities embodies cultural
diffusion.
• Informational - Increase in information flows between geographically
remote locations. This is a technological change with the advent of
fiber optic communications, satellites, and increased availability of
telephony and Internet.

7. Threats of Globalization
• Increase of unemployment
• Diversity
• The multinational have only handful of
shareholders
• Health sector

8. OPPORTUNITIES
• Growth & development
• . push the exports abroad and foreign
investment is much more convenient.
• Increase trend of outsourcing HUMAN
RESOURCE functions
• Free TRADE
• TRANSNATIONAL REGULATORY

9. Advanced Globalization
• Sourcing resources
• Delivering
• Information exchange

10. Global Workforce in Some
Indian Firms
COMPANY
TOTAL
EMPLOYEE
TOTAL SENIOR MOST JUNIOR MOST
TATA
MOTORS
22,000 950 R&D ENG SHOPFLOOR WORKER
ASIAN
PAINTS
4,600 1,400 COUNTRY
MANAGER
PAINT FACTORY
WORKER
INFOSYS 46,196 1,300 HEAD CONSULTING
BUSINESS
INTERN
GLOBAL EMPLOYEES

11. Thank you for your attention!