Globalization and Industrialized Countries Essay
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As globalization ‘can be seen as being a condition resulting from a long history of international exploration, invasion and colonization, fuelled by economic, military, religious and political interests, and enabled through enormous developments in transport and communications technologies’ (Evans 1997:12). The industrialized environment has transformed drastically since the advent of globalization. Industrialized countries have undertaken extreme restructuring by modifying their means of communication and synchronization of work activities.
Globalization has made it promise for companies to work on a real-time basis, whereby products and services are conveyed to the right place at the right time.
Since then, globalization and information technology has propagated and has undergone significant improvements. Costs have sustained to decline as these new technologies have emerged. A business not supported by a network of computer systems (primary information technology) is more or less destined to fail, since it will be incapable to compete efficiently in today’s complex and dynamic environment (Aiki S. 1991).
Companies are not the only ones who have gained from advances in modern information technology.
Consumers and interest groups have created strategic alliances and now capable to coordinate their activities as well as exchange ideas and thoughts through a number of database and network systems (Collins J. C. , and J. I. Porras. 1991). For instance, owners of personal computers can subscribe to a computer network and without difficulty retrieve information on the products and corporations on line. Such information can also without problems be transmitted to other users.
This huge use of technology by both consumers and companies affects, but the way business is run today. These consumer strategic alliances know no geographical limitations; oftentimes, they are global in nature, particularly among the industrialized nations. As companies can get in enormous profits from the better coordination, greater product elasticity, improved quality, leaner production, and more time-based competitiveness that information technology offers, they also facades the threat that can come from these consumers’ strategic alliances.
For instance, corporations can no longer ignore consumer demands for constant product quality, reliability and respect for the environment, or timely delivery of services. As we move toward more and more advanced technologies, the labor force must be retrained. This training must not only expose workers to the technical matters adjoining the new process but also to the new focus of the organization. They have to be made responsive of the importance of advanced technology in improving work methods and in remaining competitive. Employee compulsion to the new process is imperative.
Globalization by itself adds little or no value to an organization. There should be organizational as well as employee dedication to exploit the technology to the maximum (Scott, A. 1996). For instance, with ever-increasing use of computer-integrated manufacturing systems, and the stream of technical documentation that accompanies it, employees have to be skilled of recognizing the critical information at the right time. Once that information is recognized and properly interpreted, there must be an organizational dedication to use the information to make better decisions.
Without this potential, the organization cannot take advantage from new technologies. Human resources’ management, therefore, will persist to be a critical factor in the survival of any organization (Schlossberg H. 1992). We sum up the influence of globalization on human resources as follows: • Information technology transforms the mode of communication and work processes. • Custom or standardized operations are replaced with skilled and multi-skilled workers. An extremely trained labor force is desired to manage information technology.
• Worker motivation and satisfaction might improve since workers are no longer restricted to routine operations, enjoy management powers, and can contribute to developments in their work processes. (Waters, M. 1995) Globalization also has an impact on the organization itself, as follows: • Organizational reformation is required. This reformation makes the organization flat. Decision-making powers are decentralized. • Communications are better and the organization is capable to make timely responses to its environment.
• Introduction of new products and services is improved and varieties of products can be efficiently introduced and marketed by the organization. • The organization is competent to improve its efficiency, quality, and competitiveness. (Scott, A. 1997) Today’s advanced technology can, conversely, easily become a basic technology. A rapid increase of new technologies also brings rapid obsolescence of earlier technologies. Policies concerning technology must not be static; they must keep evolving.
Stalk (1988) points out that “competitive advantage is a persistently moving target . . . The best competitors, the most thriving ones, know how to keep moving and always stay on the cutting edge. ” Competitiveness A company should be able to evaluate potential new technologies quickly. The goal must be to remain competitive, and effective management of technology is a vital step in achieving this. With an increased focus on customer satisfaction, technology is a decisive means for achieving customer satisfaction.
Browning (1990) notes that a learning organization “uses technology incessantly to refresh its knowledge of its customers’ wants and to work out new ways of satisfying them. ” This commitment to be a learning organization needs vast resources, however. For example, Browning also points out that building a learning organization “necessitates new skills, clever people and capable machines. ” Noticeably, technology and human resources should be used together for the organization to stay competitive (Cunningham, S. and Jacka, E. 1996).
Barabba and Zaltman (1991) note that “hearing the accent of the market and making constructive use of it with respect to the voice of the firm is a learning progression. ” Essentially, the voice of the market has to be interpreted into facts and tasks that will lead to suitable products or services to satisfy customer needs. This is related to the application of quality function deployment, whereby the organization expands its strategic plans to assure customer needs. Thus, a learning organization should also be a caring organization.
As a caring organization, its major objective is to please its stock or stakeholders, its customers, and employees, and also to be collectively responsible. The traditional organization, with the focus on satisfying stockholders alone, is varying to this new form, with a sophisticated stakeholder group (Petrella, R. 1999). Thus, globalization and human resources’ management are recognized as key variables that facilitate an organization to improve its productivity, quality, and competitiveness.
A critical constituent is the information technology, which offers both opportunities and challenges. The organization should show understanding to its environment via its policies, and be learning and caring organization, as time and reliability influence competitiveness. Finally, organizations should innovate and constantly move to achieve new targets, particularly in view of today’s rapidly developing new technologies (Shields, R. 1997).