How Globalization affect to Organizational Behavior by chamilrp

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									Group members

      B.M.D.T. Bandara              MC 60154   CPM 6857

      W.H.V.S. Ekanayaka            MC 60157   CPM 6860

      C.R. Pathiranage              MC 60177   CPM 6880

      A.V.K.K Ranmal                MC 60182   CPM 6885

      J.K.U. Rashitha               MC 60183   CPM 6886

      I.H.C. Rukshan                MC 60185   CPM 6888

      J.C. Senaka                   Mc.60188   CPM 6891

      C.N. Wijesooriya              MC 60198   CPM 6901

      S.S Wijewickrama              MC 60199   CPM 6902

Department of Decision Science

Group No.


Our appreciation is due for the Business Administration for providing us this valuable
opportunity to apply our theoretical knowledge into real business situations. And we are also
grateful to our Organizational behavior tutorials lecture Mrs. Yasanthi Alahakoon for the
feedback & encouragement given to make this synergistic effort a success.


   To get better understandings regarding the globalization organizational behavior (OB)
   To study the connection between the globalization and OB
   Get a better knowledge of challenges and opportunities of globalization with linked
    organizational behavior


1. What is Organizational Behavior

   1.1.Why study Organizational Behavior

2. What is globalization

3. Factors influence for OB which generated by globalization

   3.1.     Rapid growth in IT and electronic communication

   3.2.     Globalization creates global managers

   3.3.     Increasing cultural diversity

   3.4      Globalization accelerate outsourcing
   3.5      Globalization is contributing to the emergence of regional economic

4. Conclusion

What is Organizational Behavior

A field of study that investigates the impact that individuals, groups & structure have on
behavior with in organizations for the purpose of applying such knowledge towards improving
an organization’s effectiveness.

Why study Organizational Behavior
Organizational Behavior seems to get more respect from people who have been in the
workforce a while than from students who are just beginning their careers. Many of us
specialize in Accounting, Marketing, Information Systems & other fields with corresponding job
titles, so it’s understandable that students focus on these career paths. After all, who ever
heard of a career path leading to a “Vice President of OB” or a “Chief OB OFFICER”

Even if Organizational Behavior doesn’t have its own job title, most people eventually come to
realize that this field is a potential gold mine of valuable knowledge. The fact is everyone in the
workforce need to understand, product & influence behavior in organizational settings.
Marketing students learn marketing concepts and computer science students learn about
circuitry & software code. But everyone benefits Organizational Behavior knowledge to address
the people issues when trying to apply marketing, computer sciences & other ideas.

Organizational Behavior





            Influence                                                     Predict
          Organizational                                               Organizational
              Events                                                      Events

Understanding, predicting & influencing each one of us has an inherent need to understand &
predict the world in which we live. Much of our time is spent working in or around
organizations, so the concept offered in this & other text books will help you to partially satisfy
that innate drive. The knowledge presented in this book also gives you the opportunity to
question & experience

What is globalization

Globalization is the system of interaction among the countries of the world in order to develop
the global economy. Globalization refers to the integration of economics and societies all over
the world. Globalization involves technological, economic, political, and cultural exchanges
made possible largely by advances in communication, transportation, and infrastructure

Factors influence for OB which generated by globalization

1. Rapid growth in information technology and electronic communication

Technological change and development is not a new phenomenon, it is a feature of human
history. Modern day advanced technologies generally, fall in to two categories,

   1. Technology related to manufacturing
   2. Technology related to administration

As a term IT is now used for all types of computer hardware, software, telecommunication and
office equipment.       Computers have thus moved from background accounting and
administration activities in organization in to foreground tasks in product and process design,
order processing, typing and etc.

Role of IT in an organization

       There are four major roles in an organization by resulting from IT

   1. Information capture
   2. Information storage
   3. Information manipulation
   4. Information distribution

      Information capture

It means gathering, collecting, monitoring, detecting, and measuring Information passive or
actively. When the globalization situation it consistency generate new information capture
spread methods, such as new software, barcode systems and ERP systems.

      Information storage

It means the methods, it convert analog data in to certain specific method which can
understand by computer. As the result or the globalization, many information storage methods
were spread all around the world.

      Information manipulation

It consists of organizing and analyzing the respective collections

      Information distribution

It is distribution of information via electronically or screen and paper

These four types of categories have effects on organizational issues. So technological changes
may have some possible effect because the skills and the knowledge requirements of
employees may change as a new devices and program are introduced. These new devices will
increase productivity through replacements effects.

  The main point of this new technology is the machines will do more and more, as a result the
people that require become less and less. It will generate unemployment problem.

The overall effect of the technology may depend on the operation of a number of instruments.
Such as,

   1. New products and services
   2. Low cost increase demand
   3. Time lags
   4. Risk
   5. Expectation of demand
   6. Technical limitation

Up to now this includes the effect of technology and adaption of new technology on the
organizational behavior from the information angle. So the globalization is affected to the all
areas in an organization under the dynamic IT environment.

Opportunities and challengers


      Organization can increase their productivity by using new technology
      Technology gives the competitive advantage
      Technology generates new business opportunities


      Investment cost for technology is high
      High skilled workers required with training
      It may be course to the environment badly
      Work force demonization
      Government regulations

2. Globalization creates global managers

Globalization is the process by which business start to operate globally. In the present world all
managers faced globalization as a result of globalization effect to every organization. So
managers role expand present world. They are planning, organizing, directing and controlling.

Multinational companies instead require three kinds of specialists-business managers, country
managers and functional managers.

 Success in today’s international climate a far cry from only a decade ago demands highly
specialized yet closely linked groups of global business managers, country or regional managers
and worldwide functional managers.

Basically globalization can managers how to conduct business in multiple countries. Because
globalization create multinational companies. To handle this type of companies to managers
have good knowledge about various markets.

Many global managers have contributed various cultures. Because they want to good
knowledge about this different cultures. They didn’t good knowledge this various cultures they
can’t play their role very well.

Managers are using many strategies to face market competition. As a result of globalization,
because present organizations use much more strategies and this situation create global
context. Therefore managers should know how to create good strategies.

Opportunities and challengers


    Can achieve business goals and objectives successfully.
     Because if managers practice to think spread about business environment they can face
     to difficult situations successfully.

    New business opportunities has been created.


     Managers haven’t suitable skills about this phenomena. So businesses have to launch
      projects to develop this skills of managers.

     If they do not pay their attention, it will cause to fail their business.

3. Increasing cultural diversity

Culture and organizational behaviors were not always two topics. That were considered side by
side of one another .It is an important factor in the organization which effect to human
behavior. So when the situation of changing the culture in a particular economy, it is
consistency related with behavior of every organization in that economy. Culture can be
defined as the whole includes knowledge, belief, art, morals, law, custom, and other habits
acquired by man as the pat of the society.

Globalization means the integration of societies, economics all around the world. When the
globalization situation, it confessedly affects to culture of the particular country or society.
Those impacts can be identified as basic two categories.

    1. Positive impact                         2. Negative impact

Positive impact / opportunities

Some occasions of cultural changers, generate positive impact toward organization.

   The culture of a country or region in which the organizations function influences the way of
    motivating employees.
   Cultural changers may be generated business opportunities toward organization.

When the circumstance of cultural changing, it is influence to change demand pattern of the
customer. As the example, when we consider the apparel organization, new fashions are
arrived with cultural change and it raises the business opportunity.              Even through t it
considered as opportunity, organization must have to face lot challengers while achieving this.

   Organization has to increase their work force
   Organization has to move for new technologies to provide better service for new business
   Business may be wanted to train their current workers in order to serve new opportunities.

Globalization helps to development of communication technologies and countries become
more closely linked through trade, more information is available different cultures and
economies, therefore products can be sold worldwide

Negative impact /Challenges

Cultural changers are influences in negatively for organization. It can be the threat of current
business situation.

   Cultural changes are cause to alteration the pattern in consumption of customer. Therefore
    demand of product is reducing particular product or service. In the reason decade in
    culture in our country has been change in significant manner

4. Globalization accelerate outsourcing

In the concept of globalization, all of the businesses in the world are combining to the one
global market. According to that concept business organizations are working together to
achieve their goals and objectives. Therefore they can use business activities easily. As well as
businesses can be outsource their some commercial activities.

According to outsourcing concept they outsource following business activities.

 Transportation Activities
 Production Activities
 After selling services
 Marketing Activities
 Warehousing Activities
 Labors

As a result of outsourcing business have to face some opportunities as well as challenges.

Opportunities and challengers

Opportunities Outsourcing

    Business can provide High quality services.
    Businesses can increase their products quality.
    Businesses can aim only their main business works and can fulfill them successfully.
    Business can increase their profitability.
    Businesses can acquire Competitive advantages.
    Businesses can face to competition successfully.
    Business can accelerate their production.
    Business can specialized for their own business activities.

    Outsourcing can help business organization to cut is operational costs to more than half
    Outsourcing can help business organization save on capital expenditures

Challenges of Outsourcing

    Work force de motivation
    Total cost increase
    Accede to the conditions of other organizations and countries.
    Business fail to get appropriate quality from goods.

    At times, it is more cost-effective to conduct a particular business process, rather than
       outsourcing it
    In outsourcing, business may lose their control over the process that is outsourced
    With outsourcing, business organization might suffer from a lack of customer focus

5. Globalization is contributing to the emergence of regional economic alliances

As a result of Globalization, most of countries are working as groups. Then regional countries
decided to build Regional Economic alliances. EU, Asian, GAT are most popular REA.

These alliances are affecting to the businesses & its behavior. So that cause OB change REAs
also. Most of countries joined to REA to get opportunities. Not only opportunities but also
challenges have been faced.

Opportunities and challengers


      To get technology
      Rules & regulation
      Production is increased
      Can get high price for their products


      They can’t gain high price
      They can sell products in only regional areas
      Competition is high
      Labor rules & regulations are highly effect to companies


As we are the management student of 3rd year we have study the subject called organizational
behavior BUS 3301. For the 1st assignment in this subject we have completed a report on the
how globalization affect to the organizational behavior and what is the connection between
globalization and OB

We could get huge understanding regarding above topic using this assignment. As the 1 st step
we described what is globalization & organizational behavior and how globalization affects on

After we considered about the challenges and opportunities of globalization toward
organizational behavior. Here we recognized those are in the several sub topics.

         Rapid growth in information technology and electronic communication.
         Movement of valuable skills and investments.
         Increasing cultural diversity.
         Implications of immigration.
         Increasing job migration among nations.
         Impact of multicultural workforces


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