Various strategic components are especially important in business and will influence the operationalization of a local or international corporation. Earl, (2001), says that the success or failure of a firm will highly depend on the strategic components they employ. Such will include risk management, innovation and acquisition of knowledge, and efficient methods of operations. Differences between the performances of corporations will vary depending on the level of exploitation of the strategic components they employ. Levitt, (1996) also opines that globalization of these strategic components will even result in the future success of such a firm.
Impact of globalization
Globalization is simply the movement of businesses, enterprises, investment funds from national and local operations to different markets around the globe hence expanding the area of business worldwide. Globalization has the effect of making business to revolve all over the continents of the world backed by technological innovations of today’s world, for example, information technology. The impact of globalization is that companies start widening their resources, products, strategies, markets, and clientele all over the globe. As a company is evolving from the local markets to international markets, there are a lot of changes anticipated. Firms will move from being domestic firms to international companies, then to multinational companies, and finally, evolve to global corporations. Globalization will call for the rapid change of the company’s organizational behavior, strategies, and cultures to quickly penetrate the new market area before anyone else can point out the opportunity. To remain at the helm of the competing firms have to be ready to change depending on the global trends. As a company attempts to join these global markets changing the cultural and organizational formations is not an option. A company may be forced to reorganize its teams to form coalitions, mergers, subsidiaries, find a central headquarter where all the organizational activities are easily facilitated at a lower cost and with more efficiency. These changes call upon the company leaders to have a vast knowledge of the diverse differences in the cultures and behaviors of their employees and respond efficiently to their needs in their working environment. This they cannot do without embracing new technology into their global networks to quickly manage the workforce, clientele, and other players in their international businesses.
Changes in organizational behavior brought about through the shift from labor-intensive to a technology-intensive operation.
Organizational behavior is a topic that looks at a closer understanding of how human beings behave in a firm setting. The organizational behavior in corporations has been experiencing fast changes due to the fast change of the business settings especially due to the globalization of most businesses. These changes have also been greatly affected by the introduction of new technologies in businesses. It is a difficult responsibility to keep a check and understand the organizational behavior in a corporation without the help of technological advancement. It is an uphill task to understand the behavior of one person, but it is even more difficult when you are dealing with a group.
Today’s companies have gone through a much technological change that they also require a certain class of well-trained and highly skilled workers who can work using the new complex technology. The companies expect all employees to maintain an upward trend in improving their skills to fit in a highly diverse corporation both culturally and technologically. Companies are no longer looking for permanent employees; rather they engage employees with specific skills in technology to undertake a specific task on a contractual basis. They have to remain available by phones, tablets, computers either via their emails or other mechanisms of communication, be it at the workplace or otherwise.
Organizational behavior in an organization will be influence through technology in three stages. First is capturing the information by collecting and storing it. Secondly is to store the information in a disk where it has been numerically organized. Thirdly is analyzing the information stored so that it can be of proper use to a corporation. Finally, the information is transferred to various departments or subsidiaries using modern equipment such as electronic screens. The technological advancement in an institution will majorly have two immediate effects; the workers who have been replaced by the technology will easily be laid off. Also, the skills needed from employees will change depending on the skills needed to operate new technology acquired by a company. Cultural change in the organization will always be felt when technology changes. New electronic technology changes the way communication is done between the company, its customers, and suppliers, and new innovative systems are introduced.
Another change will be in the organizational structures as new technology will call for a reorganization of the workforce to cut costs and improve efficiency brought by new technology. When it comes to management accessing information is made easier as one can access information from multiple places, sources, and people which least to faster and efficient decision making by managers. By using video conferences, managers in different places all over the world can sit down and discuss various aspects of an organization, analyze information, and make decisions. Most jobs will now require intensive use of personal computers in the office the most work will involve information collection and analysis, either from experts or otherwise.
Impact of knowledge management on organizational behavior
Apart from the collection of information and knowledge, knowledge management is also important. Where companies do not welcome knowledge management, it is most likely that they may not be in a position to fully assimilate and utilize all the knowledge at their disposal. Knowledge management will ensure an organization can get appropriate knowledge and make it available to specific persons who need it in an organization and hence result in maximum utilization of that knowledge. The knowledge management in the organization will affect organizational behavior as what has been learned will be crystallized or change the already cultural practices in a company.
To understand the impact of knowledge management, it is imperative to note its processes and goals. Knowledge management is the coordinating, organizing, and manipulation of the manpower in an organization and its structures to facilitate the absorption of the right assets related to knowledge in an organization. Such assets related to knowledge would include trade secrets and strategies of working in a company, its scientific inventions and innovation, and also strategies of resolving problems. Good knowledge management will ensure that the knowledge assets in a company are well utilized, that they are well informed and help towards the full utilization of company facilities.
In its interaction with organizational behavior, knowledge management will affect how workers with similar skills, interests, ambitions are placed together to result in better outcomes. Knowledge management should be supported by the right technology to transform the knowledge of various employees into various groups and work settings that are productive.
The process of knowledge management involves a series of cycles. It starts with knowledge collection and acquisition, and then analysis and improvement, then utilization and placement in the various levels where it is needed.
Earl, M. (2001). Knowledge management strategies: Toward taxonomy. Journal of management information systems, 18(1), 215-233.
Easterby-Smith, M., & Lyles, M. A. (Eds.). (2011). Handbook of organizational learning and knowledge management. John Wiley & Sons.
Levitt, T. (1986). The Marketing Imagination The Free Press. Estados Unidos. Pág.
Porter, M.E. (2004) Competitive Strategy – Techniques for Analyzing Industries and Competitors, Free Press.
Melville, N., Kraemer, K., & Gurbaxani, V. (2004). Review: Information technology and organizational performance: An integrative model of IT business value. MIS Quarterly, 28(2), 283-322.
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