Globalization, technological changes, knowledge management and cross-border collaboration are four factors that are the main forces that generate changes in organizations today.

These changes affect decision making, as organizations are forced to recognize that they need leaders who are innovative and creative visionaries who understand the various environments in which their organizations operate and who are able to differentiate between these different environments.

These environments include: the external Prayed operating environment; tea competitive environment (that part of the external environment in which there are companies competing for the same market) and the macro environment in which influences such as the economy, government regulations, social values, demographics, and technology influence an organization.

Faced with such complexities, leaders must be equipped with appropriate skill sets such as flexibility, good communication and critical thinking and negotiation skills. They must also be supported with the necessary resources to make good decisions that benefit their organizations.

globalization

A convergence of international activities such as increased production of goods and services abroad; growing consumer demands in emerging markets around the world; The lowering of barriers to international trade, aided by rapidly changing technology, has created a globalized economy in which interdependence among countries has become the norm today. Therefore, the hiring practices of companies seeking the best talent have changed because the best talent may no longer reside in the home country.

Companies have had to calibrate their hiring, training and management practices to meet this challenge. In a world where “Americans often appear to be nosy, manipulative, and talkative” (David, 2007, p. 291), American organizations must be respectful of the culture, customs, political and legal differences of the countries in which they live. who work they are operating in

Some of these customs affect protocol, such as the exchange of gifts, the celebration of holidays, and labor laws. Even accounting standards vary internationally. Therefore, organizations need to be sensitive to these differences when formulating HR and operational policies for implementation abroad because, in this global environment, companies are unlikely to be able to apply national policies that work abroad. home, abroad.

Technological change:

Technology is like a two-edged sword that can make our lives easier or worse. The Internet has revolutionized the way information is exchanged, communication is facilitated, and commerce is conducted. Technology changes rapidly and effective management requires more knowledge in these areas for companies to manage their resources and develop, maintain or maintain their competitive advantage.

While technology has allowed companies to save time and money by conducting business such as trading, trading, and real-time trading, it can also make it easier to spread confidential information about a company’s practices, trade secrets, and new product development. in a matter of seconds. .

Hackers can breach a company’s security over the Internet and put companies at risk. Organizations have responded with new types of departments, such as Information Technology (IT) departments, headed by managers with titles like Chief Information Officer (CIO), to manage both the opportunities and risks associated with technological change.

In addition, technology has given way to a series of high-tech devices that help and facilitate companies in collecting and managing information, maintaining contact with their employees around the world, and making and communicating decisions snapshot. This can be both a blessing and a source of stress for managers and leaders who must learn to manage their choice and use of these devices. In a global economy, technology can help in knowledge management

administrative knowledge

Driving forces such as changes in demographics and buyer preferences; technological, product and market innovation; changes in society, consumer attitudes and lifestyles demand new ideas. This has created the need for knowledge workers.

Knowledge workers make up the intellectual capital of a company and are made up of creative people with novel ideas and problem-solving skills. Managing its knowledge assets can give a company a competitive advantage by making effective use of the experience, skills, intellect, and relationships of the organization’s members.

For example, a company’s strategic management efforts can be greatly enhanced when the knowledge residing in its international talent base is harnessed at its source, as a manager who is “closer to the ground” and part of the culture local might be better able to sense environmental changes than one who is not.

Keeping knowledge workers motivated and incentivized through both intrinsic and extrinsic means will cause organizations to rethink and change their benefits and compensation methods, and perhaps even redefine the traditional view of the employer-employee relationship into something new, as a company-contractor model, for example.

cross-border collaboration

An important part of knowledge management is the effective management of collaboration throughout the organization. Use of appropriate technology and applications, such as virtual private networks; VoIP, email, social networking websites like Facebook, and even company-sponsored blogs can facilitate communication between an organization and its stakeholders, and aid in different types of internal and external collaborative processes. An example of a tool that can be used in cross-border collaboration could be an easily accessible online database that provides a central source of information for employees, customers, or vendors.

Managing in the 21st century

In the 21st century, change is the norm, not the exception, and leaders must be able to accept it. They must be able to develop:

  1. A vision, and being able to communicate it to their organizations.
  2. An orientation to serve
  3. An entrepreneurial mindset
  4. A commitment to continuous innovation
  5. A global mindset
  6. Ease and confidence with technology
  7. Working knowledge in systems thinking (a broad view of the interrelationship of the parts of an organization, rather than a narrow view that focuses on one part or event).
  8. A sense of ethics and appreciation of spirituality in the workplace.
  9. Commitment to continuous learning, personal and professional development

To effectively respond to the four main forces that create change in today’s global economy, leaders must be willing to embrace change; they must be curious and appreciate the richness and diversity of other cultures. He must be reliable and flexible; and they must have very strong time management, communication, conflict management, problem solving, and interpersonal skills to effectively manage these drivers of change.

References

David, Fred R. (2009). Strategic management, Concepts and Cases, 11th ed. (p. 291). New Jersey: Pearson Prentiss Hall.

Ruth Tappin

© 2009

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