Haunting Effects of Globalization - Nu Leadership Series

"You must be the change you wish to see in theDrucker, author of Managing for Results, maintains
world."that some of these organizational issues stem from
Mohandas Gandhiineffective leadership. Drucker argues, "Business
As competition continues to increase around thetends to drift from leadership to mediocrity. And the
globe, why are some organizations unprepared formediocre is three-quarters down the road to being
globalization? Senge, author of The Fifth Dimension,marginal." Given the unforgiving nature of the market,
suggests that many businesses suffer a narrownesswhy are leaders being caught unprepared for
of focus. This causes leaders to miss the root causeglobalization?
of problems. Senge argues, "Yet the primary threatsClearly, leaders must understand the needs of the
to our survival today come not from events butinternational markets while optimizing the efficiency
from slow gradual processes to which we are 90of the whole supply chain. Leaders cannot afford to
percent blind."neglect any component in their socio-technical
Obviously, globalization is forcing organizations tosystems. This means staying on top of technology,
change. However, these corporate changes areinterconnecting with suppliers, and monitoring the
beyond nontraditional organizational structures, suchneeds of this global market. As a result, 21st century
as spider plants. First, structural indeterminacy is theorganizations face another paradox. Will today's
issue. Galbraith, author of Designing Organizations,organizations be ready to transform themselves into
argues no single organizational structure is the answerinternational champions or become extinct? Time will
in an international environment. This reality is clear fortell.
multinational companies. They must be able toReferences:
integrate activities in different countries.Drucker, P. (1964). Managing for Results. New York:
Therefore, organizational structure gets blended intoHarper & Row, Publishers.
culture. Second, some management gurus believeGailbraith, J. (2000). Designing the Global Corporation.
that decentralization isn't achievable, even globally.San Francisco, CA: Jossey-Bass.
Peters, management guru, argues, "It is easier to killPeters, T. (1997). The Circle of Innovation. New York:
an organization than to change it. Therefore,Alfred A. Knopf.
decentralization is hard to do." Furthermore, SengeSenge, P. (1990). The Fifth Discipline. New York:
warns that organizations that rely solely on their pastDoubleDay.
experience to solve future problems will make fatal© 2007 by Daryl D.
mistakes.