Cultural Issues in International Organizations Essay

Cultural Issues in International Organizations - Essay Example The paper tells that globalization is taken to mean internationalization. It has led to instantaneity, where things happening in a given location, in the world, can be experienced all over at the same time. This has been made possible through breakthrough in technology and the removal of restrictions that bar associations between different countries. Globalization led to easy exchange of ideas, knowledge, goods and services. It has made investments, exchange of money and merchandise possible across borders. This process has led into an open world economy. According to Ray, globalization is that which increase the extent of economic activity, international firm cooperation and easy and quick information flow. The current business organization have certain characteristics in common, to start with, there is diversity in international organizations. This diversity is both inside and outside the organizations. Internally managers must respond to diversity in the HR pool, much difference i n management system, diversity in means and ends including financial objectives to, advanced broad view, and adoption of a variety of models for a variety of business units. Externally the organization, there are diverse customer needs; myriads cultural values; an excess of stakeholders; different political, economic and legal provisions; and different competitors schemes. Another nature of the current global organization is interdependence. There is a web of interdependence in finance, governance, management, supply of goods and services, security, communication and transportation. Interdependence accelerates globalization, but it has many challenges associated with it, a break in the chain of flow can be devastating (Amann et al. 2007, p.5). There is the element of ambiguity in the business world today. There is a large amount of information with little clarification, making digestion and execution of appropriate action a challenge. For example, there is a range of accounting stan dards making monetary figure vague. Research is becoming unreliable due to the uprising of uncertainty. In addition, there is the issue of flux. The global companies are faced with unexpected changes. The more international the organization is the more prone it is to change. Managers should take precautions in order to avoid negative effects of change. Some cultural practices have an impact on communication; this has made international collaboration difficult. Exchange of knowledge, skills, goods and services between organizations across borders is possible if, they are simple, to the point, independent and involve similar cultural contexts. In contrast, it is difficult to share such knowledge