The increased role of globalization has affected management and leadership in several ways. Globalization has affected management and leadership through market and customer base, international employee transfer rates, competition, and an increase in opportunities.
Before the recent increase in globalization companies usually considered their customer base and market to be their country of origin. Due to globalization management can now consider the entire world their market and available customer base. Globalization has caused management to expand to cross the globe, and this allows production to increase.
Globalization has also impacted management because it has led to many employees transfers to international locations. This causes the need for more management and forms of communication. This also requires management to consider the needs of employees in other countries, and to offer compensation for relocation.
Globalization also increases competition because certain areas won't have such a strong hold on areas of production and service. This opens the world up to a lot of opportunities, and it increases the abilities of businesses to compete worldwide. Before globalization services and products did not have such a wide range of customers, and this causes a decrease in their value, but a larger customer base will increase the profitability of a business. Globalization has made business must more profitable and complex.
Good leadership in one country will not automatically be good leadership in another country for several reasons. A good leader may be deemed so by certain characteristics that are favored in a particular country, and these characteristics or habits may not be appreciated or held so highly in another country. Countries have their own cultures and social standards, and this is important when considering leadership. A leader that has knowledge of a countries ethics, beliefs, and customs and basic leadership skills can provide beneficial leadership to a business in another country.
There are several skills that a leader can have that will make them successful globally, and these skills are strong business knowledge, awareness and sensitivity to cultural differences and standards, courage, commitment, and integrity. Any good leader can not be a good leader in any country, but a leader with good work ethics, personal and professional integrity, and determination can be a good leader. If the leader is trained in cultural standards of a country and respects these standards they can be effective and will be respected by the country they are trying to provide leadership to.
Globalization affects management in several ways. Management must consider a much larger market, more competition, and international employees because of globalization. Leadership is also affected by globalization, and customs and standards of a country must be taken into consideration when trying to provide powerful leadership to another country.