Globalization – Its Impact on Management in Nigeria

Globalization – Its Impact on Management in Nigeria

Globalization –  This chapter will have to examine the relevant material, journal that are related to the subject matter, and these literature will have to be discussed on the following topic elucidated:-

–                     Globalization Overview

–                     Factors shaping globalization

–                     Opportunities and Risk of globalization

–                     Globalization and Transformation in Management.

–                     The decisive role of technology and nature of management.

–                     Globalization and Business Leadership.

–                     Nigerian Managers response to globalization.

In 1876, a break through was  made in the world of communication system by  the  invention of  Mr. Alexander Graham Bell (Telephone). Although the telephone like the electric telegraph was invented in Europe. It was in America that it was developed into an instrument of daily use.

Globalization Overview

There are ample definitions of globalization and we do not intend to dwell excessively on them.  The Economist, may want to see the phenomenon as a “process  of increasing  intersectional division of labour and the accompanying integration of national economies through trade, goods and services, cross border corporate investments and financial flows” (Horst Kohler May 15 2003)  in that sense, globalization represents a phenomenon whereby historically distinct and separate national market are becoming one huge global market place, with resulting internationalization of product (from serving goods, labour and services tron different location around the globe to take advantage of national differences in cost and quality of factors of production such as labour, land, capital, energy and technology) and selling to the world as one market.   Others  have  viewed globalization as  an increase in  global interconnectedness of contemporary colonization,  which includes political, social and cultural system (Tandon 1984). The treaty of Westphalia in 1948 made nations  or  status the foundation of states at  the centre of international  relations. With globalization,  the trend  is towards more and more transnational linkages with economic financial, cultural and labour forces which are becoming  less and less under the council of a single  government. That does not however, mean the demise of  the nation state as some have predicted. On  the contrary, globalization has given rise to smaller groups asserting their national identities and  the  formation of alliances of hitherto marginal groups across continents from gender advocates to  gay  rights movement. From whichever angle one looks at globalization, it entails, the bridging of distances, cultural political economic and geographical.

According to Lubbere (1998), globalization is a process in which geographic distance becomes less a factor in the establishment and sustenance of border-crossings, long  distance economic, political and socio-culturals. Whether seen in terms of internationalization, liberalization, universalisation, westernization or determination Schocte’ (2000) view of globalization as “the rise of  supratenitoriality”. It is a major reconfiguration of social geography that  is termed globalization, with implication for economic advancement  or marginalization;

SOME MAJOR INVENTION UNDERLYING GLOBALIZATION SINCE 1400

  FACTORS SHAPING GLOBALIZATION

With the foregoing, it remains to critically examine the factors shaping globalization, we will follow Sechocte (2000) and present four major causes of rise of what she calls “Supraterritoriality” namely;

The emergent of global consciousness as production of rationalist knowledge. Defining rationalist knowledge in terms of the secular (as opposed to religious or mystical) an thropocautric and scientific  is instrumental in the sense  that it assignee to knowledge that grated value of insight that it enable to solve problem. Globalization in  its economic dimensions seen to confirm the word of Karl Marx that “capital vyits very nature drives beyond every spatial barrier to conquer the  whole  earth for its market (K. Marx 1957/8).

Grundrisse.529, 539 as recorded in Scholte, 2000:97). Transnational production, large movement of financial assets across borders, concentration of capital in few countries and internalization of production by compus. Marketing and consumption have been a major characteristic and driving force of  globalization capital has been a major charge agent in globalization with direct foreign investment and portfolio capital playing leading roles Technology Innovation: it education especially rationalist knowledge and global capital have been two major features and driving forces of globalization. They have ridden on the back of unprecedented developments in technological innovations which have impacted on transportation communication and data processing in particular. Technology has clearly played a crucial role in  creating trans world social spades. The introduction of the telegraph in 1837 and all other inventions.

However, it is development in compilers  related technologies facilitated by advances in telegram communication, such as the power of fibre optics to carry thousands of simultaneous voice communication (1980). Technological innovations have provided the infrastructure  for globalization.

Globalization would have been impossible without supportive global regulating frame works that have facilitated supraterritorial political, economic, financial and cultural activities:

–                     Supranational organization in telecommunication, animation, trade (WEO) and finance (IMF world bounce and bourse) are at the for front of globalization .

–                     Unprecedented liberation of trade under the GATT system and noir, under world  Trade organization rules have guaranteed crosses Border movement of money, investigated and   trade .

–                     Guarantee of  property rights for international capital

–                     Legalization  of global organization and activities (Sectolte 2000).

OPPORTUNITY AND RISK OF GLOBALIZATION.

An objectives look at the last 50 years confirms that globalization  has brought advantages to  the world.  In the industrialized countries, real per capital income  more than tripled in  the second half of the 20^th century. Even in some developing country like Nigeria, the increase was even more  dramatic. In Nigeria, for example in Nigeria per capita income increase more  than tenfold, measured in today’s prices. There have been positive gains with medical advances too life expectancy  rose by  over a decade in industrialization countries and by over 20  years on average in developing countries. Some developing countries that have embarrassed on the road towards global integration,. Such as China, India, Malaysia, Brazil, Mexico, South Korea, and Thailand, now no  longer  export only raw material, but also finished goods.

Nevertheless,  globalization and its benefits have uneven and not without some risk:

–                     First, the benefit of economic  integration have primarily extended  to  the  industrialized countries, encompassing about  half (over 3 billion)  of the world inhabitants. At the same time, however, according to a World Bank classification a similar number 0of people line on  less  than & 2 a day. Between 1960 and 2000 the gap between Nigeria per head and those of  the less developed areas increase from 6 to 8 times.

–                     Second, the globalization of financial market has been accompanied by devastating financial crises of  these crises are complex.  However, a common feature  has  often been over-indebtedness and massive reversal in capital flows at short  notice leading to serve recession accompanied by a sharp rise in  unemployment  in  the lesser-developed economics.

–                     Third, globalization exert pressure on the environment. In the light of the foregoing it is understandable why discussion  on  globalization often leads to so  much heat and  polarization  of viewpoints. The school of thought responses to globalization (Scholte 2000). The first of neo-liberals from  the tradition of John Locke and Adam Smith who believe in market forces, competition & removal of all  barriers. The Economist and Wall Street journals. These  otherwise known as the “Washington Consensus”. To  them amore  globalize economy is more efficient because of  the removal of market. The view of globalization  is irreversible. However, it   has adverse consequences for a significant proportion of the need for  the right policy response to ensure that globalization benefits the whole “globe” and not a section of it so far, Africa in particular, seems to face major challenges as the world become more and more integrated.

GLOBALIZATION AND TRANSFORMATION IN MANAGEMENT 

There  are several schools and approaches to management. These include the classical approach of viewing management in  terms of planning, organizing, controlling etc. this  is captured scantily in the words of J.P Kotter (1999) that management involves keeping the current system operating  through planning, budgeting organizing staffing controlling and problem solving. Other approaches include the behavioural approach, which emphasizes human resources management; the scientific approach  with its  focus on managing production and operations; and the systems or integrated approach (Donnelly, 1999, Hersey and Blanchard 1998).

The fact  remains that 6raditionally managers work within a given or current system, and at best plan for incremental change and accept the status quo. The issue with  5that  kind of  traditional management is that globalization has changed the very managers, hitherto, could take for granted as given. The areas that globalization  has fundamentally affected include:

–                     The  relative importance and character of traditional  factors of production; land (and primary inputs), Labour and Capital and their mobility.

–                     The decisive role of technology  and innovation

–                     The nature of  the  management function it planning, staffing, organizing, decision making.

–                     There has been a decisive shift in the characteristic of the person that makes it at the top from the classical manger to  the leader.

–                     The nature  of competition has shifted from loan comparative advantage to comparative advantage.

-Many African mangers, (Nigerian) even through operating in a globalizes 21 century world, still are forced to operate in a largely 19^th century socio-economic million. Bridging the gap will be a mammoth or Herculean task, but we owe our generation and posterity the benefit of moving Africa from what it today, a fourth world, to the first world in one generation.

THE DECISIVE ROLE OF TECHNOLOGY AND NATURE OF  MANAGEMENT

Equally important, it not more  important, is the application of Information and Communication Technologies (I.C.T.), from the use  of computers, generally, to the Internet, specifically, in accessing knowledge, organizing finance. It will be hard for a company and for that matter, economy become a significant player in  the global market  place without extensive use of ICT. The power of ICT in facilitating both synchronous and asynchronous, learning, production and marketing is enormous, and  that is why it has became an indispensable total in the global economy.

The nature of management functions Believe it or not, in our Executive we do not teach “Management” as a subject. We devote a mere 20 hours to traditional management with the charge and strategic management programme. This is because the challenges if globalization cannot be met by short term planning, traditionally rogue organizational structures with  hierachetical framework, and staffing which is accreting to academic qualification. Today successfully managers manage continuous change. They think strategically or do system thinking, which requires the ability to think synergically, interestedly and in whole (Senge 1994) and do long term strategic planning and management.

The job of the  Manager today is that of a leader and not a manager in traditional sense. Failure to appropriate this means that  the manager will become obsolete in  the way he operates.

GLOBALIZATION  AND BUSINESS LEADERSHIP

While some still has to do the accounts of  the company, prepare annual budgets, recruit staff etc the mode of doing these things has been altered fundamentally by technology, however, globalization requires leadership, men and women of vision, who are able to set long-term goals develop strategies to bring about fundamental and adaptive changes and above all, motivate increased independent, highly- Knowledgeable and geographically despaired people to achieve corporate mission, vision and goals. Management in a globalizes world is silver, leadership is golden. The difference between leadership and management was captured several years ago according to Wairen Bennis (1999). The good news is that leadership is an art to be learned through mentioning, reading the requisite leadership literate and through formal training

               LEADERSHIP VERSUS MANAGEMENT

NIGERIAN MANAGERS RESPONSES TO GLOBALIZATION

It would be native to think that the Nigerian manager is so unique from his counterpart in other parts of the world. Far from that, The Nigeria Manager needs to operate with the same variable as his colleagues elsewhere, According Gary Desler (2000) “Management” Desler says is equally applicable to him or her. (Manager).

1. Human capital has become so important in managing change to day.
2. The internet is facilitating people management
3. Manager must manage change.
4. Manager must change organizational culture and acquire techniques to manager diversity.
5. Management now dovetails into leadership and manager must step out of their centre zone of structure fixed system and the status the quo.
6. Today’s managers need to see all aspects of business and manager from a global perspective.

We are in the era of internationalization and globalization of management. Globalization as noted earlier intensified Competition, put a premium on strategic thinking and changed the nature of marketing and customer service………………………………

—————- project not complete———–project not complete————–—-

  This article was extracted from a Project Research Work Topic “THE IMPACT OF GLOBALIZATION ON MANAGEMENT IN NIGERIA (A CASE STUDY OF NITEL ENUGU)”

  Do you want the full project work? CLICK HERE TO ORDER

RECOMMENDED TOPICS

[simple-links category=”3214″]