Workplace Implications of International and Global Business Interactions
The contemporary corporate environment is influenced, to a great extent by global trends. To continue profitable operations, business entities and organizations are forced to review their policies and practices. Effective organizations, particularly align their practices to the needs and expectations of changing environments. The contemporary business environment is characterized by an increase of international and global interactions. They are dependent on each other for products and information to furnish their operations and at the same time, ensure effective performance. Tendencies of sharing information and the speedy movement of products across the globe have an impact that is direct on nature of decisions made by organizations at different levels. Internalization of business operations, indeed has implications that are varied on the functioning of organizations.
Globalization trends, certainly directly affect the nature of current working environments. Organizations are compelled to adopt some new practices that are a reflection of such important tendencies. Global business interactions as well affect the kind of procedures, regulations and policies adopted by modern organizations. They generally shape modern work environments and determine decisions made by employers with regard to employees and physical workplaces. Some of these changes however have a positive effect on the organizations while others have negative impacts which undermine the development and growth of the company. The aim of this paper is reviewing workplace implications of global and international business interactions. Upon reviewing international business interactions concepts, it proceeds to underscore the implications these interactions have on workplace environment.
Understanding International and Global Business Interactions
Trends of globalization necessitate international business environments occurrence. According to Smith (2006), global business interactions are often defined by rising relationships between varying national economies. Currently, it is widely agreed that international business is indispensable to any organization. Since countries and organizations are not self-sufficient in terms of production, they are dependent on each other for purposes of meeting their requirements. They essentially import the services and products they are unable to produce within their borders. These relationships cover transaction of varying economic resources which includes services, capital and goods. As mentioned before, pursuit of international business is inclusive of establishment, sustenance and initiation of global relations. In most cases, organizations take practical measures in order to ensue these relations make it possible for them to meet their objectives and economic goals in varying ways.
Marquardt and Berger (2004), indicate global business interactions seek to expand corporation sales. Such interactions make it possible for firms to sell products and services in both domestic and foreign markets. The returns accruing from sales are comparatively high than those from local sales. Such interactions make it possible for companies to acquire resources from foreign nations. By venturing into foreign markets, these organizations minimize level of competitive risk. More importantly, the global business interactions make it possible for firms to diversify their source of supplies and sales. They are therefore cushioned against negative effects of domestic business environments. Business interactions on a global level are manifested through the rapid rise of global trade activities, financial markets internalization, intensification of investment flow between varying nations, increased global character as well as technological changes among others (Cerra & Easterwood, 2012).
There is no doubt these interactions have implications that are diverse on functioning of organizations and countries. Bruce, in his study (2002) posits the impacts of international business relations which influence decisions of employers and employees within organizations. For example, technological advances and the free flow of information is what determines the kind of decisions employees make. Organizations, need to adopt changes as well as adhere to emerging guidelines so as not just to survive but thrive in the modern workplace conditions, regulations, policies and guidelines are consistent with the expectations of clients and global standards. Implications of the workplace of international business interactions are not just varied but wide.
Workplace Implications of International and Global Business Interactions
Global and international business interactions help improve standards of workplace environment in varying ways. Global trends, essentially establish certain standards and require organizations to accordingly meet them (Smith, 2006). In this case, there are some distinct regulatory agencies and bodies that play oversight role of ensuring organizations uphold the standards laid down. Mainly, this affects firms and companies in third world or in nations that are less developed. They are therefore compelled to adopt western standards that are comparatively higher. Firms take the responsibility of ensuring the workplace is safe and improving general work conditions. This is beneficial to employee that worked previously in conditions that were demeaning. They get the chance to work in conditions that are satisfying and supportive. While not all the companies embrace international standards, Meister and Willyerd (2010) content global business interactions lead to increase in concern of multinational firms over the safety of workers. Through sharing of information, both large and small corporations are aware of how important occupational safety is. Using such information, they are in an ideal position to make decisions that are objective regarding security at the workplace. The fact they make informed decisions is what enhances sustainability of solutions they can adopt. From such point of view, international business relations are quite educative.
Another fact worth acknowledging is that in majority of cases, organizations pursue international businesses which tend to be bound by global rules and regulations. Penalties for contravention of such rules are huge and they have adverse effects on the function of their products in the market. Direct engagement in legal suits is what reduced level of productivity of companies affected. For example, an organization can be restricted from pursuing business operations in certain countries because they have contravened safety standards. Implication of this penalty on the profitability of organizations is detrimental. As such, in majority of cases, organizations make the efforts to ensure they uphold the regulations and rules binding them. In the instance of standardization, Bruce (2000) posits international legal instruments require that members should guarantee working environments that are safe. In this case, international business interactions also play leading role in improvement of workplace conditions. What is more, apart from benefiting employees, they also make sure the firms attain their business objectives and goals. Benefits are sustainable since they are reflective of ethical business considerations.
So as to encourage optimal performance in global environments, organizations should increasingly take measures that empower their employee base. In other terms, international business environments will culminate in assumption of learning culture in the work environment (Edmondson, 2012). Organizations, currently acknowledge the importance of competencies in their performance. On top of this, the multicultural state of global environments require employees to uphold performances of high quality at all times. Organizations navigating the problematic corporate environment as well rely on skills, competencies and knowledge of their workforce. For such a reason, companies will adopt a culture of learning characterized by continued improvement of the capacities of workers.
Unlike previous instances, knowledge generation within the modern corporate environment is constant. Organizations are known to capitalize on this through provision of learning opportunities for employees. Besides taking on-job training sessions, firms provide financial resources for employees so they can further their education. Additionally, rapid technological advancements avail information to the employees needed to ensure they perform promptly (Smith, 2006). Internet access using technology provides a wealth of information to employees so they can access crucial information so they can use it for their benefit. Compared to conventional approach that requires employees to take time off duty so they can further their skills making it possible for the program to help workers improve their knowledge while working. It is beneficial for both parties since employers never shoulder the losses that are related to absenteeism.
Globalization prevalence leads to increase in cultural diversity at the workplace (Cerra & Easterwood, 2012). As the organizations interact with one another in global business environment, they come into contact with different cultures. Easy movement and transportation of persons across the globe also leads to increased immigration. Individuals are then able to easily move to other countries and settle. They seek employment in different countries and get absorbed into foreign workforce. Employment conditions in host countries make it possible for them to actively take part in generation of revenue. Often, they are from differing cultural backgrounds and the manner through which they address varying issues is different considerably from the manner through which locals do business. Additionally, foreign workers also introduce new mannerisms within the workplace. In such instances, organizational leaders should adopt solutions that are workable in order to solve these issues.
International organizations, according to Reincke (2006) often deal with different issues that are related to cultural diversity within their workplace. Employees in such organizations have differing religious values and work ethics, which influence their performance and that of the organization at large. As such, failure to manage employee relations within the organization in a manner that is effective can have adverse effects on overall performance of the organization. From managerial point of view, employment of different leadership models make it possible for firms to address challenges related to management of diverse workplaces. As earlier indicated, adoption of a learning culture makes it possible for employers to make sure there is peaceful co-existence in the organization. Additionally, culture makes it possible for firms to meet the goals of optimizing profits as well as sustaining development and growth.
Cultural diversity at the workplace as well is beneficial to wellbeing of international firms. There are also certain cultural aspects of foreign employees that cause positive effects on an organization’s performance. For example, a foreign employee can inform an organization regarding the nature of market in home country. If such information is reliable, it plays a crucial role of proper decision making. According to Meister and Willyerd (2010), such information can be quite benefit an organization in carrying out review of marketing approach in the suggested area. It directly impacts the managerial processes like staffing and ensure employees are sent to regions they can optimally perform. This benefits the organization to in the sense it enhances its competitiveness and productivity. On the local scale, it helps improve relationships between management and employees. Strong relationships between these parties helps promote a work environment that is supportive and boosts employees’ moral.
International business relations as well lead to increased job specialization (Edmondson, 2012). Ideally enhanced interactions at varying levels are triggered by technological advancements. To ensure efficient production and quality performance, international companies use sophisticated technology. To sustain and attain desirable efficiency, firms and companies are forced to embrace specialization. This needs employment of personnel that fully appreciates and understands use of productivity-enhancing machines, which characterize modern technology. In the course of recruitment, employers are supposed to make sure the workers have great skills, competencies and sufficient experience in different areas of specialization. This is used for purposes of explaining why job environments have increasingly become diversified. In some cases, employees with specific competences are often outsourced. It is by doing this that an organization is able to production standards so as to stay competitive in the global environment. Certainly, specialization directly influences the process of recruitment within the work environment.
Global business interactions on the other hand have led to development of virtual communities at workplaces. According to Cerra and Easterwood (2012), the virtual communities can be found across the globe and they impact organizational operations in varying ways. Technological advances boost establishment of relationships between varying global partners. The use of sophisticated technology tools at the workplace also foster employees into maintaining constant communication via social forums. In order to address related negative effects, organizations are forced into developing stringent measures aimed at listing the involvement of employees in social media in the course of production hours. They carry out employee monitoring with the bid to make sure workers concentrate on their duties and responsibilities during the official working hours. This helps steer debates related to the privacy of employees. Opponents of such regulations also content that this comprises of the security and privacy of workers. In accordance to this viewpoint, the psychological effects of these practices can be quite adversarial. In cases that are extreme, it leads to the pursuit of legal procedures which affect reputation of employment of workers and that of organizations.
Smith (2006) in his research argues international business operations affect the rates of employee compensation either negatively or positively. Specifically, local firms review remuneration rates for purposes of meeting global demands. Often, individuals from economic backgrounds that are poor especially third world get the chance of benefiting from high rates of remuneration. Employees from developed nations, on the other hand, find it hard to deal with low rates of compensation characterizing organizations in third world nations. Smith (2006) asserts that though the profit margins such organizations enjoy tend to be economically rewarding, they tend to be unsustainable since they have serious effects on the welfare of employees. In essence, international business interactions need organizations to review compensatory rates and accordingly bridge inherent gaps. Companies seeking to perform well as well resort to paying employees well. In this manner, they attract and retain employees who are skilled (Edmondson, 2012).
According to Cerra and Easterwood (2012), interactions of global businesses lead to job dislocation in the workplace. In this case, research ascertains international corporate relations create different job opportunities across the world. Whenever an organization broadens its boundaries, it creates more employment opportunities. However, there are characteristic trends that lead to outsourcing of a large number of jobs. This is achieved by employers in the effort of optimizing productivity and lowering the costs of employment. Comparatively, outsourcing employees is cheaper and as such, cost effective for majority of firms. This implies individuals who initially occupied certain job positions get replaced. From technical viewpoint, these job positions are still in existence, only they are assumed by employees from other regions. The employees affected by dislocations often begin looking for other opportunities. In this case, international business interactions increase employment movement in varying job positions within and between the organizations.
Leadership models adopted in workplaces are greatly influenced by international corporate relations (Bruce, 2002). Because international organizations have diverse workforce, they are able to adopt leadership approaches that match employee’s needs. Idyllic models permit flexibility and make it possible for information to be shared within organizations. Unlike in previous instances, employees in such organizations influence decision making to a great extent. They make contributions that are considerable to organizational practices and policies. Because they have huge stakes in the functioning of organizations, employers are able to adopt their suggestions as well as implement them appropriately. This proves beneficial to organizations since it encourages efficient performance and boosts harmonious co-existence. It also helps improve dedication and loyalty amongst employees. However, it also leads to certain challenges as well. In this case, competing stakeholder interests keep the organizations from making their economic pursuits and goals. As such, it is extremely important for managers of global business entities to exercise objectivity especially in the implementation and formulation of policy.
Global business interactions present varied implications in the modern workplace organizations. Seemingly, there is a significant percentage of organizations that stretch their operations beyond national borders so as to benefit from global opportunities. From the study, it is clear that organizations do not have the ability to sustain their operations single handedly. They are dependent on services and goods provided by other organizations. So as to survive, they explore market niches in other locations. Opportunities in these new regions make it possible for them to optimize on sales, establish some new relations as well as benefit from resources not available in their local environment. The interactions as well are characterized by differing forms of business relationships and they involve parties from different economic, cultural and social backgrounds.
All said, international business relations help improve work conditions within the workplace. Since organizations are bound by legal provisions which are strict, they enhance the levels of standards for purposes of sustaining their operations. These international relations also encourage firms into improving the capabilities and competencies of workers. What is more, they also increase cultural diversity in the workplaces compelling leaders into assuming varying management models. For purposes of promoting efficiency, organizations embrace specialization. On top of this, these interactions lead to creation of virtual communities which impact work environments in different ways. What is more, apart from leading to job dislocations, these interactions also influence compensation procedures of majority of organizations. It is this aspect that affects recruitment process in the organizations and employee productivity.
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