Collapsing boundaries?

GLOBALIZATION AND BUSINESS PRACTICE - Managing Across Boundaries: Barbara Parker; Sage Publications India (Pvt.) Ltd., 32, M-Block Market, Greater Kailash-I, New Delhi-110048. œ.24.99.

A GREAT wave is surging across the global economy. A brave new world is taking shape, where business must operate without boundaries, freeing the spirit. The fact that the revenue generated by many multinational companies exceeds the GDP of a host of nations indicates the role of business as an important agent of change. The key to business performance is a change of mindset. Businesses that were viable on the basis of domestic competitiveness are finding that even if you do not go global, the world will knock at your doorstep. A world that has shrunk is also a world that has to be viewed more closely.

A global economy changes the very standard against which performance has to be viewed. In a national economy, domestic transactions assume primary importance while in a global economy, balance of trade, foreign direct investment and currency exchange have great importance. The emerging scenario provides tremendous opportunities for both developed and developing economies. Business is moving towards a central position in its influence on humanity. The crux of the new understanding is that no man is an island. He must see himself, his business, corporation and enterprise as part of a global network. Contributing to the whole is the cornerstone of higher level performance. Of course, the point to consider is whether this is a reality spawned by breaking national barriers. Do we see ourselves as belonging to a truly global world in which we seek a sectored identity than to a national construct in which we form a group with partisan interests?

One of the greatest challenges of our times is to cull out a paradigm against which events can be viewed. The book portrays the health of various economies, monetarily and in terms of their human development. The available approaches to managerial decision-making from rational to political are tabulated succinctly. The nature of capitalism in different countries from outright robbery in Russia to cooperative capitalism in Europe makes interesting reading. ``So much data, so little information'' screams the heading on the Barings Bank collapse case. The author sees how even developed economies find it difficult to keep track of information.

Culture facilitates common understanding and hence gets individuals to respond predictably to the requirements of the group. The author covers this important aspect in detail. The commonality that helps create a nation-state from diverse groups must transform to a setting where business integrates people from diverse backgrounds to meet the needs of people across several nations. The author naturally leads from culture into the structure of teams that are formed to meet a specific purpose. Aspects like cultural domination and domineering are directly addressed. The book quotes research to make the point that western cultural inputs are not welcome in many parts of the world.

People, rather than capital, will ensure competitiveness in an environment where economies of scale are becoming less relevant. People from different societies have settled all over the world, bringing their own unique cultural impact on the way things are managed. Latin American, Indian and transnational tribal tradition will be in great demand. The author sees women as a ``tribe'' setting direction to businesses around the globe. Leaders, who can adapt to several cultures, view business from a global perspective and understand the value of both hard and soft skills, will be in command. Shared purpose and learning will draw people in an organisation together. Hierarchies will be less in evidence.

With human potential empowered by the Information Revolution, industries are seeing the need to adapt themselves to changing work cultures. Breakthrough technologies are making connectivity and communication extremely simple. As jobs chase people across the world, the different levels of cultural and economic maturity that the latter come from must be managed. Contracts and expectations, business ethics, learning systems and career development must relate to rising and varied expectations across the globe.

Going by the solutions she offers, the author strongly favours going for opinions or contributions that are intrinsically valuable, whomsoever and from wherever they come. The role of industry in taking care of social concerns is dealt with - in many cases, like that of carpet manufacture by child labour, the answers are difficult to find.

The role of national governments is under increasing pressure as the focus shifts towards global agreements, global standards of living and globally determined issues.

The author foresees an expanded role for non- governmental and inter-governmental cooperative organisations in achieving a link between economic and social justice. Virtual states constructed by people with a common ethnic background or common interest represent an interesting possibility.

Last but not the least, the author sees that the world will demand environmental sensitivity in managers, given the increasing realisation that man needs to give back something for all that he takes from the earth.

The book stands out for its coverage not only of economical but technological, political and social forces and trends, and their implications.

Each chapter begins with a relevant case, takes the reader through the content and concludes with a list of references on the Internet and a home-page that is updated by the author every quarter. The chapters graphically cover both macro level trends and the specific choices available to the effective manager in terms of approaches to structures, processes and people.

S. NANDAKUMAR

Send this article to Friends by E-Mail

Section  : Features
Next     : Manual on Tamil grammar