Globalization & Management

Everyone today is concerned about globalization. Love it or hate it, globalization is here to stay! Even political parties which are left you will, you will not compelled to admit that this is a phenomenon that is well and truly out of the bottle! Technology has done what an ideology can not give: to unite us all in the brotherhood of interrelated and interdependent communities

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How to deal with traditionalists such a new world order? The short answer is that they can not because their analytical frameworks are not in line with current realities. Moore's law, for example, has ensured that the boundaries of knowledge is constantly expanding. Law postulates that the density of information that can be packed into a computer chip doubles every 18 months or so. This means that computing power is doubling every 18 months for making unexpected progress in science, technology and knowledge in general. Who would have thought it possible to solve the mystery of life hitherto undecipherable cracking the genetic code? Perhaps the best is yet to come, as the pundits expect Moore's Law is valid until 2017, when the limit computing as we know it will be achieved. This is when the sub-atomic computing is expected to take and keep power computing grows.

All this inevitably means that human beings are getting more connected each day. Some observers are convinced that the greatest technological marvel of the last century, not a computer chip, but the Internet. This in turn means interconnected and therefore a globalized world. So, for us in India what are the implications of globalization?

Change is always open ended so that its dangerous to venture into predictions. However, for me, some of the implications of globalization for management are clear.

First, globalization means convergence of standards. Therefore, the parameters of quality and performance are not yet connected to our local conditions, but for the world standards. This is simply because the global market. Thus, success in these markets demands the delivery of world standards, nothing less. There is no hope for any product or service, or indeed, any organization that does not comply with international standards, even if they are manufactured for the Indian market. After all, even the Indian market, it went global barriers to entry have been deleted in almost every industry. The lesson is clear: you can not survive with lower standards, because your competitor offers a global standard on your client

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The convergence of standards is undoubtedly the effect of technology and competition, but it is also equally driven by a very proactive several major power institutions worldwide. For example, the WTO is fostering a transparent rule-based global trading system. Bretton Woods twins, the World Bank and IMF, are ardent advocates of prudent economic development, trade, fiscal, monetary and other macroeconomic policies, while their prescription is not always find ready acceptance and importance in each country, they were prominent sources of research on Council for Sustainable Development. The Bank for International Settlements is actively crafting the standards for global banking industry, and the International Standards Organization standards contributed to the globally accepted standards for quality (ISO 9000 series) and environmental management (ISO 14000 series ).

Second, productivity growth will accelerate in India due to competitive pressure. This will ensure that the laid back approach to work is more, the number of holidays will be slashed and the proliferation of computers across India will accelerate. This in turn will fuel all aspects of the knowledge economy: education, training and services. Although it is fashionable to talk about the global software market, I am convinced that a significant portion of this market is right here in India. need to increase productivity in all segments of the economy will encourage strong growth in Indian software industry.

Thirdly, the margin will narrow the global level. Now it is futile to expect that usurious margins of the past (20 to 50%) to continue. Competition from global players in the now opened the Indian market is traditionally eaten at high margins. Soon, companies will have to learn to work on a net margin of around 5%. Already interest rates have fallen and the benefits are passed through to customers in the form of stable or lower prices. Profitability will now have to come from lower costs from higher volumes and productivity. The possibility of raising the price is often far more or less like a mirage in the desert. This global reality does not seem to have sunk in among the top layers of ownership and management in many companies in India.

Fourth, if globalization teaches us anything, it's easy access to information and its effects: transparency. Leaders in politics, corporate apartments and the market can no longer hide behind opaque shields. Internet, e-mail, data archiving and convergence are to ensure that everyone has access to almost everything. For India, the hope of reducing corruption is far brighter than ritual, moralistic pontification of pseudo leaders: all shenanigans will be included in the public domain, nor the power of the state money nor power can suppress the stench. Open societies and the Internet on his father's Mate transparency. Therefore, corporate governance, management by the government and respect for all are becoming de facto standards.

Finally, globalization provides a real opportunity to improve the quality of life for our people's arrest if not reverse the continued migration from rural to urban areas. This can happen when the Indian economy becomes a farm or industrial economy, but the knowledge economy. We can create the possibility that people who pay a pleasant life in their villages and communities. Thus, the universality of the IT literacy now be tied to universalization of primary education. There is very little left justified subsidies. However, the provision of subsidy for connectivity and computer literacy in the Union Budget is an idea whose time has come. Sure, it's an investment that will have a great return on investment in the future. After all globalization is all about creating the future!