Question

Impact of cultural diversity and globalisation on organisational behaviour

Answer 1

The "new" in new economy means a more stable and longer growth, with more jobs, lower inflation and interest rates, explosion of free markets worldwide, the unparalleled access to knowledge through the Internet and new type of organization which affects organizational change.

Organizational change is the adoption of an organizational environment for the sake of survival. Namely, the old principles no longer work in the age of Globalization. Businesses have reached the old model's limits with respect to complexity and speed. At the same time, the challenge which new economy brings to small businesses managers is the use of new business approach and the strong will for organizational changes and adaptation to global market demands. There are several types of organizational changes that can occur- strategic changes, organizational cultural changes; involve organizational structural change, a redesign of work tasks and technological changes. In line with these changes, there is strong expectation of employee to permanent improve their knowledge and become an integral part of successful business formula in order to respond to the challenges brought by the global economy. It means a request for learning organization which is characterized as an organization creating, gaining and transferring the knowledge, and thus constantly modifying the organizational behavior.


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