Western World & Globalization - Nu Leadership Series

“ Every failure is a blessing in disguise, providing it teaches some needed lesson one could not have learned without it. Most so-called Failures are only temporary defeats.”
Napoleon Hill

In general, all organizations will need to face globalization. Thieme (2004) maintains that relationships between human societies and their transforming technologies means that the future is being constrained by technologies into more complex organizational structures appropriate to the speed of the flow of information within them. In this New World Order, all organizations like all organisms can be defined as structures of information and energy.

First, good leaders are flexible in this new millennium. In this mode, leader both dispraise and praise the tenants of change. Hoyle (2005) maintains that successful visionaries demonstrate the following characteristics: (a) a capacity for caring for others, (b) clear communication of vision, and (c) support and inclusiveness of others. Hoyle also maintains that effective leaders model the way.

Second, the old organization is not what it used to be. Bartlett and Ghoshal, authors of Beyond the M-form argue that large global organizations have been driven to form a new innovative organizational structure. By the 1920s, the multidivisional organization had become the dominant corporate model (M-form). Bartlett and Ghoshal describe this new structure using Asea Brown Boveri (ABB). In the M-form, the emphasis is on decentralization of responsibilities to operating divisions that were controlled by strong corporate management. This structure allows organizations to work more efficiently by responding to market changes quickly and developing new technologies.

While there are similar characteristics of the M-form structure, the ABB structure is not built around the traditional multidivisional format but around a business/geographical matrix. The ABB strategy requires organizations to manage both product and geographic diversity. This is done by structuring its organization around a matrix with dual reporting channels linking frontline operating units to its global business organization on one side and to its national or regional managements on the other. The major difference in these structural changes is to the extent of decentralization of assets and delegation of responsibilities, thereby fostering a culture of entrepreneurship within an organization. This philosophy is reaffirmed by a radical deployment of human, technological, and financial resources. This new structure can be seen at DuPont and General Motors.

Finally, leaders need to be visionaries, strategists, inspirers, and innovators in a global market. Change is rapid. Competition is fierce. Therefore, leaders need to go through a major transition on organizational design when thinking globally.

References:

Barlett, C. & Ghoshal, S. (2002). Beyond the m-form: Toward a managerial theory of the firm. International Journal of the Economics of Business. Vol. 9, pp. 117-138.

Thieme, R. (2004). The future is not what it used to be. Future Brief. Received on 2/20/2007, from http://www.futurebrief.com/richardthieme001.asp.

© 2008 by Daryl D. Green

Examine Western organizational structure as it relates to globalization. Nu Leadership is a column that explores the changing workforce and social environment as it relates to leadership development.

Daryl D. Green has published over 100 articles in the field of decision-making and leadership. Mr. Green is an author of several books, including More Than A Conqueror. He has been noted in USA Today and AP. For more information, you can email him at www.darylgreen.org.

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