Traditionally, organizations concentrated on their home market and most of investments were locally done. Only necessary investments were made abroad. Today, trends have changed and companies that are based in one region invest in others that are located in another continent, through the use us internet or even physically (Robbins, 2003). The ever increasing rate of globalization can be attributed to this phenomenon. While globalization has been very beneficial to organizations in terms of opening up markets and opportunities for organizations, it has as well brought along other challenges that organizations must deal with (Richard, 2007). Among the main problem is the organizational behavior of employees towards their organization. The following are some of the major challenges that organizations face in organizational behavior due to globalization

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Negative Effects of Globalization to Organizational Behavior to Organizations

Improving Technology

Technology is revolving in the world and every new technology is dedicated to ease the costs incurred in production and management. This eventually leads to the reduction in costs. For any organization to remain competitive, it has to embrace the technology in order to reduce their costs of production, marketing and distribution (Markovic%u0301, 2012). Organizations have to ensure that their workforce is well conversant with these emerging technologies. In some cases, the management teams have resolved to retrench some f the employees because the adoption of a certain machine would result to reduction in labor force. This would therefore keep the remaining workforce unsure and insecure about their job securities, in case another machine was adopted. This reduces their productivity in the long run (Richard, 2007). Organizations have to ensure that despite their embrace of technology and increase in their efficiency through technology, they have to assure the workers of their jobs and security that would in turn result to highest productivity from these workers.

Labor management

Management of a workforce is a complex matter that requires full cooperation between the employees, managers and the employers. With the global outlook, organizations are set to expand their geographical scope in pursuit for more profitable regions (Robbins, 2003). Many organizations would go international which would result to a more thorough approach to the management of their workforce. When employees are transferred from one country to another or from one region to another, their adoption and mentality towards the organization could change because they may be forced to leave their families or settle afresh. They may not be happy with the movement and this could affect their overall output (Markovic%u0301, 2012). While expanding, organizations would be likely to retain their best departmental managers thus compel them to move to manage other branches in the new countries. Overall, this could hurt the employee reputation in the organization. Therefore, organizations have to find a solution to this, as they try to recruit new managers to the new regions they venture into as opposed to moving their staff.

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Cultural Diversity

With globalization, the organization has to focus on a wide range of employees and customers. An organization would have to ensure that its respective employees understand the market and society they are based on. At the same time, people from different cultural, racial and religious backgrounds would be brought together to work in the same organization (Richard, 2007). This is inevitable as a global or international organization would not be effective if it employed people with similar backgrounds. In this case, the organization managers would be required to effectively integrate the different cultures and any other differences that may affect their working together (Robbins, 2003). Some employees would not be involved in certain rituals due to their cultures at the expense of another employee. It is therefore vital to bring an understanding and harmony across the workforce in order to ensure that you get the best that the workforce has to offer (Richard, 2007). This has proved to be a tough hurdle that mangers have to find a remedy for because globalization can not be reversed as it intensifies. Organizations do not have a choice but to get versatile and adapt to the changing workforce composition in order to keep the organizational behavior in an organization productive, regardless of the effects of globalization.


Globalization is a strong force that any organization must incorporate to ensure its sustainability. It is therefore up to organizations to devise methods through which they should solve the challenges to ensure that organizational behavior remains positive.

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