Explain The Challenges Of Globalization

959 Words4 Pages
Globalization is a phenomenon where people change their mind of local and nationalistic perspectives to a broader way that world is interconnected and interdependent with free transfer of capital, goods, and services across national borders. Business can be done not only within a small area but also across the world due to the advancement in technology, transportation, communication and etc.

Globalization enables the companies to be cost competitive in their own market and in overseas markets. Global sourcing is the process where the companies seeking out the cheapest materials from around the world to reduce the cost of production. As this goes on, the revenue of the company will increase and thus the company is able to generate profits to
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In today’s competitive global environment, organizations are constantly seeking new ways to use their resources to improve their efficiency. Many organizations are training their workforce in new skills and techniques that they need to operate heavily computerized assembly plants. Similarly, cross-training gives employees the range of skills they need to perform many different tasks, and organizing employees in new ways, and allow them to make good use of their skills. These are important steps in the effort to improve productivity.

The challenge from the global environment has also increased pressure on companies to improve the skills and abilities of their workforce in order to improve the quality of goods and services. One major thrust to improve quality has been to introduce the quality- enhancing techniques known as total management. Employees involved in total quality management are often organized into quality control teams and are given the responsibility to continually find new and better ways to perform their jobs. They are also given the responsibility for monitoring and evaluating the quality of the goods they
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