GLOBAL OPERATIONS MANAGEMENT

Global Operations Management

Global Operations Management

Introduction

The operations management by a company refers to the management of business operations and recourses efficiently in order to minimize the cost and maximizing the profit of the company. Therefore, the operational management system of the company helps the company in managing their business operations. It is essential for every organization to manage its functions properly to grow successfully. However, in this paper we are focusing on the management of operations in a global perspective. Expanding the business locally is not that difficult, but the expansion of business globally is a very difficult task which requires enough capital to expand its operation in the international markets.

Issues faced by Host Countries

The host countries face many different kinds of issues for expansion of their business into foreign markets. For example, the companies when establish their business into foreign markets, there is no information available to them, about the market trends or growth in a foreign country.

The global organizations face high cost of capital, they lack well trained people, and if the company hires people with no experience, they face problems in various operations. Thus, it is crucial for the business to hire well trained and experienced labor force in order to expand its business operations into the foreign market. If the company lacks in infrastructure and facing other communication problems, it will become very difficult for the company to build its brand image in the other countries (McGrew, 2004).

Cultural Barriers and Diversity Issues Faced By Global Organizations

The globalization of economies and businesses now has a strong impact on patterns of human resource management. Indeed, more and more companies have employees from various countries and, therefore, from different cultures. Companies gradually become multicultural groups, voicing the social characteristics and culture of various nationalities that compose it. Cultural diversity, therefore, becomes a fundamental part of business management. This new challenge is for all operational issues of business, and, in particular, for the management of diverse work teams. Cultural diversity is a big problem faced by global organizations. Since they have to hire people from different ethnics and regions, they have a high complexity of cultural difference. People are different, their religions are different and; therefore, their family requirements are also different. Therefore, companies have to train their managers in a way that they have knowledge of various cultures and religions in order to deal with them effectively (Henderson, 2000).

Importance of Diversity in the International Arena

Every organization needs to think globally, however, management of diversity is a major concern for the global firm for strategic decision making and for managing the other cross national activities. It is the major concern for the global companies to recognize that policies need to be managed with keeping in mind the cultural differences, in order to make any kind of business strategy. Many companies are accommodating national and cultural differences, while to maintain work culture principals that encourage people working in the company, and they will effectively execute the company's strategic ...