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Global organizational theory for the 21st century

Globalorganizational theory for the 21stcentury

Globalorganizational theory for the 21stcentury

Inthe contemporary world, organizations have embraced myriad strategiesin their organizational culture that offer a competitive advantage torival firms. Innovation is one of the major aspects thatorganizations need to incorporate into the organizational culture tosuccessfully compete in the 21st-century global economy. Anorganization’s creativity, innovativeness, and willing to learnshould be defined in the organizational culture. Leadership andcultural factors have a paramount role to play in organizationalbehavior[ CITATION Tyr14 l 1033 ].The paper seeks to determine the development of organizationalbehavior and leadership in the current century. Further, the essayintegrates four eras of contributing management theories and models.Finally, it presents current global concerns such as ethnocentrismand parochialism, ethics and values, and cross-culturalcommunication. The problem to be addressed in the essay emerges fromthe fact that global organizations are presented with a uniquechallenge of demand as a result of a wide range of cultures, values,and traditions.


Themodern business organizations face myriad challenges in theiroperations and daily activities. Modernization and globalization oforganizations have enhanced business performance and productivity byincorporating improved information and technology in most aspects ofthe operations[ CITATION Per15 l 1033 ].However, social, economic, and cultural hurdles have derailed theperformance of these organizations. Therefore, business organizationsneed to address these challenges to ensure efficacy and effectivenessin production.

Ethnocentrismand parochialism

Ethnocentrismis described as the belief that one’s culture is superior toothers. On the other hand, parochialism is the presumption that anindividual’s culture and ways are correct compared to othercultures. Ethnocentrism and parochialism are expressions grounded onbeliefs, attitudes, and values[ CITATION Hot11 l 1033 ].These variables have an adverse impact on the productivity andperformance of an organization as they create an environment filledwith hate and discrimination. Ethnocentrism, parochialism, attitudes,and other beliefs are epitomized in an organization’s culture. Anorganization tends to behave in a particular manner according to itsbeliefs and values. Business organizations need to embrace a cultureof diversity in the workplace to ensure fair and meritocraticrepresentation of employees. The modern world comprises of peoplefrom different social and cultural backgrounds therefore, globalorganizations ought to integrate the aspect of diversity andinclusion in their culture.


Ethicshave become one of the organizational priorities in the 21st century.The concern about responsibility is fundamental to understandingethics. Leaders are expected to uphold good morals and observeethics, in their roles. However, greed and self-interests can makeleaders sway the right course and rationalize on unethical habits.Ethical values need to command recognition in the modernorganization, among the elite[ CITATION Per15 l 1033 ].Ethics have a significant impact not only on the decision-makingprocess of an organization but also to the institutional culture. Foran organization to achieve this ideal, an alignment processintegrating ethics with the core business features such as mission,vision, goals, and strategies must be well stipulated. Typically,ethical values are social in nature thus the alignment processfocuses on building healthy relationships. Therefore, organizationsneed to appreciate the importance of ethics as a critical fabric intheir culture.


Communicationforms a significant part of an organization’s culture.Cross-cultural communication, on the other hand, helps peopleunderstand different cultures and ways through which otherindividuals resolve conflicts. Various cultures have different waysof dealing with conflicts. For instance, Asian cultures perceive workconflict as a negative influence in the workplace[ CITATION Tyr14 l 1033 ].On the other hand, Western culture emphasizes the importance of theright amount of conflict in an organization[ CITATION Tyr14 l 1033 ].Therefore, people need to acknowledge and appreciate differentcultures and norms to ensure cohesive global interactions.Multinational companies have a responsibility and role to play inensuring peaceful working relationships with various cultures, asthey expand their business across the globe. Cultural diversity canpose a significant hurdle when hiring workers from these nations.

Implementingorganizational change conditions

Thereare various ways through which organizations could institutionalizechanges in their culture. For instance, training and developmentpractices help employees acknowledge and respect various aspects ofglobal organizations such as culture, ethics, and values[ CITATION Hot11 l 1033 ].Training and development programs within an organization should seekto inculcate a culture of diversity and inclusion. On the other hand,an organization could integrate policies and regulations in itsculture to ensure employees acknowledgeand respect the prevalent social and cultural alterations.


Organizationalbehavior and change are aspects of the ever-changing internationalbusiness environment. Therefore, an organization ought to understandthe constant changes in the global market and adjust to theenvironment. The organizational theory for the current centuryprovides problem and purpose statement, and fundamental structure ofthe contemporary business and how to adapt to this dynamicenvironment. The management of a global business requires effectivetools to control organizational growth and culture. An organizationneeds to manage its external environment, cross-culturalcommunication, ethics, values, and power so as to remain competitivein the business world.


Hotes, R. W. (2011). Organization Development in the 21st Century: An Organizational Behavior, Organization Development and Process Consultation Guide. Bloomington: iUniverse.

Pershing, S. P., &amp Austin, E. K. (2015). Organization Theory and Governance for the 21st Century. New York: CQ Press.

Tyre, T. A. (2014). A Global Organizational Theory for the 21st Century. International Journal of Management and Science, 4 (3), 89-98.