Management Challenges of Globalization? For Example, What

¶ … management challenges of globalization? For example, what aspects of the U.S. legal-political institution could prove difficult for a Chinese firm operating a factory in America? You can provide your own examples if you wish.

Economic globalization has not created a global culture. A firm doing business in China will have to cope with a very different legal and political environment than that which exists in the United States. Bribery and corruption is often an accepted part of life in the developing world. Also, workers may be used to different standards of living and relationships with managers than in the U.S. For example, the workforce of Europe is heavily unionized and has a higher level of expectation of worker benefits (such as sick days) than American workers because of the social services provided by the government in EU nations. Wal-Mart's venture into Germany was disastrous for that reason. "One Wal-Mart employee told the newsmagazine Der Spiegel that management had threatened to close certain stores if staff did not agree to work to working longer hours than their contracts foresaw and did not permit video surveillance of their work. Wal-Mart Germany has had several run-ins with the trade union ver.di, which represents retail store workers" (Schaefer 2006).

Conversely Chinese workers may accept much harsher worker conditions than are present in the U.S. This creates an ethical challenge for companies like Apple, which must decide if it wishes to impose more compassionate labor standards upon the companies to which it outsources its work in China, or if it allows local standards to dictate what is 'normal' (Glass 2012). Treatment of workers in Apple factories in China has drawn a great deal of public criticism in America. Apple does try to set basic standards for all workers that labor in its factories -- however, ensuring that the labor standards in the firms it contracts to manufacture its goods are upheld has been a challenge.

Q2) Is it necessary to be a transformational leader in today's workplace or is Peter Drucker's good old-fashioned leadership theory still valid? Why or why not? Describe a person you know who is a transformational leader and one who is an old-fashioned leader as described by Drucker. Are both styles effective in the same way or is each style effective only in certain situations or venues. Include citations.

Drucker's theory of leadership was based in how the "military developed leadership, with an emphasis on character and leaders as positive role models" (Riggio, 2009, Drucker). Commitment and taking care of subordinates is emphasized by Drucker. Drucker's ideal leader is above all a good manager with a strong strategic plan, and inspires others to follow that plan by showing ethics and integrity. "Firstly, Drucker asserts that the foundation of effective leadership is defining and establishing a sense of mission, by setting the goals, priorities and standards;" secondly, leaders do not blame others when things go wrong, and thirdly they earn the trust of others (Chessum 2001).