Summary
"Global Administration" is composed of a process by which the growing communication and interdependence that occurs between the different countries of the world, where markets, societies and cultures are unified, through a series of social, economic and political transformations that they give each one a global character.
introduction
This essay is related and focused on the Global Administration that are constantly presented in the countries as well as the behavior that each one of them has.
It must be taken into account that "Globalization is a continuous and dynamic process, which challenges the laws of countries in their way of regulating the operation of companies and the economic behavior of individuals at the international level" (Contreras, 2013), also they can benefit from irregularities and weaknesses that exist in a certain country and all this is of vital importance for the development of man.
Joining with the administration, we know that it is an important element to be able to fulfill the objectives that we propose both as people and for social organizations, then, it is necessary to understand the concepts and the administrative process since it is not enough to have only the concept and perhaps not only understand it but we must apply them through the administrative process.
II. Background
It began in the 19th century with classical economists such as Adam Smith and John Stuart Mill where they “… provided a theoretical background to resource allocation, production, and pricing. At the same time, innovators like Eli Whitney, James Watt, and Matthew Boulton developed technical production tools such as standardization, quality control procedures, analytical accounting, and work planning. By the end of the 19th century, León Walras, Alfred Marshall and other economists introduced a new layer of complexity to the theoretical principles of Administration ”(SALVADOR).
As a consequence, during the 20th century, the administration evolved as organizations became more complex and sciences such as engineering, sociology, psychology and systems theory were developed and studied.
It should be noted that although the concept of globalization is somewhat recent, the term has existed throughout history. Globalization began to take a greater boom after the Industrial Revolution about 200 years ago in the 18th century in England, which was the most developed country in the world at that time. There were thinkers who developed theories like that of international trade, which have survived all this time because they are correct and consistent up to a point.
I could say that these theories are based on what is called the principle of comparative advantage, according to them, each country must dedicate itself to producing those products in which it is better prepared than the others. It should be noted that "The first globalizing process based mainly on economic reasons was the one that took place at the end of the 19th century and the beginning of the 20th" (Suárez, 2014).
III. Development
Throughout history, the emergence of globalization arose with the migratory processes of prehistory that formerly occurred in each of the countries, then as a consequence of the discovery, conquest and colonization of the New World, etc., the revolution of systems of transport and communications that originates at the end of the 19th century, where the transformation of the society in which we live began, including an example of aspects: the habits of all people, their way of working, leisure, interpersonal relationships, communications, etc., there are also new factors that are determinants of the competitiveness of companies and organizations in the countries.
But speaking of today, we are facing a new society that is always moving at a remarkable pace of transformation and evolution. That is why today and in the future it will not make it possible to direct companies, decide studies in a career or even interpret economic, political and social news that currently cost us work, but also on the other hand the accelerated change that surrounds us will become noticeable day by day.
Globalization, analyzing it strategically, has many of the factors mentioned above, and we can say that they are: technological, social and economic or administrative.
Practically through the growing and constant communication and independence that they have had between the different countries of the world, it could be said that it is good, because markets, societies and cultures are unified, therefore there is a social, economic and political transformation in the countries. different countries to make a global model.
We can mention that the Global Administration has some advantages such as:
“… A. Cost Reduction:
Globalization can reduce global costs in different ways:
- Economy of scale: can be done by combining production or other activities for two or more countries. Lower factor cost: can be achieved by taking manufacturing or other activities to low-cost countries Concentrated production: means reducing the number of products that are manufactured, from many local models to a few global ones Flexibility: can be exploited by passing the production from one site to another in a short time, in order to take advantage of the lowest cost at any given time Increased bargaining power: With a strategy that allows moving production between multiple manufacturing sites in different countries, the power is greatly increased negotiator of a company with suppliers, workers and governments.
B. Enhanced Product and Program Quality: Focusing on fewer products and programs, rather than the many products and programs that are typical of a multi-site strategy, can improve the quality of both products and programs.
C. More Customer Preference: Global availability, service, and recognition increase customer preference through reinforcement.
D. Greater Competitive Efficiency: A global strategy offers more points of attack and counterattack against competitors ”(C. ADMINISTRADORES, 2011)
However, in the same way, there are some disadvantages that we can take into account, for example:
“Globalization can cause large administrative costs due to increased coordination and the need to inform, and even due to increased personnel. Globalization can also reduce the efficiency of administration in each country if excessive centralization damages local motivation and lowers morale. Furthermore, each of the global strategy drivers has its own particular drawbacks.
- Product standardization can result in a product that leaves no fully satisfied customers. Uniform marketing can reduce adoption to local consumer behavior and the marketing environment. Integrating competitive measures can mean sacrifice of revenue, profit. or competitive position in some countries. " (C. ADMINISTRATORS, 2011)
It is necessary to talk about the Global Administration of an organization or company, and what I am referring to is the planning of multinational companies and their subsidiaries, they are already experienced in the development of corporate and national strategic plans. "Despite this, most of them have not yet developed global strategic plans that integrate the strategies of the same business in different countries, not to mention integrating strategies between multiple world businesses." (C. ADMINISTRATORS, 2011)
Ideally, it is said that there would be a global strategic planning process in which the top administration of the key countries and regions would take part. This process will possibly occur with the corporate and national strategic planning cycles mentioned above.
Now, having global strategies and programs implies having global budgets that on our part we may not know how they are carried out. "Adding national budgets to a global total is the first step for the global allocation of resources" (C. ADMINISTRADORES, 2011)
On the other hand, companies must analyze different perspectives, such as being able to transfer resources from one country to another in order to help or subsidize countries that need them. Mentioning another important point is “… determine the costs of these activities in a globally neutral way. Lastly, they should also consider making global budgets that are only available for global programs. ” (C. ADMINISTRATORS, 2011)
Something that may seem very important to us is that within the Global Administration processes, motivation, reward and evaluation of company personnel must emerge in some way. "Organizations are made up of a very important part which is" Organizational Motivation ", of which many of them tend to forget and cause poor communication and less than optimal relationships; On the other hand, it must be said that there are other organizations where their main strength is to provoke, maintain and direct the behavior of their collaborators towards a goal, since outside companies there is a competitive and globalized world. " (SELENE, 2014), then, if this process is able to support the global strategy, the deficiencies that exist among the organizations and companies in each country will be subtracted.Rewards can be given in ways that reinforce the overall objectives of the companies, as executives will make decisions.
IV. Conclusions
Administration and Globalization are the processes that have most influenced man's daily life, since they affect all countries and consequently the population in all areas (administrative, economic, political, social, legal, etc.)
In itself, globalization has brought about economic opening, the internationalization of some laws, international intervention in politics and gives rise to the so-called planetary society.
Globalization has reached a number of drawbacks, but at the same time it has also brought good things such as the expansion of knowledge and commercial integration between organizations, which are one of the most important aspects at the international level, since without it the economy of the countries would not be the same.
V. References
Cited Works
- C. Administrators. (11 of 12 of 2011). contextglob.blogspot. Retrieved on 03/24/2014, from contextglob.blogspot.Contreras, BM (2013-10-21). Scribd. Retrieved on 03/24/2014, from scribd Salvador, JJ (01/10/2014). monografias.com. Retrieved 03/24/2014, from monografias.com: http://www.monografias.com/trabajos62/administracion/administracion2.shtmlSelene, L. (03/14/2014). Gestiopolis. Retrieved 03/24/2014, from Gestiopolis: http://www.gestiopolis.com/organizacion-talento-2/motivacion-organizacional.htm Suárez, AC (03/23/2014). Protestant digital. Retrieved on March 25, 2014, from digital protestant.
