The Traditional Organizational Structure

The rate of change and type of changes taking places around the world has increased tremendously due to globalization. The traditional organizational structure based on division of labor, hierarchy, mass production and large size has lost ground to alternative structure principles (Alvesson) which can offer organization greater flexibility and adaptability.

New ways of working and competing have been opened through e-commerce. Therefore with the emergence of the internet and available software that has been transfer of power from multinational corporation to the individual. Its now possible for individuals to compete globally. Size is no longer a determinant for an organization to be called global. Technology has made collaboration among large numbers of workers possible.

The principal drivers of globalizations on organization are advancement in technologies, global competition and changing organization structures.

Technology trends and the speed of changes is increasing the efficiency at which organization can now produce customized products and services (Ulrich and Broackband). Friedman and Fung argue that globalization, technology and communication has helped to make the world become flatter as people make connections across organizational and national boundaries and collaborate and complete on a 24/7. The emergence of e-commerce has been fundamental in helping SME to carve out niche markets on a world stage.

Global competition, with more businesses flood the markets with their products and services globally. India and China creating their own forms of capitalism rather than replicating the western model. Both countries have been focus on inductrial sectors, transport, construction, manufacturing and services and software design in India with a strategy to from China to export low priced manufactured products to western nations. On the other hand India became the hub of software and technology