Glocalization: How to Grow Your Business Globally Local
Introduction
Modern business has changed vastly in scope and dimension. While every company can manage itself locally, doing so globally or across borders is a challenge by itself. Global managers have to develop and innovate to cater to the specific needs of each region. At the same time, they must not overlook the overall corporate objectives. Striking a balance between disparate, conflicting interests, and at the same time not losing track of profitability, is the ultimate test of a global manager.
We need to bring into force a bottom-up system to implement globalization. So, the available resources should be distributed equitably between all concerned.
Glocalization
We cannot blindly impose technology; instead, we should match the technology to suit local needs in our business. Similarly, managers can make changes at the lower level and act accordingly using the information gathered from the local units. Regarding economics, we should consider aspects like price sensitivity and the standard of living of the business destination. Hence, we need to bring into force a bottom-up system to implement globalization. Therefore, the available resources should be distributed equitably between all concerned.
Each region will have its own set of customs and regulations for a business firm to accept. Therefore, in global employment, there cannot be a ‘one size fits all’ concept.
Global Employment: A Challenge
Every company swears by an employee handbook. It spells out rules for time and work, leaves, perquisites, appointment, and dismissal among other issues. However, there cannot be one employee handbook for the entire world for the simple reason that the jurisdiction of regions is at the local level. Apart from local laws, culture plays an important role too. Hence, each region will have its own set of customs and regulations for a business firm to accept. Therefore, in global employment, there cannot be a ‘one size fits all’ concept.
Glocalization and Legal Compliance
We should give importance to employment law when it comes to engagement outside the US. There are legal requirements and mandatory benefits like social contributions that a firm should consider from an employment viewpoint.
To draft global policies, one should start with a common ground. One should exclude all country-specific instances and issues. Hence, what would emerge is a fundamental and straightforward policy for the global workplace. Also, the same can be the guiding light, based on which the firm can frame country-specific strategies.
What would emerge from Glocalization plan is a fundamental and straightforward policy for the global workplace.
Health, Safety Concerns and Expatriate Employment
Health and safety concerns is an important issue. Although laws regarding Health and safety vary over nations, the onus of this requirement is solely on the employer regardless of the region. This is especially the case when it comes to workplace accidents and occupational hazards. The company should follow the mandatory requirements for health and safety. If the country of origin has higher standards than the destination country, the same level of quality can be maintained to gain goodwill.
Expatriate employment is a controversial topic in this context. Some countries restrict the intake of expatriates in the home country. There could also be mandatory quotas for locals, especially at the middle management level. The company concerned should ensure that the expatriate and local employees coordinate with each other and have cordial relations.
Expatriate employment is a controversial topic in this context. Some countries restrict the intake of expatriates in the home country. There could also be mandatory quotas for locals, especially at the middle management level. The company concerned should ensure that the expatriate and local employees coordinate with each other and have cordial relations.
Retrenchment Issues in Glocalization
The firm must handle retrenchment issues with utmost care. The country of employment may stipulate a notice period assiduously. Similarly, labor unrest is the last thing that a company could expect in a foreign land. The company should refrain from activities that can hurt the public sentiments and cause violence or litigation.
Rewards and incentives are other issues that require attention. Apart from the fixed remuneration, the employer must reward an employee's merit also. Fair play is the appropriate tool to reward good performance.
A company that proposes to be globally local should be aware that they are functioning in an alien environment.
Significance of Documentation
The diversity of employment laws is in no way an excuse for not documenting rules and regulations for the company. If there is no company document for the same, an employee would be free to leave the job at will. If an agreement between the employer and employee is in place, courts in any part of the world would uphold them as long as they are fair to both the parties involved.
The thumb rule is that a company should be aware that they are functioning in an alien environment. Though your company is welcomed with open arms, you should note that the country of employment expects a better deal for its citizens from your company. Hence, the company should go the extra mile to reassure its foreign workers that the company would treat them fairly in a win-win situation.
Conclusion
It is apparent from the above discussion that we need to bring in the concept of glocalization into international business practice. Glocalisation combines the best of both the worlds in that globalization is implemented with a local flavor. For any business to succeed, it cannot lose sight of its immediate environment. The customer will reject a company that does not cater to his/her needs and tries to impose anything unfairly. Hence, the company should repackage itself to appeal to local tastes and sensibilities. Only such a flexible organization can be truly representative of the customer base it holds.
