MGMT628 Organizational Development Assignment Solution Spring 2013

There are different types of challenges for the modern day organizations. Adopting new innovation and globalization trends is the crucial factor for the organizational development. The three major trends that are shaping change and are the challenging factors for all types of organizations for the purpose of survival and growth.

  1. Globalization
  2. Information technology and
  3. Managerial innovation


These are the challenging factors for all types of organizations for the purpose of survival and growth.



In your point of view, to what extent commercial organizations in Pakistan have been able to adopt these major trends and what positive or negative impact it may create for an organization?

Positive Impact of Globalization:

Advantages of Globalization:

  • Resources of different countries are used for producing goods and services they are able to do most efficiently.
  • Consumers to get much wider variety of products to choose from.
  • Consumers get the product they want at more competitive prices.
  • Companies are able to procure input goods and services required at most competitive prices.
  • Companies get get access to much wider markets
  • It promotes understanding and goodwill among different countries.
  • Businesses and investors get much wider opportunities for investment.
  • Adverse impact of fluctuations in agricultural productions in one area can be reduced by pooling of production of different areas.

Advantages of Technology:

  • Increases production and saves time: Business use technology to automate tasks.  A good example is a bakery which uses automated temperature censors to detect any drop or increase in room temperature in a bakery. These censors will send information directly to the operator and report any temperature change. This saves the bakery time and it also results into quality products.


  • Improves communication through communication technology: With the help of communication technology tools like phones, video conferencing , electronic mail, databases just to mention but a few. Movement of information with in an organization or business has become easy and first. Employees can easily move information across departments without having any interruptions. Tools like electronic mail , e-fax, mobile phones and text messaging enhance the movement of information among employees , customers and business partners or suppliers.

Negative Impact of Globalization

  • Developed countries can stifle development of undeveloped and under-developed countries.
  • Economic depression in one country can trigger adverse reaction across the globe.
  • It can increase spread of communicable diseases.
  • Companies face much greater competition. This can put smaller companies, at a disadvantage as they do not have resources to compete at global scale.


  • Implementation Expenses:  Small businesses fail to afford this expensive technology so they end up losing their clients to a business which has improved its technology and provides a better service or product.
  • Job Elimination: Technology has replaced most positions which humans used to occupy. Accounting is now being done by software, so accountants run out of opportunities.
  • Security Breaches:  Since businesses store their data on remote cloud servers which can be accessed with a user name and password, they risk losing that data to wrong minded knowledge works, hackers or viruses, which can harm he business.