These are based mostly on promotion system which is based on seniority, achievements or both and another characteristic of bureaucracy is communication as decisions and orders are passed down through hierarchy. (3) McDonaldization Almost all of those characteristics of bureaucracy are visible in a fast food giant McDonald’s, Ray Kroc who took over McDonald’s from McDonald brothers actually did not invented anything new as McDonald’s production line and menu were made by McDonald brothers. Ray’s genius lies in combining them with different other ideas such as bureaucracy, scientific management and assembly line.
Then Ray franchised McDonald’s in such a way that it became one of the leading national and then international fast food restaurant. This trend of efficiency, calculability, predictability or standardization and increased control through nonhuman for human technology is visible in many other organizations and is called McDonaldization. The process of McDonaldization can be summarized as the way in which “the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as of the rest of the world.
” (Ritzer,1993: ). In Gorge Ritzer’s view, McDonaldization is a re-conceptualization of rationalization, or moving from traditional to rational modes of thought, and scientific management. McDonaldization , certainly can be describe as the face of modernism if we want to see modernism and its implications on organizations and world economy those are clearly visible when we see different organizations and industries managing their business through Bureaucratic control.
Writers all over the world are debating that whether we are still in modern period or have we moved into post modernity? as there are different other organizations which are run in a non bureaucratic way Ritzer argues and says that even today no matter how much globalization has changed the world the process of McDonaldization is still not only strong but expanding as well as he applies his thesis to various areas such as tourism (McDisneyization”) or university (“McUniversity”).
(Ritzer: The McDonaldization Thesis: Explorations and Extensions, 1998) Postmodernity or Post Modern condition The term postmodernity is used in different ways. Generally, postmodernity is the state or condition of being postmodern (i. e. , after or in reaction to what is modern), in philosophy and critical theory, postmodernity more specifically refers to the condition of society which is said to exist after modernity. Where as postmodernism, refers to movements, philosophies or responses to the state of postmodernity, or in reaction to modernism.
According to post modernism we are in living in a period which is different from the modern world of organized capitalism, industrialism and state surveillance ((Karen Legge: Human Resource Management. 1995). Well as we look at different societies we see both trends side by side though postmodernity in its different forms is there but at the same time we see modernist type of organizations expanding themselves all over the world and still working as a bureaucratic organization. Arguably Giddens point of view is quite a valid one who says that “we are not in a post-modern era” Giddens says.
It is a period of late modernity. Though he dose not disagree with the characterizations of recent social life which other theorists have termed as postmodern – scepticism towards superficiality, consumerism, and so on. Giddens doesn’t dispute these changes, but he says that we haven’t really gone beyond modernity. It has just turned into radical or late modernity (Giddens; 1990). Despite the Giddens argument about postmodernity there are lots of differences between modernism and postmodernism. Globalization and Post modernity
Globalization shares many characteristics with internationalization and it is often used in both meanings some times the term Globalization refers to the erosion of nation boundaries. Factors that have contributed to globalization include increasingly sophisticated communications and transportation technologies and services, mass migration and the movement of peoples, a level of economic activity that has outgrown national markets through industrial combinations and commercial groupings that cross national frontiers and international agreements that reduce the cost of doing business in foreign countries.
Globalization offers huge potential profits to companies and nations but has been complicated by widely differing expectations, standards of living, cultures and values, and legal systems as well as unexpected global cause-and-effect linkages. (www. bertanica. com/globalizatio)
The emergence of multi-national companies can be seen as both, the cause and to certain extant result of globalization as by the advancements in the fields of media technology and communication the world is shrinking day by day, there are almost same brands all over the world and all the countries are becoming more and more identical, Arguably the world is becoming the global village and people all over the world are citizens of this global village.
In economic terms globalization refers to the effect of free trade or can also be seen as overall integration and increasing interdependence among global actors whether those are economic, political or otherwise. After the World War II international trade dramatically expanded, two very important reasons were different rebuilding programs and emergence of economic institutions such as World Bank and IMF, which oversees the global economic system by monitoring exchange rates and.
Though there are different aspects of globalization such as economic, political and cultural but all of these aspects are very much linked with each other. Giddens describes the globalization as”The intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by events many miles away and vice-versa. (Giddens. 1990. p. 64) The world economy depends on many factors these days, which were never imaginable some thirty years ago, as any political or policy change in China can have effects on EU economy and vice-versa.
In recent history the end of cold war has brought different countries a bit more closer and it can be seen as one very important political factor which initiated the globalization. Cultural Change in post modern condition And HRM: operations of organizations have expanded from national to international scale as multi national companies are producing their products in different parts of world the main reason for this is less labour expenditures as in developing countries the labour is quiet cheap when compare with the developed countries. Such example is China where almost every MNC has set up its operations due to low costs.
Same is the case with organizations providing services to their customers as one case is of different British based organization’s customer service centers, almost every big organization has its call centers in India if you are having some problem with your mobile phone and you ring its help line you are talking to someone in India just because call centers cost less in India. This can also be seen as more division of labour across the world. Globalization of economy, comparatively less expenses and more effective ways of communication has made it possible.
Theorist Jean-Frani?? ois Lyotard understood to represent the culmination of the process of modernity towards an accelerating pace of cultural change, to a point where constant change has in fact become the status quo, leaving the notion of progress obsolete. Postmodern condition is the result of socio-economic change and it is attributed to factors such the importance of the mass media and the rise of an increasingly inter- dependent world economy in changing environment so as everything else is changing so is the style of management.
Strategic network can be seen as a product of postmodernism. postmodernist organization are “flexible organizations” which are often run through culture and on the basis of mutual trust between employer and employee this sort of approach towards management is some what post bureaucratic where there is control but not through memos and orders but actually it is more sort of task oriented also known as responsible autonomy.
This type of organizational form is quite effective in increasingly changing world economy and technologies as network structure tries to cope with it through subcontracting or outsourcing, though one can debate on the advantages and disadvantages of outsourcing. There are different ways of coping with the disadvantages of the sub-contracting; organizations are building Strategic networks one very important feature is that in relational contracting the organizations are looking to buildup long term relations and their mutual understanding that problems can occur which they will try and solve by mutual corporation.
As I myself has been working with a small marketing company, which actually work for different big organizations as a sub contractor one advantage for big companies is that they don’t have to worry about day to day operations but on the other hand some times the skills and knowledge of a sub contractor can pose a serious threat in long run.
One example is of IT industry specially the software development as organizations like Microsoft or yahoo hire different soft wear developers across the world those are literally working from their homes and then there are different software companies which are developing new software for big IT giants, IT industry in many cases is a perfect example of strategic network, sub-contracting and not only this but in IT industry mostly the employees are managed through culture and there is no formal control the only form of control is their completion of task in given time.
Another example of Relational contracting is Benetton which has sales of over 2billion pounds with only 1000 direct employees while staggering 95% of all activities are done outside of the company.