Management Organization

Management Organization

Introduction

All multinational corporations (MNCs) consist of a group of geographically-isolated and goal-detached organizations which consist of headquarters in the home country and subsidiaries which operate in various other countries (Bartlett, & Ghoshal, 1990). The headquarters (HQ) office is defined as an overseas office that executes certain coordination and control functions on behalf of the central office in the home country (Scott, 2009). A subsidiary is defined as a firm which is controlled by another firm (called the parent) through the ownership of more than 50 percent of its voting stock. Multinational corporations around the globe are moving in the direction of greater international integration, and their success in this regard depends on the effects of many significant external aspects on internal strategic approaches. Headquarters (HQ) require targets to be achieved, and subsidiary management issues and corporate strategies are important influences on local leadership and management choices.

Discussion

Recommendation #1

International executives unavoidably spend most of their time looking at global issues from the perspective or orientation of their companies. However, it is helpful from time to time to take the opposite view to see how the organization's actions fit in to the total system of economic relationships surrounded by global nations. Also, it is always important to continually evaluate whether or not the department fits the global operation. Other aspects which should be considered are the global transfer of resources in terms of intercontinental markets for technology knowledge, management practice, development of labor skills, components as a whole and the detail of each category, and all materials input. The markets away from the multinational corporation headquarters should also be examined from time to time to measure whether they should be served by a local or expatriate management team. This recommendation may provide various advantages such as managing and transferring the innovations, strategies and coordination of activities, integration of knowledge among headquarter and subsidiaries along with standardizing the customer services, delivering the service and completing the project in time and managing the external parties. Transfer if most crucial abilities among the headquarter s, foreign subsidiaries along with the subsidiary to subsidiary is most critical to the achievements of operations (Conn and Yip, 1997). Most of this conveyance ocuurs among the managers and staff who possess a broad mindset. Numserous organizations are now considering to recognize various host, expatriates and third party managers which they will require to grow their market share by means of subsidiries.

 It is encouraged to be proactive in developing its activities and seeking to add value to the entire organization. Thus, taking initiative is a means for subsidiaries increase their power within the multinational. However, the architecture of a organization tends to promote the ideas developed in the parts most influential the organization compared to those from the periphery. Researchers even consider that initiatives from international subsidiaries are viewed with suspicion and hostility by the organization. Moreover, this complexity in the relationship-based subsidiaries, exceeding the vision shows that hierarchical control over the subsidiaries cannot be direct and ...