Article Abstract:
Multinational corporations (MNCs) are faced with increased globalization of the economy, which puts pressure on the efficiency of research, production, and marketing. The ability to successfully manage all these functions depends on appropriate human resource management. Control systems at the multinational level are heavily dependent upon effective human resource management, which should not focus on bureaucratic control of information, but should emphasize a more social approach. The solution to control in a MNC is to combine both the bureaucratic-technical approach with a social-cultural emphasis in order to effectively use opportunities and cope with the demands of a world market.
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Article Abstract:
Strategic control and local market demands constitute challenges in the personnel management of multinational corporations (MNCs). A multifocal approach is needed in a situation of subsidiary diversification and divided loyalties when local employees are not fully incorporated in the international staff of the corporation. A balance between awareness of local conditions and loyalty to the corporation is crucial to keep the company functioning efficiently. A well developed human resource management plan must have a large pool of young executives able to fill vacancies. It must also have an objective system of employee appraisal to prevent nepotism and 'old boy' network development.
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Article Abstract:
Various ways of conducting business (joint ventures, cooperative networks, and international franchises) at the international level pose challenges in six crucial areas of human resource management: assignment of managers, human resource transferability, operating and strategic management tasks, biases in business judgment, loyalty issues, and career planning problems. The management of human resources is different when the form of business is a cooperative venture, rather than when it is a wholly owned subsidiary. Joint ventures pose a singular challenge since human resources must be allocated strategically with the goal of using this experience later in other ventures.
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