Article Abstract:
Global markets require new organizational strategies for managing multinational corporations (MNCs). The ideal organizational structure for an international business enterprise is the matrix design, which allows for flexible management and is easily adaptable to the changing requirements imposed by foreign and local markets and governments. Strategy implementation is the crucial element in designing the precise organizational structure of an MNC. Administrative networks for MNCs operated as joint ventures and as wholly owned subsidiaries are examined, and administrative problems involved in such international business structures are analyzed. Companies that are the most successful on international markets will have solved problems related to compensation management, worker skills development, manpower planning and staffing levels, and career path provisions for employees.
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Article Abstract:
Multinational corporations (MNCs) will face radical changes in their organizational structures, as a result of the demands of a world market. A hierarchical organization will no longer be efficient, and subsidiaries will become centers of global decision-making and strategic management. This subsidiary operational autonomy will be known as heterarchies. A heterarchical organization is polycentric, able to capitalize on the opportunities that emerge at various company locations. Heterarchies also allow decentralization such that subsidiaries can sometimes operate as independent units. Two other crucial elements of an heterarchy are: normative control (rather than a bureaucratic control) and the decentralization of information.
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Article Abstract:
An organization's corporate culture often provides cohesiveness and coherence among its parts, and multinational companies increasingly strive to improve control, coordination, and integration of their subsidiaries by promoting corporate culture. Subsidiaries are often subject to local national cultures, however, where basic assumptions about people and the world differ from those of the multinational's national and corporate cultures. These differing assumptions are discussed with regard to such human resource practices as career planning, appraisal and compensation systems, and selection and socialization. Additionally, issues concerning the use of corporate culture as a mechanism for globalization are addressed.
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