HR Strategies of Trans-national, Global & Multi-national companies

Prepared By: Vijay Singh Ankur Gupta

Click to edit Master subtitle style

4/27/12

Trans-national companies

TNCs are much more complex organizations. They have invested in foreign operations, have a central corporate facility but give decisionmaking, R&D and marketing powers to each individual foreign market. brings FDI to home country.

It

4/27/12

Strategies

Separate decision-making for different countries. R&D centres. SBUs for different countries

Different Different

4/27/12

GLOBAL COMPANIES
Global

companies have invested and are present in many countries. They market their products through the use of the same coordinated image/brand in all markets. Generally one corporate office that is responsible for global strategy. Emphasis on volume, cost management and efficiency. (E.g Coca-Cola)

4/27/12

Strategies for managing a global workforce

(1) Implement a spatial career strategy

Get people from everywhere (geocentric approach) a lot of knowledge about different cultures & operations in-depth knowledge high cost previous knowledge for new assignment managers, not technicians
4/27/12

Gain

Develops Use

Extremely Mainly

Strategies for managing a global workforce

(2) Implement the awareness-building assignment strategy
Expose

a candidate to cultural training exercises for short term (3 months to one year) members usually not required to relocate used to train candidates for future assignments from foreign assignment and bring experience back to HQ
4/27/12

Usually Family

Usually Learn

Strategies for managing a global workforce

(3) Implement the virtual solutions strategy

Collection of practices that exploit electronic communication internet, intranet, videoconferencing, electronic databases, email, electronic expert systems cost and very fast in terms of disseminating knowledge by Xerox and Ford

E.g.

Low

Used

4/27/12

Multinational companies
Multinational

companies have investment in other countries, but do not have coordinated product offerings in each country. More focused on adapting their products and service to each individual local market.

4/27/12

Types of mncs

Branches: simplest form of extending business operations is to set up branches in the developing countries. Such branches bring with them the technology of the parent company and are linked up with it. Subsidiaries: Such subsidiary companies take advantage of the financial, managerial and technical skills of the holding company and also benefit by the international reputation that latter enjoys. Joint Venture Company: a joint venture is the establishment of a firm that is jointly owned by two or more otherwise independent firms. Under this arrangement of MNC makes available machinery, capital goods and technological expertise to the indigenous firm

4/27/12

contd.

Franchise Holders: A formal contract is entered into between the affiliate firm and the multinational firm which specifically mentions the rights that are transferred to the affiliate firm and lays down the compensation (usually in the form of royalties) that it has to pay to the parent firm.

4/27/12

strategies
Different Change

types of advertisement. (E.g Starbucks) in strategy according to local needs. E.g Mc Donalds)

4/27/12

Thank you !

4/27/12