Management of Multinational Companies
How multinational companies manage employees in other countries is actually quite interesting. Some might think employees in other countries are managed headquarters or local offices, and in some corporations this is true. Some companies will use a combination of corporate and local management. Some companies will use corporate management only. The choice to use corporate or local management is mostly based on the culture of the local company. When an organization decides to become a multinational organization to be successful they have to take into account the culture and possible communication barriers of the local company. The corporate offices also have to consider how multinational teams will be monitored …show more content…
The lead was Britain with the largest number of multinationals. The United States has the lowest number, with Japan and Germany in the middle. The United States and Germany use the most third country nationals. Most were from South Africa, Australia, New Zealand, and England. There is also a trend of more multinational companies bringing staff to the parent company for six months to a year to trade jobs and broaden the employee functional expertise. Germany and Britain uses a supplementary contract to cover the employee while they are working in the other country. The contract was mostly policies that apply to the foreign assignment (Peterson, Napierm and Shim, 1996, p. …show more content…
International Journal of Business & Management”, bring about some interesting points in communication barriers and culture of the Chinese community. The biggest complaint mentioned by Chinese employees was that foreign management did not know enough about Chinese culture. If both sides understand the culture differences it would bring better understanding and stability of human resources and foreign invested enterprises. The perfect example is “Email Gate”. This is a story of Rui, a Chinese senior secretary who stands up to her boss Loke, by email. Although both cultures were from Asia, Rui was from China, and Loke was from Singapore. Rui, Chinese culture is more about harmony and teamwork. Loke culture in Singapore is making a transition from British colonial, to a sophisticated mix of Asian and Western culture. This culture is said to be more upfront and direct. Loke, forwarded their email conversation to upper management, who then sent a reply back to all managers in their China organization. By the time it was all finish there were at least 10 pages in comments from people that worked at the Chinese office. Rui, was considered “arrogant”, by some, and was later fired. Loke resigned. Rui, had worked for several CEO’s, and Loke, had more than twenty years upper level management experience. This is a classic example of poor cross-culture communication
How multinational companies manage employees in other countries is actually quite interesting. Some might think employees in other countries are managed headquarters or local offices, and in some corporations this is true. Some companies will use a combination of corporate and local management. Some companies will use corporate management only. The choice to use corporate or local management is mostly based on the culture of the local company. When an organization decides to become a multinational organization to be successful they have to take into account the culture and possible communication barriers of the local company. The corporate offices also have to consider how multinational teams will be monitored …show more content…
The lead was Britain with the largest number of multinationals. The United States has the lowest number, with Japan and Germany in the middle. The United States and Germany use the most third country nationals. Most were from South Africa, Australia, New Zealand, and England. There is also a trend of more multinational companies bringing staff to the parent company for six months to a year to trade jobs and broaden the employee functional expertise. Germany and Britain uses a supplementary contract to cover the employee while they are working in the other country. The contract was mostly policies that apply to the foreign assignment (Peterson, Napierm and Shim, 1996, p. …show more content…
International Journal of Business & Management”, bring about some interesting points in communication barriers and culture of the Chinese community. The biggest complaint mentioned by Chinese employees was that foreign management did not know enough about Chinese culture. If both sides understand the culture differences it would bring better understanding and stability of human resources and foreign invested enterprises. The perfect example is “Email Gate”. This is a story of Rui, a Chinese senior secretary who stands up to her boss Loke, by email. Although both cultures were from Asia, Rui was from China, and Loke was from Singapore. Rui, Chinese culture is more about harmony and teamwork. Loke culture in Singapore is making a transition from British colonial, to a sophisticated mix of Asian and Western culture. This culture is said to be more upfront and direct. Loke, forwarded their email conversation to upper management, who then sent a reply back to all managers in their China organization. By the time it was all finish there were at least 10 pages in comments from people that worked at the Chinese office. Rui, was considered “arrogant”, by some, and was later fired. Loke resigned. Rui, had worked for several CEO’s, and Loke, had more than twenty years upper level management experience. This is a classic example of poor cross-culture communication