However, the situation might be a little bit complicated when it comes to handling manpower in the multinational company, which has operations in all over the world with different cultures and values.
Globalisation is a very important concept. Knowing it fully will pave way to understanding how entirely a multinational level company should operate. Clive (2001) defined multinational companies as those with strategies and ability to organise allowing them to become sensitive and responsive to variation in national environments worldwide. From this definition, it is clear that the complexity in handling multinational company is taken into consideration. Paralleling the culture and technological innovations of recent time has been the most important development of a global business.For instance, the fact that there are differences of culture and other environmental factors from one country to another is a very important issue that the human resource department should take into consideration as far as the operation of company is concerned on a global basis.
In the early 1990s, the IT Company as a large multinational organisation with relatively powerful independence was structured around geographical areas. This lead to different Human Resource (HR) policies that existed between countries where IT Company existed and this resulted further to different HR practices in areas such as training, pay and flexitime.
In the early 1990s due to emerging global and local competition, IT Company experienced economic trouble. With this, the organisation tried to change its business and organisational structure. The decision-making authority of local managers was reduced and responsibility transferred to Paris and to the US as regional headquarters where regional managers have the total control on decision making process. In addition to this, business units were instituted which the purpose ...
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