(Solution) 5OS04 Question 3 (AC 1.3) tension in multi-national companies between a wish to adhere to global corporate standards and norms when managing people

Solution

Question 3 (AC 1.3)

Explain why there is typically some tension in multi-national companies between a wish to adhere to global corporate standards and norms when managing people, and an equally strong need to respect established local standards and norms. How can this tension best be resolved in your company as it prepares to implement the proposed takeover?

 Tensions in multinational companies emerge from finding the right balance between global corporate standards and local workplace norms. Local norms are related to cultural, legal and economic realities, and global standards guarantee uniformity, efficiency and a corporate identity. Hierarchical structures and group decision making is preferred in Japan as opposed to the tendency to want autonomy along with open communication in the UK. The enforcement of a single approach will actually lead people to be dissatisfied, will misalign them, and reduce their productivity.

In order to solve this, the company should follow a hybrid solution where the corporate policies are combined with local adaptations. Differences can be bridged with cross cultural training, leadership exchange programs, which are flexible HR policies. Open dialogue and utilization of local expertise will successfully result in compliance to corporate objectives while respecting local dynamics thereby creating a harmonized and productive environment to work in.

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