Question 1
The role of the head offices is essential for a Multinational Companies to achieve strategic success in the cross-market integration. The head offices are the places where the almost all significant functions of the organization are harmonized. Therefore, the head offices provide environment where the full responsibilities of business activities are coordinated and managed. The head office enables the managers to formulate and coordinate policies that can be applied to both international and local operations. As a result, the head office provides specific strategies that can help the MNC to meet their objectives and hence achieve strategic success. The head office contributes to achieving the strategy success through controlling and coordination between the company and the host country. This is because the head office can be able to keep in mind the general view and operation of the organization. In addition, the head office takes responsibilities of formulating policy guidelines and decision making to achieve effective allocations of the resources in a broad range of operating divisions. The resource utilizes, and endowment helps the firm to gain “potential sources of sustained competitive advantage” (Barney, 116). For instance, the head office of the Citibank makes decisions that affect global business transparency and integration in managing Human resource policies and work. The bank’s head office in Ney York deals with the various strategic activities that involve fundraising, research and development, and providing close rink between the shareholders and stakeholders (Newenham-Kahindi 4). As a result, the role of the head offices can be considered as essential for the successful MNC business in cross-market integration.
Question 2
Corporate business culture is defined as shared attitudes, values, beliefs, and standards that describe the members of the company and define organization culture. The corporate culture fundamentally affects the strategies, goals, approaches and structure of the organization. For instance, in Tanzania upholds African socialism or Ujamaa that helps the country to from personnel management through effective communication between employees and their employers (Kamoche et al. 73). The corporate culture provides the framework to the success or the failure of the business strategies. This is because the corporate culture defines the employee loyalty or the attitude alliance. The corporate culture involves three distinct functions. First, the corporate culture participates in the social control system that influences employee behavior and decisions. The organization culture also bonds the employee together and makes them have a taste of organizational experience. Finally, the corporate culture helps the employees to understand the activities that affect the organization. The corporate culture helps the organization to translate the global work behaviors and standardization of work. Therefore, the transfer of corporate business culture provides substantial impact on the competitiveness of the MNC.
Question 3
Citibank LTD is an MNC bank which induced “best practices” in its operation in Tanzania by use of modern sophisticated technology (Newenham-Kahindi, 2007 p.3). The American bank applied modern technology in standardizing a variety of services including informing its clients about trends in global financial markets, monitoring work performance, and analyzing the fluctuations of the currency and price changes of products. The head office of the bank was located in New York, and it controls all operations of the bank in Tanzania.
The bank implemented an “e-check” system that served the purpose of monitoring the all received and sent messages together with the telephone numbers (Newenham-Kahindi, 2007 p.5). The bank did not subject their employees to flexibility. For example, workers were expected to eat the Bank’s Canteen. Security checks ensured that the workers did not come with any food in the workplace. The personnel who attended the recreational scheme were given bonuses. The scheme targeted improving socialization of local employees in the bank. To some extent, the bank representatives were not given the ability to alter the policies or induce local adaptations. This was the notable weakness in the “best practice” of the bank. The “best practices” demonstrated included the training program that helped the employees to stick to the policies (Newenham-Kahindi, 2007 p.1).
Question 4
Human resource management policies are significant to corporations that make an effort to resolve their personal issues and establish human resource solutions. The examples of HRM policies involved in MNCs include the policy recruitment, leave of absence policy, attendance policy, probationary, period compensation, and performance planning and evaluation performance. Research and studies have highlighted the role that MNC must play to establish a balance between global integration and local responsiveness in the policies.
The MNC can enhance local responsiveness by recruiting the local staff through training and development (Newenham-Kahindi, 2007 p.2).The training in cultural awareness plays a significant role in improving the effectiveness of MNCs domestically. Global integration and local responsiveness must be harmonized to cultivate a consistent corporate business culture. The differences in the local culture must be addressed. Communication enhances understanding and it’s an important aspect in the corporate business culture. Local culture should be understood, and this will boost the business. MNCs must reconcile global integration and local responsiveness by integrating and adapting strategic HR management. MNCs should be unique, well incorporated and coordinated. The success of MNCs is determined by the ability to institute values and culture that promotes global responsiveness enhancing the visions and objectives of the corporation.
References
Barney, J, 1991, Firm resources and sustained competitive advantage, Journal of Management, 17(1), 99-120
Brewster, C., Sparrow, P. and Harris, H, 2005, Towards a new model of globalizing HRM. Int’l Journal of Human Resource Management, 16(6), 949-970
Gerhart, B. and Fang, M., 2005, National culture and human resource management: assumptions and evidence, Int’l Journal of Human Resource Management, 16(6), 971-986
Hofstede, G., 2001, Culture’s consequences, Comparing values, behaviours, institutions and organizations across nations, (2nd ed), London & Thousand Oaks, CA Sage Publications
Kamoche, K., Debrah, Y., Horwitz, F., and Muuka, G, 2004, Managing Human Resources in Africa, London: Routledge
Newenham-Kahindi, A. 2011, Human resource strategies for managing back-office employees in subsidiary operations: The case of two investment multinational banks in Tanzania, Journal of World Business, 10(29). doi:10.1016/j.jwb.2010.05.013
Sagiv, L. and Schwartz, S., 2007, Cultural values in organisations: insights for Europe. European Journal of Int’l Management, 1(3), 178-190
Wright, P., Snell, S. and Dyer, L, 2005, New models of strategic HRM in a global Context, Int’l Journal of Human Resource Management, 16(6), 875-881
