An organization can gain operational efficiency by exporting their standardization practices to guarantee operational consistency in their cross-countries. Standardization always occurs in critical organizational areas such as financial reporting, and operational monitoring and reporting. This allows transparency in organizational activities across all country branches of a multi-national enterprise. On the other hand, an organization can benefit from localization of HRM activities by allowing coherence among all set local regulations. A corporation within the MNE can easily adopt local regulations adopted in one of its branches through localization of activities. In addition it can be beneficial to use individuals who understand the market structure in management.
I think that the management of these countries cannot impose their management practices in the countries they manage and should consider using practices of host countries. The political environments of these two countries are dictating and cannot be accommodated in well developed western nations. Therefore, they should consider more free management practices that can easily be adopted by citizens in the host countries.
Response to Stephanie
Hello Stephanie, your response to the issue of localization was great and would like to comment on it. I greatly support the localization of management practices because they can result in the greatest benefit for a company. How can a local manager improve the image of a company? The manager has a good understanding of local cultures and practices and this can improve a company’s competitiveness.
A firm may start exports on an experimental basis and if the results are satisfying it would enlarge the international basis and if the results are satisfying it would enlarge the international business and in due course it would establish offices, branches or subsidiaries or joint ventures abroad. Basically the first step in the process is experimental exports. This can be followed by internationalization where the company ventures into one foreign market first.
I do think that my organization is its second stage of organizational development where it is trying to diagnose the major issues facing the organization and hindering development. In my organizational, the company rolled out a research exercise to find out why visits to the company’s website were so low. The company hired outside consultants to gather information from website viewers and users about the issue.
Response to Antwinnette
I do agree with you that Multinational Enterprises (MNEs) are partly responsible for growth of international production and marketing. The issue of globalization has allowed companies to greatly diversify and operate across borders in search of better market opportunities. The global economy has been boosted by development of trade liberalization that has allowed companies to internationalize their production activities.