Wednesday, 24 October 2012

TOPIC 3: TRANSNATIONAL HR SYSTEM



Transnational HRIS model involve the organization structure of enterprise. According to Bartlett and Ghoshall (1989) Transnational Model embodies many of Hock’s chaordic principles and provides foundation of transitioning of global HR organization to meet the challenges of the paradox. It also responsive to local needs, cooperative for global activities, innovative to new ideas and flexible to change. The Transnational Solution defined four basic structures or models that organization manifest in their global development. They are multinational organization, global organization, international organization and transnational organization.

A multinational organization structure is one that is highly decentralized, consisting of numerous independent local business units and little control at the center. This structure generally not much more than financial oversight. Approaches to strategy and planning in multinationals requires more effort due to more complex organizational structures and market specific factors global companies face. Corporate strategy must be “localized”  to allow the business to respond appropriately to geographic-based opportunities and threats. Likewise, strategy development must include the involvement of the company’s foreign business leaders to help the strategy be adapted correctly to local needs. Exactly how this is done is dependent upon the type of structure the company has decided best suits the organization (e.g. matrix, product, geography, etc.).  


A global organization is one that highly centralized and standardized, minimizing the needs of the local business unit in favor of one single, uniform operating environment which is famous with the “one-size-fit-all” approach.  Accenture helped this global organization develop a comprehensive program to change its corporate culture in order to support a renewed business strategy to achieve high performance.
An international organization, while still largely centralized, takes a learning and sharing approach by adopting an innovation from local business unit, integrating them into the global business model and rolling them back out through the organization.

A transnational organization is a chaordic , network structure will no centralized “controlling” unit per se, but with a well- defined set of organization “coordinating” and “cooperative” process that govern how the organization function. Besides that, this type of organization is “enabling” and “self-organizing”  and exemplifying effectiveness without being controlling and coercive. A transnational strategy allows for the attainment of benefits inherent in both global and multidomestic strategies. The overseas components are integrated into the overall corporate structure across several dimensions, and each of the components is empowered to become a source of specialized innovation. It is a management approach in which an organization integrates its global business activities through close cooperation and interdependence among its headquarters, operations, and international subsidiaries, and its use of appropriate global information technologies (Zwass, 1998).
-427 words-




No comments:

Post a Comment