Multinational Corporation (MNC) Management As time progresses, more and more corporations are expanding their firms, creating subsidiaries all over the globe. Thereby creating Multinational Corporations (MNC), whose success primarily falls under an MNC manager. Unlike managers in corporations who do not have a global presence, MNC manager must possess an array of skill and techniques to ensure the success of their international subsidiaries. While a number of management approaches would benefit MNC’s, the contingency approach to management would give managers the tools necessary to excel. The contingency approach is defined as “a research effort to determine which managerial practices and techniques are appropriate in specific situations” (CSU-Global, 2015). Since, MNC management varies greatly from managers from a non-global company the contingency approach would aid them in adjusting to a number …show more content…
In order to act within compliance managers will need to adjust their organizational processes accordingly. To succeed in a global economy, Madhani (2015) professed that “MNCs have to thus manage multiple economic, legal, political and cultural environments externally as well as complex networks of knowledge and resource flow internally” (p. 5). Each of these situations may call for a manger to use the contingency approach, in finding the right way to deal with each pressing circumstance. For instance when dealing with economic variables they may need to rely on the decision theory, which would take into account market analysis, trends and other information before making a decisions (CSU-Global, p. 4). As a result, several different management styles would be effective when pertaining to different situations. Therefore, when knowledge is applied the correct approach would go into the
...anges to aspects that are affected by any of these forces in order to reflect current practices and requirements. Furthermore, the company will ensure that the compliance program is effective in making employees and managers abide by the ethics programs.
Introduction Compliance is an enterprise-wide responsibility that does not pertain to any one department. The General Counsel (“GC”) and Chief Compliance Officer (“CCO”) both exercise compliance functions in an organization. Different regulations such as the Sarbanes-Oxley Act of 2002 and the United States Federal Sentencing Guideline (“Guidelines”) have specified what they expect from an organization regarding the adoption and execution of an effective compliance program. Generally, the duties of the compliance department in an organization (public or private) is intertwined to that of the legal department, and both have a duty to perform during an internal audit of the organization.
Compare and contrast the management theories of Frederick Taylor, Henri Fayol, Elton Mayo, and Douglas McGregor. In what sense(s) are these theories similar and/or compatible? In what sense(s) are these theories dissimilar and/or incompatible? How would a contingency theorist reconcile the points of dissimilarity and/or incompatibility between these approaches? The twentieth century has brought in a number of management theories which have helped shape our view of management in the present business environment.
The purpose of the CMP is to solidify their organizational culture of integrity, ensuring that every person acts honestly and ethically in conducting everyday activities and making decisions. The CMP has three areas of focus: “The Compliance Management System, prevention of unlawful activities, and response to changes in regulations” (People 30). Throughout all departments are compliance teams that specialize in protecting the reputation of the company as well as individuals in the company through a process of “prevention, monitoring, and post-management” (People 30). Figure 1, below, is a graphic from the 2015 Samsung Electronics Sustainability Report, which illustrates how compliance management is incorporated throughout the organization (People
Businesses play a significant role with the economies of all countries, whether developed or developing. It contributes to the welfare of the society through the satisfaction of needs, provides a source of livelihood to millions of people worldwide. Businesses do not operate in vacuums but operate within business environments. The events in the environment of a company have a direct effect on the success or failure of that company. According to Jain, Trehan and Trehan (2009), business environments can be categorized in two: (1) internal business environment; (2) external business environment. Institutions and organizations are usually in a position of controlling their internal business environment. By doing so, they gain the ability of affecting their institutional performance. On the contrary, it is difficult for a business to control the external environment; however, businesses can identify in advance the opportunities and threats presented by the external environment and take decisive actions to ensure its continued success (Jain, Trehan & Trehan, 2009; Goyal & Goyal, 2009).
It is good that MMC has many benefit programs such as Shot-term Disability, Long-term Disability, Health Care, Retirement and Life Insurance. Most of the benefits programs are paid by company, which can highly motivate employees to have good work performance. Furthermore, employees have chance to decide to pay or not pay for those optional term insurance. This makes employees feel satisfied because they don’t have to pay for benefits programs that they think are unnecessary to them. As I notice, fifty percentages of employees in MMC are over 46 years old. Providing such flexible benefit programs make them think the company is good and can retain them. Employees who are over 46 years old have sufficient knowledge about benefits programs in USA because they work for a long time and work for different companies. Furthermore, MMC Company has a tendency to provide benefit such as retirement plan to employees who have high loyalty to the company and stay in the company for a longer time. This kind of specific provision of the programs make employees feel fair and motivated and reduce some cost of the benefits. Thus, MMC do a good job in its benefit programs.
They may be in line with the old strategies that had been put in place. They are not adjacent periodically or when the need is to meet the needs of the current implementing strategies. The systems include schemes used for compensating shareholders when they quit or when they die. It may prevent appropriate compensation of the shareholders. The old management systems may, therefore, induce loss to the company or may not administer the decent dividend to the shareholder which in an injustice act. Methods used in monitoring developments in the management, when set in tune with the old system may produce either an underestimation of growth or overestimation of the development of the administration in cases where there in a decrease. Understanding communications systems that are due to adjustment of the company’s regulation may cause disruption and ineffective communication in the management of the system as evident in (Nag & Hambrick,
Multinational enterprise (MNE) is “a company that is headquartered in one country but has operations in one or more other countries” (Rugman and Collinson 2012, p.38) that has at least one office in different countries but centralised home office. These offices coordinate global management in the context of international business. MNEs have increasingly essential influence on the development of the global economy and coordinate with other companies in different business environments. However, there are many issues involved with how MNEs operate well overseas, especially in emerging markets (EMs) (Cavusgil et al., 2013, p.5).
“Exchange rates are the amount of one country’s currency needed to purchase one unit of another currency (Brealey 1999, p. 625)”. People wanting to exchange some money for their vacation trip will not be too much bothered with shifts if the exchange rates. However, for multinational companies, dealing with very large amounts of money in their transactions, the rise or fall of a currency can mean getting a surplus or a deficit on their balance sheets. What types of exchange rate risks do multinational companies face?
“Contingency theory is a class of behavioral theory claiming that there is no best way to organize a corporation, lead a company, or make decisions” (Pfeffer, 1997). There is no simple or one right way to run things. In the 1950’s and 1960’s, two men named Henri Fayrol and Frederick Taylor continued the study of contingency theory. Research in the 1970’s dealt with the organizational structures and leadership styles for different situations (Thompson, 2005). Contingency theory was started by Joan Woodward, whose company research found that different types of processes were linked to different structures and amounts of control. She said that certain organizational forms are appropriate for certain forms of work. Woodward was a pioneer for the theory. Woodward composed several studies using differential variables such as management levels of a company, industry compressions, and management styles in her measurement (Thompson, 2005).--. From those tests, she has identified that there are three influential aspects to contingency theory: environmental, organizational, and leadership. These factors are the key components that influence the success of a business.
Ahlstrom, D., & Bruton, G. D. (2010). International Management: Strategy and Culture in the Emerging
The contingency theory is one that accounts for the various factors and subsystems in organizations, and is used to try and prepare for any number of situations that can arise (Hatch, 2006). A situation where contingency theory was observed and determined to be a good theory to use was one involving a marketing firms. When often looking at organizational structure in marketing, there were generally four different types of organization used (Ruckert, 1985). However while these were useful, it was determined that more efficient methods could be used in the company. Three different methods were tried but it was ultimately determined that the contingency theory that was developed worked out the best. The study found the way that the theory proposed activities should be grouped was effective, and believed that some firms should adopt a similar direction (Ruckert, 1985). Through having a modernist perspective and looking at hard data to analyze problems, along with using theories, such as the contingency theory in conjuncture to be ready for any situation, I view this as an extremely efficient and effective way to run an
Managerial decisions are an important component in achieving the objectives of the organization. The success or failure of a business depend upon the decisions made by managers (Jurina, 2011). Today’s increasing complexity in the world of business brought forth greater challenges for both the firm and its managers. The rapid rate of technological and digital advance as well as greater focus product innovation and processes that influence marketing and sales techniques have contributed to the increasing complexity in the business environment.
Along with more humanistic approaches came a school of thought which believed there was no best way in which to manage an organization. In the 1960’s, the Contingency Approach to management began to take shape and managers realized the best management style varied depending on the available technology, size of the organization, and outside influences such as the economy or available resources (Conference, I.R.M.A.I., and Khosrowpour 268; Stueart, Moran, and Morner 19-42).
However the modern MNC, as it is known today, did not appear until the 19th century. These new entities provide a new level of inter-firm connectedness, a wider division of labor, and a higher level of product integration across countries in which MNCs are growing. Studies have shown that modern MNCs are characterized by a high degree of complexity, and have not followed a linear pattern in their development. In addition, it is crucial to understand the geographical context in which these MNCs were founded. This paper will analyze the development of the multinational corporation (MNC) from the 1870s to the modern day and examine in what ways, and to what degree, it has changed over time.