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An Analytical Review: Information Transmission Across Vast Global Companies

Essay by   •  February 9, 2014  •  Research Paper  •  1,329 Words (6 Pages)  •  1,272 Views

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An analytical Review: Information transmission across vast Global Companies

Human Resource Management, HRM plays an imperative role in establishing the cooperation and the stability in the corporation. However, interaction and internal regulation within a multi-national company can be quite complex. The transmission of information and formation of communication channels in these gigantic firms can remain a problematic area. So, here, the HRM has to maneuver the operations more pragmatically in order to successfully lead the company. It especially entails collaborating all of its subsidiaries to become more one functional unit. Hence, the article was published with the chief purpose of assessing and examining these approaches undertaken by the management team (Chen, et. al, 2013).

The article articulates this motive very clearly and identifies the issues along with proposed resolutions. The main theme of the article is to relate each proposed approach in making the multi-national organization to become more internally structured and to enhance its associations and relationships with each of its subsidiaries. There were three new ideas presented in the article. The first stated the different intricacies in the information flow among its branches, second illustrated the role of HR in managing these challenges and the third the pros and the cons of the each of the approaches. It is very important to cite these points because now the companies are expanding their horizons and forming its divisions in other nations. However, it also engenders several problems like in assimilation of culture, the local economic, competition and the other market imperials. Thus, it is essential for HR to ensure sustainability of all of its outlets as well the main unit (Chen, et. al, 2013).

The article lucidly demarcated its research process. It uses examples and illustrations which were presented in the article itself to support its theories and framework. Some secondary research tools, like examples and theoretical references to other articles has also been used. The subjects used in the examples and illustrations were the employees, CEOs and the HR managers. It analyzed the impact of three strategies: adapative, exportive and interagative on the challenges that affect the communic+ation flow. For example, in providing motivation to form a communication channel, in establishing better relations through this means, and in contemplating the flow of the direction between its units (Chen, et. al, 2013).

The strengths of the article is the well-developed presentation through the usage of simple diagrams and flowcharts etc. The paper begins with outlining the problems and then by depicting the roles of the HR in handling them. It explains how a subsidiary is impacted by a culture and politics divergent from the parent company. It has different competitors and different mechanisms to endure them. The culture of an organization can become altered and the anticipations of its employees can also differ compare to the main branch. These detailed exhibition of the problem is one the strengths as it captivate the readers and center their focus (Chen, et. al, 2013).

Another strength of the article is that it then portrays ways for the HR to assess these differences. It claims that HR can aid in changing the already pre-formed notions among the employees and make them more acceptable to changes. Thus, this shows how crucial HR is for the company. It then explains that HR should provide encouragement. By adopting the policy of adaptive approach, the subsidiary managers can be given compensations so that they can assimilate to the local culture better. On the other hand, in the exportive and the interrogative approaches, managers of all the subsidiaries and the parent company are reimbursed to work more collaboratively. Next, it is essential that there is some form of reliability in the company. For the adaptive strategy, the trust is maintained with the management of the subsidiary to its local stakeholders. While, in the interrogative and exportive strategy, the confidence and reliance should be generated with the parent company. The interrogative company is more involved in fabricating and designing the processes of the subsidiaries, more than the exportive approach. In adaptive strategy, the cultural assimilation

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