Rabu, 05 Oktober 2011

culture of multinational corporation



Multinational corporation is an enterprise operating in several countries but managed from one (home) country. Generally, any company or group that derives a quarter of its revenue from operations outside of its home country is considered a multinational corporation.
There are four categories of multinational corporations:
(1) a multinational, decentralized corporation with strong home country presence, 
(2) a global, centralized corporation that acquires cost advantage through centralized      production wherever cheaper resources are available, 
(3) an international company that builds on the parent corporation's technology or R&D, or 
(4) a transnational enterprise that combines the previous three approaches. According to UN data, some 35,000 companies have direct investment in foreign countries, and the largest 100 of them control about 40 percent of world trade.

 Multinational corporations are business entities that operate in more than one country. The typical multinational corporation or MNC normally functions with a headquarters that is based in one country, while other facilities are based in locations in other countries. In some circles, a multinational corporation is referred to as a multinational enterprise (MBE) or a transnational corporation (TNC).
The exact model for an MNC may vary slightly. One common model is for the multinational corporation is the positioning of the executive headquarters in one nation, while production facilities are located in one or more other countries. This model often allows the company to take advantage of benefits of incorporating in a given locality, while also being able to produce goods and services in areas where the cost of production is lower.
Another structural model for a multinational organization or MNO is to base the parent company in one nation and operate subsidiaries in other countries around the world. With this model, just about all the functions of the parent are based in the country of origin. The subsidiaries more or less function independently, outside of a few basic ties to the parent.
A third approach to the setup of an MNC involves the establishment of a headquarters in one country that oversees a diverse conglomeration that stretches to many different countries and industries. With this model, the MNC includes affiliates, subsidiaries and possibly even some facilities that report directly to the headquarters.
Multinational Corporations are the main actors driving economic globalisation which thrives when market forces are de-regulated, allowing essential goods and services to be allocated by commercial activity, not human need. The result is a world economy that favours affluent countries and their corporate interests whilst neglecting those living in extreme poverty who the market fails to reach.
Multinational companies usually have their own cultural values ​​and evolving since the inception of the company was founded. Values ​​are the foundation for employees to behave. In the case of Unilever, there is a fundamental value of the so-called Code of Business Conduct. Employees in all levels shall comply with the code of conduct and applies to all countries around the world. Other Culture is how the company interacts with customers, competitors compete in a healthy, working culture to always excel and deliver the best work.
And in the Era of Globalization that swept the world, borders between countries become less ada.setiap free state associated with other countries. Cooperation in various fields including wide open in the business world. International companies to open branches all over the world including Indonesia. Communication that occurs between people of different cultural backgrounds within a single company ensued. Such communications provide great opportunities due to a misunderstanding of different perceptions, ways of thinking and how it works because of different cultures. This study wanted to explore the cultural values ​​of work and work culture of Indonesia Expatriates coming from the West. Work culture has its own properties but have also in common with its parent culture. Data is collected by questionnaires, in-depth interviews (depth interviews) and the observations do not participate (non-participant interviews) on a firm multinasionai leaders in Jakarta. The framework used to use a list of cultural value that work has been done by an expert on multicultural communications & management. He has made 20 list of cultural values ​​that exist in almost all cultures in the world, including relationships, cooperation, family security and so on. The respondents were asked to rank them against the 20 value. Based on the ranking-ranking made by the respondent then later sought how daily practice of these values ​​in their working world .. Are there any changes after the people of different cultures work together in one company. Each one may experience changes that promote the occurrence of a new form called alternative work culture. Alternative work culture is the result of changes in work culture of people within the company. Changes are not always dramatic, sometimes only a few changes. In the research both Indonesian and expatriate experience a change of workplace culture of origin.

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