Page 48 - DMGT548_GLOBAL_HRM

Ginni Nijhawan, Lovely Professional University
Unit 3: Global Status and Control Mechanism in MNCs

Unit 3: Global Status and Control Mechanism in MNCs Notes

CONTENTS
Objectives
Introduction

3.1 Path to Global Status
3.1.1 Export
3.1.2 Initial Division Structure (Early Stages of Internationalisation)

3.1.3 International Division
3.1.4 Global Product
3.1.5 Global Matrix Structure
3.2 Control Mechanism
3.3 Sustaining International Business Operations

3.3.1 Implications for Human Resource Management Policy
3.3.2 Integrated Strategic Framework
3.3.3 Management and Organisation in Europe

3.4 Summary
3.5 Keywords
3.6 Review Questions
3.7 Further Readings

Objectives

After studying this unit, you will be able to:

 Describe the path of organisations to global status
 Explain the organisational structure in MNCs

 Describe the control mechanism
 Discuss about the strategic framework
Introduction

The human resource functions do not operate in a vacuum. The shift from a domestic to a global
focus affects the HR activities as well as other departments. As a consequence, HR activities are
determined by and influence various organisational factors, such as:
1. Stage of internationalisation;
2. Mode of operation used in the various foreign markets;

3. The control mechanism and coordination; and
4. Strategic importance of the overseas operations to total corporate profitability.

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