1) The article lays out a model for a management structure in transnational corporations that balances local, regional, and global demands.
2) This structure includes three types of specialists: business managers who focus on global efficiency, country managers who understand local markets, and functional managers who share expertise across units.
3) Through this elastic organizational process, transnational companies can build capabilities like global scale, national responsiveness, and cross-market learning.
1) The article lays out a model for a management structure in transnational corporations that balances local, regional, and global demands.
2) This structure includes three types of specialists: business managers who focus on global efficiency, country managers who understand local markets, and functional managers who share expertise across units.
3) Through this elastic organizational process, transnational companies can build capabilities like global scale, national responsiveness, and cross-market learning.
1) The article lays out a model for a management structure in transnational corporations that balances local, regional, and global demands.
2) This structure includes three types of specialists: business managers who focus on global efficiency, country managers who understand local markets, and functional managers who share expertise across units.
3) Through this elastic organizational process, transnational companies can build capabilities like global scale, national responsiveness, and cross-market learning.
Muhammad Abdullah Rehman F2019-541 Syed Hamza Sibtain Naqvi F2019-663 Sheikh Saad Sohail F2019-326 Rana Ahmad Imam F2019-634 Muhammad Haris Azam F2019-372 WAC 6 (Monday, May 17, 2021)
“What Is a Global Manager?”
by Christopher A. Bartlett and Sumantra Ghoshal. Divided by ideology, religion, and mistrust, the world appears further fragmented than at any time since, questionably, World War II. But however profound the political divisions, corporate operations continue to span the globe, and executives still have to figure out how to track them efficiently and well. In this article, authors lay out a model for a management structure that balances the local, regional, and global demands placed on firms operating across the world’s numerous borders. In the unstable world of transnational corporations, there is no such thing as a “universal” global manager, the authors say. Instead, there are three groups of specialists: business managers, country managers, and functional managers. And there are the top executives at business headquarters who manage the complex relations between the three and identify and develop the talented executives a successful transnational requires. This kind of organizational structure characterizes a transnational rather than an old-line multinational, international, or global company. Transnationals incorporate assets, resources, and various people in operating units around the world. Through an elastic organization process, in which business, country, and functional managers form a trio of different viewpoints that balance one another, transnational companies can build three strategic capabilities: global-scale efficiency and competitiveness; national-level responsiveness and flexibility; and cross- market capacity to leverage learning on a worldwide basis. Authors also illustrate the responsibilities each position involves through a close look at the careers of popular executives: Leif Johansson of Electrolux, Howard Gottlieb of NEC, and Wahib Zaki of Procter & Gamble. The first type is the global business or product-division manager who must construct worldwide efficiency and competitiveness. These managers identify cross-border opportunities and risks as well as associate activities and aptitudes around the world. The second is the country manager whose unit is the constructing block for universal operations. These managers are responsible for understanding and understanding local markets, building local resources and capabilities, contributing and participating in the development of global strategy. Lastly, there are global functional specialists, the executives whose potential is least valued in many traditional multinational companies. To allocation expertise from one unit to another and leverage learning, these managers must scan the firm for good ideas and finest practice, cross-pollinate amid units, and champion innovations with global applications.
Knowledge Sharing Between Multinational Corporation's Headquarters and Subsidiaries: The Impact of Manager's Role, Compensation System and Cultural Differences