How Multinational Corporations Are Becoming More Significant At The Worlds Business Markets

Some management styles may be best for the situation and some may not be. Therefore, awareness on different types of management styles will help the managers to handle different situations the optimal way. Different management styles are capable of handling different situations and solving different problems. Therefore, a manager should be a dynamic person, who has insight into many types of management styles such as:

"Managing and leading people, with various cultural backgrounds, require "cultural intelligence", which in a global setting is a management challenge in the new millennium".

The global environment that multinational corporations (MNCs) are now operating in are constantly changing, becoming exceptionally complex and diverse (Hurn, 2012). Due to the changes, globalisation has caused through the butterfly effect, multiculturalism and diversity are becoming important topics for many MNCs globally (DeLancey, 2013). Numerous methods have been implemented by MNCs in order to capture cross-cultural differences in the workplace and how these can be readily applied to change management objectives in order to remain competitive and relevant in the ever-evolving business environment. This literature review will consider the significance that culture in the workplace has on implementing change strategies in MNCs and the implications and challenges that hypothetically surface due to the divergent nature of multiculturalism.

The situation when managers are authoritarian to achieve his desired results or when the responsible employee has the flexibility to reach the objectives. It is the view that traditional management has taken towards the workforce. Many organisations are now taking the enlightened view of theory Y. A boss can be viewed as taking the theory X approach, while a leader takes the theory Y approach.

Lastly, one last type is laissez faire management style. In this leadership management style, the team are free to complete the job or task in any way they wish. But the manager is still there to provide any guidance or answer to any questions the team may have. This is beneficial in allowing the individual to build up leadership skills which they can apply in future careers. On the other hand, this can prove to create conflict amongst the employees as one may feel that they can dictate over others and make the assumption that they know only how the work should be

Since the mid-1980s, the changing global competitive environment have forced more and more multinational corporations (MNCs) to development worldwide learning as their competitive viability, which requires to create worldwide innovative processes and knowledge transfer (Bartlett and Ghoshal, 1989). Knowledge from a subsidiary could be transferred to both parent company and peer subsidiaries, helping MNCs realize worldwide learning (Miao, Choe and Song, 2011). Knowledge flow from a subsidiary to parent firm could be considered as a critical condition to facilitate “local-for-center” innovation processes (Bartlett and Ghoshal, 1989, cited by Miao, Choe and Song, 2011). Traditionally, MNEs develop innovative capabilities by two classic processes, including “center-for-global” and “local for local” innovation model. Specifically, utilize the centralized resources and capabilities of parent company to create new products and operations and then implement these to subsidiaries, which could be defined as the central innovation process. By contrast, in the local innovation process, based on the local customers’ needs and market environment, subsidiaries development new products by their own resources and capabilities (Bartlett and Beamish, 2014). Based on different strategic roles and organizational specifics, the knowledge transfer includes two types, which are vertical and horizontal way. Horizontal knowledge flows in the multinational enterprise are generally adopted

Management styles are the method of leadership ship that an administrator usually employs when running a business. The management style of leaders will influence on organizational climate, and the organizational climate has significant effect on organizational performance which is profit of enterprise. So managers have to think about that which management style they should take, and why they should take the style. According to Hay-McBer there are six management styles or leadership.

Multinational corporations are evidently playing a starring role in the current process of globalization. This has been fueled by the rising share of cross-border capital flows attributable to foreign direct investment of such multinationals. Further, the multinational corporations have played an integral role in linking financial and product markets globally through transfers of technology, physical capital as well as management techniques. However, in order to venture into foreign markets, corporations have to use well-thought strategies to avoid failure. Some of the strategies used include, operating production facilities in a foreign market to cater for that market and the entire region, fragmenting its global production and research and design, or operating wholesale-trade outlets to import and distribute products into new markets.

Culture is the training or refining of one’s mind from social environments in which one grew up. In order to adapt to local cultures and market needs, companies must shift to decentralized, collaborative decision-making. That requires developing many leaders capable of working anywhere. Therefore, rather than concentrating on the on the top 50 leaders, global organizations need to develop hundreds, even thousands, of leaders comfortable operating in a variety of cultures. Developing global leaders with cultural sensitivities and collaborative skills requires greater focus on emotional intelligence, self-awareness, and empowerment than on traditional management skills. With flatter organizations and decentralization of power, corporations must develop savvy global leaders capable of operating locally and globally simultaneously.

Multinational Corporations are the economic powerhouses of globe. These corporations bring an influx of wealth, power and resources. With the introduction of Corporations in other countries it brings employment opportunities, technological advancements and in best case scenarios raises standards of living; However the cons of Multinational corporations are increasing and in some cases getting out of hand. We are seeing increasing cases of companies forgoing waste management laws and disposal standards as well as the exploitation of workers either violating child labor policies or underpaying employees both in state and internationally. This is creating serious harm the the environment as well as the harm to the well being of those employed. Often times these negative consequences are the reverse of the benefits, yes there are job opportunities that might have not been available before but at 50 cents an hour how much is truly beneficial.

Due to the rapid development of economics and also increase in the globalisation the multinational firms are becoming more prevalent. The challenges that the present managers of these multinational firms are facing are due to intercultural communication. Many researchers say that the differences in the culture eventually influence the communication, performance and management of the organization. Organizations that are planning to expand their business in the international countries have to face various cross-cultural challenges.

The end of the 1980s experienced a visible change experienced in the literature concerning MNE functions and nature of business (Segal-Horn and Faulkner, 2010). Before 1980s, the main research in MNE field was about analyzing relation between affiliates and headquarters of the firm, and also decisions concerning making investment in foreign country, which was also experienced in Dunning’s work. After that, the focus was shifted to operations concerning coordination in management of a network of affiliates of an MNE and analysis of the competitive advantages received by these affiliates from the respective economies. Therefore, the last 20 years have experienced a very beneficial theoretical work in the field of international business and

Multinational corporations play a very important role in the international economy, the help to act as financial pipelines to countries with low capital. In return, large amounts of wealth is created, which is created through the “Crowding-In” effect. This effect basically occurs when their is an increase in outside private investment as the debt-financed government spending increases. It is caused by the government boosting their demand for goods, which increases the private need for more technology like factories and industrial capabilities. Because of this new taxes are brought up from MNC generated income, this allows for these under developed countries to do infrastructure improvements and educate their population to strengthen their human capital.

The increasing significance of MNCs in 1950s transformed them to the dominant phenomenon in the international economic relations since then. It has triggered a strong interest among the scholars, media, and society. The surrounding controversy around MNCs has triggered the need and necessity for the analysis due to the fact, that it is described by some scholars and economists as the principal instrument for maximizing world welfare, and by others as the imperialistic agents (United Nations Publication 1973, p.1).

A multinational corporation is an organization headquartered in one nation that that has operations in one or several foreign nations to leverage additional market penetration (Luthans & Doh, 2012). By entering into the global market organizations essentially enter into the threshold of a multinational corporation (MNC). This paper will provide an explanation of globalization, the primary challenges of multinational management, and discuss two separate case studies and their challenges and successes.