GLOBAL LEADERSHIP SKILLS IN MULTINATIONAL ORGANSIATION
Date of Submission: May 21st 2010
Aim and objective of research3
Data collection method7
Validity and limitation10
Ethical issues and limitations10
In order to expand the business around the world more and more industries are investing overseas. In an expanding global and diverse economy mix of races and culture exists. Therefore, increases the number of multinational organisations. Multinational organisation is also called Multinational Corporation. Porter (1990) defines MNC as ‘A multinational corporation (MNC) is usually defined as a company with operations in more than one country’. This requires a specific type of culture (organisational) which can be dependent on leadership. As Smith et al (1997) suggested that multinational organisations often attempt to either standardize their operations internationally or adapt to the local environment. In this sense, organisations must have specific leadership/management styles in their own operations. As mentioned above leadership has been a major topic of research in psychology for almost a century which may be defined “the process in which one person influences others to accomplish an objective and directs the organization to accomplish a common task, Multicultural Leadership (Anon, 2009).” Organisational leadership involves processes and proximal outcomes that contribute to the development and achievement of organisational purpose (Klimoski & Zaccaro, 2001, p.6). Whereas National culture is not theorized as the only culture, or the totality of cultures, within a nation, but by definition it culturally distinguishes the members of one nation from another (Bond, M. & Hofstede, G., 1988).
HSBC bank is a multinational organisation which is also called world’s local bank where employees are more in charge of their own career and more transferable experience is expected for the leader (HSBC annual report 2009). HSBC bank is one of the largest banking and financial services organizations in functions such as credit and risk, finance, legal and compliance, and information technology, are based at HSBC’s Group Head Office. Its international network comprises some 300,000 employees in 88 countries and territories in Europe, Hong Kong, Rest of Asia-Pacific, the Middle East, North America and Latin America. HSBC is making a positive contribution to social and economic development by creating jobs in emerging markets (HSBC annual report2009).
HSBC 2009 annual report also concludes that in 2009, total revenue declined by 19% to US$66.2 billion. On an underlying basis, revenue grew by 8 per cent. If we consider the case in Hong Kong we can see that though the organization is the largest global bank in the market, there are still very limited opportunities to work in another country within the Group, except at the highest levels. Also it shows high bureaucracy and many levels of hierarchy (HSBC report2009).
1. THE RESEARCH PROBLEM:
There are many different leadership approaches as well as different types of multinational organizations with different geographical spread; different approach to adaptation, perhaps cultural diversity is a big issue in multinational organisation. As May (1997 p 308-309) points out that ‘Multinational organizations’ value chains spread around the world and this demands a new competence global leadership’. In order to be successful...