These days, most businesses are set in a global environment, and the various corporations do not just regard their primary market locations or bases, they also have to take the rest of the world into consideration. Thus, many more corporations are going into multi-national business, scattered all over numerous parts of the globe. Usually the major source of concern for multinational companies and their managers is how to maintain high quality, in an ever-changing global economy
It is quite clear that multicultural organizations and their mangers still find solutions to their multi-cultural problems despite severe bureaucracy and staff frustration in some cases. Although multi-national corporations are aware of the management areas that require attention, they still have to decide whether to deal with the problems on a decentralized or centralized basis. Multinational companies seek the benefits of doing business on a global basis, but there are still a lot of cultural and market differences to handle. “Various delivery systems are significantly different. One size can’t fit all. Culturally, what drives employees and what tools engage employees in the employment deal changes from one place to another.” (Towers Perrin research, 2007) It has also been pointed out that “multi-nationals companies customize compensation and benefit packages in order to meet needs, according to the nature of the markets.” (Towers Perrin research, 2007) After researching and analyzing benefits and compensation in about 26 locations all over the world, it was discovered that the benefits approach, when regionally edited, enables corporations to improve cost-efficiency become more consistent about the compensation practices all around the world, while also maintaining competitiveness through the variation of remuneration and performance pay, based on cultural and regulatory differences
This report aims at understanding the challenges that managers and... [continues]
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