Management in Mncs Management Principles in Mncs Essay

Management in MNCs

Management Principles in MNCs

The reliance on management Principles in multinational corporations (MNC) is today more pervasive than ever given the rapid pace of globalization and the need to bring diverse cultures together for attaining common goals. The reliance on the six management principles of vision, people-driven values, robust communication, sense of urgency, execution and extreme customer focus all combine to create a strong platform for future growth of an MNC. Given the pace of innovation that continues to accelerate, these six management principles are essential for the effective growth of any MNC over time (Cveykus, Carter, 2006)

The intent of this analysis is to define the role of each of these six management principles in an MNC, defining which is the most critical to its success.

Assessing Management Principles in MNCs

The six management principles of vision, people, robust communication, sense of urgency, execution and extreme customer focus are the foundation of any effective MNC structure and performance. Of these, vision is critical for unifying the entire organization, across cultural boundaries, to a common and shared series of objectives and goals (Fujimoto, Hartel, 2010). The people aspect of the six management principles is what is the most difficult to manage and lead over time, as resistance to change is often the most common reason that initiatives fail. Communication across the many cultures must take into account large variations in how each region perceives information, what its core values are from a task ownership standpoint vary, and how the perception of time itself is different. All of these factors influence execution of a given series of strategies, so from the perspective of getting things done, the first five management principles are tightly integrated with each other (Underdown, 2010). Finally, all lasting success within an MNC relies on an extreme customer focus, which is the sixth management principle. All of these elements together form a system of continued improvement and alignment to customer needs while taking into account the innate constraints and limitations of any organization over time.

The Catalysts of Cultural Agility in the Six Management Principles

For any MNC to be resilient in the face of significant change globally, the vision must be a galvanizing force that transcends any cultural differences to create a unified mission and set of objectives. A corporate vision however will need to be moderated by the cultural values and norms of the specific countries the MNC operates in. This sensitivity to cultural differences is crucial for any organization to achieve its global goals. Inherent in the vision of an MNC is the need for creating value not just for shareholders but also for the countries and cultures they operate in (Kim, 2011). Without this unifying socially-based vision, no MNC can hope to be profitable across all geographies for example. It is also now common for many Asian nations including India to require MNCs to provide a thorough impact analysis of how their operations will enhance the quality of life in the country and bring wealth to the surrounding communities. As a result, the vision of an MNC must encompass more than just its own operations…