Applications of Management principles in Multinational Corporations Planning

1.It requires setting objectives and then formulating programs and procedures to achieving objectives. The MNC must assess the external environment for opportunities and threats and then match them with internal strengths and weaknesses.
A poor educational system may make it difficult to find qualified personnel and this could affect the company's recruitment activities.
Cultural orientation towards time will also affect planning, cultural attitudes that emphasis a short time perspective will not be conducive for long-range planning.
Political or economic instability may affect the forecasting ability of the company and also may discourage long-term commitment of resources.
2. ORGANIZING
Organisational structures established to achieve objectives of MNC. Various structures could be used de-pending on the type of company among other factors.
A divisional structure is most popular and could be based on either product lines, geographical areas or customer type. Other structures include holding company structure and matrix structure.
3. STAFFING
The positions identified in a MNC must be filled with qualified persons. Managers of MNC can be classified in 3 ways:-
a) National i.e. selected from the country in which headquarters are located. (from country of origin).
These are expatriates chosen to represent and manage divisions abroad. These managers because of their experience are familiar with the parent company's policies and operations.
b) Selecting managers who are from the host country. These managers are familiar with the country's environment, educational system, culture, legal and political processes and its economic environment.
Managers who have a nationality that is different from the parent company and the host country. Such managers have gained experience by working at the company's headquarters as well as in different countries thus they have developed behavioral flexibility that eases their adaptation in different cultures. They are truly trans-cultural. Eg. The former Barclays (K) Ltd Managing Director Issac Takawira from Zimbabwe a third country national.
4. DIRECTING
Involves motivating, communicating with foreign country nationals. It requires effective leadership by inducing workers to contribute to enterprise objectives. This will mean that managers understand employee cultural environment for example participative management may flourish in one country but may cause confusion in another where there is a tradition of autocratic rule. Due to technological development communication has been enhanced and the transmission of information improved.
5. CONTROLLING
It is the measurement and correction of performance to ensure that events conform to plans as an essential managerial function that is influenced by various environmental factors unique to an international enterprise.
Revenues and costs are measured in different countries The exchange rates are subject to fluctuations Accounting practices and policies often differ from country to country. The company must satisfy the tax demands of host countries.

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Titany answered the question on October 26, 2021 at 12:02