GLOBAL HUMAN RESOURCE MANAGEMENT

1. GLOBAL HUMAN RESOURCE MANAGEMENT ORGANIZATIONAL STRUCTURE AND STRATEGY

2. GLOBAL COMPETITIVE ADVANTAGE • ADAPT TO LOCAL MARKET DIFFERENCES • EXPLOIT GLOBAL ECONOMIES OF SCALE • EXPLOIT GLOBAL ECONOMIES OF SCOPE • TAP INTO THE BEST LOCATIONS FOR ACTIVITIES AND RESOURCES • MAXIMIZE KNOWLEDGE AND EXPERIENCE TRANSFER BETWEEN LOCATIONS

3. FACTORS DETERMINING MNE ORGANIZATIONAL STRUCTURE • The firm’s forms and stages of international development • The amount of cross-border coordination required by a firm’s strategy (integration versus decentralization • The nature of host governments activity in the economic process • The diversity and complexity of the MNE’s business operations

4. DEVELOPMENT FORM OF THE MULTINATIONAL • THE SUBSIDIARY OR PATTERN COULD BE A START-UP • ONCE ESTABLISHED, THE SUBSIDIARY OR ALLIANCE CAN OPERATIONALIZE THE FIRM’S INTERNATIONAL STRATEGY • WHEN THE FIRM REACHES A LEVEL OF HAVING A HIGH PROPORTION OF ASSETS/SALES EMPLOYEES OUTSIDE THE HOME COUNTRY

5. The Pre-International Division Structure Chief Executive Officer etc. Production Finance Marketing Personnel R&D Export Manager Or Export Department

6. The International Division Structure CORPORATE STAFF Chief Executive Officer etc. Production Finance Marketing Personnel R&D LINE MANAGEMENT etc. Product A Domestic Product B Domestic Product C Domestic International Division (All Products)

7. The Global Product Division Structure CORPORATE STAFF Chief Executive Officer etc. Production Finance Marketing Personnel R&D LINE MANAGEMENT etc. Product A Product B. Product C Product D North Asia Europe Latin America America

8. The Global Area Division Structure CORPORATE STAFF Chief Executive Officer etc. Production Finance Marketing Personnel R&D LINE MANAGEMENT etc. Europe North Amer. Asia Latin Amer. United Kingdom Italy France Etc.

9. The International Matrix Structure CORPORATE STAFF Chief Executive Officer etc. Production Finance Marketing Personnel R&D LINE MANAGEMENT Other Area and Product Divisions Europe Tractors Asia GM – Tractors Europe GM – Tractors Asia