Employee Relations In A Multinational Company

01- Introduction

The relationship with the immediate supervisor is a key variable to understand the attitudes and behaviours of employees in enterprises as manifested multiple investigations. The results of our study, developed in a bank, show that when there is a good relationship between leader and partner commitment improves of this with the organization as well as their perception of communication climate and wellbeing existing in the same, which in turn reinforces its engagement again.

The leader is the junction between the employee and the organization is a key for both performance evaluation to the division of responsibilities and allocation of resources for development (Bognanno, Keane and Yang: 171-200). In this way becomes the direct manager of two key elements for engagement: support and justice (Boganno and Lu: 121-134). Kindness to the organization aims to provide its employees through the above practices HR can be watered down if the supervisor does not care of subordinates, if not evidence of a more closely the good intentions of the company. In your hands is to provide sup- emotional self, providing information and advice (Arrowsmith and Marginson: 245-66) and deal fairly with its employees. The boss-subordinate relationship (Leader Member Exchange LMX), which initially might call economic exchange (each part has a formal obligations in the position organization), can become a social exchange (Each party exceeds its formal powers) where they will develop emotional bonds. The leader granted to closest bros greater autonomy, support and consideration that they will receive fairer treatment and have greater confidence in it (Ackers & Wilkinson: 78-100). Research have developed shown that employees who maintain good relations quality with their bosses have higher levels of performance, satisfaction and commitment (Babson: 15-41), develop additional role behaviours (beyond the stringent requirements of the position) (Almond et al: 276-306) and have me- nor intention to leave the organization. The leaders also play a fundamental role in the exceptions that employees develop the characteristics and organization events, as they filter and contextualizing the information they receive from higher levels.

02- Multi National Company

The company is a multi historical continuation of the great company. It was after World War II when the direct investment private third s countries began to be associated increasingly with the expansion of the major enterprise creating subsidiary is in those countries. Although not exclusive, the internationalization of the multinational company was a phenomenon in a principle fundamentally American, which served to be able to ignore the barriers rose by many countries abroad s. The creation of a subsidiary is in abroad has not always met, without however, a tariff reasons. Have been developed in many cases in order to exploit labour or raw materials cheaper, being close to the market for sale , avoid disputes, avert the risk of physical production , and so on. The diversification space was a prolongation of the strategy diversifying sector, in order to lessen the risk s that for the company are derived from fluctuations.

Previously it was thought that the investment business and foreign trade was the result of independent decisions (Bamber, Lansbury and Wailes: 41-48). Today we know that the creation of a subsidiary is in third countries by big s company s national is the best way forward to ensure the growth and stability of exports as a result of trade and intra-industry Intra between the parent company of country of origin and the subsidiary is located in third countries and s between each other. A few companies are transnational today and dominate the trade world’s greater part of commodities. It is really hard to identify those aspects of the company multinational differentiate it clearly from other types of large enterprises, as are its size (the company s multinationals usually all large or very large) and multinational geographic projection (their activity is divided between several countries, two or more), and even these features are the exclusive company multinational Overall we can say that the company s multinationals are companies type H with a structure s highly decentralized organizational, invest heavily in R & D , spend a lot on advertising , on them has a greater weight the number of workers who perform administrative tasks and export a percentage greater than its production.

03- Reasons to Invest Abroad

Tax exemptions, high yield, fast ROI and minimum risk are just some of the reasons to buy properties in cities like Panama, Miami, New York and Houston. All conditions are ripe right now to buy any type of property outside of Colombia with the intention of making a profit in the short term. This can be done through brokers and real estate agencies with international subsidiaries that are present in the Great Hall real-estate. Among the reasons to buy real estate in the United States account those prices are affordable because of controlled inflation pressures, which have allowed stabilization in the rate of intervention and, therefore, a decrease in mortgage rates (Dowling and Welch: 47-55).

According to Jaime Ferro, director of U.S. Marketing Brokers, to this is added the premise of Do buy cheap to sell high?, Allowing anticipate that during 2008 and 2009, market conditions will be completely favourable for absorption Current supply of inventory in pre construction Florida cities like Miami and investment in new destinations such as Chicago and New York. Meanwhile, in Panama there are tax incentives for foreign investors, tax exemption for importing household goods and multiple options for nationalized and to make all kinds of businesses.

Basically, companies are forced to locate their plants abroad to two reasons, one expulsion and the other attractive.

3.1. A series of internal factors impede the implementation of certain types of international trade:

3.1. a) The inability to produce in sufficient quantities in the country of origin, in particular as regards the primary sector, for reasons linked to the scarcity of natural resources (Blanpain: 69-77);

3.1. b) The inability to sell in sufficient quantities in the countries of destination, for both reasons due to the nature of the goods (in the case of the services of the service sector, most of which are not exportable) and protective barriers against imports (applied mainly in the secondary sector). Some Latin American countries have led corporations to build assembly plants by placing heavy duties on imports of finished products, which companies would have escaped only by producing locally.

3.2. There are external factors that “attract” the multinationals in foreign countries:

3.2. c) Ability to better meet the demand in the countries of settlement, particularly in developed countries where the branches of production allow a greater proximity to markets that are developing. For example, a few decades ago large multinational American is oriented toward the European countries not just to circumvent the protective barriers – which were in decline – as to better meet the demand of the countries of the Old Continent. Trade liberalization leads the competition at home to producers, but also allows groped counter invading the home markets of competitors (Morley, Gunnigle and Collings: 87-89).

3.2. d) Ability to benefit from the comparative advantages of macroeconomic countries of settlement. Especially from the seventies the foreign direct investment were attracted in developing countries with low labour costs, and sometimes even the possibility of access to natural resources and a lower cost of energy. It has been a factor “charm” the policies of some states that have created “free zones for export” and granted tax relief.

The multinational company has created jobs in the host countries, often resulting in processes of de-industrialization in their country of origin.

04- MNCs and national employee relations systems

The employee relations are an important part of the life of any business. If you have a company that has employed three people or a company with 3000 employees will have to consider how you will interact with your employees and how you would like them to interact with each other. If you do not think about it really could end up losing great employees and management of a company that nobody wants to work at (Bacon: 29-33).

05- Employee Relation Policies and Practices

In the framework of laws and regulations and practices in force employment and labour relations, companies must:

  • Provide workers’ representatives means to achieving effective collective agreements; b) to provide workers’ representatives the information they need to achieve meaningful negotiations on working conditions; c) Promote consultation and cooperation between employers and employees and their representatives on issues of mutual interest.
  • Provide information to employees and their representatives which enables them to get an idea precise and correct the results of the entity or, where appropriate, the whole company.
  • Comply with a standard of employment and industrial relations not less favourable than those observed by comparable employers in the host country; b) take appropriate measures to ensure their activities in health and safety job (Babson: 15-41)
  • In their operations, to the greatest extent practicable, employ local personnel and provide training in order to improve skill levels, in collaboration with representatives of workers and, where appropriate, with the relevant public authorities.
  • Enable authorized representatives of their employees to negotiate on issues related to collective bargaining or labour-management relations and to allow parties to consult on matters of mutual concern with representatives of management who are authorized to decisions on these issues.

06- Trade Unions

6.1. a) Respect the right of employees to be represented by unions or other representatives legitimate workers and engage in constructive negotiations, either individually or through business associations, with such representatives with a view to reaching agreements on working conditions; b) contribute to the effective abolition of child labour; c) contribute to the elimination of all forms of forced or compulsory labour; d) Not discriminate against their employees with respect to employment or occupation on the basis of race, colour, sex, religion, political opinion, national extraction or social origin, unless practices selective regarding worker characteristics established public policy favouring promote, express, greater equality of employment opportunities, or that such practices meet the inherent requirements of a job (Bamber, Lansbury and Wailes: 41-48).

07- Aspects of MNCs

Interest in large multinational companies is to address one of the major power blocs worldwide, to the extent that its volume of activity and its ability to influence national economies, its extension over the whole world territory, and concentration in relatively few hands of decision-makers, make them one of the strongest areas of intervention that can be found at this time.

The structure of the business system
Every company sets a productive organization from a central decision and property (headquarter). As is known, a company responds to a hierarchical structure and organization, where the property is held by the absolute and exclusive power of decision. This power is exercised on organized territorially articulated productive settlements, functionally and territorially, within a defined structure from central business decision (Blanpain: 69-77).

The business component
It is time to approach the level of the company to further analyze some of their individual characteristics. It is important to descend to this level, since it is companies that act on the territory and in productive economic contexts. The characteristics of multinational companies are (Bacon: 29-33):

  • They range throughout. They open their doors to people (users) worldwide.
  • The owners take their products or services to communities around the world by opening new branches in other continents outside your home.
  • They have plants around the world and working with large quantities of products.
  • They use new technologies, industrial organization, marketing and advertising.
  • They are investing heavily in research and development to communities.
  • Deep knowledge of the structures and functioning of the political mechanisms of the countries where they operate.
  • One form is usual growth through mergers and acquisitions.
  • Their finished products are not on the same floor on which is initial. Transport it to another plant in another continent to be completed. And another for marketing.

08- Locational Determinants

A fact of secondary importance not referred to any location implies a fixation on a particular territory, subject to some conditions, not only economic, but also social, cultural, political, ideological and even military, with each productive settlement must interact. In some ways it will be conditioned by them, while others may rely on them to strengthen their power or influence.

From the perspective of the establishment of centres of decision, these socio-territorial links a clear reflection of involvement related to settlement of territorial nationality. Indeed, it’s not surprising that in addressing the issue of multinationals consider carefully their country of origin, and their role is analyzed on the basis of this national approach, considering not only its role in the world economy, but also the effects on international territories settlement of its plants, production facilities or sales offices (Dowling and Welch: 47-55). The factor has national implications because the presence in the world of multinational behaviour an expression of international power through project companies of their own economic interests, but also their cultural norms, their ideological conception of his power and political influence of national pride. At the same time, is one of the major bases of the power of his “nation brand”. Each of these companies clearly represents supra-territorial domain centres. On the other hand, domestic firms constitute powers pushing for state instruments serve their strategic interests, in strengthening his power over the territories to which they are directed and in which anchor their establishments (Morley, Gunnigle and Collings: 87-89).

09- International Regulations

International business has been a powerful structural change and Guidelines themselves have evolved to reflect these changes. With the emergence of industries and services that are based on knowledge, technology and service companies have made their appearance on the international market. Large enterprises still account for a portion significant international investment and there is a trend towards international mergers large scale. Simultaneously, it also increased foreign investment by companies SMEs, which now play a significant role in the picture internationally. Multinational enterprises, like their domestic counterparts, have evolved to cover a wider range of business arrangements and types of organization (Almond et al: 276-306). Partnerships strategic and closer relationships with suppliers and contractors tend to blur the boundaries of the company. The rapid evolution of the structure of multinational enterprises is also reflected in activities in developing countries, where FDI has registered rapid growth. Multinational companies have diversified their activities in countries developing, previously limited to primary production and extractive industries into the manufacture and assembly, the development of the internal market and services.

10- References

Ackers, P. & Wilkinson, A. (eds.), Understanding Work and Employment: industrial relations in transition, Oxford: Oxford University Press, 2003, 78-100

Almond, P., Edwards, T., Colling, T., Ferner, A., Gunnigle, P., Muller-Camen, M. Quintanilla, J. and Waechter, H., “Unravelling Home and Host Country Effects: An investigation of the HR policies of an American multinational in four European countries”, Industrial Relations 2003, 44, pp. 276-306.

Arrowsmith, J. and Marginson, P., “The European Cross-border Dimension to Collective Bargaining in Multinational Companies”, European Journal of Industrial Relations 2006, 12, pp. 245-66.

Babson, S., “Dual Sourcing at Ford in The United States and Mexico: Implications for Labor Relations and Union Strategies” in W. N. Cooke (ed) Multinational Companies and Global Human Resource Strategies 2003, Wesport, Quorum Book, 15-41

Bacon, N., “Human Resource Management and Industrial Relations” in P. Ackers and A. Wilkinson (eds) Understanding Work and Employment: Industrial Relations in Transitions, Oxford, Oxford University Press, 29-33

Bamber, G.J., Lansbury, R.D. and Wailes, N. (eds.), International and Comparative Employment Relations: Globalisation and the developed market economies, fourth edition, London, Sage, 2004, 41-48

Blanpain, R.,“The juridification of industrial relations: the role of labour law in a globalised economy”, in M.J. Morley, P. Gunnigle and D.G. Collings (eds) Global Industrial Relations, London: Routledge, 2006, 69-77

Bognanno, M.F., Keane, M.P. and Yang, D.,“The influence of wages and industrial relations environments on the production location decisions of US multinational corporations” Industrial and Labour Relations Review, 58, pp. 171-200, 2005.

Boganno, M.F. and Lu, J., “NAFTA’s Labor Side Agreement: Withering as an Effective Labor Law Enforcement and MNC Compliance Strategy” in W. N. Cooke (ed) Multinational Companies and Global Human Resource Strategies, Wesport, Quorum Books, 2003, 121-134

Dowling, P.J. and Welch, D.E.,International Human Resource Management: Managing People in a Multinational Context, fourth edition, London, Thompson, 2004, 47-55

Morley, M.J., Gunnigle, P. and Collings, D.G. (eds) Global Industrial Relations, London, Routledge, 2006, 87-89

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