Achieving unity in diversity: Assessing the use of organization and human resource management practice to achieve global coordination in multinationals.

Abstract

This dissertation explores the continuing globalization of large multinational corporations (MNCs) from an organizational point of view. It seeks to increase theoretical and practical understanding of how organizational design mechanisms and human resource management policies and practices are being used to coordinate global organizations. Coordination in global organizations is an important research issue for several reasons. First, multiple national environments and intensified global interdependence have substantially increased the degree of complexity and uncertainty faced by organizations. Second, reduced information float and rapidly developing technological capability has accelerated the rate of change in the environment. Third, far-flung operations increase the cost and time required for coordination activity. Fourth, need for simultaneous global integration and local responsiveness (Prahalad and Doz, 1987) adds a paradoxical element to the coordination requirement. Based upon data collected through interviews with senior executives, this dissertation presents case studies of three companies in the auto industry. Three analytical chapters identify common themes emerging from the data regarding the companies' organizational response to globalization. Findings include the following: (1) Globalization is receiving urgent and widespread attention. (2) The global integration/local responsiveness paradox offers a meaningful paradigm for understanding the globalization challenge. (3) Hierarchical organization structures remain in place, but are being supplemented with a variety of formal and informal boundary spanning mechanisms to increase flexibility and responsiveness in each company. Regional organizations are emerging as important intermediate sources of coordination. (4) Global leadership is substantially different from its domestic counterpart. (5) Human resource management is recognized to be a strategic key for the successful development of global leaders as well as the globalization of the broader organization. (6) Social responsibility is emerging as a potential prerequisite for success as a global company.