Question

examples of management problems in a multinational companies.(NOTE: the problems should not be market research in nature)

Answer 1

Before entering into the management problems in the multi national companies; we should first undrstand the two basic terms i.e Management and the Multi National Company.

MULTINATIONAL COMPANY :- A multinational company or an MNC is a corporate with seperate legal entity that operates in its home country as well as in other countries as well. It usually maintains a central office located mostly in its home country and coordinates with its rest of the offices around. MNC is not just a company that exports its goods or services to other country but it is a;lso responsible for the FDI (Foreign Direct Investment) among different countries round the globe.

MANAGEMENT:- As per the AMERICAN MANAGEMENT ASSOCIATION management stands as an act of getting things done through others and having them to do it willingly. In simple words we can term management as an act of coordinating and administrating organsiational task to achieve common organisational goals.

The management in any organisation and the maangerial decisions and their workings in any organisation faces enoromous problems. Some of the mangement problems are :-

1. Insufficient Capital or Cash Flow:- The biggest yet the problem faced by both small enterprises and as well as the large enterprises is the insufficient funds or capital. The cashflow of the multi national despite with highly qualified management sometimes too fail to measure and calculate the break even point due to over optimistic thoughts or by projecting unrealistic turnover figures during the budget.

2. HUMAN RESOURCE OPERATIONS:- Human resources managers faces and might have to overcome some cultural barriers to find well qualified specialists for the needed positions in foreign country. finding workers in a home country and filling the same position and finding the worker for same position in the foreign country gives a complete 360 degrees opposite situation.

3. COMMUNICATION AND CULTURAL DIFFERENCE:- It is highly recommended and essential for the managers to understand the traditions and other ethical norms of the other countries so that the barrier of culural difference or communication may be overcome.

4. FINANCIAL AND LEGAL OBLIGATIONS:- The det of financial and legal risk are very large in the case of multinational companies management. The legal compliances such as the licenses, currency exchange legal norms along with the financial risk in the currency exchanges and foreign debt obligations bring a very distracting problem to the management o MNC.

5. ENVIRONMENTAL DAMAGE:- The problem of Corporate Social Responsiblity and the enviironmental degradation is something that cannot be seperated from the usual management problems and violating such rules and regulations will result in serious consequences.

In conclusion , i can be only interpreted that a MNC may faces a number of different challenges and problems but the effective management is the only key that can help to resolve theses problems of the MNC with their professional studies analysis and skills.