Managing Multinational Organisation

Managing Multinational
Organisation

INTRODUCTION
Globalisation has become the significant part of the business enterprises therefore; it is
changing dynamics of the business for the growth and development. Advancement in the
transportation and communication technologies has lead to the phenomenal growth in the
businesses overseas (Sorour, 2020). This advancement has given the born to many multinational
organisations. The multinational organisations are the companies that produce and sell goods and
services in multiple countries all over the globe. Pervasive global competition in the
multinational companies brings the requirement of managing the multinational corporations. The
present essay on “Unilever plc” a multinational company (MNC) based in UK. The report will
critically evaluate international orientation of HRM in MNCs and how they affect the MNCs
HRM policies.
MAIN BODY
International orientation
Globalisation is one of the major reason behind the international orientation of the companies
which helps the company in expanding the opportunities to trade internationally without the
barriers of communication and transportation and thereby able to recognise the economy of scale
and scope by concentrating over the products that can be produced with the minor cost and in
return increasing the profits and revenue (Gunnigle, Lavelle and Monaghan, 2018).
There is an EPRG framework that defines the four types of orientations towards the
internationalisation of the multinational companies:
Ethnocentric: The Ethnocentric orientation is adopted by the international companies that do not
adapt their products according to the needs and wants of the other countries in which they have
their operations rather their orientation of the products based on their home country (Pham and
et. al 2020). For instance Aviva Plc, British American plc follow this international orientation
approach.
Polycentric: Polycentric orientation treats every domestic market with the equality and believes
that there is the uniqueness in every market where they have their operations this orientation is
adopted by the multinational companies. For instance Unilever, Tesco follow this international
orientation approach (Zubair and Khan, 2019).
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