Multinational Corporation: Theories, Evaluation, and Strategies

This project delves into the realm of Multinational Corporations (MNCs), defining them as entities operating across multiple nations. It explores the core theories underpinning MNCs, including the theory of performance and motivational theories, highlighting their role in employee transfers and international assignments. The report critically evaluates the advantages, such as improved cooperation, employee behavior, work culture, and communication, and disadvantages, including analysis difficulties, language barriers, and increased employee enforcement costs, associated with MNCs. Furthermore, it outlines strategies to mitigate expatriate failure, such as employee training, language learning, and intellectual training, to ensure successful international operations. The project provides a comprehensive overview of MNCs, offering valuable insights into their complexities and the strategies necessary for success in the global business environment.

project
Table of Contents

INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Multination Corporation....................................................................................................................3
Critical evaluation of multinational cooperation................................................................................4
Strategies to avoid the consequences of expatriate failure.................................................................7
CONCLUSION.....................................................................................................................................8
REFERENCES......................................................................................................................................9

INTRODUCTION
Multinational Corporation is defined as the transactions and affairs between
institutions operate in more than one nation. Institutions in case of multinational corporations
can be associated with one particular organisation or can be associated with more than one
organisation. Henceforth, report will emphasis on the theories related to multinational
corporation. Different aspects of multinational corporations such as its advantages and
disadvantages will also project in this report. Furthermore, report will also provide brief
information about the relevant strategies that can be channelizes to overcome the negative
aspects involves in multinational corporation.
MAIN BODY
Multination Corporation
Multinational corporations indicate about the strategic alliances between the
organisations established in different nations. This also involve multinational companies
operates its business operations in more than one country.
Theories of Multinational Corporation
Multinational Corporations can be implemented with the range of following theories
that can be summarises in the following manners.
Theory of performance: Theory of performance work on the basis of the fact that in case of
multinational corporation transfer of employees is also a key part of the practice. In case of
multination corporation employee transfers to other geographical locations in internationally
to hold a certain position in the relevant premises of the organisation. Most of the times
organisation transfers its best human resources as a part of the promotion in against to the
productive performance of employees (Adams and et.al., 2017). All such process are
implemented on the basis of theory of promotions. This theory drives employees in company
to perform productive tasks in order to get promoted at any international office of the
company. This theory deals transfer of employees at other locations as a part of the rewards
to employees against the productive performance. As the transfer of employees at other
locations also caters more effective employment benefits that also drives employees to
perform productive tasks to get promoted at international level.

Motivational Theories: Motivation theory drives company to motivate employees in order
to get transfer at any international location of business. In case of multinational cooperation
transfer of employees play a key role. In such a process motivation play crucial role in
adjusting with such new surroundings. Transferring employee is also risky as organisation
needs to take care of everything about such employees. Management also needs to motivate
employees in adjusting with such new locations.
The above theories are among the key theories associated with the multinational
cooperation.
Critical evaluation of multinational cooperation
Critical evaluation of Multinational Corporation involves advantages and
disadvantages associated with the multinational corporation.
Advantages of Multinational Corporation
Advantages of multinational corporation can be summarises in the following points.
Improve corporation and coordination: Multinational corporation play huge role in
improving cooperation between two offices of either same organisation or in between two
different organisations. The objective behind the concept of multinational corporation to
improve the corporation and coordination between two bodies’s situated at different
geographical locations (Azungah, Hutchings and Michailova, 2020). Multinational
Corporation supports company in improving the coordination between two bodies. For
example Marks and Spencer channelizes the practice of multinational corporation in order to
improve the coordination between head office of company with other business offices
situated at any of the international location of company.
Improve employee behaviour: Multination coordination support healthy behaviour of
employees at the organisation involves in international business transactions. Employees are
among the key resources associated with the organisations. Multinational coordination drives
management to facilitate employees so that more productive operations can be performed by
employees. Employee behaviour at work place directly affects the work efficiencies of
employees. Practices involved in multinational corporations such as higher incentive benefits,
motivational practices improve the behaviour of employees in respect to performing assigned
roles in the company (Belcourt and McBey, 2016). All practices applicable in the company as
a part of multinational corporation are based on improving the employment experiences of

employees in case of promotions at any internal location of business. Organisations try to
serve all benefits that can attract the interest of company’s employees towards promoting at
any internal business location of company. For example multinational corporation played an
effective role for the Marks and Spencer Company in improving the behaviour of its
employees in case of transferring at any of the international business locations attached with
company’s business operations.
Improve work culture: Multinational corporation play huge role in improving the work
culture for employees associated with any international business location of company. Work
culture play crucial role in in improving the organisation culture. Practices like motivation
practices, incentives practices associated with the multinational corporation play huge role in
establishing an effective work culture at the company. Many times the practices associated
with catering employment benefits are different in case of national level and internal level
employment opportunities (Bondarouk, Trullen and Valverde, 2016). It becomes crucial for
the organisations to cater better employment advantages in case of employment at any
international level of company’s office. Attractive work culture as a part of multinational
corporation also attracts to other employees part of the organisation to be a part of company’s
international venture due to its employment advantages. For example Marks and Spencer are
based in United Kingdom. Company’s approaches in respect to multinational corporations
played effective role in improving the work culture of the organisation at other geographical
locations.
Improve communication: Multinational Corporation improves the communication between
the organisation and its international locations. Communication is a key element that involves
sharing information and other relevant information related to business with any of the other
business locations at international level. It also involves communication of employees and
organisation management. Company are keen towards solving employee issues in case of
transfer of employees at any of the international business locations. Multinational
Corporation drives management to analyse and assess the issues of employees by
channelizing proper communication techniques (Boxall, 2018). Proper communication as a
part of the multinational corporation also improves the employee trust and loyalty towards
the organisation. For example Marks and Spencer Company is engaged with international
business as the company operate its business operations at global level. Multinational
Coordination has supported company in communicating effectively with employees
associated at other offices in international business. Management also becomes capable to

solve issues of employees with the proper communication as a part of the multinational
coordination.
All the above points projects the key advantages associated with the multinational
corporations.
Disadvantages of multinational corporation
Multinational Corporation also consists up with its disadvantages. All disadvantages
associated with the multinational corporation can be summarised in the following manners.
Difficulty in analysis: Multinational corporation causes difficulty in analysing the actual
situation. As the multinational corporation contains a physical distance that many times
becomes a huge barrier for the management to assess the actual situation. Physical distance
not just create hurdle in solving issues of employees but it also take time to facilitate
employees in case of multinational corporation. This can be indicated as the key barrier for
business expansion at international level. For example organisations like Marks and Spencer
operate business operations in many locations at international level. Although the company is
among the leading brand associated with retail sector in business environment. Management
still face issues in managing multinational corporation between organisations and
management.
Language barriers: Language is among the key barrier associated with the multinational
corporation. Multinational Corporation involves more than one nations which also includes
multi languages. Organisation also needs to cope up with the language diversification in case
of multinational corporation (Giauque, Anderfuhren-Biget and Varone, 2019). Due to
language barrier multinational corporation becomes more critical for globalised company.
For example companies like Marks and Spencer face huge issues related to multinational
corporation based on the language barriers. Due to different languages employees face
trouble in communicating with other employees based on the same regional location. It also
further reduces the work efficiency of employees.
Improve cost of employee enforcement: Multinational corporation comprises with multiple
issues and improved cost of employee enforcement is also among the key disadvantage
associated with the concept. In order to promote company’s employees at other international
locations also seeks skills development training and other associated trainings that can
improve the efficiency of employees. This also involve cost in transferring employee from

one location to other (Leibbrand, 2016). Company also needs to arrange stay of employees in
new location as a part of employment at such destinations. All such amenities associated with
multinational corporation incurred extra investment of organisation financial resources. For
example Marks and Spencer Company engaged in global business operations. Company also
needs to transfer its human resources from one location to any other international location.
This also causes to professional training of employees engaged with such transfers. Due to
trainings company needs to engage with extra cost and needs to incur financial resources so
that employee’s face less problems in facing different situations at new locations.
All the above points have indicated the different advantages and disadvantages
associated with the multinational corporation for companies. It was the critical evaluation
about the multinational corporation.
Strategies to avoid the consequences of expatriate failure
Multinational corporations also associated with the consequences of the expatriate
failures. Following strategies organisations use to overcome this failure.
Training of employees: Companies engaged in multinational corporation follow the strategy
to train the employees associated with the transfer at other international business location.
Training guides employees in dealing with all the practical situation they might address at the
location (Mayrhofer, Gooderham and Brewster, 2019). Training enables employees to
prepare for all the potential challenges they might address as a part of the transfer process.
This is an effective strategy that drives management to prepare employees for all the practical
situations associated with the new locations. Training involves skill development that
supports employees in performing the assigned role in the most productive manner. For
example companies like Marks and Spencer engaged in international business impart the
professional skill development training to its employees so that human resources of company
face no troubles in performing the assigned job roles at the new locations. On the basis of the
needs of the assigned job position all training are imparted to employees.
Learning language: Language is among the key barriers employees and organisation face in
case of multinational corporation. Language barrier creates plenty of confusions and
misunderstandings between employees and management at the new location. Companies
engaged with multinational corporation provide training to its employees to learn native
language of the new location. This training supports employees in communicating with the
local peoples based on the new location (Malik, Pereira and Budhwar, 2020). Language also

supports employee in dealing with many other issues like solving any employment issues at
work place or at the local level. For example multinational companies Marks and Spencer
provide language training to its employees that are engaged with any international transfer.
Company provide the professional trading to employees so that local language of the new
location can become understandable for the employees. This also supports employees of
Marks and Spencer to address all other problems involved in employment at the new
location. This is an effective strategic tool that supports company in dealing with the
expatriate failure.
Intellectual Training: Intellectual training is also an effective strategy that can be
channelizes in order to deal with the expatriate failure associated with multinational
corporation. This is more like a mental training associated with the multinational corporation.
In order to get settle at the new place it also involves mental intelligence that supports
employees at emotional level. This training prepares employees at mental level in respect to
dealing with the expatriate failure.
All the above strategies can be channelized in order to deal with expatriate failure.
CONCLUSION
This report has summarised about the different theories associated with the
multinational corporation. Theories like motivation theory and other theory play effective
role in case of multinational corporation. Different positive and negative impacts of the
multinational corporation are also concluded in this report. Positive impacts like improve
employee behaviour, improve work culture and other positive impacts has also concluded in
this report. Negative aspects of the multinational corporation like difficulty in analysis,
language barriers and other disadvantages has also summarised in this report. Strategies like
training, professional training and other strategies can be channelize to deal with the
expatriate failure.

REFERENCES
Books and Journals
Adams, K. and et.al., 2017. South African MNCs' HRM systems and practices at the
subsidiary level: Insights from subsidiaries in Ghana. Journal of International
Management. 23(2). pp.180-193.
Azungah, T., Hutchings, K. and Michailova, S., 2020. Ethnocentric HRM practices: evidence
from Western MNEs in Ghana. International Journal of Emerging Markets.
Belcourt, M. and McBey, K. J., 2016. Strategic human resources planning. Nelson
Education.
Bondarouk, T., Trullen, J. and Valverde, M., 2016. Special Issue of International Journal of
Human Resource Management: Conceptual and empirical discoveries in successful
HRM implementation.
Boxall, P., 2018. The development of strategic HRM: reflections on a 30-year
journey. Labour & Industry: a journal of the social and economic relations of
work. 28(1). pp.21-30.
Giauque, D., Anderfuhren-Biget, S. and Varone, F., 2019. Stress and turnover intents in
international organizations: social support and work–life balance as resources. The
International Journal of Human Resource Management. 30(5). pp.879-901.
Leibbrand, I., 2016. Conflict Minerals in the Global Capitalist World: Chances for
Challenging Initiatives (Master's thesis).
Malik, A., Pereira, V. and Budhwar, P., 2020. HRM in the global information technology
(IT) industry: Towards multivergent configurations in strategic business
partnerships. Human Resource Management Review. p.100743.
Mayrhofer, W., Gooderham, P. N. and Brewster, C., 2019. Context and HRM: theory,
evidence, and proposals. International Studies of Management &
Organization. 49(4). pp.355-371.