Nowadays, they are so many changes in our daily life such as global mobility, falling trade barriers and explosive growth in international business, global expansion is on the agenda of most large enterprise. The company should be known how they can organize themselves for international operations. Organization must be adaptive to changing condition, controlling at the centre while empowering at the periphery, ever-changing worldwide learning capabilities and that transcends geographic and divisional borders.
HR Manager needs to anticipate emergent human capital needs on order to meet the challenges and faces this situation. The organization also must innovative to take advantages of new opportunities, while at same time preserve a common vision, and coordinate activities globally. Transnational in human resource system must make an optimal balancing between centralized control and decentralized autonomy, while maximally ever-changing innovation and knowledge sharing across the enterprise.
Transnational organization model combines the global efficiency, local responsiveness and worldwide learning to make a standardized system. Transnational model consider the changes in the macro-environment and the globalization drivers. Though there is pressure on globalization and localization respectively, transnational model can focus on the key value adding activities and the emergence presence of global brands and advertising and centralized decision making will help in apprehending the globalization matters. As for localization matters, this will force the organization to study the local variation to the market strategy and local product variation.
The Transnational Model comprises the following five core components:
· Vision -sets the overarching framework, direction, and values for the organization. The vision statement does not present a precise plan for the organization to follow, but rather sets the purpose and clear sense of direction, defining a common set of values or guiding principles for the organization.
· Organization – defines the organizational structure that the enterprise will function within. They define four basic structures or models that manifest in their global development which are Multinational, Global, International and Transnational organization.
· People – comprises the organization’s associates with their skills, competencies, and orientations. People are the fundamental asset that allows the effort to function and proper.
· Process – delineates the processes that individuals in the organization are to follow. The traditional companies have tried to implement a new initiative by changing the formal organizational structure.
· Technology – provides the underlying infrastructure to support the people and the processes
The new Transnational HR model must be adaptive and responsive to changing conditions and must at the same time preserve overall cohesion and unity of purpose. The new Transnational HR Model includes methods for measuring each of its components:
§ The Vision-to-Values (V2V) assessment process aids in defining a global vision and set of values for the organization, placing quantifiable, measurable values – or metrics – on the global enterprise vision and strategic objectives;
§ The Efficiency Innovation Model (EIM) assesses where the enterprise is along the path in its global evolution and points to some leading practices to help move the organization further along in its development; and,
§ The Global Orientation Evaluation (GOE) approach assesses the associates in the organization to determine whether they have the appropriate personality characteristics and global mindset for leading a transnational enterprise.
As a conclusion by Hock, he illuminates that the ability to understand, preserve, and leverage the past (i.e., the cultural heritage of the organization) in order to build the future (i.e., the new chaordic, Transnational HR model) is key to finding the right structure and gaining wide-reaching acceptance throughout the organization. Bartlett and Ghoshal’s transnational model provides an important “transitional” stage that can help organizations move from their structured, regimented past to the new chaordic entity of the future. Of course, no such change can happen overnight – organizational evolution is a journey that must be nurtured and managed over time through the establishment of a clear vision for the organization and the transformation of the mindsets of the associates.
· Vision -sets the overarching framework, direction, and values for the organization. The vision statement does not present a precise plan for the organization to follow, but rather sets the purpose and clear sense of direction, defining a common set of values or guiding principles for the organization.
· Organization – defines the organizational structure that the enterprise will function within. They define four basic structures or models that manifest in their global development which are Multinational, Global, International and Transnational organization.
· People – comprises the organization’s associates with their skills, competencies, and orientations. People are the fundamental asset that allows the effort to function and proper.
· Process – delineates the processes that individuals in the organization are to follow. The traditional companies have tried to implement a new initiative by changing the formal organizational structure.
· Technology – provides the underlying infrastructure to support the people and the processes
The new Transnational HR model must be adaptive and responsive to changing conditions and must at the same time preserve overall cohesion and unity of purpose. The new Transnational HR Model includes methods for measuring each of its components:
§ The Vision-to-Values (V2V) assessment process aids in defining a global vision and set of values for the organization, placing quantifiable, measurable values – or metrics – on the global enterprise vision and strategic objectives;
§ The Efficiency Innovation Model (EIM) assesses where the enterprise is along the path in its global evolution and points to some leading practices to help move the organization further along in its development; and,
§ The Global Orientation Evaluation (GOE) approach assesses the associates in the organization to determine whether they have the appropriate personality characteristics and global mindset for leading a transnational enterprise.
As a conclusion by Hock, he illuminates that the ability to understand, preserve, and leverage the past (i.e., the cultural heritage of the organization) in order to build the future (i.e., the new chaordic, Transnational HR model) is key to finding the right structure and gaining wide-reaching acceptance throughout the organization. Bartlett and Ghoshal’s transnational model provides an important “transitional” stage that can help organizations move from their structured, regimented past to the new chaordic entity of the future. Of course, no such change can happen overnight – organizational evolution is a journey that must be nurtured and managed over time through the establishment of a clear vision for the organization and the transformation of the mindsets of the associates.
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