Transnational HR Systems

We have discuss on HRIS System and System Architecture tech by Dr. Roya, on my following class that i will reflect is Transnational HR Systems. Before we discuss on Transnational HR Systems first we need to know what is HRIS Organization Model. In my last post i have touch on HRIS Organization Model which consists of 4 model which is Multinational, Global, International and Transnational.

Multinational organization model basically distinct the organization that are de-lineated by national boundaries. Each respectful organization managed their key assets, responsibilities and even decision making process are localized. By this organization model, the power in making decision are in the hand of each manager that are in charge of that respecting local organization, hence we can see that the main features of this organization model is its flatten the hierarchical organizational structure giving full autonomy to the local manager to make any decisions. 

Global organization model overseas each operation oversea as extended hand to follow any orders from the headquarters (HQ).  This model view each strategic assets, resources, responsibilities and decision making centralized.  By using this model the operation would be smooth as there will be no conflicts and the order come from the HQ directly. Everyone needs to know each role in order for this model to be a success, if there is a lot of misunderstanding within the organization, this model will be harder to implement.

International organization model views each overseas unit as important appendages.  Each overseas unit have their own important role to play. As this model focus more on learning and innovation, each discovery that are being made by a unit are considered important to share with every units. This model helps the process of transferring any useful important knowledge to all.

Transnational organization model combines the global efficiency, local responsiveness and worldwide learning to make a standardized system. However these models also focus on local activities serve the purpose of the local demands. These models are useful for large multinational company with heterogeneous culture. Transnational exists because of the significant competitive pressures due to the increasing globalization. Hence by introducing transnational organization model, there will be a balance set of standardization and localization that leads to unique company solution for the model. Why should any organization choose transnational model? 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 variations.