- Two of the various ways that corporations Benefit from Multi-national Expansion o Labor is cheaper o Management has more strategic options Once

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Two of the various ways that corporations Benefit from Multi-national Expansion o Labor is cheaper, o Management has more strategic options Once you are operating internationally you focus on a structural question about how to run your labor relations Two reasons to flip between IR/HR o Principles are the same between the two o In most other countries they do not have the sharp separation between unionized and non-unionized employees. Other countries do not distinguish in terms of implementation and law and other issues are not separated between HR and IR Basic Question: Once you are a multi national corporation how are you going to regulate your IR or HR? o Should a manager in NY make a decision that will affect plants in Mexico or should the manager in the Mexico plants be able to make their own decisions. In other words Centralized or Decentralized In the past IR and HR decisions have traditionally been completed at a decentralized plant level. o There are changes occurring in many multi national firms towards a more centralized process Why were decisions decentralized in the first place? o Lots of particulars and regulations that you need to factor in when making decisions. Wouldn’t know about these on the corporate level because don’t know about the different labor laws in all of the countries, but the managers in those plants will know about the differences in the laws, culture, structure of union, politics. o Production was often highly decentralized. And so IR and HR follow this production system. o Finance decisions should be highly centralized o Public relations are generally decentralized. Local PR is very important and only the locals can really understand that. One reason it is not as local
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This note was uploaded on 10/28/2007 for the course ILRCB 2050 taught by Professor Givanr during the Spring '06 term at Cornell University (Engineering School).

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- Two of the various ways that corporations Benefit from Multi-national Expansion o Labor is cheaper o Management has more strategic options Once

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