Discuss The Current And Future Trends In Managing International Or Multinational Company

It used to be only select few Malaysian companies had the resources to venture abroad. Overseas ventures were a game only for the big players. Nowadays, going abroad is almost necessity for any Malaysian company looking for growth in profit. Malaysian companies are looking abroad to take advantage of the globalization following the rising labour costs and a limited domestic market - Malaysia only has 22 million people compared to countries like India and China which each has more than 1 billion people. There is also another factor to be considered. Liberalization also forces open markets, giving more opportunities and competition around the globe in the spirit of globalization. Increasingly more foreign companies are coming to Malaysia hence the competition is also becoming more stiff in the domestic market.

Indeed the world has been seen "flattened" by the impact of globalization, that global leaders, global managers and businessmen see it as a scenario that may never go away. Whether we see it as a threat or an opportunity depends on how we are prepared to manage the circumstances that have been risen out of globalization. The competition between the nations is fierce too. Everybody now wants to be a biotechnology hub, a supply chain hub or a shared service hub. Malaysian companies face a two types globalization challenge. They need to defend their home turf against large corporations from developed markets, and beat them to neighbouring market offering significant growth and cost advantage. The challenge is formidable but the price of failure is global marginalization.

In a fast-changing globalised environment, the only way is growing competitive. For Malaysian firms to compete internationally, their leaders at every level must be aligned to set bolds goals, sponsor initiatives, create resources and overcome barriers. Firms must also develop organizational structures that promote collaboration across regions, business and functions, optimize global/local trade-offs and manage the tensions between business units and country management. They also need to invest effort in building a pipeline of globally capable local managers, developing leaders with global perspectives, planning for succession and creating continuity in country leadership. Better IT solutions too have to be adopted as a necessary component for the business.

Malaysian firms also need common financial and human resources, operational and other processes to enhance communication and collaboration across borders. And to ensure trust and transparency, shared corporate values must welcoming the local culture norms. These values influence behaviour and decision-making across the whole firm. Lastly, to make international growth happen, they need disciplined change processes, informed decision-making on the stage and pace at which growth to occur with a clear vision in hands.

To determine whether we are "globally conscious manager", we should answer these questions honestly: Are you ready to deal with the rise of China and India as potential economic powerhouse in the region? Have you felt the impact of the trade of the fast-developing third-world countries? Have you identified your organization and individual core competencies and the special niches in your global markets? Do you foresee your country taking the lead in regional issues and heading innovative new business models and concepts, such as Islamic banking and clean renewable energy for the future? It is a responsibility for the 21st century manager to be concern and conscious on these matters for a long term. Failure to do so would probably result the organization being disintermediated, thrown off course, becoming directionless or even worse, doomed to financial ruin.

The main ingredients that can make or break a company are individuals working as a team in the organization. Human resource development (HRM) is a key strategic investment by having good people to develop, drive and grow the business together to ensure continued success. It is essential to attract and nurture the best talent whose personal values are aligned with the firm's core vision in providing excellent service or quality goods for the customers. It is critical to implement highly competitive performance-based wage system, to ensure the wages reflect the value of the job and the contributions of each worker. This definitely will ensure that the productivity levels will always exceed wage increases and sending clear message that their efforts will be recognized and rewarded.

Businesses rely on effective human resource management to ensure that they hire and keep good employees, and that they are able to respond to conflicts between workers and management. HRM specialists initially determine the number and type of employees that a business will need over its first few years of operation. They are then responsible for recruiting new employees to replace those who leave and for filling newly created positions. A business's HRM division also trains or arranges for the training of its staff to encourage worker productivity, efficiency, and satisfaction, and to promote the overall success of the business. Human resource managers also create workers' compensation plans and benefit packages for employees.

Some 85% of executives recruiters surveyed say they have seen potential job candidates reject a new offer because of poor balance work-life balance, according to a survey conducted by Association of Executive Search Consultants (AESC). 91% of the 138 executives recruiters surveyed say compared with 5 years ago, work-life balance considerations are becoming more critical in a candidate's decision to accept a new position. Also, 26% of respondents said job candidates place higher value on work-life balance than on increased earnings when considering a new position, although a majority 61% said candidates would rate work-life balance and earnings equally. But the survey also revealed that 66% of respondents believe companies are increasing flexible with potential job candidates' work-life demands, but mostly on a case-by-case basis. Some 56% of the recruiters surveyed said job candidates value flexible work hours the most, while 39% said the option to telecommute is the work-life balance concession of choice.

The challenge for top management in a globalised economy is to make the workforce diversity a key tool and enabler for the firm. Having a diverse workforce means managers will need to understand cultural, ethic and gender issues, and address sensitivities and differences when they hire, train and retain people. For MNCs, being ethnically diverse is seen as competitive edge because they now possesses a better chance of tapping into the different and emerging markets. This is why Malaysia is preferred regional