How Multinational Companies Manage Employees in Other Countries

HowMultinational Companies Manage Employees in Other Countries

HowMultinational Companies Manage Employees in Other Countries

Amultinational company is a firm that operate in the global economy.The company has assets and employees in more than one country.Currently, there are over sixty thousands multinational companies,and they are in charge of about five hundred thousand subsidiariesworldwide. Some of these companies are small with less than hundredemployees, whereas others are large with many employees and branchesacross world. For these reasons, multinational companies have to comeup with strategies to manage all the employees in various countries(Peterson,Napier and Shim, 1996).Multinational companies should implement effective communication andeffective team groups as some of the strategies.

First,there should be good communication amongst employees and theiremployers, as well across all the multinational companies. Effectivecommunication is critical for success in planning, leading,organizing, and controlling the company. On the other hand, poorcommunication leads to lawsuits. Good communication saves time andmoney. It is an asset for the organisation, as well as to theemployees. Good communication between employers and employees helps acompany to retain its employees for a long time hence, save moneyand time needed to train new employees. Rozkwitalska,(2013) states that employees are more satisfied when they areinformed about issues that affecting them. Therefore, a multinationalcompany can manage its employees by ensuring there is good mode ofcommunication, and employees are always informed.

Further,a multinational company should adopt a good communication process.The main goals of communication in an organisation are to transmitinformation, coordinate an effort, and share emotions and feelings.All the three goals are vital for an organisation to operate.Effective communication process helps employees to work togethertoward a common goal, and unites them during celebrations and crisis.In addition, it helps employees to bond teams, achieve consensus, andbuild unity among employees.

Nevertheless,effective communication is a challenge therefore, a multinationalcompany should come up with strategies to minimize barriers toeffective communication. Barriers to effective communication areselective perception, filtering, emotional disconnects, informationoverload, lack of source familiarity, and gender differences, amongothers (Petersonet. al., 1996).In this case, a multinational company should enhance probability ofeffective communication by engaging into active listening, payingfull attention to their employees, and responding to the employees.In return, this creates more solid relationships between theemployers and the employees. In addition, it strengthens the personalinvestment in the message, and forges a healthy relationship bymaking the employer and employee valuable members of thecommunication process.

Apartfrom enhancing an effective communication, a multinational companyshould come up with groups and teams that are omnipresent to ease themanagement functions. People in a team group work together to achievea common goal. Currently, most multinational companies areencouraging their employees to work as a team even though they are indifferent countries (Xiaoyanand Lan, 2013). Aneffective team gives an organisation an important competitiveadvantage. Team members benefit from a diverse experiences andperspective from other team members and stimulate their creativities.Besides, working in a team is more fun and enjoyable than workingalone. Therefore, a company that encourages teamwork tend to retaintheir employees for a long time.

Althoughit would be complicated for a multinational company to manage itsemployees in other countries, they are several strategies that acompany can implement. An effective communication is a vital elementto maintain employees whether they are working at the company’sheadquarters or at any other branch. Effective teamwork is alsoapplicable since it brings unity among employees.


Peterson,R. B., Napier, N., &amp Shim, W. (1996). Expatriate management–Thedifferential role of national multinational corporation ownership.International Executive, 38(4), 543-562.

Rozkwitalska,M. (2013). Effective cross-cultural relationships in multinationalcorporations. Foreign Subsidiaries` Viewpoint. Annual InternationalConference on Enterprise Marketing &amp Globalization, 65-74.doi:10.5176/2251-1970_BizStrategy13.06

Xiaoyan,Z., &amp Lan, H. (2013). Cross-culture influences on interpersonalrelationship in communication management. International Journal ofBusiness &amp Management, 8(12), 117-125. doi:10.5539/ijbm.v8n12p117