Quality and Philosophy of Management of a Transnational Company...

Quality and Philosophy of Management of a Transnational Company

■ Management Philosophy - these are the most general principles on the basis of which the management structure of modern TNCs is built and the management processes of such complex systems are implemented.

Of course, the philosophy of quality and management philosophy are interrelated - the quality philosophy sets the goal and direction of the company's activities, and management philosophy determines the appropriate organizational means to achieve this goal. By the way, the fundamentals of the management philosophy, and the foundation of the quality philosophy were laid by F.W. Taylor.

Key terms:

criteria for choosing a management system; linear structure; linearly-functional structure; linear-staff structure; divisional structure; divisions-product structure; divisional-regional structure; cross-functional structure; project structure; matrix (software-target) structure; network structure.

Transnational company as a super complex socio-economic system

■ System is an ordered set of interrelated elements that form a single entity and interact in a certain way to achieve a given goal.

The concept of system is one of the central in economic cybernetics.

From the point of view of systems theory, transnational companies are open supercomplex socio-economic systems that operate under conditions of volatility and weak predictability of the external environment.

The multinational companies operating in such conditions must meet the basic system requirements:

- the ability to predict the behavior of the system under specific conditions;

- the ability to withstand system-destroying trends;

- Ability to adapt to changing conditions;

- the ability to change its structure and form behavioral options;

- Ability and striving for goal-setting, i.e. the formation of goals within the system.

Effective management of such systems is a very complex problem, especially since in the construction of the corresponding organizational structures, a number of specific conditions must be taken into account, accounting for each of which in turn is a difficult task. Consider the main ones.

Globalization . The growth of production and technological capabilities in the world economic system, the universality of consumer and resource markets require the company to organize global actions. The international company can not limit itself only to the production and export of products to other countries. It should have a global strategy that will allow it to operate in different countries at any stage of the value chain. In order to develop a global strategy, an international company must take into account the conditions of competition and the external environment in each of the countries under consideration.

Simulation . A transnational company can ensure the operative, independent and responsible actions of its employees only on condition that the common base for making managerial decisions is the analysis of the results of modeling the possible options for the development of social and economic processes in the company.

Creating added value and quality of work. To maximize the volume of newly created value-added, it is necessary to concentrate TNC efforts and resources in areas where the company has competitive advantages and the ability to produce high-quality products. This requires increased attention to the quality of not only design and distribution of products, but also the activities of the entire international company.

Openness of TNC economic systems. International companies should not function exclusively as closed systems that are interested in optimizing only their internal goals. They should play an active role in supporting cultural and other traditionally non-profit structures, strengthening attention to the ethics of doing business in other countries, and developing certain world standards for transnational corporations.

The leading role of the client. Meeting the needs of TNC clients from different countries should be a permanent condition for making managerial decisions in the field of international business. Non-market-oriented functions should not be provided with resources, but also financed.

Integration and cross-over functions. Traditional functional management system covers such separate areas as marketing, production, scientific research, etc. In complex socio-economic systems, it must coordinate a number of functions. With this approach to management, the organizational structures of the pyramid should be transformed into flat (matrix) structures, with a minimum number of levels between the top management of TNCs and immediate executors.

Flexibility . A distinctive feature of TNCs should be a permanent adaptation to a dynamic external environment, primarily due to adherence to individuals, the predominant use of teams, high internal competitiveness and the desire for diversification.

Summarizing the requirements and conditions that modern management structures of transnational companies should meet, it should be noted that the methodology of their design should be based, on the one hand, on scientific management principles, and on the other hand, take into account the specifics of transnational production considered in the present conditions.

An optimal management structure for TNCs should ensure the uninterrupted management of the parent company by its foreign affiliates and at the same time enable the managers of foreign affiliates to independently make decisions to meet the demand of consumers, taking into account the specifics of the local market and in accordance with the legislation of the host country.

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