Multinational corporations belong to the whole organisms of every economy and every country. They have a relevant position in the marketplace, just like small and medium-sized enterprises and family businesses. They define themselves by developing their activities in several countries while being centrally managed from one or two states. In today’s global world, their economic power is often more significant than that of many countries, and therefore they are usually in some way demonised.
Multinational corporations have to face the main challenge: finding the optimal organisational arrangement between their headquarters and foreign entities or operating in virtual teams and a multicultural environment. They need to address efficiency and cost management issues daily and make the associated decisions to relocate branches to lower-cost countries. They place a strong emphasis on finding the most appropriate transparent ways of corporate governance and build sustainability. However, they face many more internal and business challenges now than it may seem.
One of the critical issues is to have the right people in management positions. The complexity of such organisations’ structures emphasises competencies and experiences that are more complicated than in local companies. In a rapidly changing world of corporations, managers must have skills such as the ability to manage uncertainty, the ability to apply global concepts locally, the ability to navigate complex structures, and the ability not to sacrifice the long-term development of their department at the expense of rapid and possibly unsystematic fulfilment. Agility, digitisation, constant change, and self-managed teams require managers and leaders who feel and know how to show responsibility and are ready to achieve results from a business perspective and the people management view.
Amrop Jenewein is a part of one of the most extensive Executive Search, Board & Leadership Services organisations, which operates in almost 50 countries worldwide, understands the local needs of companies and their global concept. Strategic decision-making on the functioning of an organisation working in Slovakia often takes place outside our country – either directly at headquarters or regional structures, considering Slovakia. As a multinational organisation, Amrop usually selects suitable candidates for positions in regional company structures and is in constant contact with leaders in Slovakia and structures and people in headquarters, where directors of local representations report directly or as part of matrix structures. With over forty years of experience, Amrop has in-depth knowledge of global markets. We can, therefore, respond flexibly to the complex demands of giants such as corporations.
For large corporations, the crucial factor of the relationship must be taken into account. This is the relationship between the local management in the country and the headquarters and the company’s management. In this relationship, it is crucial to be constantly aware of the local environment’s specifics, which can be a great challenge for the interaction between the headquarters and the local branch. These relationships must be managed by mature managers who are aware of the many conflicting goals of local management and headquarters and can balance this relationship to benefit the whole company. Because we communicate with people on all sides, we understand the needs of both and help balance and bring together both parties’ views in counselling solutions.
In the coming period, it will be crucial for a successful leader and manager to use new trends and management methods in leading self-managed, multicultural and virtual teams. This significant departure from the classical approach to leading people requires a change in thinking and management and the culture of society and individuals. Our company is continuously holding the pulse on these leaders’ development, concerning the rapidly growing digitisation and increased personal approach to people.
Through our consultants’ personal experience from multinational corporations at a senior management level, we understand the requirements for good corporate governance and help organisations align local organisations with the concept of corporations. We can assess competencies and recommend specific tips and techniques for developing the skills needed for a manager to succeed in this type of organisation.