Before we go through this topic, firstly, we have to understand the meaning globalization. Globalizing in the easier term, we can call it as the phenomena or trends that happen around the word. This phenomena, such as, people nowadays are using internet connections as one of the primary communication to the others. HRIS also are facing the globalization.
Talking about the Transnational Solution, we all know that when the company goes to global, so they have many branches of their company around the world. Here, the questioned is how the company can manage so many branches all over the world in order to make them permanently competitive around the world? So here, there are several types of model that the company can choose and it has to apply equally with their organization policy.
For the company that focusing in their responsiveness to the local differentiation and regional differences, they would choose to Multinational model. For me, their management decision making process is decentralized. It means that other branches work by adapting due to local responsiveness in each country. It easier to apply in one’s country, but, with decentralization, it might be became a little bit mess because the how the HRIS and management work are totally different from the other branches that might slightly different from their work culture. For example is the way they pay salaries to their worker. Apart from it, the Global model shows their fully power on how the organization works. Everything that the branches of the organizations want to do, they have to refer to the hub where the decision making are centralized. In easy word, I can say that, this model have a standardized solution, responsibilities and process by a quote “One size fits all”.
The entire two models are quite rigid to choose. Some of the company might think that they want to show the model which concerns about local responsiveness but at the same time they want to control over their branches. In easier word, I can say it, that organization want to make their management are more balance. So, it comes to the International Model which that have both combined both of the model. The corporate headquarters are still lies as a centre, but in term of local unit, it interdependent. This model takes learning and sharing approach where they can create an innovation where they can make some new system that fits this model based on local responsiveness and centralized management.
After all these have been discussed, now the other question is what will happen if the business environment changes? Now we have to think about the model that can flexible in these three above situation. The system can be global, multinational and international where it creates new innovation. So the Transnational Model is the solution. It comprise all above model and resolving this paradox. This system for sure are more complex than those three system and hard to build because it required more money and time.
For the conclusion, all these four models are actually good to be applying after the organization have identified how they work. Being centralized make difficult to think of system that fits all, but being decentralized and local responsiveness make the organization have difficulties based from how they managed the company and it will come out the term of multi headed monsters which think that they good with their system. Innovation is needed in order to make it competitive in marketplace and if we compared these entire models, it requires a lot of money, work and time. Globalization has changed how the organization works.
