One of the key challenges
faced by any transnational corporation is related to the control and coordination
between headquarters and subsidiaries. Transnational corporations always need
to strike a balance between "striving for control from headquarters"
and "striving for autonomy from subsidiaries". The headquarters can
control its subsidiaries in many ways, such as sending expatriates from the
office of the company to key positions in the subsidiary, formulating and
implementing organization wide management policies, and controlling financial
and other output measures. With regard to the standardization of human
resources policies and practices, a unified policy should be implemented in all
units of the organization if local laws and conditions permit.
I agree that balancing the two sides is a challenging task.