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Which approach to global management is most constructive?

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Consider various approaches to global organizational management. Which approach is most constructive? Explain why. What issues are likely to arise for managers within a transnational organization? How might these issues be dealt with effectively? What roles do an organization's talent, capabilities, competencies, and attention to core values play in its ability to be globally competitive?

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Solution Summary

This solution is 1624 words and discusses three approaches to global organizational management: the knowledge management approach, the balanced scorecard, and the quality management approach. Issues within a transnational organization include legal, cultural, and ethical, as well as global competitiveness. Six references are provided.

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Management Approach for Global Organizational Management

In the current internal business environment most of the companies are facing the organizational problems related to the management of the complex system of subsidiaries in foreign countries. They are also facing the problems in managing economic and political forces. The global environment is causing an increase in the complexity in the organizational structure of the international companies (Inkpen & Ramaswamy, 2006). The reduction in national growth rates is forcing the multinational organizations to expand their business into new markets. The business expansion is posing difficulty to manage and control the resources at subsidiaries.

The economic and political imperatives are also growing in the opposite direction of the business strategies, which also making the management of global organization more complicated. The economic forces are increasing the demand for lower units cost while political factors are making strategies to protect local economies, which is creating problem to manage the global organization (Inkpen & Ramaswamy, 2006). It is raising the need of a particular management approach to manage the global organization in an effective manner.

Approaches to Global Organization Management
To manage global organization several approach could be used by the management of international organization. The organization may use different approaches according to the business requirements. Following are various approaches to global organization management -

1. Knowledge management approach - The best practice for the global management the primary task is to identification and dissemination of the required knowledge. The IT infrastructure is one of the important components of the business, which requires a proper approach to management. The knowledge transfer plays an important role to manage the IT system. To reduce the complexity in the transfer of knowledge the business should adopt the knowledge management approach, which would be beneficial to enhance the effectiveness in the global organization management. The knowledge management also facilitates efficiencies in the business environment, which helps to face the global competition.

The integration of knowledge management approach within the global organization would be beneficial as it helps to facilitate performance related compensation within the organization. It also helps to facilitate benchmarking against other successful global organizations, which improves in management effectiveness (Flanagan, 1999). The development of global knowledge management system gives a major contribution to organizational personnel's, which help to obtain global operation efficiencies.

2. Balanced scorecard - Another ...

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