Information, control, and human resource management in multinational firms

Multinational corporations (MNC) must coordinate global activities to gain a global competitive advantage. This depends on the ability of the MNC to set up an information network and control its complex activities. Organizational control in MNCs may be either cultural or bureaucratic. Likewise, information systems may be either social or technical. Decentralization of decision making is necessary for MNCs to survive, yet it threatens their cohesiveness. The effectiveness of a control system depends on the human resource management (HRM) behind it, specifically, the management of technical and social information systems in the areas of selection, development, appraisal, and rewards. For HRM practices in MNCs, the emphasis needs to be on creation of an integrated HRM system that allows for flexibility of action combined with predictability of behavior.