International vs. Transnational Companies Differences Essay

Introduction

In Chapter 12, Towards International and transnational management of the book Riding the Waves of Culture, in the beginning, the author discusses difficulties in international management. The author underlines the fact that although people from different countries have different cultures and problems, absolutely all people need to solve these problems. While obstacles differ in some categories, they are common to all in most cases.

Discussion

The author discusses the problems of different cultures and the need to solve them in the context of the manager’s work. Solutions that will work well to solve problems in the US may not work in other countries. Using the pay-for-performance program of the American computer company, the author also says that while some individual employee performance indicators will be the same as Americans, however, most employees will not be suited to this method of problem-solving. When a company is multinational, and the manager has the task of increasing its efficiency, the author highlights two ways a manager can achieve this (Trompenaars & Hampden-Turner, 1998). Allowing international staff to solve problems on their own, according to their culture, is called decentralization. The second way – is centralization, when the manager will induce the employees to implement one concept of the company regarding the solution of problems. The author discusses the differences between international and transnational companies. The author emphasizes international companies, such as Google, have their center, while transnational companies are polycentric. The author highlights the features and advantages of the two types of companies.

Conclusion

At the end of the chapter, the author highlights the fact that some companies will use different practices of different cultures in their composition for better and more effective work. In the example of Shell, the author explores such possibilities and their advantages. In the Chapter, the author highlights key aspects of international and transnational managers’ work.

Reference

Trompenaars, F. & Hampden-Turner, C. (1998). Riding the waves of culture: Understanding diversity in global business 2/e: 2^nd ed. McGraw-Hill Companies, Incorporated.