Directorate of distance education master of business administration

MNCS   
  
 
Globalization has given genesis to the Multinational Corporations 
(MNCs). The MNCs are characterized by their cultural diversities, 

---

145
intensified competition, and variations in business practices. The bottom 
line is that the growing integration of the world economy into a single, 
huge market place is increasing the intensity of competition in a wide 
range of manufacturing and service industries. Given these conditions, 
from tapping the global labour force to formulating selection, training 
and compensation policies for expatriate employees are major challenges 
for HRM in the organizations or international organizations separately. 
Organizational restructuring is used to make the organization 
competitive. From this point of view, mergers and acquisitions of firms 
have become common forms of restructuring to ensure organizational 
competitiveness. The mega mergers in the banking, telecommunications 
and petroleum companies have been visible in our country. Downsizing 
is yet another form of restructuring. As a part of the organizational 
changes, many organizations have “right sized” themselves by various 
ways like eliminating layers of managers, closing facilities, merging with 
other organizations, or out-placing workers. There is also a practice to 
flatten organizations by removing several layers of management and 
to improve productivity, quality and service while also reducing costs. 
Whatever is the form of restructuring, jobs are redesigned and people 
get affected. One of the challenges that HRM faces with organizational 
restructuring is dealing with human consequences of change. 
HRM activities are widening. Particularly the world scenario of 
globalization along with modern technological explosion and fastness of 
information technology have made lot of change both in selection and 
needed skill of personnel. 
HRM has to give coaching. Coaching need not be construed as 
training. Coaching is needed to employees to deal with and to adjust 
the culture and requirements of people of different countries. Mentoring 
is standing a model organization should develop leadership qualities, 
tolerance and adjustment to cross-country cultures.