Explain the dimensions of a corporate global strategy. How does each affect labor relations?

Question

What will be an ideal response?

Answer 1

A multinational corporation's global strategy has two central dimensions: configuration and coordination. Configuration involves the location of various activities, such as whether production is concentrated in one country and exported to other markets or whether production is globalized into various countries through foreign direct investment. It affects labor relations by influencing relative bargaining power between corporations and employees through, for example, threats to move operations from one country to another. The coordination dimension consists of the degree to which activities in different countries are homogenized versus autonomous. It affects labor relations in the degree of centralization versus decentralization of policies. Labor relations process will need to find ways to incorporate responses to local customs and problems. A highly centralized approach means that local customs and practices will likely not be honored and employees will need to conform to a common approach. A highly decentralized approach may introduce inefficiencies and inequities in treatment and local managers will need to build networks across the organization to facilitate coordination and learning.