Discuss the major variables influencing control in a global

Discuss the major variables influencing control in a global economy. Also, what are the major complaints of managers in subsidiary companies about the control practices of headquarters?

Solution

Discuss the major variables influencing control in a global economy

Distance: the greater distance the bigger physical changes there will be,

Communication system: This is extremely important to communicate when problems arise or when there is a doubt about a process.

Standardization: Standardization is important because allows doing a process the same way if you are in Africa or in South America, it is also important because it is a way to teach new employee how do to things

Size of international operator: Depending on the size of the international operator, the organization will be able to produce at a faster rate

The product itself: depending on the nature of the product, if it more technological, the easier will be to implement uniform standards

Also, what are the major complaints of managers in subsidiary companies about the control practices of headquarters?

Some of the complaints is that usually headquarters are the ones who select the subsidiary management structure and for some managers who are already at their position they don’t like it because they feel such positions need to be earned and not just be chosen by someone who is not on the daily operations.

Depending on the level of autonomy a manager of a subsidiary may complaint on the fact that there are decisions that due to the bureaucracy needs to pass through headquarters and this takes too long making processes stop waiting for a decision.