table. All these areas of disparities in the cultural behaviour of different societiesshould be considered for the operational success of Multi-National Corporations.Another important areas to take into consideration are ‘Language, Education andCommunication.’ The area of language includes both spoken and unspoken types.There is no doubt that language plays a very important role in any form of businesstransactions including the shaping of the whole world. According to Edward and Lee(1929) pages 207-14, language shapes the way people perceive the world, it alsohelps to define culture. They stated that countries with more than one languageoften have more than one culture. This will impact on the way of business dealingswith such countries by Multi-National Corporations. There is also problem with theunspoken language. Unspoken language serves as nonverbal communication, andit is frequently used in our everyday transactions, perhaps more in some countries.Unspoken language can easily be misinterpreted by different cultural values. Theinability to understand the nonverbal gesture of another culture leads tocommunication failure, and it can affect Multi-National Corporations in their businesstransactions. The act of communication is part of our daily functions. It looks simplebut it is very complicated especially in multi-cultural societies. Another importantarea that can impact on the decision making process of Multi-National Corporationsis education. The educational procedures of different societies can affect HumanResource Management. According to French (2007) page 166, Human ResourceManagement can differ between societies due to distinctive institutional featureswithin individual countries even among the Western nations. Schneider and Barsoux(1997) page 149, identified the sharp difference between the Human ResourceManagement approach in the United States and Europe due to difference indisciplines, psychology and sociology. The difference in disciplines impacts on therelationship between people and organisations. The discipline for Human ResourceManagement in United States is sociology, and its primary concern is on theimprovement of workers motivation. Boxall and Purcell (2003), page 166, advocateda hybrid approach which takes into consideration the Company’s internal strengthsand weaknesses, combined with the external analysis of opportunities and threats.According to Schramm (2006), traditionally, organisations depend on the knowledge,skills and abilities of their workforce for success. Therefore, it is not just beingeducated but the source of the education is of high importance too.
Strategic International Human Resource Management :
This part will examine four categories of Perimutter (1969), theory on ‘Typology of Multi-National Corporations strategies. The analysis of different models of multi-cultural management options will enable Monsieur Liataud to make choice onmanagement style for his companies.
Exportive/Ethnocentric –This is a centralised system. The practice isdominant in style. It simply transfers the home country’s managementpractices to the foreign subsidiaries. It controls and coordinates the wholeaffairs of the Firm from the Head quarters.
Adaptive/Polycentric – This is adaptive and decentralised. In this systemsome elements of international guidelines are being followed. It observessome knowledge transfer between the home and subsidiary countries.
Integrative/Geocentric – This system applies global approach in terms of goals and values. It applies the best Human Resource Management