From MultiNational to TransNational and Centers of Competency
1. How did OBI capitalize on the strengths of its multi-domestic strategy when shifting the structure to a transnational organization?
2. Why did OBI create “Centers of Competency”?
3. How does shifting from a multi-domestic to a transnational model affect the organization’s culture?
4. How did it affect HR?
Overview of paper
After I read many times of the case “Vignette 2.1 Integrated Recruitment Strategy in Action - Internationalization of human resources at OBI”, I write this paper as my answers to ‘Ask Yourself’ questions in above.
Internationalization of Human Resources at OBI
Shifting to transnational can capitalize strengths of multidomestic strategy
After faced with potentially huge shortage of qualified employees to support its international expansion in Russia, OBI realized that it needed standardized recruitment procedures and shifting from multidomestic to transnational. During the shifting, OBI recognized that multidomestic operations had their strengths which were well established operation independently in some countries. In order for OBI to apply these strengths to other countries OBI operations, OBI encouraged each country managers to help develop the core transnational processes. While the standards would eventually become companywide, they could be formulated at any level of the organization. As OBI recognized that each domestic operation could develop its own unique solutions to problems facing its country’s operations, OBI sought to determine which country addressed which problem the most efficiently. In the determination, these strengths of multidomestic operations are captured into the core transnational HR processes which are applied to other countries OBI operations.
The reason to create “Centers of Competency”
OBI named certain countries “centers of competency” for specific core processes. Thus, the guidelines for recruiting, training, performance management, etc., were well established independently in one country and then later
2. Why did OBI create “Centers of Competency”?
3. How does shifting from a multi-domestic to a transnational model affect the organization’s culture?
4. How did it affect HR?
Overview of paper
After I read many times of the case “Vignette 2.1 Integrated Recruitment Strategy in Action - Internationalization of human resources at OBI”, I write this paper as my answers to ‘Ask Yourself’ questions in above.
Internationalization of Human Resources at OBI
Shifting to transnational can capitalize strengths of multidomestic strategy
After faced with potentially huge shortage of qualified employees to support its international expansion in Russia, OBI realized that it needed standardized recruitment procedures and shifting from multidomestic to transnational. During the shifting, OBI recognized that multidomestic operations had their strengths which were well established operation independently in some countries. In order for OBI to apply these strengths to other countries OBI operations, OBI encouraged each country managers to help develop the core transnational processes. While the standards would eventually become companywide, they could be formulated at any level of the organization. As OBI recognized that each domestic operation could develop its own unique solutions to problems facing its country’s operations, OBI sought to determine which country addressed which problem the most efficiently. In the determination, these strengths of multidomestic operations are captured into the core transnational HR processes which are applied to other countries OBI operations.
The reason to create “Centers of Competency”
OBI named certain countries “centers of competency” for specific core processes. Thus, the guidelines for recruiting, training, performance management, etc., were well established independently in one country and then later
References: Dennis R. B., & Randall S. S. & Lisbeth C. (2009). International Human Resource Management: Policies and Practices for Multinational Enterprises, Third Edition. Routledge, Taylor & Francis Group Ltd. ISBN 0203866967