Multinational Enterprise Practice Between Australia and Indonesia Using National Culture Comparison.
Multinational enterprise practice between Australia and Indonesia using national culture comparison. Today’s business environment is consisting on high level of turmoil that comes from globalisation, news technologies, and great transparency (Reeves & Deimler, 2009); that demand organisation’s responsiveness for levels of dramatic, and often tumultuous, organisational change and development in order to achieve its organisational goals and objectives (Darling & Heller, 2009). Because of these revolutionary changes in the business environment (Stewart, 1993); the scope of organizations has expanded into a various sizes and types which lead to the important need for cross-cultural awareness and understanding of the daily operations of international businesses (De Cieri, Fenwick, Hutchings, 2005). Therefore, the purpose of this essay is to analyse the international human resource management’s challenges and opportunities when multinational enterprise operates in two different national cultures simultaneously. This essay uses Australia as the host nation, and Indonesia as the host nation subcontractor as the basis of comparison.
The concept of external environment refers to a specific and general environment outside the organisation that can affect its performance (Robbins, Bergman, Stagg & Coulter, 2008). These changes that create a revolution movement in the business world are mainly globalisation and information technology (Stewart, 1993). Particular changes in the external environment can affect their position in the market, dismantling traditional chain of command in the organisation, and restructuring organisation (Stewart, 1993). Thus, it is important to know a few factors that increase the practice of IHRM in multinational enterprises.
In this essay the external environmental factors that are analysed are technology and globalisation. One of the factors that has a significant influence in the business environment is technology (Stewart,
The concept of external environment refers to a specific and general environment outside the organisation that can affect its performance (Robbins, Bergman, Stagg & Coulter, 2008). These changes that create a revolution movement in the business world are mainly globalisation and information technology (Stewart, 1993). Particular changes in the external environment can affect their position in the market, dismantling traditional chain of command in the organisation, and restructuring organisation (Stewart, 1993). Thus, it is important to know a few factors that increase the practice of IHRM in multinational enterprises.
In this essay the external environmental factors that are analysed are technology and globalisation. One of the factors that has a significant influence in the business environment is technology (Stewart,