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Factors for Leading an MNC

Info: 1158 words (5 pages) Essay
Published: 27th May 2021 in Management

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It is a well-known fact that running and managing a multinational corporation is very different from running a national one. As a manager in a multinational corporation, my main tasks are related to maintaining the level of success of the corporation in my country and definitely work on making a huge success as long as I am in my position. Managers tend to be aware about everything that is going on in their organisations and try to intervene in the critical times to solve the most important problems which would affect the organisation’s efficiency and effectiveness. However, I find that the main issues that would require to be worked on in the short-term are mainly related to the employees. So, in Egypt it is hard to have a total number of 100 employees working together normally with no problems among them let alone having 40% of the employees are from ten other countries. Therefore, it is expected to find a vast range of problems-which are related to culture-coming up between them because of the differences in the culture and language for instance. Another main issue would be that the designing and management are based in other countries which will involve work to be done by employees that have different nationalities, cultures and most importantly different ways in working. Due to that, some rules must be made and I may have to set up a system for working between the three parts (production, designing and management) to achieve the most attainable level of coordination and maintain it to avoid any sort of dissonance. In my essay, I am going to be demonstrating in a sequent how I will be leading my organisation and what are the actions that must be made and when, the challenges that will be existing due to the cultural differences and personalities’ differences, the barriers that come with the diversity in languages between employees which leads to a problem in communication between them which can affect the efficiency of the work process, the ethics of the employees and how it would affect the company’s image to the public. Lastly, I will be going through how I am-as a manager- will be providing my employees with the suitable incentives to keep them motivated to work in order to keep the performance at the same level if not enhancing it and how to ensure that my leadership over my employees is effective through emotional intelligence which requires some sort of employee engagement to be an efficient leader.

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Leading a great multinational organisation is a very difficult task for any level-or sort-of managers, as you are required as a manager to take massively effective decisions about operations running in your organisation. Based on these decisions, managers find themselves facing the results of their decisions either on the long-term (strategic decisions) or on the short-term (tactical decisions). However, researchers couldn’t agree on one definite definition fulfilling the different elements of leadership which are: Delegating tasks, communication, confidence, honesty, and creativity (according to Margaret Bell from Chain Reaction Foundation). Thoroughly, researchers tended to define according to their perspectives. Example of that: Bass (1990) defined leadership as do the leader’s wishes, Kotter (1988) defined leadership as influence but Rost (1993) defined leadership as relationship gathering the leaders with their followers (Rosari, 2019). There are different theories of leadership which differ according to their developers’ aspects of view. Those theories can be summarised into a limited number which includes: Behavioural Theory, Participative Theory, Contingency Theory, Situational Theory, Relationship Theory, and Skills Theory (Uzohue, 2016). Behavioural Theory finds that people can develop their leading skills over time through training. Looking at leadership from another point of view, Participative Theory states that leaders -to be leaders- have to involve their followers in the decision-making process to make them feel committed to their actions. Then, we can find Contingency Theory which is based on the quote “No single leadership style is appropriate in all situations” (Charry, 2012) which is close enough to Situational Theory which requires leaders to act differently according to different situations. Looking at leadership from another aspect, we face the Relationship Theory which is basically consider leadership as a process through which people -leaders and followers- engage in the organisation so leaders can motivate their followers to do better and achieve more. Last but not least, Skills Theory which supports the idea that people can become leaders through training and they don’t have to be gifted. Moreover, we have different types of styles of leadership such as: Autocratic: which means that decision-making power is centralised at top, Bureaucratic: in which leaders impose strict procedures to be followed, Transactional: which is based on setting clear goals for employees to achieve for getting incentives in return. Although we have approaches and theories about how leadership should be, but there are still some principles the leader should have which some of them are: Knowing yourself and try to improve, be proficient, be responsible, be an example, know your people, keep your followers updated, and screen the processes till they are accomplished (Uzohue, 2016). For me as a leader, I will prefer to act according to the situational theory. As situational theory states that there is always best approach for each situation so for me I will need to define the situation according to my knowledge to determine which approach is the best for this situation to act upon. I find in Egypt that most organisational systems are based on the autocratic and bureaucratic systems which doesn’t give a space for any sort of innovation so I am not willing to rely on any of them. However, I will prefer to use the transactional style as it is gives a room for creativity in how employees can achieve the specified goals and objectives. However, Egyptian employees just need to have their goals set in order to initiate and they can manage to find the best methods and approaches to achieve their goals, that is why I am not preferring autocratic or bureaucratic approaches. Since 60% of my employees are Egyptians, there must be massive incentives to make sure they are doing their best as Egyptian employees care much about tangible incentives more than intangible incentives.

References: -

  • Rosari, Reni (2019). Leadership definitions application for lecturers’ leadership development.
  • Chioma Euriel Uzohue, Japheth Abdulazeez Yaya, Oluseyi A. Akintayo (2016). A Review of Leadership Theories, Principles, Styles and their Relevance to Management of Health Science Libraries in Nigeria.
  • Charry, K (2012). Leadership Theories – 8 Major Leadership Theories


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