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Standardization in Multinational Enterprises
Multinational enterprises have to cope with some issues, associated with corporate culture, which alters its approach to establishing standards within a company. In addition, local specialties, such as specific environment and cultural features, have a considerable impact on the operation of a company and, therefore, on the administration, which is concerned with localization. Despite all the differences of particular areas, standardization in MNEs is crucial, as it appears helpful in order to cope with international human resource management. It implies adjustment to the local specialties without a decline of quality or performance, which ensures the success of an enterprise. Therefore, one of the issues regards the necessity to adapt the standards to the location and its unique features, which influences and shapes IHRM policy. In addition, occasionally, the fact that different countries have a different position on effective standard practices may present a challenge.
The latter can be mentioned as one of the most important tasks. It is essential to take into consideration local approaches to work in order not to violate traditions, customs, beliefs, and other cultural specialties. Moreover, they vary significantly from country to country, which makes this task not easy to be solved. However, it is vital to respect the cultural background of a country for gaining popularity in an area. Another positive consequence implies maintaining a beneficial reputation of an enterprise, which is necessary for long-term profitable development. In order to address this issue, it is advisable to conduct research on this aspect when establishing a company in a new location. Such a measure would allow to elaborate standardization, which ensures the success of a company without violating cultural beliefs and traditions.
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