Discuss the human resource implications for an MNE that pursues a transnational strategy.

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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A transnational strategy is sort of in between a global and a multi-domestic strategy.  In such a strategy, the firm's central headquarters and its various branches interact with one another to set policy.  There is not one centralized template that all must use, but there is not the same kind of autonomy for each country's branch that exists in a multi-domestic strategy.  Therefore, a transnational system needs its HR people to find and develop flexible employees.

In a transnational strategy all employees in a company must be able to adapt.  They need to be able to take ideas from the central firm and from the branch firms and succesfully integrate them together.  They must know when to allow for differences and when to demand uniformity.  For this, HR departments need to select, train, and maintain employees who are open to change and who are able to evaluate and choose between various ideas.  This sort of firm needs flexibility and adaptability, not workers who learn one way and stick to it.

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