Certain organizational approaches and forms affect the choice of centralization or
decentralization. Firms that view themselves as mtlltidomesfic rather than multinational
are likely to favor'decentralization of decision making. The global area form facilitates
dqlegating responsibility to managers of the firm's foreign subsidiaries. Conversely, the
international division form favors centralizing decision making at corporate headquarters.
Recall from Chapter 14 that most intemational businesses operate somewhere along the
continuum from pure centralization to pure decentralization. In managing human resources,
most adopt an overall HRM strategy at the corporate headquarters level but delegate many dayto-day
HR issues to local and regional offices. Doing this allows each foreign operation to meer
its own needs and to more effectively deal with local conditions, culnrres, and HR practices.