250 REFLECTIONS ON CHARACTER AND LEADERSHIP
amount of autonomy as long as there are results. The head offi ce takes
a more ‘ hands - off ’ position. The regiocentric orientation differs in that
the action takes place in various regional headquarters. Finally, in the
case of the geocentric orientation, a complex network of interdependen-
cies exists between headquarters and subsidiaries. Generally, observing
how these companies are structured, we notice fl atter structures with
less emphasis on hierarchy, greater lateral communication, complex
networking systems, and loosely coupled, interdependent organizational
units with innovative human - resource management practices.
A key trend in these types of global organizations is getting away
from a headquarters mentality, that is, the urge to intervene and give
directions. More and more frequently, the corporate center is split into
a number of relatively autonomous regional headquarters with a set of
shared values as common denominator. In these global organizations
careful management of the corporate culture becomes essential. These
deeply internalized, commonly shared core values of the corporate
culture have become the new control device — it is the ‘ glue ’ that holds
the organization together.
Movement of executives among different parts of the company will
be common; it is a way of building up the ‘ nervous system ’ of these
global organizations. To enable this development, certain global com-
panies follow a policy of having their managers who will have a global
role work for several years abroad followed by several years at headquar-
ters (e.g. Philips, Shell, IBM, Proctor & Gamble, Rhone - Poulenc). This
pattern serves various purposes: it creates a more consistent corporate
culture than when people remain in only one country or one region,
and brings into headquarters a dose of global experience.
Some of these global organizations seem to have several levels of
executives: those who operate only within their own countries, those
who are assignable within their regions, and those who are assignable
globally. The more ethnocentric a company is, however, the more this
last category tends to be made up of parent - country nationals. Many of
these global organizations use some form of periodic assignment to
headquarters for their high potentials, and also rotate assignments within
regions.
Interdependence in truly global organizations is reciprocal; prod-
ucts, know - how, fi nancial resources, and people fl ow in complex,
interdependent patterns, not from the core to the periphery as in
the ethnocentric fi rm. The interdependencies in these organizations
are demonstrated in the following ways:- They have worldwide centers of excellence with a great degree of
independence of the original home country.