MNC’s, the very name conjures a, different kind of image in the minds of millions of Indians aspiring to be its part one day. We have all grown up with notion that, If you have to work, it has to be an MNC. Stories of their culture, Employee Practices, Training and development, Perks, Salaries, Travel, Rewards and Recognition… you name them, it was believed, at least I used to believe, MNC had them all. The pride with which neighbours and friends used to tell; my son or friend works for MNC invariably had an element of awe built into it. Am talking of 80’s n 90’s, while as a school going child, I also use to hear such stories. I was also bitten by the bug of MNC’s and always ranted, KAAM KARNA HAI TO MULTINATIONALS MEY” …….
Unverified, stories of practices in MNC’s used to do round in large numbers and these stories further strengthened the notion that, if you have not worked in MNC, life was not worth it ( sounds harsh, but that’s what the reality was for some us).
But, who are these MNC’s and what is their origin. A Multinational corporation is one which is registered in more than one country or that has operations in more than one country. It is a large corporation which both produces and sells goods or services in various countries. It can also be referred to as an international corporation. They play an important role in globalization. Arguably, the first multinational business organization was the Knights Templar, founded in 1120; this organization existed for nearly two centuries. During middle age, it was officially indorsed by Catholic Church around 1129, and was defunct by 1312. After that came the British East India Company in 1600 was originally chartered as and then the Dutch East India Company, founded March 20, 1602, which would become the largest company in the world for nearly 200 years……………and then there has been a deluge of sort, …… some of these MNC are so deeply embedded in the Indian diaspora that, they have seen their fortunes rise and fall with the fortunes of India. [Refer to the picture below and Check for May 2013 issue of Business Today for better insights: MNC’s that succeeded against all odds by Anand Adhikari]

Yes even today, while as I am writing this piece someone somewhere is dreaming to work for an MNC. But, the moot questions remains, are there enough of them, with the practices which attract the youngsters in droves or is it that the list to choose from still remains the same as it was couple of decades before. Yes, we have certainly added lot of them and they have without doubt brought some good practices, yet during the same time, lot of SO CALLED MNC’s have also mushroomed all over the country. These so called MNC’s have only one thing in common with the deeply entrenched MNC’s in India, their economic definitions remains the same. That’s the only commonality and nothing else. Run not by LEADERS but MANAGERS, these so called MNC’s have done lot of harm to the image of genuine ones. Practices catering to the Flavour of the seasons than a genuine interest, Violations of Labour laws, only striving to get Profits and More Profits, squeezing the employees to his last sweat, not looking at the working conditions in India, seeing investing in people as a COST, you can go on and on, the list seems endless
Invest to grow business and profits has been replaced with reduce cost and grow bottom-line. GROW at any COST has become the vision and mission. Rest all talk remains a hoax and is confined to defend the MNC status. Slight change in Economic conditions of the nation in which they operate and you start seeing the true colour of these so called MNC’s. With very little or practically no social security or investment in any aspects of business, viz Marketing, R&D, Advertisement, Brand building, Employee development, these MNC’s expect super profits and expect their employees to be ever informed, agile, energetic, be proactive and without airing their problems and difficulties perform like Super Man. If they bring revenues they are gems or else duds.
Sometimes, in the so called MNC’s one is forced to take some actions which otherwise the employee would not have done so, be it lay off, be it balance sheet or P&L dressing to make it look healthy, and so on…..but, despite all this, is there a way out……the answer is yes. You just need to clearly spell to your principals what kind of environment you are operating in. On earth we all breath OXYGEN, but one day if we are successful in putting mankind on MARS or any other planet, am sure you cannot live for more than a day, for the conditions are totally different. This basic aspect if these so called MNC understand, I think they can definitely contribute a lot to themselves and their principals.
People join MNC with a lot of hope and aspiration that they would have a wonderful career in the company, but this honey moon does not last for a long time…it is only the first month that you are seen as an investment, if things do not go as desired, you are a cost. Here some of the Indian companies have done exceedingly well when compared to these so called MNC’s. Rampant and greedy profiteering without any Value Addition whatsoever by these MNC’s increases the Cost of Production of their clients and subsequently for their end customers.
Multinationals are learning that many different India’s exist within the subcontinent. The big differences—the haves and have-nots, languages, literacy, and geography (including the urban–rural divide)—make it difficult for a global brand to satisfy all of the country’s consumers. Multinationals also face the challenge of low-cost local competitors.
Indian consumers demand sophisticated products and services found in the West, but at lower prices. A one-minute call from a mobile phone, for instance, costs one to two cents in India, much less than it does in the United States.
THE REAL MULTINATIONALS…. Are they there…..Yes, they are, and they are growing by adopting one single mantra…..they are investing and growing, their investment shows the commitment and their growth is a resultant of their commitment. These Multinationals are to be found in each and every aspect of the industrial arena, be it FMCG, Capital Goods, Health Care etc..etc however these are very few in number to cater to the desires of hundreds and thousands of Indians.
Some of the practices of the so called MNC’s are forcing the working executives to rethink their decision….some feel, it is better to work for an Indian Home grown company rather than such MNC’s.
In the end , I am providing a link to an excellent presentation “PROFITS BEFORE PEOPLE” by BRUCE KASANOFF which I can across while preparing for this blog. Trust you would find it interesting.
http://www.slideshare.net/slideshow/embed_code/25024817#
The views expressed above are purely mine, readers are at will to echo or not echo them.