Once I remember when i just step out to work, there was many types of companies that interviewed me. In Singapore, there were companies for various sizes, there are companies as big as 400-500 staff, and there are some as small as 6 staff. The like to give themselves many types of abbreviation. Commonly in Singapore, you can hear the following term

MNC : Multinational Company
SME: Small and Medium Enterprise
Listed Company
Local Company with a Global Presence

What does these term really mean to an average worker? Sometimes I remember during the interviews sometimes I asked.. “So, what is the main reason why I should join you?” and the interviewer may say something like “Ohhh,,, You will now have a chance to work in a MNC… (Or Listed Companies). Once in my project, there was this client who always like to brag about her days as a CEO of some MNC.. (From what I know, sells toilet papers only).

Sometimes when she was leading her SME, she is still unaware that there is a huge difference between her ex MNC and her current SME.. she keep making noise over the slightest matter saying “You know… when I was working in the MNC.. I will never accept this type of quality” and over a very trivial matter she made everyone slog for hours and giving excellent productivity.

In fact.. so what is the main difference about being in MNC, listed company SME? To an worker who draws a monthly salary, so how does all these things apply to them?

A MNC merely means that this company has facilities and other assets other than their home country. They have a global management, very big and diverse businesses. Note that some MNC are merely combination of many small and medium companies which may or many not coordinate their efforts in profit making.

Such companies had an advantage of a huge capital, and the ability to buy up many small companies… leveraging on them to provide service at a much lower cost compared to other smaller companies.. However, their disadvantage is a lack of the overall view of all their businesses, only relying on numbers to make their decision.

One of the major characteristic of the MNC is that they have the highest number of Sukhomlinov business leaders and and fakes.. In good times this is alright because the company has massive capital, and since the management looks at numbers only. The Sukhomlinov leaders and managers can make good looking report (AKA Magical Dress in the Emperors New Clothes) to fool the management. And since the management only has time to look at numbers.. this is usually suffice.

Usually such organizations is full of corporate inefficiency and are slow in making decision. Due to the size and the number of people.. Simple decision can take thousand of years… and the Sukhomlinov leaders created alot of complicated business processes.. slowing down everything.

A MNC is somewhat like a huge monster who needs huge resources in order to maintain its business operations. This is the reason why it needs huge ERP and other softwares, however, with the abundance of Sukhomlinov leaders, they creates tons and tons of paperwork and administrative duties depriving the company of the ability to make quick business decision which is necessary for the current business climate.

For SME employing staff from an MNC, be careful of the creation of many MNC like corporate structure and inheriting the business politics and the start of corporate inefficiency. It would be disastrous to think that the small and miserable enterprise can have the capital of a MNC to maintain such corporate inefficiency.

I never realized I wrote so much, so I better divided up the discussion into 3 post.