 We are talking about stages of internationalization in the international context and in that we are discussing the topic of global product and area division structures. And within that we are particularly concerned about the human resource issues that may be coming up in a global product or area division structure. There are two major decisions regarding the type of structure and particularly with the human resource function of a global product area division structure. Number one is the degree to which key decisions are made by the parent company headquarters or they are made at the subsidiary units. So whether you want to go for a decentralization approach or you want to go for a centralization approach. In centralization approach decisions would be made at the parent country headquarters and in a decentralization approach decisions would be made on the subsidiary level. It's not necessary that every organization will have the same level of if you say that it is a decentralized organization it will have the same type of decentralization. It is going to vary according to the company requirements and how much you can go for decentralization or centralization it is dependent on a number of factors. It depends on the type of industry in which you are operating. If your industry is changing rapidly innovative challenges are there then you will have to go for a decentralized approach whereas if your product is not changing much for example you can take the example of Coca-Cola that product is the same for many many years and there is not much innovation in the product of obviously they are offering a number of variations but the innovation or the speed of technological changes is not as fast as there is in the computer industry or there is in the mobile phone industry. So it is a relatively slow industry as far as technological or innovative changes are concerned. So in that kind of a situation you can have a more centralized structure a decision making process which is taking place at the headquarter level. Now the other structural decision that has to be taken is what type of control is exerted by the headquarters on the subsidiary units. Is it authoritative strict type of control or is it a kind of a lenient control system in which the participation of the subsidiary unit is also taken into account. So the type of control which is exerted by the headquarters on the subsidiary unit that is also a decision which needs to be taken. HRM concerns which are related to the global product area division structure are two to facilitate the centralization of all human resource management activities particularly with reference to human resource management you cannot have an extremely centralized approach because you have to manage human resources at the ground level in the country in which you are operating. You have to manage with their culture you have to manage with their workforce. So you need to facilitate the decentralization the corporate headquarters of HR they need to facilitate the decentralization of the human resource management activities. They have to strive to adapt human resource activities with each country's requirements. So you need to take into account all the requirements of staffing planning recruitment selection performance management and all the function of human resources. And you have to adapt those functions with the requirements of the local market. So the corporate headquarters has to make sure that the human resource function of your foreign subsidiary is adapted with the local market. The corporate headquarters performs the monitoring role of setting strategic direction. So the corporate department of HR at the headquarters level they need to set your overall strategic direction. You basically have to manage your human resources management or you have to manage your overall strategy you have to manage the performance or you have to focus more on compensation or you have to focus on their training and development your basic career structures in the organization. You have to provide a career from start to end or you have to provide more mobile carriers. So all these are corporate strategies which have to be communicated. And then the corporate HR department it monitors that those strategic decisions are being implemented at the subsidiary level or not. And then one of the HR issue concerned with the global product area division structures is that you need to have more staff that is required for coordination activities between the headquarters and the division which is operating somewhere else in the world. So these are the human resource management concerns which are important for managing the human resources in a global product area division structure.