 Dear students, we are talking about various different organizational structures which exist in the multinational context. Because we are talking about international human resource management, we are particularly concerned about how human resource evolves in different structural forms and how human resource department exists in the structure of these multinational corporations. There are three ways in which HR evolves into international growth. You know that we discussed that a company evolves in different stages which can be hypothetically organized as an export department stage, a sales subsidiary stage, an international division stage, and then global product area division stage, and then network of subsidiaries. How the HR department adjusts itself in this international evolution and how it is located in the structure of the organization, it happens in three different ways when an organization goes international. It is possible that the HR department would be number one. It could be a centralized HR department in the company. So centralized HR companies, it's not centralized HR companies, it means that companies which have a centralized HR department. This is a large well-structured HR department responsible for several human resource functions. So your organization will have a centralized human resource department which operates at the corporate headquarters level which is centralized. Most of the decisions are taking place at the centralized level and it is looking after several HR functions so they are looking after planning and staffing and rewarding compensation performance management. All these things would be coming down from the corporate headquarters to the subsidiaries or the divisional units. The corporate human resource department is responsible for monitoring and control. So from the corporate level, from the headquarters level, they would be exerting control and monitoring performance of the human resource which is working in some other foreign country in the sales subsidiary or in the international division or in a global product area division type of structure, whichever form it is, the corporate HR would be responsible for monitoring and controlling of your human resources. Typically, this type of human resource department, the centralized human resource department, exists in product-based divisional structures or the matrix structures which is more suited for a centralized human resource structure. Another way in which HR could be existing in a multinational is a decentralized HR department. These decentralized HR companies, they will have a devolved HR function in which means that the HR functions would be delegated to the subsidiary level. Usually what will happen is that a small group, mostly for senior management, would be working at the corporate headquarters. So corporate headquarters, their responsibility would be that they would be responsible for senior managers at the subsidiary level, their area managers, country head managers or the senior management working under them, they will be responsible for those senior management positions. Other than that, they wouldn't be concerned that your lower level managers or your workforce are being managed in such a way that would be the responsibility of the country-level HR department. Usually this kind of HR department exists in product or regional-based structures. And third way is that of a transition HR companies. In that transition HR companies, the human resource department is a medium-sized corporate HR department in which the functions of HR, they are kind of equally divided between the corporate HR level and at the subsidiary or divisional level. And that is a decentralized, this type of HR department exists in the decentralized product-based structures. So this is how HR department may exist in these multinational corporations. Transitional HR department, decentralized HR department or a transitional HR department.