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How the headquarter-subsidiary manager relationship impacts on the subsidiary manager’s decision making
This research examined the relationship between headquarter managers and subsidiary managers
who work in multinational companies. It looked at how this relationship empowers the subsidiary
manager to make decisions. The study was conducted using Kanter’s theory of structural
empowerment as the main theoretical framework. This was followed by comparing the HQ
manager’s response to that of the subsidiary manager.
To collect the data, the research used a survey questionnaire which was adapted from the
conditions of work effectiveness-II (CWEQ-II) tool. The questionnaire was administered online. A
total of 83 response were received. A statistical software was used to analyse the data and to test
the hypothesis.
The research found that the HQ-subsidiary manager relationship does empower the subsidiary
manager’s decision making. This is due to that relationship allowing the subsidiary manager to
have access to structural empowerment factors as per Kanter’s theory. The research also found
that there was significant alignment between HQ and subsidiary managers on their perception of
the subsidiary manager’s access to structural empowerment factor that enable decision making.
One difference in their perception was found in their perception. This was on the subsidiary
manager’s access to resources. Based on the results achieved, this research recommends that
the factors in Kanter’s structural empowerment theory are utilised in the empowerment of
subsidiary managers.
Description:
Mini Dissertation (MPhil)--University of Pretoria, 2021.