What are direct and indirect coordinating mechanisms?
What will be an ideal response?
Direct mechanisms that provide the basis for the overall guidance and management of foreign operations include the design of appropriate structures and the use of effective staffing practices. Such decisions proactively set the stage for operations to meet goals, rather than troubleshooting deviations or problems after they have occurred. Expatriates from "headquarters" exert control over the foreign affiliate through the expectations of the national and corporate culture of the parent company. If the staffing assignment is handled through third country nationals, it is likely that somewhat less of the corporate culture might be present locally, and certainly less of the national culture of the parent. Other direct mechanisms are visits by head-office personnel and regular meetings to allow employees around the world to consult and troubleshoot. Increasingly, those meetings comprise videoconferences to allow face-to-face, if not physical, interaction among managers around the world to enable faster and less-expensive frequent meetings.
Indirect coordinating mechanisms typically include sales quotas, budgets, and other financial tools, as well as feedback reports, which give information about the sales and financial performance of the subsidiary for the last quarter or year.