Beruflich Dokumente
Kultur Dokumente
Chapter Objectives
Profile the evolving understanding of the organization of international business Describe traditional and contemporary structures Study the systems used to coordinate and control operations Profile the role of organization culture Examine special situations in the organization of international business
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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
Organization in the MNE is an integrated function of its formal structure, coordination and control systems, and the shared values that make up its culture Prevailing environmental and workplace trends pressure managers to question their customary approaches to organizing their companies
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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
Vertical Differentiation
Vertical differentiation is the matter of how the company balances centralization versus decentralization of decision making Centralization is the degree to which high-level managers, usually above the country level, make strategic decisions and pass them to lower levels for implementation. Decentralization is the degree to which lower-level managers, usually at or below the country level, make and implement strategic decisions. Decision making should occur at the level of the people who are most directly affected and have the most intimate knowledge about the problem.
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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
Horizontal Differentiation
Horizontal differentiation describes how the company designs its formal structure to perform three functions:
Specify the total set of organizational tasks Divide those tasks into jobs, departments, subsidiaries, and divisions so the work gets done Assign authority and authority relationships to make sure work gets done in ways that support the companys strategy
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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
Contemporary structures
Contemporary structures, like the network or virtual formats, arrange work roles, responsibilities, and relationships in ways that eliminate the horizontal, vertical, or external boundaries that block the development of knowledge-generating and decision-making relationships
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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
Coordination Systems
Coordination can take place via standardization, plans, and mutual adjustment Standardization relies on specifying standard operating procedures:
planning relies on general goals and detailed objectives mutual adjustment relies on frequent interaction among related parties
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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
Approaches to Coordination
Coordination by standardization:
Sets universal rules and procedures that apply to units worldwide. Enforces consistency in performance of activities in geographically dispersed units.
Coordination by plan requires interdependent units to meet common deadlines and objectives. Coordination by mutual adjustment requires managers to interact personally with counterparts.
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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
Control Methods
Companies exercise control through:
Market control uses external market mechanisms to establish objective standards. Bureaucratic control emphasizes organizational authority and relies on rules and regulations. Clan control uses shared values and ideals to moderate employee behavior.
15-10
Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
Control Mechanisms
Reports Visits to Subsidiaries Management Performance Evaluations Cost and Accounting Comparisons Evaluative Measurements Information Systems
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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
Organization Culture
The set of fundamental assumptions about the organization and its goals and practices that members of the company share A system of shared values about what is important and beliefs about how the world works.
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Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall
Importance of Culture
Key features of a companys organization culture include:
Values and principles of management. Work climate and atmosphere. Patterns of how we do things around here. Traditions. Ethical standards.