This chapter discusses organization structures for multinational corporations, including domestic structures expanded for international operations, international divisions, global functional structures, and global geographic structures. It also covers control systems for global operations and managing effective monitoring across different countries and cultures. Emergent forms like networks and alliances are discussed. Factors in choosing structures include opportunities for globalization and localization.
Strategic Management Concepts and Cases Global 15th Edition David Solutions M...fisysaran
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Strategic Management Concepts and Cases Global 15th Edition David Solutions Manual
Strategic Management Concepts and Cases Global 15th Edition David Solutions M...fisysaran
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Strategic Management Concepts and Cases Global 15th Edition David Solutions Manual
Mc kinsey 7s model - strategic implementation- Manu Melwin Joymanumelwin
• McKinsey 7s model is a tool that analyzes firm’s organizational design by looking at 7 key internal elements: strategy, structure, systems, shared values, style, staff and skills, in order to identify if they are effectively aligned and allow organization to achieve its objectives.
Mc kinsey 7s model - strategic implementation- Manu Melwin Joymanumelwin
• McKinsey 7s model is a tool that analyzes firm’s organizational design by looking at 7 key internal elements: strategy, structure, systems, shared values, style, staff and skills, in order to identify if they are effectively aligned and allow organization to achieve its objectives.
Running head DETERMINING LEADERSHIP AND TALENT OPTIONS AT TOYOTA.docxsusanschei
Running head: DETERMINING LEADERSHIP AND TALENT OPTIONS AT TOYOTA
8
DETERMINING LEADERSHIP AND TALENT OPTIONS AT TOYOTA
DETERMINING LEADERSHIP AND TALENT OPTIONS AT TOYOTA
Richard K. Hairston
GM543.01
Organizational Diagnosis and Design
1/1/18
Professor
Dr. Rebecca Herman
Introduction
As part of a continuum on the best practices in organizational design and diagnosis, milestone three of this series concentrated on the concept of strategy at Toyota Corporation. The paper outlined various quantitative indices as part of a proposal to the best approach for managing strategy within the company. Among others, concepts revolving around operating models and decisional analysis were comprehensively explored as part of creating a substantive argument that had been taken at that point. As part thereof and forming part of the argument presented in these series of papers hitherto, it was conclusively determined that work specialization, decentralization, a span of control and chain of command are integral components of decisional analysis. This series seeks to determine the talent and leadership possibilities at Toyota, with a keen emphasis towards the design of the concept in its entirety as opposed to giving a “report” about what should possibly be done within the company.
Top level reporting
General President
CEOn-1
CEO1
CEO2
CEO3
CEO0
General Managers under each CEO
The top-level reporting structure shall include a company president at the very top, Chief executive officers for the various brands of Toyota. It must be noted that Toyota operates various autonomous companies which produce the various types of the car such as Toyota Wish, Toyota Prado, etc (Russel, 2006). This justifies the need to have these two powerful positions, with the only need for a CEO reporting to a president being the fact that various aspects of the Company’s beliefs need to be maintained constant- such as the design of the company’s logo.
Regional managers will directly report to the CEOs. Since the company mostly exports its products to offshore markets (Cusumano, 2008), it is logical to have managers who understand how the market structures in these regions work so as to improve the company’s sales worldwide.
Executive Team
The executive team, as illustrated by the positions in the “top-level reporting” shall consist of the general president, chief executive officers, and regional managers. The designation of these individuals in terms of role play within the company will heavily hinge on the principles of networks, diagnostics, beliefs, and boundaries (four governance levers). The general president of the company will mostly coordinate and enforce the beliefs of the company, issues such as why the logo should be kept round and its relevance in the modern market. The chief executive officers will need to undertake all rol ...
The information of daily workers is stored used for calculation of KPIs is generated by the leaders who work remotely by installing the methodologies of calculation. The report is used to understand the methodologies of calculation used for the calculation of KPIs and how the virtual leaders perform them remotely. The virtual team that is taken for study to one organization for the convenience. The study/research/ report is generated to initiated by the question,
1. How Machine Learning measures the KPIs of workers in an organization in the virtual teams by the virtual leaders?
2. How far the results of the calculation of Machine Learning that takes data on KPIs be trusted?
2. Chapter 8 - Overview
Organization structure
Evolution and change in MNC organizational structures
Organizing for globalization
Emergent structural forms
Choice of organizational form
Control systems for global operations
Managing effective monitoring systems
Prentice Hall 2003 Chapter 8 2
3. Internationalization
Internationalization is the process by which a
firm gradually changes in response to
international competition, domestic market
saturation, and the desire for expansion, new
markets, and diversification.
Prentice Hall 2003 Chapter 8 3
4. Structuring International Activities
Domestic structure plus export department
Domestic structure plus foreign subsidiary
International division
Global functional structure
Global product structure
Prentice Hall 2003 Chapter 8 4
5. Domestic Structure Plus Foreign Subsidiary
(Exhibit 8-1)
Chief Executive Officer
HQ Departments Finance Production Marketing HRM
VP Int’l Operations
Overseas Japan Germany Mexico
Subsidiaries
Prentice Hall 2003 Chapter 8 5
6. Global Functional Structure
The global functional structure is designed on
the basis of the company’s functions –
production, marketing, finance, and so forth.
Foreign operations are integrated into the
activities and responsibilities of each department
to gain functional specialization and economies
of scale.
Prentice Hall 2003 Chapter 8 6
7. Global Product (Divisional) Structure
In the global product (divisional) structure, a
single product (or product line) is represented by
a separate division. Each division is headed by
its own general manager, and each is responsible
for its own production and sales functions.
Prentice Hall 2003 Chapter 8 7
8. Global Product (Divisional) Structure
(Exhibit 8-2)
CEO
Corporate Area Specialists:
Functional Staff North America
Latin America
Europe
Far East
Product 1 Product 2 Product 3
Division Division Division
Country A Country B
Fance Production Marketingin
Prentice Hall 2003 Chapter 8 8
9. Global Geographic (Area) Structure
In the global geographic (area) structure – the
most common form of organizing foreign
operations – divisions are created to cover
geographic regions. Each regional manager is
then responsible for the operations and
performance of the countries within a given
region.
Prentice Hall 2003 Chapter 8 9
10. Global Geographic Structure
(Exhibit 8-3)
Board of Directors
Chair
CEO
VP Group VP VP VP VP VP
Finance N. America S. America Europe Pacific
VP VP France UK
Plastics Agriculture
Finance Production Marketing
Prentice Hall 2003 Chapter 8 10
11. Opposing Forces in Structural Choices
The need for differentiation (focusing on and
specializing in specific markets)
The need for integration (coordinating those
same markets)
Prentice Hall 2003 Chapter 8 11
12. Emergent Structural Forms
Interorganizational networks
The global e-corporation network structure
The transnational corporation (TNC) network
structure
Prentice Hall 2003 Chapter 8 12
13. Information Technology’s Impact on
Organizational Forms
“Competitive companies in the future will be
elaborate networks of people and information,
each exerting an influence on the other. [These
networks will comprise] a small hub of staff
connected to each other by their physical
proximity, which is electronically connected to
global associates who help control assets and
negotiate agreements to extend the company’s
business influence.”
Kilmann
Prentice Hall 2003 Chapter 8 13
14. The Global E-Corporation Network
Structure
(Exhibit 8-6) Supply Chain Network
Suppliers
Wholesale
Manufacturers distributors Logistics
providers
Supplier
exchanges Logistics
exchanges Customers
Customer
exchanges
Virtual
manufacturers
Contract
manufacturers Logistics Information flow
providers
Goods flow
Prentice Hall 2003 Chapter 8 14
15. Choice of Organizational Form
Two major variables in choosing the structure
and design of an organization are the
opportunities and need for
• globalization and
• localization
Prentice Hall 2003 Chapter 8 15
16. Organizational Alternatives and
Development for Global Competition
(Exhibit 8-7)
TNC
Global Horizontal
product organization, alliances
structure and networks
Global
company Transnational
structure
MNC
Matrix structure
International
company
Geographic
Domestic
area
functional
structure
with int’l division
Opportunities and Need for Localization
Prentice Hall 2003 Chapter 8 16
17. Locus of Decision Making in an
International Organization
(Exhibit 8-10
Headquarters Subsidiary/local
authority unit authority
Area of control
at local level
HQ management HQ management Local managers Local
makes decision makes decision present problem managers
and informs and recommends and solution to make decision
local managers to local HQ for decision and inform
HQ management managers HQ
HQ and local
makes decision managers Local managers
and “sells” to consult on make decision
subsidiary decisions and “sell” to
managers HQ
Prentice Hall 2003 Chapter 8 17
18. When is Change Needed?
(Exhibit 8-9)
A change in the size of the corporation – due to growth,
consolidation, or reduction
A change in key individuals – which may alter management
objectives, interests, and abilities
A failure to meet goals, capitalize on opportunities, or be innovative
An inability to get things done on time
A consistently overworked top management that spends excessive
hours on the job
A belief that costs are extravagant or that budgets are not being met
Morale problems
Lengthy hierarchies that inhibit the exercise of strategic control
Prentice Hall 2003 Chapter 8 18
19. When is Change Needed?
(contd.)
Planning that has become increasingly staff-driven and is thus
divorced from line management
Innovation that is stifled by too much administration and monitoring
of details
Uniform solutions that are applied to nonuniform situations. The
extreme opposite of this condition – when things that should or could
function in a routine manner do not – should also be heeded as a
warning. In other words, management by exception has replaced
standard operating procedures
Prentice Hall 2003 Chapter 8 19
20. When is Change Needed?
(contd.)
The following are a few specific indicators of
international organizational malaise:
A shift in the operational scope – perhaps from directing export
activities to controlling overseas manufacturing and marketing units,
a change in the size of operations on a country, regional, or
worldwide basis, or failure of foreign operations to grow in
accordance with plans and expectations
Clashes among divisions, subsidiaries, or individuals over territories
or customers in the field
Divisive conflicts between overseas units and domestic division staff
or corporate staff
Prentice Hall 2003 Chapter 8 20
21. When is Change Needed?
(contd.)
Instances wherein centralization leads to a flood of detailed data that
is neither fully understood nor properly used by headquarters
Duplication of administrative personnel and services
Underutilization of overseas manufacturing or distribution facilities
Duplication of sales offices and specialized sales account executives
Proliferation of relatively small legal entities or operating units
within a country or geographic area
An increase in overseas customer service complaints
Breakdowns in communications within and between organizations
Unclear lines of reporting and dotted-line relationships, and ill-
defined executive responsibilities
Prentice Hall 2003 Chapter 8 21
22. Coordinating Mechanisms
Direct coordinating mechanisms
Examples
Design of appropriate structures
Use of effective staffing practices
Visits by head-office personnel
Regular meetings
Prentice Hall 2003 Chapter 8 22
24. Managing Effective Monitoring Systems
Factors likely to affect the appropriateness of
monitoring systems include:
Management practices
Local constraints
Expectations regarding
• Authority
• Time
• Communication
Prentice Hall 2003 Chapter 8 24
25. Managing Effective Monitoring Systems
In deciding on appropriate monitoring and
reporting systems, additional factors to be
considered include:
• The role of information systems (adequacy of
management information systems in foreign affiliates,
noncomparability of performance data across countries)
• Evaluation variables across countries
Prentice Hall 2003 Chapter 8 25