This chapter discusses international organization design and control. It explores different forms of international organization structures such as global product design, global area design, and global matrix design. The chapter also examines issues around centralization vs decentralization and coordination in global organizations. Additionally, it covers the three levels of organizational control - strategic, organizational, and operational control. Lastly, it discusses how firms establish international control systems and techniques to manage resistance to control.
Organizations of international business-International businessNgoc Anh
Unilever originally had a decentralized structure from the 1950s-1970s with autonomous national subsidiaries. This allowed for localization but by the 1980s caused issues like duplication and high costs. In the 1990s, Unilever introduced business groups to reduce costs but this failed to address localization. In the 2000s, Unilever shifted to a structure with regional product divisions to balance global scale and local responsiveness needed to compete in detergents and food.
International Strategy and Organization StructureNakry Roeun
We are a student at PUC, just did about this topic from the text book, which is about international strategy and organization structure. Please don't mind if it is wrong!
The document discusses organization architecture, which refers to an organization's formal structure, control systems, incentives, processes, culture, and people. It states that for a firm to be profitable, these elements must be internally consistent and match the firm's strategy. It then provides details on key aspects of organization architecture, including organization structure, control systems and incentives, and organizational culture. It emphasizes that all these elements should focus on enabling people to help the organization perform well.
Organization structure in international businessCitibank N.A.
The document discusses different types of organizational structures used in international business. It describes centralization versus decentralization and the tradeoffs of each. There are five main types of organizational structures covered: functional structure, international division structure, product division structure, geographic (area) division structure, and matrix division structure. Each structure has advantages and disadvantages for coordinating and responding to activities in different markets and geographies.
The document discusses the organizational structure, control systems, and evolution of Bharti Airtel, a leading telecommunications company. It provides details on Bharti Airtel's operations across 20 countries in Asia and Africa, and describes its business divisions and country operations. The document also summarizes Bharti Airtel's changes to a decentralized structure in 2011, separating its business units into B2C and B2B segments, and adopting international division and geographic area division structures. Finally, it outlines the company's governance structure and board members.
The document summarizes the organizational structures of 10 companies:
- ITC uses a divisional structure headed by an Executive Director who reports to UNCTAD and WTO. Tata Steel uses a 3-level structure from upper to middle management. Airtel has a functional structure with B2C and B2B customer units.
- Ernst & Young was not described. Walmart uses a matrix structure. Walt Disney uses a line and staff structure organized by process.
- Starbucks is expanding their matrix structure. Apple uses a matrix structure organized into segments. Samsung uses a bureaucratic structure separated into departments.
- Vodafone has a line structure. Dell uses a 3-level hierarchy with a
International dimensions of organizational structuresWendy Kalman
Presentation to Communications in Multinational Corporations class (Kennesaw State University Master of Integrated Global Communications program) on the kinds of organizational structures that international companies adopt, based on a chapter from International Management: A Cultural Approach by Carl Rodriguez.
See LinkedIn article at https://www.linkedin.com/pulse/organizational-structure-its-impact-wendy-kalman/
SM Lecture Nine (Part B) - Creating Effective Organizational Designs guest52d1b8
The document discusses organizational structures and strategies for multinational corporations. It examines traditional structures like functional, divisional, and matrix forms. It also explores challenges of international operations and implications for structure, as well as new trends like global start-ups and how structure can influence strategy formulation.
Organizations of international business-International businessNgoc Anh
Unilever originally had a decentralized structure from the 1950s-1970s with autonomous national subsidiaries. This allowed for localization but by the 1980s caused issues like duplication and high costs. In the 1990s, Unilever introduced business groups to reduce costs but this failed to address localization. In the 2000s, Unilever shifted to a structure with regional product divisions to balance global scale and local responsiveness needed to compete in detergents and food.
International Strategy and Organization StructureNakry Roeun
We are a student at PUC, just did about this topic from the text book, which is about international strategy and organization structure. Please don't mind if it is wrong!
The document discusses organization architecture, which refers to an organization's formal structure, control systems, incentives, processes, culture, and people. It states that for a firm to be profitable, these elements must be internally consistent and match the firm's strategy. It then provides details on key aspects of organization architecture, including organization structure, control systems and incentives, and organizational culture. It emphasizes that all these elements should focus on enabling people to help the organization perform well.
Organization structure in international businessCitibank N.A.
The document discusses different types of organizational structures used in international business. It describes centralization versus decentralization and the tradeoffs of each. There are five main types of organizational structures covered: functional structure, international division structure, product division structure, geographic (area) division structure, and matrix division structure. Each structure has advantages and disadvantages for coordinating and responding to activities in different markets and geographies.
The document discusses the organizational structure, control systems, and evolution of Bharti Airtel, a leading telecommunications company. It provides details on Bharti Airtel's operations across 20 countries in Asia and Africa, and describes its business divisions and country operations. The document also summarizes Bharti Airtel's changes to a decentralized structure in 2011, separating its business units into B2C and B2B segments, and adopting international division and geographic area division structures. Finally, it outlines the company's governance structure and board members.
The document summarizes the organizational structures of 10 companies:
- ITC uses a divisional structure headed by an Executive Director who reports to UNCTAD and WTO. Tata Steel uses a 3-level structure from upper to middle management. Airtel has a functional structure with B2C and B2B customer units.
- Ernst & Young was not described. Walmart uses a matrix structure. Walt Disney uses a line and staff structure organized by process.
- Starbucks is expanding their matrix structure. Apple uses a matrix structure organized into segments. Samsung uses a bureaucratic structure separated into departments.
- Vodafone has a line structure. Dell uses a 3-level hierarchy with a
International dimensions of organizational structuresWendy Kalman
Presentation to Communications in Multinational Corporations class (Kennesaw State University Master of Integrated Global Communications program) on the kinds of organizational structures that international companies adopt, based on a chapter from International Management: A Cultural Approach by Carl Rodriguez.
See LinkedIn article at https://www.linkedin.com/pulse/organizational-structure-its-impact-wendy-kalman/
SM Lecture Nine (Part B) - Creating Effective Organizational Designs guest52d1b8
The document discusses organizational structures and strategies for multinational corporations. It examines traditional structures like functional, divisional, and matrix forms. It also explores challenges of international operations and implications for structure, as well as new trends like global start-ups and how structure can influence strategy formulation.
Organizational structure and its environmentKajol Khot
Organizational structure defines how tasks are divided and coordinated to help people work effectively. It is influenced by people, structure, technology, and the environment. Common structures include functional departmentalization by task, chain of command for authority, and centralization vs decentralization of decision-making. Organizational design depends on factors like size, strategy, environment, life cycle stage, and technology used. Structure impacts employee behavior but responses vary individually.
- Group work may be assigned weekly and due dates will be provided. Groups will consist of 10 people from different class sections to encourage mixing.
- Late or cheating work will receive a grade of 0, and medical or other approved absences require documentation.
- The announcement provides an overview of enterprise types, organizational structures, information flow within organizations, and how information systems are used to support operations and strategy.
This document discusses organizational structures and designs. It defines organizational structure as the formal configuration between individuals and groups regarding task allocation, responsibilities, and authorities. An organizational chart is a diagram representing connections between departments. Key elements that impact organizational design are discussed, including work specialization, departmentalization, authority/responsibility, span of control, centralization vs decentralization, and formalization. Traditional and contemporary organizational designs like functional, divisional, matrix, team, project, boundaryless, virtual and learning organizations are described.
Organization structure refers to the pattern of jobs and groups in an organization. It is an important influence on individual and group behavior. Organization design involves management decisions that determine the structure. Key design decisions include how work is divided and specialized, how jobs are grouped, the span of control of managers, and how authority is distributed. Common structures are functional, geographic, product, and customer-based departmentalization. Mechanistic and organic models differ in their degree of centralization, formalization, and specialization. The matrix and virtual organization are alternatives that combine structural elements.
The document discusses organizational structure and design. It defines an organization as a system that takes in inputs from the environment, transforms them through processes, and outputs products or services back to the environment. An organization's structure determines how job tasks are divided, grouped, and coordinated. Key elements of organizational design include work specialization, departmentalization, chain of command, span of control, centralization/decentralization, formalization, and contingency factors like strategy, size, technology, and environmental uncertainty. Organizational structures can range from mechanistic to organic.
This document discusses organizational design and structure. It begins by explaining the basic considerations in designing an organizational structure, such as grouping activities by function, product, geography, process or customer. It then outlines some common organizational structure types like functional, divisional, matrix, team-based and virtual structures. For each structure type, it discusses the key elements, advantages and disadvantages. It emphasizes that the optimal structure depends on balancing centralization vs decentralization and aligning the structure with business strategy and customer needs.
This document discusses key concepts related to organizational design including centralization, complexity, formalization, structure, and departmentalization. It defines these terms and discusses their advantages and disadvantages. The document also covers different types of organizational structures like mechanistic, organic, and matrix structures. Finally, it discusses factors that influence organizational design decisions like span of control and flexibility.
The document discusses different types of organization structures including functional, divisional, matrix, and emerging structures. It provides details on each structure type, describing their advantages and disadvantages. For example, it notes that a functional structure groups positions by specialized function which allows for expertise development but slow response to multi-function problems. A divisional structure groups positions by products/markets, enabling fast response to change but potential resource duplication.
1. Companies implement multidivisional structures to manage operations across industries and countries, with divisions handling operations and corporate headquarters providing strategic oversight.
2. Related diversification is the most difficult to implement using this structure as it requires integrating divisions while allowing autonomy, but it provides benefits from knowledge sharing.
3. Information technology can facilitate information sharing and control across divisions while also allowing decentralization, though global strategies require additional coordination between centralized and decentralized functions.
Boeing uses a matrix organizational structure with both vertical and horizontal reporting relationships. Key aspects of Boeing's structure include specialized divisions for different business units and functions that collaborate across projects. As a large multinational corporation, Boeing also structures itself along geographic lines to better serve its global customer base. Effective communication is important for the matrix structure to facilitate accountability and resource sharing across divisions.
Organization structure & design by arun vermaArun Verma
The document discusses organizational structure and design. It defines organizational structure as the formal arrangement of jobs within an organization. Organizational design involves decisions about work specialization, departmentalization, chain of command, span of control, centralization/decentralization, and formalization. The document also discusses different types of departmentalization including functional, product, geographic, process, and customer. It examines factors that influence organizational structure such as strategy, size, technology, and environmental uncertainty. Finally, it outlines several common organizational designs including functional, divisional, team, matrix, project, boundaryless, and learning organizations.
This presentation is about how organising is an impotant function in creating sound Organisation Structure. It compares the merits and demerits of various organisation structures.
This document discusses the need for modern organizational structures in today's competitive global environment. It explains that hybrid organizational structures that make use of external resources and networks are well-suited to ensure effectiveness and quality service in global markets. The document provides background on concepts of organization and modern management theories. It notes that factors like globalization, rapid technological change, and increased competition have forced organizations to become more flexible and adaptive through structures like hybrid organizations.
Strategic Management: Organizational DesignTriune Global
There are a number of factors that differentiate small-business operations from large-business operations, one of which is the implementation of a formal organizational structure. Organizational structure is important for any growing company to provide guidance and clarity on specific human resources issues, such as managerial authority. Small-business owners should begin thinking about a formal structure early in the growth stage of their business.
The document discusses organizational structure and design. It defines organizational structure as the hierarchy of people and departments in an organization and how information flows. Structure is important as it ensures efficient operations and defines roles and responsibilities. There are different types of structures like functional, line, and matrix. Key components of structure include work specification, departmentalization, chain of command, span of control, and centralization vs decentralization. Structure influences behavior, relationships, and goal-oriented work. Proper structure is important for good performance while poor structure makes it impossible.
This document discusses different types of organizational structures. It begins by defining organizational structure and its purpose of ensuring resources are used effectively. It then outlines traditional structures like simple, functional, and divisional structures, providing their advantages and disadvantages. The document also discusses the matrix structure that combines product groups and geographical units. It notes international operations influence the structure a firm adopts based on strategy, product diversity, and foreign sales dependence. Finally, it introduces boundaryless organizational designs that replace traditional structures, listing barrier-free, modular, and virtual organizations.
The document discusses international strategic management. It covers the challenges of international strategy, the components of an international strategy including distinctive competence and scope, and the process of developing international strategies. It also outlines different levels of international strategies from corporate to business to functional strategies.
This document outlines chapter 17 on international operations management. The chapter discusses strategic context, complexities of operations management abroad including resources, location, and logistics. It also addresses supply chain management, production location decisions, managing productivity and quality, and information management for international businesses. The goal is to analyze key operations challenges for firms operating globally.
This chapter discusses various strategies for analyzing foreign markets and choosing a mode of entry. It covers analyzing market potential, costs, benefits and risks. Modes of entry discussed include exporting, licensing, franchising, contract manufacturing, turnkey projects and foreign direct investment through greenfield sites or acquisitions. Exporting allows gradual market entry but with less control, while foreign direct investment provides more control but is higher risk. The chapter also examines factors considered for each entry mode and intermediaries that can help with exporting.
The document discusses training and developing employees. It covers the purpose and process of employee orientation, which is to welcome new employees, provide basic information, help them understand the organization, and facilitate socialization. The five steps of the training process are analyze, design, develop, implement, and evaluate. Training techniques discussed include on-the-job training, apprenticeships, lectures, and computer-based learning. Management development programs like coaching, action learning, case studies, and corporate universities are also outlined. The document explains leading organizational change through Lewin's three-stage model of unfreezing, moving, and refreezing. Organizational development aims to facilitate long-term change through behavioral science and human processes, differing
The document defines planning as setting organizational goals, strategies, and plans to coordinate work activities. It discusses the purposes of planning as providing direction, reducing uncertainty, minimizing waste, and setting standards for control. Different types of goals and plans are described, including financial goals, strategic goals, operational plans, and single-use versus standing plans. Approaches to planning like traditional goal setting, management by objectives, and contingency planning based on environmental uncertainty are also summarized.
This chapter discusses ethics and social responsibility in international business. It covers the nature of ethics and how ethics are viewed in different cultural contexts. Key areas of social responsibility like treatment of employees, customers, environment and social welfare are identified. The chapter also discusses managing ethical behavior and social responsibilities across borders, and regulations governing international ethics.
Organizational structure and its environmentKajol Khot
Organizational structure defines how tasks are divided and coordinated to help people work effectively. It is influenced by people, structure, technology, and the environment. Common structures include functional departmentalization by task, chain of command for authority, and centralization vs decentralization of decision-making. Organizational design depends on factors like size, strategy, environment, life cycle stage, and technology used. Structure impacts employee behavior but responses vary individually.
- Group work may be assigned weekly and due dates will be provided. Groups will consist of 10 people from different class sections to encourage mixing.
- Late or cheating work will receive a grade of 0, and medical or other approved absences require documentation.
- The announcement provides an overview of enterprise types, organizational structures, information flow within organizations, and how information systems are used to support operations and strategy.
This document discusses organizational structures and designs. It defines organizational structure as the formal configuration between individuals and groups regarding task allocation, responsibilities, and authorities. An organizational chart is a diagram representing connections between departments. Key elements that impact organizational design are discussed, including work specialization, departmentalization, authority/responsibility, span of control, centralization vs decentralization, and formalization. Traditional and contemporary organizational designs like functional, divisional, matrix, team, project, boundaryless, virtual and learning organizations are described.
Organization structure refers to the pattern of jobs and groups in an organization. It is an important influence on individual and group behavior. Organization design involves management decisions that determine the structure. Key design decisions include how work is divided and specialized, how jobs are grouped, the span of control of managers, and how authority is distributed. Common structures are functional, geographic, product, and customer-based departmentalization. Mechanistic and organic models differ in their degree of centralization, formalization, and specialization. The matrix and virtual organization are alternatives that combine structural elements.
The document discusses organizational structure and design. It defines an organization as a system that takes in inputs from the environment, transforms them through processes, and outputs products or services back to the environment. An organization's structure determines how job tasks are divided, grouped, and coordinated. Key elements of organizational design include work specialization, departmentalization, chain of command, span of control, centralization/decentralization, formalization, and contingency factors like strategy, size, technology, and environmental uncertainty. Organizational structures can range from mechanistic to organic.
This document discusses organizational design and structure. It begins by explaining the basic considerations in designing an organizational structure, such as grouping activities by function, product, geography, process or customer. It then outlines some common organizational structure types like functional, divisional, matrix, team-based and virtual structures. For each structure type, it discusses the key elements, advantages and disadvantages. It emphasizes that the optimal structure depends on balancing centralization vs decentralization and aligning the structure with business strategy and customer needs.
This document discusses key concepts related to organizational design including centralization, complexity, formalization, structure, and departmentalization. It defines these terms and discusses their advantages and disadvantages. The document also covers different types of organizational structures like mechanistic, organic, and matrix structures. Finally, it discusses factors that influence organizational design decisions like span of control and flexibility.
The document discusses different types of organization structures including functional, divisional, matrix, and emerging structures. It provides details on each structure type, describing their advantages and disadvantages. For example, it notes that a functional structure groups positions by specialized function which allows for expertise development but slow response to multi-function problems. A divisional structure groups positions by products/markets, enabling fast response to change but potential resource duplication.
1. Companies implement multidivisional structures to manage operations across industries and countries, with divisions handling operations and corporate headquarters providing strategic oversight.
2. Related diversification is the most difficult to implement using this structure as it requires integrating divisions while allowing autonomy, but it provides benefits from knowledge sharing.
3. Information technology can facilitate information sharing and control across divisions while also allowing decentralization, though global strategies require additional coordination between centralized and decentralized functions.
Boeing uses a matrix organizational structure with both vertical and horizontal reporting relationships. Key aspects of Boeing's structure include specialized divisions for different business units and functions that collaborate across projects. As a large multinational corporation, Boeing also structures itself along geographic lines to better serve its global customer base. Effective communication is important for the matrix structure to facilitate accountability and resource sharing across divisions.
Organization structure & design by arun vermaArun Verma
The document discusses organizational structure and design. It defines organizational structure as the formal arrangement of jobs within an organization. Organizational design involves decisions about work specialization, departmentalization, chain of command, span of control, centralization/decentralization, and formalization. The document also discusses different types of departmentalization including functional, product, geographic, process, and customer. It examines factors that influence organizational structure such as strategy, size, technology, and environmental uncertainty. Finally, it outlines several common organizational designs including functional, divisional, team, matrix, project, boundaryless, and learning organizations.
This presentation is about how organising is an impotant function in creating sound Organisation Structure. It compares the merits and demerits of various organisation structures.
This document discusses the need for modern organizational structures in today's competitive global environment. It explains that hybrid organizational structures that make use of external resources and networks are well-suited to ensure effectiveness and quality service in global markets. The document provides background on concepts of organization and modern management theories. It notes that factors like globalization, rapid technological change, and increased competition have forced organizations to become more flexible and adaptive through structures like hybrid organizations.
Strategic Management: Organizational DesignTriune Global
There are a number of factors that differentiate small-business operations from large-business operations, one of which is the implementation of a formal organizational structure. Organizational structure is important for any growing company to provide guidance and clarity on specific human resources issues, such as managerial authority. Small-business owners should begin thinking about a formal structure early in the growth stage of their business.
The document discusses organizational structure and design. It defines organizational structure as the hierarchy of people and departments in an organization and how information flows. Structure is important as it ensures efficient operations and defines roles and responsibilities. There are different types of structures like functional, line, and matrix. Key components of structure include work specification, departmentalization, chain of command, span of control, and centralization vs decentralization. Structure influences behavior, relationships, and goal-oriented work. Proper structure is important for good performance while poor structure makes it impossible.
This document discusses different types of organizational structures. It begins by defining organizational structure and its purpose of ensuring resources are used effectively. It then outlines traditional structures like simple, functional, and divisional structures, providing their advantages and disadvantages. The document also discusses the matrix structure that combines product groups and geographical units. It notes international operations influence the structure a firm adopts based on strategy, product diversity, and foreign sales dependence. Finally, it introduces boundaryless organizational designs that replace traditional structures, listing barrier-free, modular, and virtual organizations.
The document discusses international strategic management. It covers the challenges of international strategy, the components of an international strategy including distinctive competence and scope, and the process of developing international strategies. It also outlines different levels of international strategies from corporate to business to functional strategies.
This document outlines chapter 17 on international operations management. The chapter discusses strategic context, complexities of operations management abroad including resources, location, and logistics. It also addresses supply chain management, production location decisions, managing productivity and quality, and information management for international businesses. The goal is to analyze key operations challenges for firms operating globally.
This chapter discusses various strategies for analyzing foreign markets and choosing a mode of entry. It covers analyzing market potential, costs, benefits and risks. Modes of entry discussed include exporting, licensing, franchising, contract manufacturing, turnkey projects and foreign direct investment through greenfield sites or acquisitions. Exporting allows gradual market entry but with less control, while foreign direct investment provides more control but is higher risk. The chapter also examines factors considered for each entry mode and intermediaries that can help with exporting.
The document discusses training and developing employees. It covers the purpose and process of employee orientation, which is to welcome new employees, provide basic information, help them understand the organization, and facilitate socialization. The five steps of the training process are analyze, design, develop, implement, and evaluate. Training techniques discussed include on-the-job training, apprenticeships, lectures, and computer-based learning. Management development programs like coaching, action learning, case studies, and corporate universities are also outlined. The document explains leading organizational change through Lewin's three-stage model of unfreezing, moving, and refreezing. Organizational development aims to facilitate long-term change through behavioral science and human processes, differing
The document defines planning as setting organizational goals, strategies, and plans to coordinate work activities. It discusses the purposes of planning as providing direction, reducing uncertainty, minimizing waste, and setting standards for control. Different types of goals and plans are described, including financial goals, strategic goals, operational plans, and single-use versus standing plans. Approaches to planning like traditional goal setting, management by objectives, and contingency planning based on environmental uncertainty are also summarized.
This chapter discusses ethics and social responsibility in international business. It covers the nature of ethics and how ethics are viewed in different cultural contexts. Key areas of social responsibility like treatment of employees, customers, environment and social welfare are identified. The chapter also discusses managing ethical behavior and social responsibilities across borders, and regulations governing international ethics.
Planning Work Activities and their benefits.pdfZenLooper
The document discusses planning in organizations. It defines planning as defining goals, strategies, and plans to coordinate work activities. Managers plan to provide direction, reduce uncertainty, minimize waste, and set standards for control. Formal planning is associated with positive financial results when implementation quality is high. Goals and plans are types of formal planning documents, and goals can be financial, strategic, stated, or real. Different types of plans include strategic, operational, short-term, long-term, specific, and directional plans. Approaches to planning include traditional top-down goal setting, management by objectives, and involving all levels in the planning process. Contingency factors like environmental uncertainty and commitment length affect planning.
The document discusses performance management and appraisal. It covers defining performance management and how it differs from performance appraisal. The performance appraisal process is described, including setting effective performance standards. Several performance appraisal tools are developed, evaluated and administered. Problems to avoid in appraising performance are explained, such as unclear standards and bias. The pros and cons of different raters for appraising performance are discussed. Guidelines for effective appraisal interviews are provided.
This document discusses strategic alliances between international corporations. It defines strategic alliances as cooperative agreements between two or more firms that involve shared goals and mutual benefits. The chapter compares different forms of strategic alliances like joint ventures and explains their benefits, scope, and management approaches. It also identifies potential pitfalls in implementing strategic alliances, such as incompatible partners or loss of autonomy.
11 The Strategy of International BusinessBrent Weeks
To evaluate industry structure, firm strategy, and value creation
To profile the features and functions of the value chain
To assess how managers configure and coordinate a value chain
To explain global integration and local responsiveness
To profile the types of strategies firms use in international business
This document provides an overview of strategic management concepts including:
1. It defines strategic management as what managers do to develop organizational strategies to compete successfully and achieve goals.
2. It outlines the six steps of the strategic management process: identifying mission/goals, external analysis, internal analysis, formulating strategies, implementing strategies, and evaluating results.
3. It describes three types of corporate strategies: growth, stability, and renewal.
This document outlines the key topics and learning objectives covered in a chapter on the nature of managerial work. The chapter will examine the varied roles and activities required of managers, how these are impacted by situational factors, and how managers deal with demands, constraints and choices. Specific topics to be addressed include the hectic work pace of managers, their role in leading organizations, solving problems and making decisions, networking externally, and effectively managing their own time. The overall aim is to provide an understanding of the realities of managerial work.
This document outlines the key topics and learning objectives covered in a chapter on the nature of managerial work. The chapter will examine the varied roles and activities required of managers, how these are impacted by situational factors, and how managers deal with demands, constraints and decisions. Specific managerial roles are defined, and it is noted that decision-making processes can be disorderly. The chapter also explores how managers spend their time, network externally, and solve problems. Effective time management techniques for managers are provided.
This document outlines topics related to employee retention, engagement, and careers. It discusses a comprehensive approach to retaining employees that includes selection, professional growth, career direction, meaningful work, recognition, culture, work-life balance, and acknowledging achievements. It also addresses the importance of employee engagement and how employers can support career development through systems like career centers, coaching, and gender-inclusive policies. When making promotion decisions, employers should consider factors such as competency measures, formal/informal processes, and vertical/horizontal growth opportunities while avoiding bias issues.
15 The Organization of International BusinessBrent Weeks
Profile the evolving process of organizing a company for international business
Describe the features of classical structures
Describe the features of neoclassical structures
Discuss the systems used to coordinate and control international activities
Profile the role and characteristics of organization culture
This document discusses planning in management. It defines planning as setting goals, strategies, and coordinating work activities. Managers plan for four reasons: to provide direction, reduce uncertainty, minimize waste, and set performance standards. Formal planning is linked to better financial results when implemented well. Goals and plans differ, with goals being targets and plans outlining how to meet goals. There are strategic, financial, stated, and real goals as well as strategic, operational, single-use, and standing plans. The document outlines steps to set goals and characteristics of well-written goals. Environmental uncertainty requires specific but flexible plans that can change with situations.
The document outlines the key topics and concepts covered in a chapter about strategic leadership in organizations. It will help readers understand organizational processes that determine performance, how executives can influence these processes, and conditions affecting strategic leadership. Additionally, it will cover executive teams, emerging leadership theories, and procedures for formulating competitive strategies. The key learning objectives are presented in 6 bullet points covering these essential concepts.
The document outlines the key topics and concepts covered in a chapter about strategic leadership in organizations. It will help readers understand organizational processes that determine performance, how executives can influence these processes, and conditions affecting strategic leadership. Additionally, it will cover executive teams, emerging leadership theories, and procedures for formulating competitive strategies. The key learning objectives are presented in 6 bullet points covering these essential concepts.
This document discusses organizational design and structure. It covers key elements of organizational design like work specialization, departmentalization, chain of command, span of control, and centralization. It also contrasts mechanistic and organic structures and discusses how contingency factors like strategy, size, technology and environment affect structural choice. Traditional designs like functional and divisional structures are described as well as contemporary designs including team, matrix and virtual structures. The document discusses organizing for collaboration, flexible work arrangements, and challenges of managing global and mobile workforces.
The document discusses planning in organizations. It defines planning as involving defining goals, establishing strategies, and developing plans. It describes different types of goals like financial and strategic goals. It also outlines different types of plans such as strategic plans, operational plans, long-term plans, and short-term plans. The document discusses traditional top-down goal setting and contrasts it with approaches like management by objectives that involve employees in the planning process. It notes criticisms of planning and ways organizations can plan effectively in dynamic environments.
This document discusses organizational commitment and withdrawal. It defines three forms of organizational commitment - affective, continuance, and normative commitment. It also discusses the exit-voice-loyalty-neglect framework for responses to negative events. Withdrawal is defined as actions employees take to avoid work, and the forms of withdrawal are often correlated and can progress from lateness to absenteeism to quitting. The document concludes that employee commitment is higher when employers are also committed to employees through support, job security, rewards, work conditions, and minimizing politics.
This document defines and describes the key components of job performance: task performance, citizenship behavior, and counterproductive behavior. It explains that task performance involves the core technical responsibilities of one's job as defined by a job analysis. Citizenship behavior consists of voluntary contributions that help the organization but may not be formally rewarded. Counterproductive behavior intentionally hinders organizational goals. While these dimensions are related, counterproductive behavior is most strongly negatively correlated with citizenship behavior. The document also discusses tools for managing job performance, such as management by objectives and forced rankings.
This document provides an introduction to organizational behavior. It defines organizational behavior as a field of study focused on understanding and improving individual and group attitudes and behaviors in organizations. It discusses how firms that effectively manage organizational behavior concepts can see benefits like increased profitability and retention. The key ways of knowing about organizational behavior discussed are experience, intuition, authority, and science. The scientific method, which involves developing and testing theories using collected data and statistical analysis, is emphasized as the most reliable approach. Correlations are examined, and it is noted that while they can indicate relationships, causation requires additional evidence. Meta-analysis is introduced as a technique for combining multiple correlation studies.
This document summarizes the key tax consequences of home ownership including:
1) Determining if a home is a principal residence, secondary residence, or non-residence for tax purposes.
2) Calculating taxable gain on the sale of a residence and exclusions for principal residences.
3) Limitations on deducting interest expenses and points paid on loans secured by homes.
4) Deductibility of real property taxes and first-time homebuyer credits.
5) Tax treatment of homes used for both personal and rental use.
1. The chapter discusses how to calculate gains and losses from property dispositions, including determining the amount realized, adjusted basis, and realized/recognized gains and losses.
2. It describes the different character types of gains and losses, such as ordinary, capital, and Section 1231 assets. Depreciation recapture rules may recharacterize some gains as ordinary.
3. Exceptions to immediate gain/loss recognition are discussed, including like-kind exchanges of business or investment property that qualify for nonrecognition treatment.
This document provides an overview of cost recovery methods used in tax law to recover the costs of assets over time. It discusses the concepts of basis, depreciation, amortization, and depletion. Depreciation allows businesses to deduct the costs of tangible personal and real property. Amortization applies to intangible assets and is deducted over a specific period. Depletion allows natural resources to recover their capital costs. The document provides examples of calculating cost recovery for various asset types.
This document summarizes key concepts around business income, deductions, and accounting methods for tax purposes. It describes the general requirements for deducting business expenses and identifies common deductions. It also explains the concept of accounting periods and describes the accounting methods (cash, accrual, hybrid) available to businesses for determining taxable income and expense deductions. Special business deductions are also identified and examples are provided to illustrate concepts like reasonable compensation, the 12-month rule for prepaid expenses, and accounting for advance payments under different methods.
This document provides learning objectives and content about individual income tax computation and tax credits. It covers determining regular and alternative minimum tax liability, computing employment and self-employment taxes, describing types of tax credits including refundable and nonrefundable personal and business credits, and explaining taxpayer filing requirements and penalties. Examples are provided to illustrate concepts like kiddie tax, education credits, and late payment penalties.
This document summarizes key deductions for adjusted gross income (AGI) and itemized deductions on individual tax returns. It discusses deductions directly and indirectly related to business activities, as well as itemized deductions for medical expenses, taxes, interest, charitable contributions, and casualty/theft losses. It also covers the standard deduction and exemptions. The learning objectives are to identify AGI deductions, describe itemized deductions, and explain the standard deduction and exemptions in calculating taxable income.
This chapter discusses gross income and exclusions. It defines gross income for tax purposes and explains when taxpayers recognize income. It discusses the various sources of income, including income from services, property, annuities, and other sources. It also covers the major exclusion provisions that allow taxpayers to exclude or defer certain types of income from gross income, such as municipal bond interest, home sale gains up to $250,000, education-related exclusions, and foreign earned income up to $97,600.
This document summarizes key aspects of individual income tax calculations in the United States, including:
1) It outlines the basic formula for calculating individual tax liability, including components like gross income, deductions, exemptions, taxable income, tax rates, credits, and payments.
2) It describes the requirements for determining personal and dependency exemptions, including the definitions of a qualifying child and qualifying relative.
3) It explains the different filing statuses individuals can use, including married filing jointly, head of household, and qualifying widow. Examples are provided to illustrate how to determine the proper filing status.
This chapter discusses tax compliance and the responsibilities of taxpayers and tax professionals. It covers filing requirements, statutes of limitations, the IRS audit process, tax law sources such as statutes and judicial rulings, tax research procedures, and penalties for noncompliance. The key aspects are requirements to file income tax returns, how the IRS selects returns for audit, the hierarchy of primary and secondary tax authorities, and the potential penalties for taxpayers and tax professionals.
This chapter introduces taxes and their impact. It discusses how taxes influence business, investment, personal and political decisions. It defines what constitutes a tax and identifies different federal, state and local taxes. It also covers tax rate structures, how to calculate taxes, and criteria for evaluating tax systems including sufficiency, equity, certainty, convenience and economy.
This chapter discusses taxation of investments including interest, dividends, capital gains and losses. Interest and dividends are generally taxed as ordinary income. Capital gains are taxed at preferential rates depending on the holding period. Losses can offset gains of the same character and up to $3,000 of ordinary income. Tax planning strategies include holding investments long-term to qualify for lower capital gains rates and loss harvesting. The chapter also covers tax-exempt investments like municipal bonds and life insurance.
The document discusses the key phases of systems development: design, implementation, maintenance, and review. It describes the logical and physical design process, including object-oriented design. Implementation activities like acquiring hardware and software, user training, and testing are also outlined. The importance of ongoing maintenance to fix issues and adapt to changes is highlighted. Systems are regularly reviewed to ensure they continue to meet needs.
This document discusses the key principles and learning objectives for Chapter 12 of the textbook "Principles of Information Systems, Tenth Edition". It covers the importance of teamwork in systems development and identifies the roles of key participants. It also discusses different systems development life cycles like traditional, prototyping, and rapid application development. Finally, it outlines factors that influence the success or failure of systems development projects, including project planning, managing change, and quality standards.
This document discusses principles of knowledge management and specialized information systems. It defines knowledge as awareness and understanding of information that can be useful for tasks or decisions. Knowledge management systems organize people, processes, and technologies to create, store, share, and use organizational knowledge. Artificial intelligence uses computer systems that can mimic human decision making, like expert systems. Expert systems apply rules to arrive at conclusions like a human expert. Virtual reality immerses users in simulated 3D environments using displays and interfaces. Specialized systems provide unique functions for industries, individuals, inventory control and more.
The document discusses principles and objectives of information and decision support systems. It defines management information systems (MIS) as integrated systems that provide the right information to the right people at the right time. Decision support systems (DSS) are used for unstructured problems and include databases, models, and interfaces. Specialized systems like group support systems (GSS) and executive support systems (ESS) build on the DSS approach to support group and executive decision making respectively.
The document discusses transaction processing systems (TPS), enterprise resource planning (ERP) systems, and customer relationship management (CRM). It describes how TPS support basic business functions like order processing and accounting. ERP systems provide integrated software to manage operations across an entire organization. CRM systems help companies manage relationships with customers and improve marketing, sales, and customer service.
This talk will cover ScyllaDB Architecture from the cluster-level view and zoom in on data distribution and internal node architecture. In the process, we will learn the secret sauce used to get ScyllaDB's high availability and superior performance. We will also touch on the upcoming changes to ScyllaDB architecture, moving to strongly consistent metadata and tablets.
From Natural Language to Structured Solr Queries using LLMsSease
This talk draws on experimentation to enable AI applications with Solr. One important use case is to use AI for better accessibility and discoverability of the data: while User eXperience techniques, lexical search improvements, and data harmonization can take organizations to a good level of accessibility, a structural (or “cognitive” gap) remains between the data user needs and the data producer constraints.
That is where AI – and most importantly, Natural Language Processing and Large Language Model techniques – could make a difference. This natural language, conversational engine could facilitate access and usage of the data leveraging the semantics of any data source.
The objective of the presentation is to propose a technical approach and a way forward to achieve this goal.
The key concept is to enable users to express their search queries in natural language, which the LLM then enriches, interprets, and translates into structured queries based on the Solr index’s metadata.
This approach leverages the LLM’s ability to understand the nuances of natural language and the structure of documents within Apache Solr.
The LLM acts as an intermediary agent, offering a transparent experience to users automatically and potentially uncovering relevant documents that conventional search methods might overlook. The presentation will include the results of this experimental work, lessons learned, best practices, and the scope of future work that should improve the approach and make it production-ready.
The Department of Veteran Affairs (VA) invited Taylor Paschal, Knowledge & Information Management Consultant at Enterprise Knowledge, to speak at a Knowledge Management Lunch and Learn hosted on June 12, 2024. All Office of Administration staff were invited to attend and received professional development credit for participating in the voluntary event.
The objectives of the Lunch and Learn presentation were to:
- Review what KM ‘is’ and ‘isn’t’
- Understand the value of KM and the benefits of engaging
- Define and reflect on your “what’s in it for me?”
- Share actionable ways you can participate in Knowledge - - Capture & Transfer
How information systems are built or acquired puts information, which is what they should be about, in a secondary place. Our language adapted accordingly, and we no longer talk about information systems but applications. Applications evolved in a way to break data into diverse fragments, tightly coupled with applications and expensive to integrate. The result is technical debt, which is re-paid by taking even bigger "loans", resulting in an ever-increasing technical debt. Software engineering and procurement practices work in sync with market forces to maintain this trend. This talk demonstrates how natural this situation is. The question is: can something be done to reverse the trend?
In the realm of cybersecurity, offensive security practices act as a critical shield. By simulating real-world attacks in a controlled environment, these techniques expose vulnerabilities before malicious actors can exploit them. This proactive approach allows manufacturers to identify and fix weaknesses, significantly enhancing system security.
This presentation delves into the development of a system designed to mimic Galileo's Open Service signal using software-defined radio (SDR) technology. We'll begin with a foundational overview of both Global Navigation Satellite Systems (GNSS) and the intricacies of digital signal processing.
The presentation culminates in a live demonstration. We'll showcase the manipulation of Galileo's Open Service pilot signal, simulating an attack on various software and hardware systems. This practical demonstration serves to highlight the potential consequences of unaddressed vulnerabilities, emphasizing the importance of offensive security practices in safeguarding critical infrastructure.
Introduction of Cybersecurity with OSS at Code Europe 2024Hiroshi SHIBATA
I develop the Ruby programming language, RubyGems, and Bundler, which are package managers for Ruby. Today, I will introduce how to enhance the security of your application using open-source software (OSS) examples from Ruby and RubyGems.
The first topic is CVE (Common Vulnerabilities and Exposures). I have published CVEs many times. But what exactly is a CVE? I'll provide a basic understanding of CVEs and explain how to detect and handle vulnerabilities in OSS.
Next, let's discuss package managers. Package managers play a critical role in the OSS ecosystem. I'll explain how to manage library dependencies in your application.
I'll share insights into how the Ruby and RubyGems core team works to keep our ecosystem safe. By the end of this talk, you'll have a better understanding of how to safeguard your code.
ScyllaDB is making a major architecture shift. We’re moving from vNode replication to tablets – fragments of tables that are distributed independently, enabling dynamic data distribution and extreme elasticity. In this keynote, ScyllaDB co-founder and CTO Avi Kivity explains the reason for this shift, provides a look at the implementation and roadmap, and shares how this shift benefits ScyllaDB users.
Conversational agents, or chatbots, are increasingly used to access all sorts of services using natural language. While open-domain chatbots - like ChatGPT - can converse on any topic, task-oriented chatbots - the focus of this paper - are designed for specific tasks, like booking a flight, obtaining customer support, or setting an appointment. Like any other software, task-oriented chatbots need to be properly tested, usually by defining and executing test scenarios (i.e., sequences of user-chatbot interactions). However, there is currently a lack of methods to quantify the completeness and strength of such test scenarios, which can lead to low-quality tests, and hence to buggy chatbots.
To fill this gap, we propose adapting mutation testing (MuT) for task-oriented chatbots. To this end, we introduce a set of mutation operators that emulate faults in chatbot designs, an architecture that enables MuT on chatbots built using heterogeneous technologies, and a practical realisation as an Eclipse plugin. Moreover, we evaluate the applicability, effectiveness and efficiency of our approach on open-source chatbots, with promising results.
High performance Serverless Java on AWS- GoTo Amsterdam 2024Vadym Kazulkin
Java is for many years one of the most popular programming languages, but it used to have hard times in the Serverless community. Java is known for its high cold start times and high memory footprint, comparing to other programming languages like Node.js and Python. In this talk I'll look at the general best practices and techniques we can use to decrease memory consumption, cold start times for Java Serverless development on AWS including GraalVM (Native Image) and AWS own offering SnapStart based on Firecracker microVM snapshot and restore and CRaC (Coordinated Restore at Checkpoint) runtime hooks. I'll also provide a lot of benchmarking on Lambda functions trying out various deployment package sizes, Lambda memory settings, Java compilation options and HTTP (a)synchronous clients and measure their impact on cold and warm start times.
The Microsoft 365 Migration Tutorial For Beginner.pptxoperationspcvita
This presentation will help you understand the power of Microsoft 365. However, we have mentioned every productivity app included in Office 365. Additionally, we have suggested the migration situation related to Office 365 and how we can help you.
You can also read: https://www.systoolsgroup.com/updates/office-365-tenant-to-tenant-migration-step-by-step-complete-guide/
AppSec PNW: Android and iOS Application Security with MobSFAjin Abraham
Mobile Security Framework - MobSF is a free and open source automated mobile application security testing environment designed to help security engineers, researchers, developers, and penetration testers to identify security vulnerabilities, malicious behaviours and privacy concerns in mobile applications using static and dynamic analysis. It supports all the popular mobile application binaries and source code formats built for Android and iOS devices. In addition to automated security assessment, it also offers an interactive testing environment to build and execute scenario based test/fuzz cases against the application.
This talk covers:
Using MobSF for static analysis of mobile applications.
Interactive dynamic security assessment of Android and iOS applications.
Solving Mobile app CTF challenges.
Reverse engineering and runtime analysis of Mobile malware.
How to shift left and integrate MobSF/mobsfscan SAST and DAST in your build pipeline.
inQuba Webinar Mastering Customer Journey Management with Dr Graham HillLizaNolte
HERE IS YOUR WEBINAR CONTENT! 'Mastering Customer Journey Management with Dr. Graham Hill'. We hope you find the webinar recording both insightful and enjoyable.
In this webinar, we explored essential aspects of Customer Journey Management and personalization. Here’s a summary of the key insights and topics discussed:
Key Takeaways:
Understanding the Customer Journey: Dr. Hill emphasized the importance of mapping and understanding the complete customer journey to identify touchpoints and opportunities for improvement.
Personalization Strategies: We discussed how to leverage data and insights to create personalized experiences that resonate with customers.
Technology Integration: Insights were shared on how inQuba’s advanced technology can streamline customer interactions and drive operational efficiency.
QA or the Highway - Component Testing: Bridging the gap between frontend appl...zjhamm304
These are the slides for the presentation, "Component Testing: Bridging the gap between frontend applications" that was presented at QA or the Highway 2024 in Columbus, OH by Zachary Hamm.
How to Interpret Trends in the Kalyan Rajdhani Mix Chart.pdfChart Kalyan
A Mix Chart displays historical data of numbers in a graphical or tabular form. The Kalyan Rajdhani Mix Chart specifically shows the results of a sequence of numbers over different periods.
Freshworks Rethinks NoSQL for Rapid Scaling & Cost-EfficiencyScyllaDB
Freshworks creates AI-boosted business software that helps employees work more efficiently and effectively. Managing data across multiple RDBMS and NoSQL databases was already a challenge at their current scale. To prepare for 10X growth, they knew it was time to rethink their database strategy. Learn how they architected a solution that would simplify scaling while keeping costs under control.
This chapter describes the various organization designs that international businesses use to help achieve their strategic goals. We will begin by discussing the initial forms of organization design that firms use as they begin to internationalize their operations. We will then analyze the more advanced forms of organization design that firms adopt as they become true multinational corporations (MNCs). Next, we will review several related issues in global organization design. Finally, we will present the management function of control as it relates to organization design.
This chapter’s learning objectives include the following:Defining and discussing the nature of organization design and identifying and describing the initial impacts of international business activity on organization design. Identifying and describing five advanced forms of international organization design and discussing hybrid global designs.
Additional learning objectives include:Identifying and describing related issues in global organization design.Explaining the general purpose of control and the levels of control in international business.Describing how international businesses manage the control function.
Organization design (sometimes called organization structure) is the overall pattern of structural components and configurations used to manage the total organization. The appropriate design for any given organization may depend on the firm’s size, strategy, technology, and environment, as well as the cultures of the countries in which the firm operates. Organization design is also the basic vehicle through which strategy is implemented and the work of the organization is actually accomplished.
A firm cannot function unless its various structural components are appropriately assembled. Through its design, the firm does four things. First, it allocates organizational resources. Second, it assigns tasks to its employees. Third, it informs those employees about the firm’s rules, procedures, and expectations about the employees’ job performances. Fourth, it collects and transmits information necessary for problem solving, decision making, and effective organizational control. This last task is particularly important for large MNCs, which must manage the sharing of information between corporate headquarters, subsidiaries, and staff.
A strategy calling for increased internationalization will have an impact on the firm’s organization design. To see how this begins to happen, consider a domestic firm that has no international sales. No changes are needed to the firm’s organization design.Now assume that the firm begins to engage in direct exporting on a modest level. Its initial response to international orders is the corollary approach, whereby the firm delegates responsibility for processing such orders to individuals within an existing department. The firm continues to use its existing domestic organization design. As the firm’s exports become more significant, its next step is to create a separate export department. It will oversee international operations, market products, process orders, work with foreign distributors, and arrange financing. If selling to foreign customers is essentially the same as selling to domestic ones, the export department may not need to know much about foreign markets. However, as international activities increase, knowledge of foreign markets will be more important, and new methods for organizing may be required.The firm can respond by creating an international division that specializes in managing foreign operations. Then, the firm can concentrate resources and target international business activity, while keeping that activity segregated from ongoing domestic activities.
The topic of this section was The Nature of International Organization Design. The discussion explored how firms use organization design, as well as how organization design pertains to international business activity. The next section will cover the Advanced and Hybrid Forms of International Organization Design.
As a firm evolves from being domestically oriented with international operations to becoming a true multinational corporation with global aspirations, it will abandon the international division approach. It usually creates a global organization design to achieve synergies among its far-flung operations and implement its organizational strategy.
The global design adopted by any firm must deal with the need to integrate three types of knowledge:Area Knowledge: Managers must understand the cultural, commercial, social, and economic conditions in each host country market.Product Knowledge: Managers must comprehend such factors as technological trends, customer needs, and competitive forces affecting the goods the firm produces and sells.Functional Knowledge: Managers must have access to co-workers with expertise in basic business functions such as production, marketing, finance, accounting, human resource management, and information technology.
The five most common forms of global organization design are product, area, functional, customer, and matrix. As we will discuss, each form allows the firm to emphasize one type of knowledge. However, each form can make it more difficult to incorporate the other types of knowledge into the firm’s decision-making processes. The global design the MNC chooses will reflect the relative importance of each of the three types of knowledge in the firm’s operations. It will also reflect the need for coordination among its units, the source of its firm-specific advantages, and its managerial philosophy about its role in the world economy.
MNCs typically adopt one of three managerial philosophies that guide their approach to such functions as organization design and marketing. The ethnocentric approach is used by firms that operate internationally the same way they do domestically. The polycentric approach is used by firms that customize their operations for each foreign market they serve. The geocentric approach is used by firms that analyze the needs of their customers worldwide and then adopt standardized operations for all markets they serve. These concepts are discussed more fully in Chapter 16.
The most common form of organization design adopted by MNCs is the global product design, which assigns worldwide responsibility for specific products or product groups to separate operating divisions within a firm. This design works best when the firm has diverse product lines or when its product lines are sold in diverse markets, thereby reducing the need for coordination between product lines. If the products are related, the organization of the firm takes on what is often called an M-form design; if the products are unrelated, the design is called an H-form design. The “M” in M-form stands for “multidivisional”—the various divisions of the firm are usually self-contained operations with interrelated activities. The “H” in H-form stands for holding, as in a holding company where the various unrelated businesses function with autonomy and little interdependence.
Global product design offers several competitive advantages. First, since a division focuses on a single product group, division managers gain expertise in all aspects of the product, better enabling them to compete globally. Second, the global product design facilitates efficiencies in production. Managers are free to manufacture the product wherever manufacturing costs are the lowest and coordinate production at their various facilities. Global product design also facilitates global marketing by allowing for flexibility in introducing, promoting, and distributing each product. The global product design also has disadvantages. It may encourage expensive duplication because each product group needs its own functional-area skills and sometimes even its own physical facilities for production, distribution, and research and development (R&D). In addition, each product group must develop its own knowledge about the regional and national markets in which it operates. Coordination and corporate learning across product groups also become more difficult.
The global area design organizes the firm’s activities around specific areas or regions of the world. This system is particularly useful in two situations: In a firm whose strategy is driven by marketing rather than predicated on manufacturing efficiencies or technological innovation.In a firm whose competitive strength lies in the reputation of its brand name products.Further, the geographical focus of this design allows a firm to develop expertise about the local market. Area managers can adapt the firm’s products to meet local needs and respond to changes in the local marketplace. They also can tailor the product mix they offer within a given area.
The global area design does have disadvantages. By focusing on the needs of the area market, the firm may sacrifice cost efficiencies that might be gained through global production. Diffusion of technology is also slowed because innovations generated in one area division may not be adopted by all the others. Therefore, this design may not be suitable for product lines undergoing rapid technological change. Further, the global area design results in duplication of resources because each area division must have its own functional specialists, product experts, and, in many cases, production facilities. And finally, it makes coordination across areas expensive and discourages global product planning.
The global functional design calls for a firm to create departments or divisions that have worldwide responsibility for the common organizational functions—finance, operations, marketing, R&D, and human resources management. This design is used by MNCs that have relatively narrow or similar product lines. It results in what is often called a U-form organization, where the “U” stands for unity.The global functional design offers several advantages. First of all, the firm can easily transfer expertise within each functional area. Second, managers can maintain highly centralized control over functional operations. Finally, the global functional design focuses attention on the key functions of the firm.
Despite these advantages, this design is inappropriate for many businesses. For one thing, the global functional design is practical only when the firm has relatively few products or customers. For another, coordination between divisions can be a major problem. Finally, there may also be duplication of resources among managers. Because of these problems, the global functional design has limited applicability. It is used by many firms engaged in extracting and processing natural resources, such as the mining and energy industries, because in their case the ability to transfer technical expertise is important.
The global customer design is used when a firm serves different customers or customer groups, each with specific needs calling for special expertise or attention. This design is useful when the various customer groups targeted by a firm are so diverse as to require totally distinct marketing approaches. The global customer approach allows the firm to meet the specific needs of each customer segment and track how well the firm’s products or services are doing among those segments. On the other hand, the global customer design may lead to a significant duplication of resources, if each customer group needs its own area and functional specialists. Coordination between the different divisions is also difficult because each is concerned with a fundamentally different market.
A global matrix design is the result of superimposing one form of organization design on top of an existing, different form. The resulting design is usually quite fluid, with new matrix dimensions being created, downscaled, and eliminated as needed.The global matrix design brings together the functional, area, and product expertise of the firm into teams, in order to develop new products or respond to new challenges in the global marketplace. The matrix promotes organizational flexibility because team membership can be changed, as the firm’s needs change. It also promotes coordination and communication among managers from different divisions.
The global matrix design has limitations, however. First of all, it is not appropriate for a firm that has few products and that operates in relatively stable markets. Second, it often puts employees in the position of being accountable to more than one manager. As a result, the individual may have split loyalties—caught between competing sets of demands and pressures. Similarly, the global matrix design creates a paradox regarding authority. On the one hand, part of the design’s purpose is to put decision-making authority into the hands of those managers most able to use it quickly. On the other hand, because reporting relationships are so complex and vague, getting approval for major decisions may actually take longer. Finally, the global matrix design tends to promote compromises, or decisions based on the relative political clout of the managers involved.
Each global form of international organization design described in this section represents an ideal or pure type. Most firms, however, create a hybrid design that best suits their purposes, as dictated in part by their size, strategy, technology, environment, and culture. Managers start with the basic prototypes, merge and adjust them, and create new elements as they respond to changes in the organization’s strategy and competitive environment. In fact, if it were possible to compare the designs used by the world’s 500 largest MNCs, no two would look exactly the same.
This section covered the Advanced and Hybrid Forms of International Organization Design. The discussion began by presenting an overview of global design. Next, it covered global organization design based on the following categories: product, area, functional, customer, and matrix. The discussion closed with an overview of some hybrid global designs. The next section will focus on the Related Issues in Global Organization Design.
In addition to the fundamental issues of organization design we have addressed, multinational corporations also face a number of other related organizational issues that must be carefully managed.
When designing its organization, an MNC must make a particularly critical decision that determines the level of autonomy, power, and control it wants to grant its subsidiaries. Suppose it decentralizes decision making by giving subsidiaries the authority to make finance, production, and marketing decisions. This approach allows those closest to the market to respond quickly to changes in local conditions. However, local managers may focus on the subsidiary’s needs rather than on the firm’s overall needs. An MNC can remedy this deficiency by tightly centralizing decision-making authority at corporate headquarters. Decisions made by the corporate staff can then take into account the firm’s overall needs. However, these decisions often hinder the ability of subsidiary managers to quickly and effectively respond to changes in their local market conditions. Because both centralization and decentralization offer attractive benefits, most firms constantly tinker with a blend of the two, the purpose being to achieve the best outcome in terms of overall strategy.
An MNC typically incorporates each of its subsidiaries in the subsidiary’s country of operation. Most countries require each corporation, including a wholly-owned subsidiary of a foreign MNC, to have a board of directors. The board is elected by corporate shareholders, is responsible to those shareholders for the effective management of the subsidiary, and oversees the activities of the subsidiary’s top-level managers. The issue facing most MNCs is whether to view the creation of a subsidiary board of directors as a pro forma exercise (thus giving the board little authority), or to empower the board with substantial decision-making authority. As a rule, a subsidiary board is most useful when the subsidiary has a great deal of autonomy, its own self-contained management structure, and a business identity separate from the parent’s.
Empowering the subsidiary’s board promotes decentralization. Foreign subsidiaries may need the authority to act quickly and decisively without having to always seek the parent’s approval. Also, if the MNC decentralizes authority to local levels, an active board provides clear accountability and a reporting link back to corporate headquarters. Some MNCs also have found that appointing prominent local citizens to the subsidiary’s board is helpful in conducting business in a foreign country. These members can help the subsidiary integrate into the local business community. They can also be an effective source of information for both parent and subsidiary about local business and political conditions. A subsidiary board also can help monitor the subsidiary’s ethical and social responsibility practices. A potential disadvantage of empowering a subsidiary’s board is that the subsidiary may become too independent, as its board assumes substantial authority. As a result, it may fail to maintain the desired level of accountability to the parent.
Coordination is the process of linking and integrating functions and activities of different groups, units, or divisions. MNCs can use any of several strategies to achieve and manage their desired level of coordination. The organizational hierarchy itself is one way to manage interdependence and promote coordination. An organization design that clearly specifies all reporting relationships expedites coordination because each manager knows how to channel communications, decision making, and so on. Rules and procedures also facilitate coordination.MNCs also may adopt more temporary or ad hoc coordination techniques, such as using employees in liaison roles or task forces. Many international firms also rely heavily on informal coordination mechanisms, such as networks of managers who are connected by personal contacts, mutual acquaintances, and workplace interactions.
The topic of this section was Related Issues in Global Organization Design. The discussion started by comparing centralized versus decentralized decision making. Then, it examined the pros and cons of empowering a subsidiary’s board of directors. It concluded by exploring a number of ways to promote coordination in a global organization. The next section will cover The Control Function in International Business.
Another important role of organization design is to enable the firm to manage its control function more effectively. Control is the process of monitoring ongoing performance and making necessary changes to keep the organization moving toward its performance goals.
There are three main levels at which control can be implemented and managed in an international business: the strategic, organizational, and operations levels. Each level is important on its own. The three levels also provide a framework that managers can use to approach international control from a perspective that is both comprehensive and integrated.
Strategic control is intended to monitor how an international business formulates strategy and how well it implements that strategy. Strategic control thus focuses on how well the firm defines and maintains its desired strategic alignment with its environment and how effective the firm is at setting and achieving its strategic goals.
Strategic control also plays a major role in the decisions that firms make about foreign-market entry and expansion. This is especially true when the market holds both considerable potential and considerable uncertainty and risk. Often, the most critical aspect is control of an international firm’s financial resources. Therefore, international companies must develop and maintain effective accounting systems. In large international firms, a corporate controller is responsible for the financial resources of the entire organization. A special concern of an international controller is managing the various currencies needed to run the firm’s subsidiaries and pay its vendors. Given the possibility of exchange rate fluctuations, the controller needs to oversee the firm’s holdings of diverse currencies to avoid losses, if exchange rates change. Control of joint ventures and other strategic alliances is increasingly important to international firms. It follows that strategic control systems also must account for the performance of such alliances.
Organizational control focuses on the design of the organization itself. The most common type of organizational control is responsibility center control. Using this system, the firm first identifies fundamental responsibility centers within the organization. Once the centers are identified, the firm then evaluates each one according to how effectively it is meeting its strategic goals. Thus, a unique control system is developed for each responsibility center. A firm may use generic organizational control across its entire organization; that is, the control systems used are the same for each unit or operation, and the locus of authority generally resides at the firm’s headquarters. Often, generic organizational control is used by international firms that pursue similar strategies in each market in which they compete. Planning process control focuseson the actual mechanics and processes that the firm uses to develop strategic plans. This approach is based on the assumption that if the firm controls its strategies, desired outcomes are more likely to result.
Operations control focuses specifically on operating processes and systems within the firm, its subsidiaries, and its operating units. The firm also may need an operations control system for each of its manufacturing facilities, distribution centers, and administrative centers.Operations control involves relatively short periods of time, dealing with components of performance that need to be assessed on a regular basis. Normally, this method of control focuses on the lower levels of a firm, such as first-line managers and operating employees.
This section focused on The Control Function in International Business. It covered three types of control—strategic, organizational, and operational. The next section will cover Managing the Control Function in International Business.
International firms must address a variety of issues in managing the control function. To manage control effectively, managers need to understand how to establish control systems and apply control techniques. They must also understand why some people resist control and how to overcome this resistance.
Business control systems are established through four basic steps:The first step is to define relevant control standards. A control standard is a target, or a desired level of the performance component the firm is attempting to control. These standards must be objective and consistent with the firm’s goals.The second step is to develop a valid measure of the performance component being controlled. Some elements of performance (such as unit sales or actual output) are relatively easy to measure. Other elements are more difficult to measure, such as the effectiveness of an advertising campaign to improve a firm’s public image.The third step in establishing an international control system is to compare measured performance against the original control standards. Again, when control standards and elements of performance are straightforward, this comparison is easy. When control standards and performance measures are less concrete, comparing one against the other is considerably more complicated. The fourth and final step in establishing an international control system is responding to deviations observed in step 3. One of three different outcomes can result when comparing a control standard and actual performance: the control standard has been met, it has not been met, or it has been exceeded. Depending on the circumstances, managers could change the standard, correct the deviation, or maintain the status quo.
International firms rely on a variety of control techniques.Accounting is a comprehensive system for collecting, analyzing, and communicating data about a firm’s financial resources. International businesses must develop accounting systems to control and monitor the performance of the overall firm and each division, operating unit, or subsidiary. Policies, standard operating procedures, rules, and regulations all help managers carry out the control function. International firms also use performance ratios to maintain control. A performance ratio is a numerical index of performance that the firm wants to maintain. A common performance ratio is inventory turnover.
Regardless of how well formulated and implemented a control system may be, managers must understand that human behavior plays a fundamental role in how well control works. Essential to this understanding is being aware that some people resist control. Also essential is recognizing that resistance can be minimized. Although resistance to control is likely to exist within most cultures, its magnitude will vary across cultures.
People in international firms may resist control for various reasons. One potential reason is over-control, whereby the firm tries to exert more control over individuals than they think is appropriatePeople also may resist control because it may be inappropriately focused; that is, the firm may be trying to control the wrong things. Finally, people may resist because control increases their accountability. It is important to strike a balance between appropriate and acceptable levels of accountability without edging over into over-control.
Although there are no guaranteed methods for eliminating resistance to control, there are ways to minimize it. The appropriate method, as well as its likely effectiveness, will vary by culture. One effective way to overcome resistance to control is to promote participation. Involving employees will enable them to better understand the goal of the control system, how the system works, and how their jobs fit into the system. If the control system provides an appropriate level of accountability without over-controlling, then workers will be less likely to resist it. A firm also may overcome resistance to control by providing a diagnostic mechanism for addressing unacceptable deviations. Behavioral aspects of control can be approached and managed from a cultural perspective. Being careful to hire people with values, experiences, and work habits that are consistent with the firm’s culture can go a long way toward minimizing resistance to control.
The topic of this section was Managing the Control Function in International Business. The discussion began with an overview of establishing control systems and a review of various control techniques. The remainder of the discussion considered the behavioral aspects of control, examined why some employees resist control, and explored what can be done to reduce their resistance. The presentation will close with a review of this chapter’s learning objectives.
This concludes the PowerPoint presentation on Chapter 14, “International Organization Design and Control.” During this presentation, we have accomplished the following learning objectives: Defined and discussed the nature of organization design and identified and described the initial impacts of international business activity on organization design. Identified and described five advanced forms of international organization design and discussed hybrid global designs. Identified and described related issues in global organization design.Explained the general purpose of control and the levels of control in international business.Described how international businesses manage the control function.For more information about these topics, refer to Chapter 14 in International Business.