International – Multinational – Global Organizations

1. Degrees of Globalization International – Multinational – Global Organizations Seminar: The Training of Cross-Cultural-Competence and Skills Lecturer: Prof.Dr.Jürgen Beneke Students: René Luckhaus and Silke Köhnke 12.02.02

2. Structure I. Introduction a.) Globalization And The Influence On Companies and Organizations b.) Psychological Aspects For Structure Development c.) Psychological Dimensions For Structure Development d.) Vertical Line vs. Horizontal Line e.) Metaphors For Different Company Structures II. The Matrix Design (Prototype) a.) Basic Features Of The Matrix b.) Matrix As a Basis For Network Design III. Strategies of Companies a.) The Airbus Induction Programme b.) Polyzentrism in Business Context

3. Globalization And The Influence On Companies And Organizations • flow of investment and trade has changed enormously • business transactions are faster due to the increasing development of information technology • mergers and aquisitions lead to changes in company structures • protection against hostile takeover of other companies is necessary Result: all companies have to achieve a higher grade of competitiveness  major goal: higher grade of flexibility and efficiency in all business sectors must be achieved I a

4. Psychological Aspects For Structure - development • avoiding role conflicts • achieving a high grade of (self)motivation • satisfaction of needs within the working field (e.g. the right of making own decisions) Four different levels: a.) single employee b.) within one group of employees c.) groups of employees (e.g work on projects as well as business sectors I b

5. Psychological Dimensions For Structure Development a.) Complexity • The quantity of levels and sublevels of hierarchy b.) Formalism • The way how hierarchy and communication is represented I c

6. Company Structures a.) „The Family“ • the superior has the role of „the father“ • finding a solution with the goal of being effective b.) „The Eiffel-Tower“ • there are several superiors in a large and rigid structure • authority as a result of fulfilling a role c.) „The Missile“ • Management by Objectives and Pay for Performance d.) „The Incubator“ • authority and status earned by creativity I d Source: Trompenaars, Page 199 – 232

7. Horizontal Line vs. Vertical Line • a.) vertically orientated structures • less connection between different business sectors • pyramical form of authority • b.) horizontally orientated structures • emphasis on communication between all business sectors • more orientation towards customers I e

8. The Matrix Design (Basic Idea) Executive Board Sector A Sector B Sector C Project A Project B Project C Source: Weinert, Page 635 10.8 II

9. Features Of The Matrix • distinction of projectwork and work for business sectors • useful for situations which require a process of decisionmaking shared by a group of people (has its origins in the astronautical industry) • two lines of command (no „Unity of command“) • the employee has two superiors • relief of the Top-Management • higher degree of motivation for every employee II a

10. Matrix As a Basis For Network-Design Pyramical Form of Hierarchy (1980) Source: Weinert, Page 644 II b

11. Horizontal Structure/ Outsourcing (1990) Source: Weinert, Page 644 II b

12. Network Design Source: Weinert,Page 644 II b

13. Strategies For Companies • Multinational • International • Global • (Transnational) III

14. The Airbus Induction Programme • Initial information on Airbus (information package) • Official Welcome session • Line Manager welcome • Site visits • Job-related induction training • Getting to know Airbus – session • International Induction session III a

15. Polyzentrism In Business Context • little competence in the head quarter • identification: nationality of the host country • information flow: little in all directions • assessment in local scales • local recruiting of executive personnel III b