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Organizational Design and Control

Organizational Design and Control. Chapter 18. Organizational Structure. What is it? What does it demonstrate? Organizational Design Considerations Two concerns Departmentalize and take advantage of efficiencies Coordinate activities Four primary dimensions.

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Organizational Design and Control

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Presentation Transcript

  1. Organizational Design and Control Chapter 18

  2. Organizational Structure • What is it? • What does it demonstrate? • Organizational Design • Considerations • Two concerns • Departmentalize and take advantage of efficiencies • Coordinate activities • Four primary dimensions

  3. Evolution of International Company • International Business

  4. Evolution of International Company • Global Corporate Form- Products

  5. Evolution of International Company • Global Corporate Forms- Geographic Regions

  6. Evolution of International Company • Global Corporate Forms- Functional

  7. Evolution of International Company • Hybrid Organization • Examples • Matrix Organization • Problems • Matrix overlay • Strategic Business Units • Changes in Organizational Forms

  8. Current Organizational Trends • Virtual Corporation • Outsourcing • Modular • Advantages • Disadvantages • Horizontal • Benefits • Corporate Survival in the 21st Century • Dynamic network structure

  9. Control • What is it? • Subsidiaries v. Affiliates • Where are Decisions Made? • Product and equipment • Competence of subsidiary management and HQ reliance on it • Size and age of the international corporation • Benefiting the enterprise to detriment of subsidiary • Subsidiary frustration

  10. Where is Decision Made? • Product and Equipment • Standardize? • Competence of Subsidiary Management and HQ Reliance on It • Moving executives around • Understanding host country conditions • How far away is host country? • Size and Age of the International Corporation • Established • Smaller/newer

  11. Where is Decision Made? • Benefiting the Enterprise to Detriment of Subsidiary • Subsidiary detriment • Moving production factors • Which subsidiary gets the order? • Multicountry production • Whose books profit? • Subsidiary Frustration • Managers

  12. Other Control Issues • Joint Ventures and Subsidiaries less than 100% • Lack of freedom and flexibility • Control can be had • Four methods • Reporting • Financial • Technological • Market opportunities • Political and economic • De-jobbing • Definition • Hierarchy implodes • Traits • Overall Control Issues

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