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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

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Structure

I. Introductiona.) Globalization And The Influence On Companies and

Organizationsb.) Psychological Aspects For Structure Developmentc.) Psychological Dimensions For Structure Developmentd.) Vertical Line vs. Horizontal Line e.) Metaphors For Different Company StructuresII. The Matrix Design (Prototype)a.) Basic Features Of The Matrixb.) Matrix As a Basis For Network Design III. Strategies of Companiesa.) The Airbus Induction Programmeb.) Polyzentrism in Business Context

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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

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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

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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

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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

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Horizontal Line vs. Vertical Line

I e

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

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The Matrix Design (Basic Idea)

Executive Board

Project A

Project B

Project C

Sector A Sector B Sector C

IISource: Weinert, Page 635 10.8

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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

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Pyramical Form of Hierarchy (1980)Source: Weinert, Page 644

Matrix As a Basis For Network-Design

II b

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Horizontal Structure/ Outsourcing (1990) Source: Weinert, Page 644

II b

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Network DesignSource: Weinert,Page 644II b

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Strategies For Companies

• Multinational

• International

• Global

• (Transnational)III

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The Airbus Induction Programme

1. Initial information on Airbus (information package)

2. Official Welcome session

3. Line Manager welcome

4. Site visits

5. Job-related induction training

6. Getting to know Airbus – session

7. International Induction session

III a

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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