Thomson Learning © 20046-1 Chapter Six Designing Organizations for the International Environment

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  • Chapter SixDesigning Organizations for the International Environment

  • Four Stages of International EvolutionSources: Based on Nancy J. Adler, International Dimensions of Organizational Behavior (Boston: PWS-KENT, 1991), 7-8; and Theodore T. Herbert, Strategy and Multinational OrganizationStructure: An Interorganizational Relationships Perspective,Academy of Management Review 9 (1984): 259-71.

  • Matching Organizational Structure to International Advantage

  • Domestic Hybrid Structure with International DivisionScientificProductsDivision Research &DevelopmentHumanResourcesMedicalProductsDivision Europe(Sales)ElectricalProductsDivision CorporateFinanceCEOInternationalDivision Brazil(Subsidiary)Mid East(Sales)Staff (Legal,Licensing)

  • Partial Global Product Structure Used by Eaton CorporationEngineeringPresident InternationalLaw &CorporateRelationsChairmanFinance & AdministrationRegionalCoordinatorsGlobal AutomotiveComponentsGroupGlobalIndustrialGroupGlobalInstrumentsProductGroupGlobalMaterialsHandlingGroupGlobalTruckComponentsGroupSource: Based on New Directions in Multinational CorporateOrganization (New York: Business International Corp., 1981).

  • Global Matrix StructureInternationalExecutiveCommitteePowerTransformersGermanyNorwayArgentina/BrazilSpain/PortugalTransportationIndustryBusinessAreasCountry ManagersLocalCompanies

  • Building Global CapabilitiesThe Global Organizational ChallengeIncreased Complexity and DifferentiationNeed for IntegrationKnowledge Transfer

    Global Coordination MechanismsGlobal TeamsHeadquarters PlanningExpanded Coordination Roles

  • Cultural Differences in Coordination and ControlNational Value SystemsPower DistanceUncertainty Avoidance

    Three National Approaches to Coordination and ControlCentralized Coordination in Japanese CompaniesEuropean Firms Decentralized ApproachThe United States: Coordination and Control through Formalization

  • Transnational Model of OrganizationsAssets and resources are dispersed worldwide into highly specialized operations that are linked together through interdependent relationships.Structures are flexible and ever-changing.Subsidiary managers initiate strategies and innovations that become strategy for the corporation as a whole.Unification and coordination are achieved primarily through corporate culture, shared visions and values, and management style rather than through formal structures and systems