International Management Study

Every organization was established to meet needs or goals, for example, to provide goods or services. Organizational structures may form in many ways; these were influenced by factors such as the purpose, size of the company or the complexity of the tasks it performs, and the external environment and culture. Moreover, the products, services or the location of the organization will also determine which structure was the best. The structure chosen will govern the way in which the organization operates and could occur either positive or negative effects. Below are some types of organizational structure that usually see.

Q10. Although forces in the foreign environment are the same as those in the domestic environment, they operate differently. Why is this so?

Structure is the basis through which an organization seeks to create control the direction of an organization. This is completed through clear definitions of the allocation of work, differentiation, and the coordination of having those responsibilities working together towards the efforts of the organization, integration (Bolman & Deal, 1993, pp). Through these methods, the organization is able to devise a division of labor that collaborates to bring about the missions and goals of an organization. The structure that comes about from this can be varied in their rigidness and flexibility it allows, and to an extent this is a great contribution to its success.

All businesses have organisational structures, even if they are small or big, they have some type of structure so they can operate productively.

Organisations must organise a structure so that their objectives can be achieved. A company will have different departments and procedures with each one having a special function. All of these organised departments and procedures are linked so the company can run efficiently. For many organisation this can be very complex has they will have offices in international countries around the world.

5. Cultural differences: people sometimes make stereotypical assumptions about others based on their cultural background.

According to Miles et al. (1978, p. 547), an organization is both its purpose and the mechanism constructed to achieve the purpose. It means that the concept of organization is embracing both goals and all the elements that represent unique combination. Miles et al. (1978, p. 553) draws the conclusion that structure and the processes taking place inside the organization are closely aligned; it is hard to speak about one without mentioning the other. It is important to understand the conclusion drawn by Miles et al. (1978). It illustrates how the

Therefore, for an organization to have a definitive structure, there needs to be employees assigned (and carrying out) prescribed tasks in relation to their expertise (division of labour), clearly outlined documentation that spells out spatial relationships within the

This paper contains information that may be highly sensitive. It is provided solely for the purpose stated above and should not be disclosed to persons outside of the faculty and administration of the Executive Master of International Business Program without express written consent from the author.

INTERNATIONAL MANAGEMENT: CULTURE, STRATEGY, AND BEHAVIOR, EIGHTH EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2009, 2006, and 2003. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited

According to Robbins and Judge (2008), the structure of an organisation determines the way duties and tasks are split as well as coordinated inside the organisation. Any structure utilised by an organisation would depend on the size of that organisation and also the purpose and goals for which the organisation stands for (Brooks, 2003). For example, there is the product or activity based structure, the functional structure and the matrix structure.

The world’s economy has developed and changed dramatically throughout the years and continues to do so. We are quickly moving away from a world where each country’s economy is isolated and more towards a world with an interdependent global economic system. This interdependent global economic system is commonly referred to as globalization (Saee 2005). The book written by John Saee, Managing Organizations in a Global Economy: An Intercultural Perspective, suggests that the growth of global trade, cross-border investments, mass migration, large-scale tourism, and much more has turned the world into more of a “global village” (Saee 2005).

There are multiple structural variations that organizations can take on, but there are a few basic principles that apply and a small number of common patterns. The following sections explain these patterns and provide the historical context from which some of them arose. The first section addresses organizational structure in the twentieth century. The second section provides additional details of traditional, vertically-arranged organizational structures. This is followed by descriptions of several alternate organizational structures including those arranged by product, function, and geographical or

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As the threshold of conducting business in foreign country becomes lower, it has been appealing to turn a local company into a multinational corporation. By leveraging and gathering resources from global platform, company will make leaping progress not only on profit, but also on brand building. However, the moment a company begins to consider paving its way into foreign markets and goes globally, it needs to take into consideration various kinds of transaction expenditure that rose in trading. Therefore, it has been critical for company executives to understand and utilize the Transaction Cost Theory (TCT) in order to find the most suitable method for company to supervise and minimize the transaction costs. Through analysis into TCT, one can have a deep comprehension on the extension of how multinational companies depend on each other, and how to choose between centralized inner supervision (within company) and outer surveillance (market) so as to diminish transaction costs.