International Organizational Design

Structure According to Drucker (1989), ‘is the correct design of structure which is of most significance in determining organizational performance’

The structure and design of organizations have drastically changed over the last twenty-five years. Organizations develop new goals at the beginning of the year or after the completion of previous goals, and heavily depend on planning to help achieve these goals. Planning is an integral part of organizational success, as upper management receives substantial information on various needs such as risk uncertainty, available resources, employee development, and unforeseen changes in technology (Daft, 2013). Most importantly, successful planning allows management to make effective decisions when unforeseen events arise within the organization. Not participating in planning is equivalent to taking a road trip across the country without a

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.

Organisation Design – This area of the map concentrates on shaping the organisation structure to the business

The design of an organization is a “formal, guided process for integrating the people, information, and technology of an organization” (Glickman et al., 2007). A good organizational design increases the likelihood that an organization will succeed; that its’ values will be realized and its mission will be attained. An organization begins with a strategy or a purpose, is followed by its philosophy or values, then identifies the mission and finally evaluates the environment and its’ strengths, weaknesses, opportunities, and threats to the organization (Kelly & Crawford, 2008).

While trying to establish international operations, companies are faced with

The structure of an organization can vary depending on the company. This is responsible for maintaining and outlining specific duties or task within the organization. Depending on the company they can choose between a centralized or decentralized structure. Centralized organizational structures focus management authority and decision-making in a single executive team, with information flowing from top managers to various business units (Centralized Vs. Decentralized Organizational Design, David Ingram, 2017). Decentralized organizational structures, on the other hand, look more like multiple smaller representations of a single structure, featuring management redundancies and more close-knit chains of command (Centralized Vs. Decentralized Organizational Design, David Ingram, 2017). Within these, there are more specified structures with different advantages and

Philosophers have identified three key perspectives to organization: rational, natural, and open systems. Each of these perspectives include key development for organizational design. They each also exemplify developments of the science of organization. Modern organizational theory can be described as a combination of these three main perspectives (Scott, 2003). This presentation will compare the rational and natural approach with suggestions of restricting to the natural perspective for our current organization.

In the business industry, if businesses want to export their goods and services to other countries, they must become familiar with and adopt international and global strategies. Consequently, there are three types of international and global business strategies. The first type is international, which entails conducting a significant amount of activities outside the home country, yet its focus remains on the home market (Fung, 2014). The second type is multinational, which consists of operating in multiple countries, yet the headquarters is in its home country, not to mention that the competitive advantage will vary by country (Fung, 2014). The third and final type is global, which is when the organization treats the whole world as one market and one source of supply, not to mention, that its competitive advantage is contingent of common brands, standardized products, and global scale production (Fung,

An organizational structure is the outline of a company’s framework and guidelines for managing business operations. An organization 's structure and its degree of centralization or decentralization depend on a number of factors, including the size of the organization and its geographic dispersion. In a very large and diversified organization, it is unlikely that a handful of people will possess all the resources to achieve all goals and objectives of the enterprise. As a result, it becomes impractical to concentrate power and decision-making authority at the top. Similarly in a geographically-dispersed organization, a centralized approach will not be the most efficient, as the people with the most authority will be unable to directly supervise operations on a day-to-day basis.

Organisational design is known as the decision-making process in which managers are given the opportunity to select their organisational structure that is associated with the strategy and environment. Organisational design is mainly concentrated on the internal functions of the business. These include four building blocks of organisational design such as departmentalisation, division of labour, coordination, and hierarchy. In order to deal effectively with the organisational design, different approaches have been introduced that help businesses in making their internal functions efficient. This helps them in achieving their goals and targets successfully. In this essay, the classical and contingency approaches to organisational designs are compared and contrasted.

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

Organizational design can provide quicker decision-making as some models help accelerate information flow and streamline decision-making. It can also provide personal growth by creating opportunities for people to take on different and challenging roles within the same organization. Any work process in the organization can be in scope for organizational design.

As trade increases hyper-competition grows forcing organizations to go global. By a company going global it requires them to rethink strategy and reform (Ananthram and Pearson, 2008). Global organizational structure is the way a company aims to merge local preferences with global strategy. The definition of global strategy is “strategic choices that have the characteristics of being globally uniform or integrated,” (Yip et al., 1997) such as standardization of products, uniform marketing, and competitive moves, but all globally (Townsend et al., 2004; Zou and Cavusgil, 2002; Bayraktar and Ndubisi, 2014). Global strategic strategy is a way to adjust to globalization. Globalization is “the economic and social process by which economies and communities grow inextricably interdependent “(Jhirad et al., 2009). The recent financial crisis (Das, 2010), large amount of poverty, and climate change are all problems that show how the world is globally connected because all countries impact each other (Jhirad et al., 2009).

At least two different organizational structures are identified, described, and compared in terms of their design principles.