Organization Structure And Control Systems

Organization Structure and Control Systems

Organizational structures must change to accommodate a firm s evolving internationalization in response to worldwide competition.
Managers are facedwith how best to attain that fit in organizing the company s system and tasks.
An organization must be designed to facilitate the implementation of strategic goals.

The design of an organization,as with any other management function, should be contingency based, taking into account the variables of that particular system at that specific point in time.
Major variables include the firm{sstrategy, size and appropriate technology, as well the environment in those parts of the world in which the firm operates.

Evolution and change in MNC organizational structures.
Internationalizationis the process by which a firm gradually changes in response to international competition, domestic market saturation, and the desire for expansion, new markets and diversification.
Perhaps the firmstarts by exporting or by acting as a licensor or licensee., and then over time continues to internationalize by engaging in joint ventures or by establishing service, production or assembly facilitiesor alliances abroad, moving into a global strategy.
At each stage, the firm s managers redesign the organizational structure to optimize the strategy s chances to work, making changes in the firm stasks and relationships.
This model of structural evolution has become known as stages model.
Even a mature MNC (multinational corporation) must make structural changes from time to time tofacilitate changes in strategy.
The typical ways in which firms organize their international activities are shown in the following list.
After the presentation of some of these structural forms, the focuswill turn to trasitional organizational arrangementws.
* Domestic structure plus export department
* Domestic structure plus foreign subsidiary
* International division
* Global...