Organisational Structure of Global Organ is at Ions

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Varun Vasudevan

MBA(IB),S4

Organisational structure of globalorganisations



Organizational structure refers to the way tasksare divided up, how the work flows, how this flowis coordinated and the forces and mechanismsthat allow this coordination to occur.

Managing global operations across disparatecultures and markets has always been both achallenge and an opportunity for large

corporations. As global markets become morecompetitive and intertwined, companies are tryingto standardize and optimize global businessprocesses and also better leverage their globalassets and talent pool.



Organizational structure affects organizationalaction in two big ways.

First, it provides the foundation on whichstandard operating procedures and routines rest.

Second, it determines which individuals get toparticipate in which decision-making processes,and thus to what extent their views shape theorganization’s actions.



Purpose of Organizational Structure

to exercise control

to establish division of labor

to facilitate communications

to facilitate coordination & integration to establish accountability

to delegate responsibility

to establish lines of authority and chain of

command

to establish rules and regulations



Basic Organizational Structures Global Structural Arrangements

Global Product Division Structural arrangement in which domestic divisions are

given worldwide responsibility for product groups

Global Area Division Structure under which global operations are organized on a

geographic rather than a product basis

Global Functional Division Structure which organizes worldwide operations primarily

based on function and secondarily on product

Matrix Organization Structure Structure that is a combination of a global product, area, or

functional arrangement



The functional structure



Product division structure



International Division Structure



Area structure



worldwide product division structure



Matrix structure



Typical ways that firms organizeinternational activities

Domestic structure plus export department

Domestic structure plus foreign subsidiary

International division

Global functional structure

Global Product Structure

Global Functional Structure



Domestic Plus Foreign

Subsidiary



Global Product Division



Global Geographic Structure



International Division Structure

PersonnelProductio

n

Marketing Finance

Chief Executive Officer

DomesticDivisionPaint

DomesticDivisionTools

InternationalDivision

DomesticDivisionFurniture

DomesticDivision

Hardware

Japan Australia Italy

OfficeOperations

Marketing GovernmentRelations



Multinational Matrix Structure

PersonnelProduction Marketing Finance

CEO

North America Industrial Goods Europe

Manager,Industrial GoodsNorth America

Manager,Industrial Goods

Europe



CONCLUSION

The best structure is influenced by many factorsincluding company size, technology, andenvironment BUT ultimately strategy notcontingencies shape the structure

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Organisational Structure of Global Organ is at Ions