CHAPTER 14 INTERNATIONAL ORGANIZATION DESIGN & CONTROL


GROUP : PROACTIVE NETWORK TEAM

Thursday, January 30, 2014

PROACTIVE NETWORK TEAM MEMBERS

Name : Mohamad Faiz Bin Mokhtar
Matrix ID : JG/6018/12
Course : Management (PJJ)
Major : Organization




Name : Nur Hazwani Binti Md Aishan
Matrix ID : JG/6310/12
Course : Management (PJJ)
Major : Organization





Name : Jeyaisswaren A/L Ayadorai
Matrix ID : JG/5960/12
Course : Management (PJJ)
Major : Organization




Name : Ridwan Firdaus Bin Rosdi
Matrix ID : JG/6375/12
Course : Management (PJJ)
Major : Marketing 


Monday, January 27, 2014

Centralization VS Decentralization



Centralization
  • Decision made by senior level manager at HQ
  • Facilities coordination of value chain
  • Ensures decisions are consistent with strategic objectives
  • Senior executives have authority to direct major change
  • Preempts duplication of activities
  • Reduces the risk of making wrong decisions at low level
  • Ensures consistent dealings with all stakeholders
  • Discourages initiative among lower level employees. 
Decentralization
  • Decisions made by employees, who are closest to the situation.
  • Employees who directly deal with customers, markets, etc
  • Motivates employees to exercise initiative
  • Enables more flexible response to rapid environmental changes
  • Permits to fix better accountability
  • Put the org at risk for bad decision making
  • Cross-unit coordination is at stake for favouritism

Steve Jobs

the inspiration for us...

AFTER STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO :


  • Define and discuss the nature of international organization design and identify and describe the initial impacts of international business activity on organization design
  • Identify and describe five advanced forms of international organization design and discuss hybrid global designs
  • Identify and describe related issues in global organization design
  • Explain the general purpose of control and the levels of control in international business.
  • Describe how international firms manage the control function.

Sunday, January 26, 2014

Introduction

An Introduction to 
INTERNATIONAL ORGANIZATION DESIGN AND CONTROL



Organization Design is the overall pattern of which all the structural components and configuration are utilized in managing the organization as whole. The appropriate for any particular organization depends on the size of the firm, strategy, technology and environment as well as the cultures that the organization originate from.

However there are several factors affecting an organization's ability to function and it has to be properly assembled and managed :

a. the manner that the organization allocate all its valuable resources i.e capital, manpower and etc.
b. how the organization assigned tasks to all its employees.
c. the way that the organization take to enforce its rules, procedures, and expectation pertaining to the employees' performance. and
d . the way the organization collects and transmit data or information that are crucial for problem solving, decision making, and effective organizational control.

Factor Affecting Design



CHAPTER 14 STUDENT PPT

http://wps.prenhall.com/bp_griffin_ib_5/59/15327/3923881.cw/index.html

Saturday, January 25, 2014

Global Hybrid Design


A Global Matrix Design


Advantages

  • Bring together the functional area and product expertise
  • Promote organizational flexibility
  • Provide access to all advantages of other designs 
Disadvantages
  • Appropriate for firms with many products and unstable environments
  • Employees accountable to multiple supervisors
  • Decisions may take longer 





Global Customer Design


Global Functional Design




Advantages

  • Transference of expertise
  • High centralized control
  • Focused attention of key functions
Disadvantages
  • Practical only when firm has few products or customers
  • Coordination difficult
  • Duplication of resources



Global Area Design


Disadvantages
  • Firm may sacrifice cost efficiency
  • Diffusion of technology is slowed
  • Design unsuitable for rapid technological change
  • Duplication of resources
  • Coordination across area is expensive







Global Product Design





Advantages
  • Managerial expertise
  • Production efficiency
  • Production flexibility
  • Flexible response to change
  • Marketing flexibility
Disadvantages
  • Unnecessary duplication
  • Coordination and cooperation difficult







Forms of Global Organization Design