Exam 3: Design and Structure of the Multinational Enterprise
Which of the following is TRUE about Organizational Design
A
Describe the concerns with the Global Matrix Structure.
The matrix structures involve two or more lines of reporting. Typically, there will be a country "leg" to the matrix with managers reporting to a local, national boss and reporting to a product group or regional or HQs functional office. Sometimes, there are three or more legs. They may be given equal importance (solid line reporting) or may have different priority levels, with a solid line for direct reporting and a dotted line for more indirect reporting relationships. These structures cause a new set of dilemmas and require new skills. The many diverse global business demands require the global firm to give management focus to both the local and the corporate levels. The matrix doesn't resolve this dilemma, making it a permanent part of the management environment. At best, the matrix structure allows local and global realities to be reconciled; at its worst, it will enable individual managers to pursue narrow objectives without regard to their impact on the other legs of the matrix, that is, on the different parts of the organization
Two major new challenges related to the successful implementation of cross-border teams are
A
Which of the following is a factor in determining organizational structure:
Using a matrix structure for reporting relationships resolves the dilemma associated with having managers reporting to a local, national boss and a regional functional office.
In a shared service model, individual country operations can specialize in varying aspects of international HR services. Then other countries can access these services and products without developing them all themselves.
Organizations that bring together the production of goods and services from their many locations around the globe to deliver value to clients worldwide have adopted a ________ structure.
Obviously, no one type of international organization structure embodies the right system for all firms.
List five strategies for improving the effectiveness of cross-border and virtual teams.
Organizations that are in the early stages of internationalization usually have _________divisional structure.
Managers can have a significant impact upon the success of internationalized firms by developing informal ________ throughout the many centers of the firm.
Evaluate the merits of developing networks and a learning organization approach to how this helps facilitate competitive advantage for MNEs.
The process or style used by management to arrange the various components of the organization is referred to as
The level of trust between team members is the critical variable in the successful functioning of virtual teams.
Identify and explain how IHRM can help ensure firms' success with a global organizational structure.
Organizational _______ refers to the formalized arrangement of organizational components such as headquarters, business units, and product lines in an organization
Organizational design is an outcome, whereas organizational structure is a process.
You could describe the basic global structure of every MNE in terms of how it is designed to manage the competing demands of integrating activities in different countries and coordinating foreign subsidiaries with headquarters.
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