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2 basic organizatioanla structures
- 1. A route and lucus of decision making and coordination
- 2. a system for reporting communications
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Stages of organization
- Step one little or no formal organization
- step two international division
- Step three The Global Organizaiotn
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Step one of organization- Little or no formal organization
domestic operation assume responsibity for the nternational operations
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Step 2 of organization- the international division
it centralizes all the responsibilities for global activities, the aim is to eliminate possible bias against global operations
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Step three of organization- the global organization
global strucutres have grown out od competitive necessity
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6 types of global structures
- 1.global production structure-
- 2. Global area structure
- 3. Global functional structure
- 4.Global Customer structure
- 5. Mixed or hybrid
- 6. Matrix Stucture
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Global Product Stucture
an organization structure in which product divisions are responsible for all global activity
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Global area structure
An organizational structure in which geographic divisions are responsible for global activity
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Global Functional Structure
an organization structure in which departments are formed on the bias of functional area such as production, Marketing, and finance easist
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Global Customer structure
An organizational structure in which divisions are formed on the basis of customer groups
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Matrix Structure
Most complicated an organiztional strucutre that uses functional a divisional structures simotainiously
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Locus of desicion making
- 1. Decentralization
- 2. Centralization
- 3. coordinated decntralization
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Decentralization (Locus of desicion making)
the granting of a high degree of autonomy to subsidaries
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Centralization ( Locus of desicion making)
the concentrating of control and strategic decision making at headquarters
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Coordinated decentralization (Locus of desicion making)
The provision of an overall corporate strategy by headquaters, while granting subsudaries the freedom to implement their own corporate strategies within established ranges
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Four factors of decsion making
- 1. the degree of involvement in international operations
- 2. the products the firm markets
- 3. the size and importance of the firm's markets
- 4. the human resources capibility of the firm
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Types of controls
- 1. output control
- 2. Behavior control
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Output control
Organizational controls such as balance sheets, sales data, production data, product line growth, and preformance reviews of personnel.
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Behavioral controls
organizational controls that involve influenceing how activities are conducted
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factors for selecting global managers for overseas assignments
- 1. competence factors
- 2. Adaptability factors
- 3. Personal characteristics
- 4. adaptability screening anf orientation
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Compensation for overseas assignment
- Base Salary
- Cost of living allowance
- Foreign service premium
- Hardship allowance
- Housing allowance
- Tax-equalization plan
- education allowance
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Base salary
salary not includeing specail payments such as allowances paid during overseas assignments
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cost of living allowance
an allowance paid during the assignment over seas to enable the employee to maintain the same standard of living as at home
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Foreign service premium
a financial incentive yo accept the assignment overseas, usually paid as a percentage of the base salary
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Hardship allowance
an allowance paid to an area that requires major adaptation
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Housing Allowance
an allowance paid during an overseas assignment to provide apporiate living quarters
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Tax equalization plan
Reimbursement by the company when an employee in an overseas assignment pay taxes at a higher rate than at home
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Education allowance
reimbursment by a company for a dependants educational expensese
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