are the metrics used to measure the performance of subunits and make judgement about how well managers are running those subunits
Advantages of Centralization (four main)
Facilitates coordination and control throughout the organization
Ensures decisions are consistent with organizational objectives
Gives top management the means to bring needed major organizational changes
Avoids the duplications of the same activities within the organization
Advantages of decentralization (5 thing)
Top management to focus on critical issues
Motivates low level managers with authorities and freedom
Permits greater flexibility
Leads to better decisions by local managers
Allows better accountability
Strategy and Centralization
The choice between centralization and decentralization is not absolute
Typically, firms centralize some activities or functions and decentralize others
International stra and global stra- emphasize centralization more
Localization- decentralization more
Transnational- both decentralization and centralization
Global matrix structure 420
horizontal differentiation proceeds along two dimensions: Product division and geographic area
Strategy and coordination
the need for coordination is lowest in localization strategy and highest in transnational companies.
Knowledge network
is a network for transmitting information within an organization that is based not on formal organizational structure, but on informal contacts between managers within an enterprise and on distributed information systems
Relationships among strategy
Stra Interdep PA CofC
Localization L L L
International M M M
Global H H H
Transnationl VH VH VH
Organizational Culture
Values and norms express them selves as the behavior patterns or style of an organization that new employees are encouraged to follow. they are not static , but it tends to change relatively slow
Strategy and Architecture 435
435 437
Organizational inertia 438
Organizations are difficult to change. Within most organizations are some strong inertia forces.
definition- most substantive changes in an organization requires a change in structure and extension a change in distribution of power and influence in a organization.
Author
Cshowalter
ID
298396
Card Set
The Organization of International Business Ch 14 D300