Bus 440 FINAL STUDY REVIEW
– pattern of configurations used to manage the organization.
Factors effecting design –
country culture, size, strategy, environment, and technology. (CCS.SET)
Types of Knowledge affecting design –
Functional, Area, Product (FAP)
Forms of global organization design –
functional, area, product, matrix, and customer (FAPMC)
Managerial philosophies –
polycentric, ethnocentric, and geocentric (PEG)
Global product design –
assigns responsibility for products to separate operating divisions in a firm.
Advantages; managerial expertise, marketing flexibility, production efficiencies. Disadvantages;
duplication, difficult coordination and cooperation.
Global area design –
organizes the firm’s activities around specific areas of the world.
Global functional design –
create departments that have worldwide responsibilities for finance,
operations, marketing, etc.
Global customer design –
firm serves different customers each with specific needs for expertise.
Global matrix design –
superimposing one form or design on top of an existing, different form.
Hybrid design –
given the firms size, strategy and culture, and blends elements of all the designs.
- allowing subsidiaries great discretion over strategy, finance, production and
marketing, letting decisions be made by managers closest to the market.
monitoring ongoing performance and making changes to keep the firm towards its goals.
Levels of control –
strategic (formulating and implementing strategy), organizational (design), and
operations (operating processes and systems); (SOO)
Responsibility control center –
decentralized; firm identifies fundamental responsibility centers within
Control techniques –
accounting systems (collecting, analyzing and communicating data about financial
resources), procedures (policies, rules and regulations carry out the control function), performance ratios
(a numerical index of performance that the firm wants to maintain)
Resistance to control –
over control, inappropriately focused, control increases their accountability.