IB13 - Chapt er 13 Haga clic para modificar el estilo de...

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Haga clic para modificar el estilo de subtítulo del patrón Chapter 13 The Organization of International Business
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Introduction Organizational architecture refers to the totality of a firm’s organization, including formal organization structure, control systems and incentives, processes, organizational culture, and people To be the most profitable, firms need to be sure: v the different elements of the organizational architecture are internally consistent v the organizational architecture matches or fits the strategy
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Organizational Architecture Organizational structure refers to: the formal division of the organization into subunits the location of decision-making responsibilities within that structure (centralized versus decentralized) the establishment of integrating mechanisms to coordinate the activities of subunits including cross-functional teams or pan-regional committees
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Organizational Architecture Incentives are the devices used to reward appropriate managerial behavior Processes are the manner in which decisions are made and work is performed within the organization Organizational culture refers to the norms and value systems that are shared among the employees of an organization People refers to not just the employees of the organization, but also the strategy used to recruit, compensate, and retain those individuals and the type of people they are in terms of their skills, values, and orientation
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Organizational Architecture Figure 13.1: Organizational Architecture
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Organizational Structure Organizational structure has three dimensions: 1. Vertical differentiation - the location of decision-making responsibilities within a structure 2. Horizontal differentiation - the formal division of the organization into sub- units 3. The establishment of integrating
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Vertical Differentiation: Centralization And Vertical differentiation determines where decision-making power is concentrated Centralized decision-making: facilitates coordination ensure decisions consistent with organization’s objectives gives top-level managers the means to bring about organizational change avoids duplication of activities
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Vertical Differentiation: Centralization And Decentralized decision-making: relieves the burden of centralized decision- making has been shown to motivate individuals permits greater flexibility can result in better decisions can increase control It can be worthwhile to centralize some decisions and decentralize others
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Horizontal Differentiation: The Design Of Structure Horizontal differentiation is concerned with how the firm decides to divide itself into sub- units The decision is usually based on: function type of business geographical area
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Horizontal Differentiation: The Design Of Structure Most firms begin with no formal structure As they grow, the organization is split into functions reflecting the firm’s value creation activities (functional structure)
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This note was uploaded on 08/17/2011 for the course BUSL 01342 taught by Professor Jenkins during the Winter '10 term at Ohio University- Athens.

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IB13 - Chapt er 13 Haga clic para modificar el estilo de...

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