Structural Design for Global Operations 43

Model for Global vs. Local Opportunities The dilemma facing the international organizations is when to use a globalization rather than a multi domestic strategy. GLOBALIZATION strategy means that product design and advertising strategy are standardized throughout the world example of Japanese companies as compared to US and Canada

Model for Global vs. Local Opportunities A MULTI DOMESTIC strategy means that competition in each country is handled independently of competition in other countries. It would encourage product design, assembly and marketing tailored to the specific needs of each country. French don’t drink orange juice in breakfast and laundry detergent is used to wash dishes in Mexico

Model to Fit Structure to International Advantages Forces for Global Integration Hi Globalization Glob+MD global product str Glob matrix Low Export strg MD strg Intl Div Glob geo stru FORCES FOR NATIONAL RESPONSIVENESS

Transnational Model This model of organization structure goes beyond the global matrix structure to apply the concept of the learning organization to a huge, international corporation. It is the most recent thinking about the kind of structure needed by complex organizations. This model cannot be given a precise definition but the following elements distinguish it from and move it beyond a matrix structure: TN model differentiates into many centers of different kinds: “flexible centralization” and not one HQ like matrix Subsidiary managers initiates strategy and innovations that become strategy for the corporation as a whole. (bottom-up approach in strategy making) Unification and coordination are achieved through corporate culture, shared vision and values, and management style rather than through the vertical hierarchy. Alliances are established with other company parts and with other companies.

Trend Towards Empowerment EMPOWERMENT is the notion of giving employees the power, freedom, and information to make decisions and participate fully in the organization.

Trend Towards Empowerment WHY FIRMS ADOPT EMPOWERMENT? As a strategy to improve products or services Because other firms in their industry are doing the same To create a unique Learning organization with superior performance capabilities.

Trend Towards Empowerment Power in organizations is not a zero sum game Empowerment increases the total power in an organization

Elements of Empowerment Empowering employees means giving them four elements that enable them to act more freely and accomplish their jobs. Employees receive INFORMATION about company performance Employees have KNOWLEDGE and skills to contribute to company goals Employees have the POWER to make important decisions Employees are REWARDED based on company performance