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decision making in global organizations. Decision-Making in Global Organizations
In today’s business environment, there is sustained ...
... years, the impact of ethical shambles by global organizations in the business world
have resulted in renewed discussions of ethical decision making in both the ...
... “Decision making is a conscious process of making choices among ... decide how they will
achieve their most important goal, “Becoming a global resource ...
... Effective communication is vital to all organizations. ... This will position Global
Communications parallel to ... interests in strategic decision-making processes. ...
... of the signed contract between the two organizations. ... 1) End-State Vision: Global
Communications will ... to resolve conflict through decision making processes. ...
Submitted by graham on September 26, 2007
Category: Business
Words: 1644 | Pages: 7
Views: 253
Popularity Rank: 38,752
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Decision-Making in Global Organizations
In today’s business environment, there is sustained pressure for companies to maximize productivity in order to be competitive in the marketplace. Many businesses are moving a variety of activities, such as manufacturing and product development, to countries with low labour costs. They are also opening up sales channels in many new markets. The resulting global organizations need to structure themselves, so that they can effectively manage operations across numerous locations. This paper looks at how the organizational structure of a global company influences decision-making at the regional level, and how this can affect the business performance. This paper will:
- Consider whether centralized and decentralized business structures will make different business decisions depending on the cultural values in the region.
- Explore how a transition from an autonomous structure to a centralized structure affects regional performance.
- Examine how a global company can delineate decision-making responsibility that balances a corporate code of conduct with regional cultural differences to achieve optimal business results.
- Recommend steps that global organizations can take to optimize regional decision-making, and corresponding business results, across regions with different cultural backgrounds.
Large corporations have been attempting to find a balance between the traditional hierarchical structure and the flexible local entrepreneurial structure for many years. Increasing global competition has made it critical that multinational enterprises be both globally integrated and locally responsive at the same time (Bartlett & Ghoshal, 1988). Sohn & Paik (2004) describe the efforts of Toshiba to achieve a hybrid of centralized control and localized autonomy. Irrespective of the structure chosen, corporations can all be placed somewhere along the continuum between centralized and...
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