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Chapter 4: Developing a Transnational Organization: Managing Integration, Responsiveness and Flexibility by Mind Map: Chapter 4: Developing a Transnational Organization: Managing Integration, Responsiveness and Flexibility
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Chapter 4: Developing a Transnational Organization: Managing Integration, Responsiveness and Flexibility

International Structural Stages Model

companies adopt different organizational structures at different stages of international expansion

Two axis

Stages

Building a Transnational Organization

Anatomy (Structure)

Physiology (Systems and Processes)

Management needs to develop the communication channels through which the organization's communication takes place. This way it can shape the amount, content and direction of information flows.

Psychology (Culture and Management Mentality)

In an MNE, people will have different cultural backgrounds and beliefs and be separated by time, location and language. Management needs to create a shared understanding of values and beliefs.

Managing the Process of Change

Gross oversimplifications because changes often overlap. Orders just show emphasis

Traditional Change Process

Change in Anatomy leads to change in Physiology leads to change in Psychology Does not work out because people have their own beliefs and values that won't change just because of a different organizational structure

Emerging Change Process

Change in Psychology leads to change in Physiology leads to change in Anatomy Use intensive education programs, followed by alterations to communication flows and decision-making processes. Only when this has taken place, adjust the organizational structure to accommodate the changes.

Transnational Organization in Transition

MNE's are always adapting their form of transnational management

Disenchantment with Formal Matrix Structures

Redefinition of Key Organization Dimensions

The dimensions around which MNE built their global operations were business and geography. Recently the global consumer dimension is becoming more important! Companies shift from "selling products" to "providing solutions"

Changing the Functional Manager Role

Managers of Finance, HR, and IT functions are becoming more important in organizations as companies realize the value of information and knowledge