Writing a Paper on Three Factors That Influence How an Mnc Selects an Organizational Structure Essay
Factors that influence the selection of an Organizational Structure The first factor that I think has an influence on selecting an Organizational Structure would be strategy. Strategy determines how an organization is going to position itself in the market in terms of its products. There are two types of strategy: differentiation and cost-leadership. Differentiation strategy is when an organization wants to have the newest and best product. Cost-leadership strategy is when the organization produces a product that is already on the market but is more efficiently and more cost effective.
Either structure is used to help an organization to reach its objective. The second factor would be the organizations environment. It is where the organization operates and includes conditions that influence the organization such as economic, social-cultural, legal-political, technological and natural environment conditions. There are two types: stable and dynamic. In the stable environment this is what the customer desires. It is understood and should be considered long term. For the dynamic environment the customer’s desires will change constantly.
The stable environment is considered to be mechanistic. It enhances the long term performances of the organizations. The last would be technology. Using technology allows the organization to task by using tools, equipment, techniques, and human know-how. The use of technology gives organizations a greater results and efficiency as well as lower cost for the organization. There are three categories: small-batch production, mass production and continuous-process production. The small-batch is used to make a variety of custom, made-to-order goods.
These are made for a specific customer to meet their specifications. Mass production is used for a company that will need a large number of goods that are uniformed. This is usually done in an assembly line environment. Continuous-process is when goods are created by continuously feeding raw materials though an automated system. They are equipment intensive but are sometimes operated by a small labor force. Technology has come a long way. Some parts will only use the digital phone and not even think about analog.
By using technology it increases productivity for employees, for companies and for countries. It is specific to an organizations product which represents a key competitive advantage to organizations and challenges international businesses to manage the transfer and diffusion. It can also be used for research and development as well as specialized management knowledge to be integrated and shared. One of the risks would be inappropriate use of technology by joint venture partners, franchisees, and employees.
Organizations should enforce employee secrecy agreements. They also need to use patents, trademarks, trade names, copyrights and trade secrets to protect proprietary. They must study the possible cultural consequences of the transfer of technology to assess to see whether the local people are ready and willing to change their values, expectations, and behaviors on the job to apply new technological methods to production, research, marketing, and finance.
CliffsNotes. com. Factors Affecting Organizational Design. 23 Nov 2010 <http://www. cliffsnotes. com/study_guide/topicArticleId-8944,articleId-8881. html>. Caligiuri, P. , Lepak, D. , & Bonache, J. (2010). Managing the Global Workforce. Introduction to International Dimensions of Human Resource Management, 3, 1190-1204 http://www. businessmanagementclassonline. com/businessmanagement-38-economic-the-technological-environment. html