culture org culture structure

							Organizing International
    Organizations
 Formal Organizational Designs
• By role and organizational position
  – Complexity
     • Horizontal vs Vertical
     • Spatial
  – Formalization
     • Rules & procedures, documentation, discretion
  – Centralization of Decision making


• Examples: Mechanistc, Organic
High horizontal differentiation, Higg formalization, Centralized decisions




Low horizontal differentiation, low formalization, decentralized decisions
Types of relationships with units
   located in other nations
• Collaborative
  – Informal cooperative
     • Limited scope, no contract
  – Formal cooperating
     • Contract, broader involvement
  – Joint ventures
     • Joint ownership
• Non-Collaborative
  – Mergers & Acquisitions
      Mergers & Acquisitions
• STEP 1
  – Integration processes
    • Autonomy vs. absorption
    • social integration
       –implement training, organize teams etc
• STEP 2
  – Control Systems
  – Management Practices
     Mergers & Acquisitions
– Types of Integration processes shapes
  attitudes toward new org AND leveraging of
  different capabilities, learning opportunities etc.

– Control Systems
– Management Practices
      Mergers & Acquisitions
• Culture shapes both acquiring firm’s
  approaches and target’s reactions to..
  – Types of Integration
 Understanding designs of Multi
      National Org (MNO)
• Typical framework
  – By product, function, location, ‘matrix’ or all
    international grouped
     • similar to design framework organized by role
       and org’n position
• Understand Organizational Design Via
  Strategy
Typical Framework to understand MNO Designs
         (by hierarchy, product, location)


                                 c3
       country1    c2




 Product 1
  Understand Organizational Design Via Strategy
Strategy        Multi-national    Global       Inter-national   Trans-national


How are         Decentralized     Centralized Core              Dispersed,
assets &        self sufficient   globally    competencies      interdependent,
capabilities    within unit       scaled      centralized,      specialized
organized                                     others not
What is the     Sense and         Implement    Adapt &          Different
role of the     exploit local     Parent       leverage         contributions
international   opportunities     company      parent           by units to
operation                         strategies   company          entire org
                                               competencies
How is          Knowledge         Knowledge Knowledge           Knowledge
Knowledge       developed &       retained at retained at       developed
developed &     retained          centre      centre and        jointly and
transferred     within each                   transferred to    shared
                unit                          int’l units
    Discussion Qs re: Aerostar
              Case
• What is the strategy that the parent takes
  when establishing a relationship with
  Aerostar
    Organizational Culture
      (informal design)
• Shared norms and meanings between
  organizational members,
• guides behavior,
• gives identity,
• differentiates from other org,
• socializes members to do things
  consistent with goals of org
            Types of Org Culture
Features
Relationship   Diffuse, to Specified   Specific to    Diffuse,
               whole org via role in   tasks/obj      spontaneous
                           org

Authority      Parental    Superiors   Contributing   Achievers
                                       members
Employees      Family      Human       Specialists    Co creators
                           Resources
Reward         Intrinsic   Promotion   Performance participation


Management Subjective Job              Objectives     Enthusiasm
                      description
                       National Culture & Org Design

Societal Pressure                          Manager values
family oriented, gov’t supported vs.       e.g., power distance,
inter-firm networks, bank supported
                                           collectivism etc, AEROSTAR



 LEGITIMATED                               MANIFESTED
 Patterns of                               Patterns of
 Organization                              Organization

                          Organizational
                          Design             Size,
                                             Technology,
                                             Strategy
       Performance of MNO
• Determined both by formal design
  elements & (informal) Organizational
  Culture elements
  – Recruitment, performance appraisal, training
    & development
     • E.g., AEROSTAR CASE
Behavior of Managers in Subsidiaries
 Cultural Norms       Pressure for        Imperative for
                      Organizational      Control
                      Replication
 Adaptation to
 Local Environment            Consistency to
                              Parent organization

       Structure & Practices of         MNO Design
       Subsidiaries                     Strategy

                                       Identification with
       Managerial Behavior             parent organization
       in Subsidiaries                 vs. subsidiary
AEROSTAR CASE
Additional un-used slides
     Psychological Contracts
• Beliefs about what the exchange b/w
  individual and org is
  – Perf requirements, training, compensation,
    career development
Organizational                       Self Perception
                                     •Transactional vs. relational
Structure                            exchange with org
•Role differentiation, hierarchies   •Importance of social cues,
within structure                     •shared with other members,
                                     •Violations of contract
                                         •Norm for harmony vs.
                                         alternatives to organization




         Psychological Contract