Organization Structuring in Multinational Corporations
Abstract
Organization structure is an important mechanism to enable the organization to achieve its objective, because it is a factor that defines the relations between workers and subunits, authority, communication channels, and other activity controls in the organization in order for them to function together efficiency. Therefore, there has to be a pattern of organization structure and this has to be arranged and adjusted regularly to fit the situation.
The inner and outer environment, such as the business size, the management directive from the managing director, and product development, are factors that require the organization to have a design and to adjust the organization structure regularly as appropriate. The factors that had the most effect are the levels and changes of activity taking part in international countries besides those of exporting. The organization can expand the business into other nations by selling licenses, joint ventures, and foreign production. which are different among countries. If the Organization has a profound relationship with the foreign country, the decision to operate in the nation will be very important and has the most effect or the organization's success.
The organization structures of multinational corporations are very important to their business success because the right organization structure will direct effective decision making and fast communication in the organization.
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