Ibus 466 multinational management: a strategic approach. Managers must try to design their organizations with what they believe are the best mechanisms to carry out domestic and multinational strategies. Organizational design how organizations structure subunits and use coordination and control mechanism to achieve their strategic goals. In small organizations, the subunits are usually called departments. In large organizations, divisions or subsidiaries become the major subunits. Some companies monitor their subunits very closely they centralize decision making at company headquarters to make certain that the production and delivery of products and services conform to rigid standards. Other companies give subunits greater flexibility by decentralizing decision making. Function structure- departments or subunits based on separate business functions. Simplest of organizations and typical of small businesses. Gets its efficiency from economies of scale in each function because cost savings when a large number of people do the same job in the same place.