GMS 724 Chapter Notes - Chapter 13: Magical Organization, Decision-Making, Chaebol

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 724
• Professor: Jim Everard

Document Summary

The goal of mnes is to standardize activities to maximize global efficiency and at the same time adapt activities to maximize local effectiveness. To achieve this goal the mne must establish the right structure to implement. Organizing is the process of creating the structure, systems, and culture needed to implement the company"s strategy. Environmental trends, industry conditions, and market opportunities are forcing change: expansion of international business, the internet as a design standard, managerial standards, social contracts, building a magical organization. Companies now try to build magical organizations with the best mix of structure, systems, and values. Organizational structure: the formal arrangement of roles, responsibilities, and relationships in the mne. Vertical differentiation: the balance between the centralization and decentralization of authority. Horizontal differentiation: involves specifying which people do which jobs in which units. Degree to which high-level managers make strategic decisions and delegate them to lower levels for implementation: decentralization.