The design and application of coordinating and reporting systems for foreign subsidiaries and activities can take any form that management wishes. MNCs usually employ a variety of direct and indirect coordinating and control mechanisms suitable for their organization structure. Some of the typical control methods used for the major organizational structures discussed here are shown in Exhibit 8-10. These are self-explanatory. For example, in the transnational network structure, decision-making control is decentralized to key network nodes, greatly reducing emphasis on bureaucratic control. Output control in this exhibit refers to the assessment of a subsidiary or unit based only on the results attained. Other specific mechanisms are summarized below.
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