Reporting systems such as those described in this chapter require sophisticated information systems to enable them to work properly - not only for competitive purposes, but also for purposes of performance evaluation. Top management must receive accurate and timely information regarding sales, produ.... readmore
One example of differences in the expectations regarding monitoring practices, and therefore in the need for coordination systems, is indicated by a study of Japanese and American firms- Exhibit 8-11 shows the mean responses of the American and Japanese managers concerning budget control practices i.... readmore
Management practices, local constraints, and expectations regarding authority, time, and communication are but a few of the variables likely to affect the appropriateness of monitoring systems. How transferable headquarters' practices and goals are probably depends on whether top managers are from t.... readmore
Indirect coordinating mechanisms typically include sales quotas, budgets, and other financial tools, and feedback reports, which give information about the sales and financial performance of the subsidiary for the last quarter or year.
Domestic companies invariably rely on budgets and financi.... readmore
Direct mechanisms that provide the basis for the overall guidance and management of foreign operations include the design of appropriate structures (discussed earlier in this chapter) and the use of effective staffing practices (discussed in Such decisions proactively set the stage for operations to.... readmore
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 c.... readmore
The establishment of a single currency makes it possible, for the first time, to establish shared, centralized accounting and administrative systems.
To complement the organization structure, the international manager must design efficient coordinating and reporting systems to ensure that act.... readmore
At persistent signs of ineffective work, a company should analyze its organizational design, systems, and work flow for the possible causes of those problems. The nature and extent of any design changes must reflect the magnitude of the problem. In choosing a new organizational design or modifying a.... readmore
When a company makes drastic changes in its goals, strategy, or scope of operations, it is usually quite clear that a change in organizational structure is called for as well. However, other, less obvious, indications of organizational inefficiency also signal a need for structural changes: conflict.... readmore
Two major variables in choosing the structure and design of an organization are the opportunities and need for (I) globalization and (2. localization. Exhibit 8-6 depicts alternative structural forms appropriate to each of these variables and to the strategic choices regarding the level and type of .... readmore