OB - II Project Report
Historical Evolution of Globalization on Organizational Structure5
Case Studies – Showcasing successful organizational structures6
Globaloney – Unraveling the myths of Globalization11
Problems with Traditional Globalization Theories11
Reasons for overlooking these obvious data points12
Ideal Globalization Approach12
How medium scale enterprises which are not really fully integrated globally can restructure their organization in the context of globalization?13
Organizational structure pertains to the way in which companies arrange their departments. Smaller companies tend to have flatter organizational structures with few management levels. Larger companies use tall organizational structures with many echelons of management and employees. Companies use several types of organizational structure for specific roles. Certain organizational structures come with different advantages and disadvantages. Thus, considerations should be made before choosing a structure there is no perfect formula because the nature of the company will determine what is best. Duplicating raw materials or job duties is wasteful and inefficient. That is why determining the structure of the organization early on is vital to the growth of the company, keeping in mind the needs of which. Organizational structure in a company also enhances the communication process, which in turn is important to decision making.
The size of a company is sometimes the determining factor as to organizational structure effectiveness. As efficient as organizational structure can be, it can also create problems that can lead to loss of productivity and internal conflict. A strong company framework needs to identify suitable structure for their business. Factors such as company size, span of control, technology and tasks should be considered.
“Structure follows strategy.”Organizational structure is important because managers coordinate and organize to implement strategies. The form of organization influences how labor, knowledge, and skills are allocated to tasks; establishes how information will be channeled and affects the efficiency and sentiment with which individuals perform.
We tend to view organizing a matter of decision-making: we decide to arrange the people, jobs, and positions that we have available to meet management’s needs. But, there are real constraints on the forms of organization available to us. Hospitals tend not to be structured like fast food restaurants, and banks are not organized like a manufacturing plant. The task (or type of work to be done), the technology (the way we know how to do something), and our knowledge of what has worked and what does not work influence and limit our choice of organizational design.
To measure the actual Globalization levels and what effect it might have on organization structure Conventional Belief – We live in a flat world
The concept of globalization today has invaded the globe and the national boundaries have been virtually eliminated. So what is the effect of this? Simple, the world today has become a small but a very complex and dynamic neighborhood. Today we live in a global village and this means that our activities have crossed the national boundaries to become global. Globalization symbolizes the structural making of the world characterized by the free flow of technology and human resources across national boundaries presenting an ever-changing and competitive business environment. A vital aspect of globalization is the way diverse challenges are being faced by nations in an increasingly inter dependent world. No country can meaningfully progress today without efficiently responding...