EXAMPLE OF ORGANIZATION DESIGN / STRUCTURE

APPLE COMPUTERS
THE EMPHASIS IS ON

(1) How to divide work among the organization's subunits?

(2) How to coordinate and control the efforts of the units created?

A WORLDWIDE PRODUCT STRUCTURE

Implements strategies that emphasize global products
Each product division assumes responsibility to produce and sell its products or services
though out the world

A WORLDWIDE GEOGRAPHIC STRUCTURE

Implements a multinational or regional strategy
Country-level divisions
Separate divisions for large market countries

APPLE’S GEOGRAPHIC STRUCTURE

HYBRIDS AND WORLDWIDE MATRIX STRUCTURE
Support strategies that include local adaptation and concern for globalization.
Mix geographic units with product or function units
Managers report to multiple supervisors
Conflict, confusion, loss of accountability
Amplified by distance, time, culture, language

THE TRANSNATIONAL NETWORK STRUCTURE

Implements the transnational strategy
Combines functional, product, and geographic subunits in networks
Has no symmetry or balance in its structural form
Resources, people, and ideas flow in
all directions
Nodes or centers in the network coordinate product, functional, and geographic
information

NETWORK STRUCTURES HAVE

Dispersed subunits
Specialized operations
Interdependent relationships

Key characteristics of transnational organizations

Multidimensional perspectives
Distributed, interdependent capabilities
Flexible integrative processes
Multidimensional perspectives
National subsidiary management senses needs of local customers and host governments
Global business management tracks competitors and coordinates response
Functional management concentrates knowledge and facilitates transfer among
organizational units

Distributed, interdependent capabilities

Centralize activities for which global scale or centralized knowledge is important
Involve relevant national units in developing technology, products, marketing strategy
Interdependence of worldwide units is high – the integrated network

Flexible integrative processes

Centralization
Formalization
Socialization

EXAMPLE PRODUCT LINKS

CONTROL AND COORDINATION SYSTEMS
Top managers must design organizational systems to control and coordinate the activities
of their subunits.
BASIC FUNCTIONS OF CONTROL
Measure or monitor the performances
of subunits
Provide feedback to subunit
managers regarding the effectiveness
of their units
COORDINATION SYSTEMS
Provide information flows among subsidiaries
Link the organization horizontally
CONTROL SYSTEMS
Output
Bureaucratic
Decision making
Cultural