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Organizational Structures - Research Paper Example

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Based on the structure of multinational corporations called the meta-national, compare and contrast how this meta-national structure differs from the “Worldwide Matrix” and the “Transnational Structure.”
The meta-national structure is focused and developed to focus…
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Organizational Structures
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Organizational Structures Affiliation: Based on the structure of multinationalcorporations called the meta-national, compare and contrast how this meta-national structure differs from the “Worldwide Matrix” and the “Transnational Structure.”
The meta-national structure is focused and developed to focus more on the international markets and hence a larger view and global goals for the organization. It is not dependent on the success of the local market in order to expand but takes risks to expand globally and succeed on a higher level. Unlike meta-national structure, the worldwide matrix focuses more on the local market and their success and then transfer this success internationally. The transnational structure on the other hand incorporates the aspects of the two structures mentioned above in order to ensure its success locally and internationally (Claver-Cortes, Pertusa-Ortega and Molina-Azorin, 2012).
2. Compare and contrast the advantages and benefits found with a “Worldwide Product Structure” over a “Worldwide Area Structure.” What type of company would choose each type of Structure?
A Worldwide Product Structure is more decentralized and hence encourages diversification and autonomy of the products being processed by a company. This encourages growth and creativity without constant nagging and blockages from the headquarters. This is the opposite of what happens in a Worldwide Area Structure which centralizes its powers on the headquarters hence making it hard for the other branches of the product in other areas to develop autonomy or even creativity.
A company that would choose the first structure is the one that is adamant on diversification and it previously had its domestic structures being based on division of products. A company choosing the worldwide area structure is the one which values centralization and has a diversification degree that is too low (Hempel, Zhang and Han, 2012).
3. As companies internationalize their strategies, they usually create complex organizational structures. Discuss these types of structures and explain their advantages and implications.
One type is the divisional structure where a company is grouped in divisions that depend on the products and the geographical area. The advantage of this type of structure is that each geographical area gets the products that it uses mostly and hence ensuring that the sales remain high and the company’s product has a competitive edge in that geographical area.
The other type of complex organizational structure is the matrix structure. This is complex because of the different type of matrix that are present and which largely depend on both the employees and the products. It works well and succeeds in companies where employees work in teams to promote their products. In case there is no team work, this structure does not work well.
References
Claver-Cortes, E., Pertusa-Ortega, E. and Molina-Azorin, J. (July, 2012). “Characteristics of organizational structure relating to hybrid strategy: Implications for performance.” Journal of Business Research, vol. 65 (7), pp. 993-1002.
Hempel, P., Zhang, Z. and Han, Y. (March, 2012). “Team Empowerment and the Organizational Context: Decentralization and the contrasting Effects of Formalization.” Journal of Management, vol. 38 (2), pp. 475-501. Read More
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