ASSIGNMENT OF CCGM-2

A Assignment report submitted in Partial fulfillment of the requirement for the degree
Of
MASTERS OF BUSINESS ADMINISTRATION
(2019-2021)

SUBMITTED TO: SUBMITTED BY:

MISS. MONIKA AMANPREET KAUR
M.B.A 2nd Year(E)
Roll No- 19421065

SCHOOL OF MANAGEMENT STUDIES

PUNJABI UNIVERSITY, PATIALA.
QUES-1 Discuss the evolution of organisational structure of Global Organisation. Also
Discuss the Global matrix structure of Multinational Companies?

ANS- Meaning- A worker reports to a manager. A manager reports to a director, a

director reports to a vice president, and a vice president reports to a C-level senior
leader, like a chief executive officer or a chief administrative officer. If you’ve ever
worked in a corporate setting, you’re likely to recognize this as the basic set of layers of
an organization’s structure.

Organizational structure defines how job tasks are formally divided, grouped, and
coordinated. The structure of an organization usually features six different elements:

 Work specialization

 Departmentalization

 Chain of command

 Span of control

 Centralization and decentralization

 Formalization

History of Organizational Structure

In the United States, there was strong growth in the independent business sector after
the Civil War. Like many startup business owners today, the entrepreneurs of this
period just wanted to make their products and sell them rather than concerning
themselves with the theory and mechanics of creating viable organizational structures.

However, as some of these small businesses evolved into larger entities, they found
that they needed to impose some order and organization to streamline work, grow
more efficient and make the most of their human resources.

Businesses began structuring themselves with different levels of management and

hierarchies that placed rank-and-file workers at the bottom of the food chain. After
World War II, however, many companies began discovering that they were more
innovative and productive with flatter organizational structures that drew input from
employees at all levels. Some companies erred on the side of too little structure, so
many contemporary organizations are working to find an effective balance between
management and worker autonomy.

Global matrix structure of Multinational Companies-

Multinational companies, especially smaller ones, face more organizational challenges

than companies operating in only one national market. They have to maintain functional
organizational units, but they have to fulfill these functions in different ways, depending
on where the business in operating. The essential challenge is to create differentiated
organizational units responsible for the foreign markets while coordinating operations
across the whole company.

A matrix organizational structure combines the efficiency of the functionally organized

company with the flexibility of extensive local operations. Companies work on building
different pods of an organization that meet the demands of specific work needs.

Foreign workers report to local managers for questions about their work, while they
report to the head office for all other functions. The home organization retains control of
disciplinary matters, pay and promotions, while the employees carry out the work
according to local requirements. This is a suitable organizational form for smaller
companies active in only one or two foreign markets, but it is mainly used by larger
corporations who have extensive foreign operations. A matrix organization
structure involves horizontal, vertical and diagonal flows of responsibilities.
Mathematically arrangement of anything by rows and columns is called matrix structure.
In a matrix organization the products or projects may be the column element, while the
horizontal or row elements might be the functional lines of production, marketing, etc.
Third dimensionally, the geographic responsibilities might run. Matrix structure is a
combination of two or more different structures. Thus in a global matrix organization
structure a foreign subsidiary reports to more than one group, namely product/project,
functional or geographic. Global Matrix Structure contains simultaneous, intersecting
differentiation bases, with employees reporting to functional and product managers
simultaneously. The organization’s top management must take particular care to
establish proper procedures for the development of projects and to keep communication
channels clear so that potential conflicts do not arise and hinder organizational
functioning.

QUES-2- What is Cross Culture Research? Discuss characterstics of cultural

dimension of hofstede? Discuss Various problrms associated with cross culture
research?

ANS- Meaning- The systematic study of human psychological processes and behavior
across multiple cultures, involving the observation of similarities and differences in
values, practices, and so forth between different societies. Cross-cultural research
offers many potential advantages, informing theories that accommodate both individual
and social sources of variation, but also involves numerous risks, notable among them
the production of cultural knowledge that is incorrect because of flawed methodology.
Indeed, there are a host of methodological concerns that go beyond monocultural
studies, including issues concerning translation, measurement, equivalence, sampling,
data analytic techniques, and data reporting. Also called cross-cultural method; cross-
cultural study.

Cross-cultural studies involve the systematic comparisons of different cultures that aim
to understand variations of human behavior as it is influenced by cultural context. This
research approach is primarily concerned with examining how our knowledge about
people and their behaviors from one culture may or may not hold for people from
another culture.
Cross-cultural studies share methodological similarities as any other scientific
research study. However, a specific methodological parameter that differentiates
cross-cultural studies from other research studies is the sample; specifically, the
participation of individuals from different cultural backgrounds. In effect, this
methodological distinction reveals the philosophy that cross-cultural studies bring to
scientific research.

Hofstede’s Cultural Dimensions-

Cultures around the world are getting more and more interconnected and the business
world is becoming increasingly global. For managers this means that they should be
able to work with a large variety of people from different countries and cultural
backgrounds. However, since most people are so strongly immersed in their own
culture, they often fail to see how it affects their patterns of thinking or their behavior. To
overcome this, researchers suggest some kind of tools or mechanisms with which to
compare countries on cultural similarities and differences.

Power Distance
This dimension expresses the degree to which the less powerful members of a society
accept and expect that power is distributed unequally: beliefs about the appropriate
distribution of power in society. The fundamental issue here is how a society handles
inequalities among people. People in societies exhibiting a large degree of Power
Distance accept a hierarchical order in which everybody has a place and which needs
no further justification. In societies with low Power Distance, people strive to equalise
the distribution of power and demand justification for inequalities of power. China and
Saudi Arabia are countries with a high Power Distance index.

Individualism
The Individualism/Collectivism dimension is about the relative importance of individual
versus group interests. The high side of this dimension, called individualism, can be
defined as a preference for a loosely-knit social framework in which individuals are
expected to take care of only themselves and their immediate families. Its opposite,
collectivism, represents a preference for a tightly-knit framework in society in which
individuals can expect their relatives or members of a particular in-group to look after
them in exchange for unquestioning loyalty. A society’s position on this dimension is
reflected in whether people’s self-image is defined in terms of “I” or “we.” The USA is
considered as one of the most individualistic countries in the world.

Masculinity
The Masculinity/Femininity dimension is about what values are considered more
important in a society. The Masculine side of this dimension represents a preference in
society for achievement, heroism, assertiveness and material rewards for success.
Society at large is more competitive. Its opposite, femininity, stands for a preference for
cooperation, modesty, caring for the weak and quality of life. Society at large is more
consensus-oriented. In the business context Masculinity versus Femininity is sometimes
also related to as “tough versus tender” cultures. Japan is considered to be a very
masculine country, whereas Scandinavian countries such as Norway and Sweden are
considered highly feminine.

Uncertainty Avoidance
The Uncertainty Avoidance dimension expresses the degree to which the members of a
society feel uncomfortable with uncertainty and ambiguity. In addition its impact on rule
making is taken into account. The fundamental issue here is how a society deals with
the fact that the future can never be known: should we try to control the future or just let
it happen? Countries exhibiting a high Uncertainty Avoidance maintain rigid codes of
belief and behaviour and are intolerant of unorthodox behaviour and ideas. These
countries often need many rules to constrain uncertainty. Countries with a low
Uncertainty Avoidance index maintain a more relaxed attitude in which practice counts
more than principles, tolerance for ambiguity is accepted and the need for rules to
constrain uncertainty is minimal. South American countries such as Chile, Peru and
Argentina are highly uncertainty avoiding countries.

Time Orientation
Every society has to maintain some links with its own past while dealing with the
challenges of the present and the future. Societies prioritize these two existential goals
differently. Countries that score low on this dimension, for example, prefer to maintain
time-honoured traditions and norms while viewing societal change with suspicion. They
are past and present oriented and value traditions and social obligations. Countries
with cultures that scores high on this dimension on the other hand take a more
pragmatic approach: they are future oriented and encourage thrift and efforts in modern
education as a way to prepare for the future. Asian countries such as China and Japan
are known for their long term orientation. Morocco is a short term oriented country.

Indulgence
The Indulgence dimension is a relatively new dimension to the model. This dimension is
defined as the extent to which people try to control their desires and impulses, based on
the way they were raised. Relatively weak control is called Indulgence and relatively
strong control is called Restraint. Cultures can, therefore, be described as Indulgent or
Restrained. Indulgence stands for a society that allows relatively free gratification of
basic and natural human drives related to enjoying life and having fun. Restraint stands
for a society that suppresses gratification of needs and regulates it by means of strict
social norms.