Many iesveearze when an employer plans te open an international branch, hire international workers ane formulate globalized strategy. Among the questions that must be answered are + How ée human resource legal requirements ane practices vary from country to county? + Should HR officials at heacquarters do the work, o” should 3 company open HR offices in the other county? + Shoule an organization hire consultants to handle local hiting and personnel services? Unless employers have 2 sound HR strategy ready before leaping into another country, they could fall |when an organization opens international afces, HR professionals and other business leaders should be able to communicate as cetectively wth woikers across the globe as around the corner. That can be a challenge. Having a rabust intranet and using videaconterencing ae altematves to face-te-ace communication. ‘As rapid changes in technology affect glabel communication, employees must be aware of Inguisi, cultura relglous and socal stterences among colleagues and business contacts. The organization should train all emplayees (not just manages ané CEOs who ‘wavel in ctrl Iteracy. Moreover, employers should be aware thet language effets, ime-andelstance challenges, the absence of face-to-face contact, and, above al, the bartets posed by cultura ferences and personel communication styles make global vitul work far mote complex ‘than local structures, These practices ean enhance global vitual team relationships + Using ontine chats, video- and audloconferencing in addition to one-on-one conversations and e-ma + Posting protiles of team members tha outine th ‘expertise and oles in the axganizaton, + Boing sensitive to he level of engagement team members ae Healy to liver if they must meat at inconvenient hours across ‘mutiple tine zones Legal ssves Regardless ofthe type of stuetue, emplayers must ensure comple with legal requirements inthe counties where helt organizations operate. Some of thse requirements will be quite extensive fe exemple, puble companies must ensure compliance th the Sarbanes-Oxley et, an mest exganlzations must ensure compliance With the Flr Labor Standards ct and its relate state laws) When organizational structures change, athe ehan of eammand is weak or fais o keep up-to-date wth changes inthe business, a company may have compliance problems Because the stucture has not bech eveluated with regar!to these laws, Imagine, {or example, a restiuetting thet reduces the numberof dee reperts fr en entke layer of menagement which aetheps leads to those. Individuals ne longer being exemat Asan organization moves inernationally, laws in the host countries must also be evaluated and a plan putin place for compliance betore the expansion occurs, Employers must aniipse and plan for ls afecting all aspects ofthe employee experience, ineluding hiring, benef, leaves ane termination, Frequently Asked Questions: What isan organizational structure? - ‘Organztional stucture isthe method by whieh work los tough an erganzaton and allows groups to work together within thelr individual functions to manage tasks Fie elements create an organizational structure:jod design, departmentation, delegation, span of contol ane chain of eommané. These elements comprise an organizational char ane create the organizational structure heel, The company’s strategy of managerial cetralasion or decentralization also influences organizationalWhats a traditional organizational structure? = ‘Tradtlonal erganizational structures tend to be more formalized, vith employees grouped by function (such as finance or eperations) region or product ne What ae the benefits ofa less traditional rganizational structure? = Less taciiona structures ate mare loosely woven ane flexble, with the ably to respond quiely to changing business environments How have orga ‘Organizational structures have evelved since the 1800s. nthe Incustial Revolution incviuals were cerganized to acd pars tothe manufacture ofthe product moving Gown the assembly line. nthe 20th century General Moots pioneered a revoluonary erganizatonal design in which each msjer division made ts own cars Today, organizational svuctures are changing Swit rom vitual organizations to other exible Why is organizational realignment important? - Aolinatk of awellaligned organization ist ally to edapt ane realign as needed. To ensure longterm vinbity, an organization must adjust its structure to ft new economic reales without eiminshing core apabites and compettive diferentation, Orgonzational‘eaignment invades closing the svueturl gops Impeding arganizationa perormance, What problems are created by a misaligned organization structure? - Rapid reorganization of business units, visions or functions ean ead to ineffective, misaligned organizational structures that donot supper the business. Poorly conceived reorganizations may create signifies problems, including structural gaps in roles, work processes, accountabltis and ertal information flows, iminizhes capacity, capability anc agity icues,cizorganization and improper stating, and decining workforce engagement How de | align organizational structure with business strategy? - ‘The kay to profitable pertormance isthe extent to which four business elements are aligned leadeship, cerganizaion jabs and people, When these elements are in syn, eutetanding pecormance is move Ike ‘enieving alignment and sustaining organizational capacity requies time and eriel thinking Wat ae the dit nt types of organizational structures? - Organizations are usualy structured vertically vertiealy nd hotizental, or with open Boundaries, Te specific types of structures are: Vertical functional and divisional, Vertical and Horizontal mata, ant Boundarytess (modular vitual and cell. organizational structure? -functional ercenietonal sree dvs werk enc emraloyees hy sectallzten. is a lererhical, verticeny ntegratee scltrc thal empesizes stancercizatio” in lhe organization and 2rocesses for srecioized employees relatively renter joos. What ae the advantages and disadvantages of a functional structure? - Acventages: Te ercerizetion develops exzets in its rescective erces inauiduas perform cries i> which they are most erecient, end the forms legal end easy te urcerstane. Diseeventages: Feccle ae in soeclelized "los end ten fll tocoorcinete or communicate with ether Seaertrents,cressturcticnal ctvly is mre cfc to premote, end the stctue tevds tebe resistentte cheno. \Wrat isa divisional organizational structure? - A lisicnal crcenizctional cure dvides werk and employees by cucu, althcuch it ccul be vidoe by notne vee such as market or What are the advantages and disadvantages ofa divisional structure? - Aovent 8: provides mere focus end Fesally ov €ech cisions core cometeney, allows the cvsiorste focus cn producing szecisizec 2rocucts while aso Using knowlecce Ceires on elec clMsich, SEOWS fOr mote ¢cor dination ten te funcional stuctire end decison meg authorty usec to lower leves ofthe yen tecnnical career sats have less interaction, ders ay ce ‘o-ganizaion enntles rater, ‘.icao1 of effort, ematoyees wth sil comeetig for he sare customers ac 280" cvsion ofr bys sila S.ePeS in ey aay mere oeriten, _storized cecisions, Disacharteces: Ico" resuin 2 loss of et fer cuartites ard What iso matrix organizational structure? - Arrevix crcenitatcral strate combires the f-netiorel end dvisicral strictures to create @ duatconmanc slvation In retin stu ferme ro, en employee ecerts to two maracers wre re oily “esp emaloyee’s perfomence. What are the advantages and disadvantages ofa matrix structure? - ates 2 f_ncbonal end divisional certrershio én fc. fenteges: on he worerrere hen enthe ple, mirizes costs by shaving key peel, re between tine of conpletionard tena provides acter cvervew ofa arccUE thats men.fecures in several areas cr Sole 3 VErOS ing fortne emaicyee end cain cf command recites cooceration between Wo di DEMEOS te selenrine 2 erraleyce's werk prices, werk assigr rents nc performance tends What isan oper-toundary orgarzatioral stcture? - Open bouncery stuctres ae recent tendin stuctual forns that eliminate tealtcnalrtemel anc exterral bates anc ergarizatioral aexes. Teams replece cepattmerts, anc the ercariztion and suscliors werk lesclytagetherwith aft hierarchy ard minimal stats ard “ane, 360cdecrce fescoeck performance gp eicels ere common, arc all employees paticinst nthe cecisiersmaking proces. \What ae the advantages and cisadvantages of boundarwess organizations? =Acventeges inel.de the ety to leverece all emaloyece talons fester response to ret changes, end {chances eca2eretio ane infermalionsharirg among furcions divisors, end sa Cisedvantagesinciude sitfcuty in overcoming sls insice the craenzatior, ack of eon leede-ship arc coriman vision tine consuring crecesses, the possibly of erioyces being eaversety effected 2y efficiency effets en the possibiliy of rgarizaoe anardoring crance ifestucturing dose “ctinprove effectiveness quicay, What are hollow organizations in oper-boundary structures? = Hellew organizations dvice work are em aloyees 2y core and non-core conactercies, They are an internally but oct processes, Holl stuetures are os effective in picecomtve nd.stries outsourcing medelin whicr tre excerizetion maintains ts core proce nth cutso.rcirg options What ae the advantages and sisedvantages of hollow structures? = Acventagesinel.de minirizi-g cverheec anc enettig tne organizaio” to foc.s cn ts core aocuct and alirinatethe neecito cevelge expertise in nerecre functions, Disacve-teges incluce loss ef certo over fLoctiorstat affect emaleyees culery.restclios 2y certain industis on the extent of outsourcing, ard lock of competitive outsourcing eptions, What are rradular organizatiors in open boundary structures? - Mace erceniticns i Moca strut res may kees a core oat oft product in-ncuse ard eutecurce non-core portions cf the Procuct Fer mocuie structute to 2€ an option, tre ateduct must beable tee broker ino chun, Busse Seosons are nave at cifferert levels, 2nd suoclers anc c.stomers become pat ofthe oarization. + frcm Poko organizations tat comaorenks of @ procict are cutscu What are the advantages and sisadvantages of modular structures? - Acventagesinelde mining specialize avd specialists acedee, riniviing overheee, end erecting ne comsary to outsource perts supply end ccornate the assembly of cue presets, isacwerteces incluce concerns about tne ations of staplers cutsce the coral ef the cove manecenient company end the Potential rsk tet ocour ifthe partner ergertzatien removes itself fromthe cuelty check onthe ens precsct Trae: 1p alse concers a2cut suppliers having eccess to end safeguercing the core compar cele end trace secrets are sudéenly raising pices or 9 ceesing prec-ction of ey pers What are virtual organizations in oper-boundary structures? = ‘Vitualorcarizations ere ¢ caceeraticn sone procucter LUnserstensing, Organizaio’sferm partnerships wit obvers that or Pdvidvals delve 728s, rio“ sence unser comalerent each ol-er anc presert themsehes 2s a unl organization. What are the advantages of vitual organizations? - Acventagesinelde certib-tions fom cech get ef the uni clivinetion ef chysical scundaries, respersiveness to ¢ resicly charcing ervionret lower a*noroxstert o-garizaiorel cverh ced inercased Nexisilty and apy, nereesoc pow te all omsloyees te collebeete, take inate, end rake eckson, an eles employees end stekecldles urderstard warllovs and arocesses, Disecventages irl.de the pctertil leck of trust botcen ergenzatons, eck of ergenzatcnalidentifcetion arog employees, ner! fer inceased cemmurication an atentia to zecome overly comalex wren dealing wt. its of ost crecesses ncimere mare cif for employees tokrow who has fra sy.