Organizational structure and

design in global organisation

By : CHARISHMA K V
 Meaning

• Organizational structure is defined by the formal

structure, coordination and control system, and
the organization culture.
• It’s the formal arrangement of roles,
responsibilities and relationships within an
organization.
• It’s a powerful tool with which to implement
strategy.
Global Functional Division
International Functional structure of Multinational Enterprises, involve grouping
together functionally like-activities along functional lines like marketing, R&D,
production, etc and place them under specialist classes of personnel.
International Division Structure
This structure is built to handle all international operations by a division created
for control. It is often adopted by firms that are still in the development stages
of international business operations.
 Global Product Division
Global Product division structure contains the functions necessary to the
specific goods or services a product/service division produces. The
parental organization has headquarters divisions for different major
product categories with respective resources, human and others.
Overseas subsidiaries producing a particular product or class of product
have to report to headquarters division responsible for that product or
class of products.
Global Area Division
In a global area structure (also called global geographic structure or regional
structure), the activities of the MNC are organised around specific areas (or
regions). An area may be a country or a group of countries. Departments or
divisions are created that have responsibility for all functions and all products
concerning the specific region
MIXED MATRIX
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.
ORGANISATIONAL DESIGN
• Organizational design is a step-by-step
methodology which identifies dysfunctional
aspects of work flow, procedures, structures and
systems, realigns them to fit current business
realities/goals and then develops plans to
implement the new changes.
• The process focuses on improving both the
technical and people side of the business.