MNC ORGANIZATIONAL STRUCTURE

MNC Organizational Structure

MNC Organizational Structure

Introduction

When multinational corporations invested into global, computer-mediated communication networks, they must have expected increase in efficiency and/or effectiveness. However, nobody could show that the investments had paid off. In addition, the implementation of the computer-mediated communication networks have had more unexpected than planned effects. In particular, managers and organization analysts have realized that communication networks undermine bureaucratic principles of organization. Bureaucratic authority relies on restricted communication and the monopoly of knowledge, whereas computer-mediated communication networks facilitate communication and distribute knowledge across the entire organization.

Organizational structure

The term 'organizational structure' immediately brings to mind the boxes and lines of an organizational diagram. The rigidity of such diagrams goes hand in hand with the traditional definition of organization as 'durable, lasting arrangement'. However, many authors of management literature claim that actual business processes should replace the rigid, traditional organizational structure to make corporations more flexible and adaptable to the continuously changing circumstances. Moreover, some organization analysts argue that corporations can be different things, depending on the perspective of the observer. Several sections in this paper discuss different conceptualizations of organizational structure, organization, and corporation. Meanwhile, the terms 'organizational structure' and 'organization' are used synonymously and mean patterns of organizational rules.

Multinational Corporation

Multinational corporations hereafter referred to as 'MNC', are those corporations with an extensive geographical span and with managers that think globally. Extensive geographical span means that the corporation has significant operations in Europe, North America, South East Asia, and possibly other regions. As a consequence of the global perspective, managers see themselves as part of a worldwide entity. The multinational strategy has to be understood as a continuum that reaches from the collaboration of national corporations to the transnational integration of a corporation.

Postmodern corporations

Postmodern writers often refer to Clegg's work as one of the most typical of ...