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Introduction to International Organisations

A presentation on Introduction to International Organisations seminar that explores the theoretical concepts underpinning International Organisations as the United Nations (UN) as well as trouble shooting that will bring global peace. Learning outcomes Participants will: · Gain the fundamental understanding of the main arms of the UN; · Appreciate the concept of the nature and characteristics of the UN; · Understand the concept of treaties and equity; · Develop the thought of obligations under UN; · Develop the thought of compliance under the UN; · Develop the thought of enforcement under the UN.

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ENCYCLOPEDIC ENTRY

International organization.

An international organization is one that includes members from more than one nation. Some international organizations are very large, such as corporations.

Geography, Human Geography, Social Studies, World History

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An international organization is one that includes members from more than one nation . Some international organizations are very large, such as corporations . Others are small and dedicated to a specific purpose, such as conservation of a species. Intergovernmental Organizations Many international organizations are inter governmental . Intergovernmental organizations arise from multiple governments forming an international organization. There are more than 300 intergovernmental organizations around the world. The United Nations (UN) is the largest and most familiar intergovernmental organization. In 1945, at the end of World War II , governments wanted to avoid future wars . They formed the UN. The UN's main goal is to keep peace. It conducts peacekeeping missions by sending representatives to countries or regions in conflict . The UN currently has peacekeeping missions all over the world. In the nations of South Sudan, Mali, and the Central African Republic, UN peacekeepers monitor local and regional conflicts. On the Mediterranean island nation of Cyprus, UN peacekeepers supervise the buffer zone in the dispute between Greek and Turkish claims to the island. The UN has several specialized subgroups, such as the World Health Organization (WHO). It is also affiliated with the World Bank . WHO is responsible for giving direction on international health issues, setting standards, and providing information for governments to make decisions. For example, WHO took the lead during the swine flu outbreak in 2009. It tracked the spread of the flu, offered recommendations about who should get vaccines, and told people how to avoid becoming sick. The World Bank is a bank for nations, not people. The World Bank has two separate groups. One group, the International Development Association, provides loans to the world's poorest countries. The other group, the International Bank for Reconstruction and Development, gives loans to developing countries. The UN also has groups focused on culture (the United Nations Educational, Scientific and Cultural Organization ( UNESCO )), justice and law (the International Court of Justice (ICJ) ), and refugees ( United Nations High Commissioner for Refugees (UNHCR) ), among others. Each of the subgroups has headquarters in a different place. The main UN offices are in New York City, New York, United States. The World Health Organization has its headquarters in Geneva, Switzerland. The World Bank is based in Washington, D.C, United States. The International Court of Justice is in The Hague, Netherlands. Most countries of the world belong to the UN and its subgroups. Many countries form regional multi-country organizations with military , economic , or political purposes. For example, the United States, Canada, many European countries, and Turkey belong to the North Atlantic Treaty Organization ( NATO ). NATO is a defense organization, meaning these nations have promised to support each other during times of conflict. Other intergovernmental organizations are based on trade . The Organization of Petroleum Exporting Countries ( OPEC ) is a group of 12 nations that export large amounts of oil . OPEC includes many members in the Middle East , such as Saudi Arabia, the world's largest exporter of oil. However, African nations such as Nigeria, and South American nations such as Venezuela, are also members of OPEC. OPEC members meet regularly to address issues concerning oil use and prices. Corporations Some international groups exist for profit . Toyota, the world's largest automaker, is an international corporation, often called a multinational corporation . It is headquartered in Tokyo, Japan. Toyota has factories around the world, including in the United States, China, and South Africa. Although the chief executive officer (CEO) of Toyota is responsible for the work of the entire company, Toyota employs managers and workers from the regions in which its factories is located. Toyota manufactures and sells cars in different countries around the world. The company must advertise in dozens of languages . Multinational corporations like Toyota must consider local culture and traditions when establishing a factory or selling a product. Other large multinational corporations are Coca-Cola (based in Atlanta, Georgia, United States), the De Beers diamond company (based in London, United Kingdom), and Adidas (based in Herzogenaurach, Germany.) Nonprofits Several well-known nonprofit organizations are international. Nonprofit means these groups do not seek to make money from their efforts. Nonprofits usually have a focus or shared interest, such as the environment , humanitarian aid, or entertainment . The National Geographic Society is a nonprofit organization. It was formed in 1888 and has its headquarters in Washington, D.C. It is one of the largest nonprofit scientific and educational institutions in the world. National Geographic's mission is to "illuminate and protect the wonder of our world." The National Geographic Society also supports international research and exploration. It has sponsored or assisted with more than 15,000 projects. Some of the most famous expeditions associated with the National Geographic Society include the expedition to the South Pole by Robert Peary and Matthew Henson in 1905; exploration of the ancient Incan city of Machu Picchu, Peru, in 1913; and the discovery of the final resting place of the Titanic by Robert Ballard, in 1985. Other international organizations share a more specific interest. The International Olympic Committee (IOC) is an international nonprofit based in Lausanne, Switzerland. The IOC organizes and regulates the Summer and Winter Olympics . The IOC includes administrators , sports officials, and former athletes from all over the world. The Red Cross provides food and other aid to people and areas in distress. The International Red Cross has its headquarters in Geneva, Switzerland. The organization is officially called the International Red Cross and Red Crescent Movement. The Red Crescent honors members from primarily Muslim countries. The Red Crystal, a diamond shape, honors Israeli members of the organization. The Red Cross is probably the most recognizable aid organization in the world. It helps survivors of hurricanes , such as Hurricane Katrina, which hit the Gulf Coast of the United States in 2005. The Red Cross helped provide shelter for victims of Hurricane Katrina whose homes were destroyed , for instance. The Red Cross also helped survivors of the earthquake that occurred in Haiti in 2010. It worked to provide medical care for those injured in the quake and helped organize sites so survivors could find missing family members. Other International Organizations Some international organizations combine parts of all three types of organizations. Perhaps the most familiar type of international organization that does not fit neatly into the three categories is organized religion . Sometimes, a religion directly influences government. The government of Israel, for instance, supports Jews and Judaism around the world. Jews from other nations have a legal law of return to Israel, meaning they can immigrate there and establish citizenship . Jews from countries as diverse as Russia, Ethiopia, and Mexico have settled in Israel. Organized religion can indirectly influence governments, too. Priests and bishops of the Catholic Church, for instance, do not usually run for political office. But their influence on their congregations can be enormous . Catholics are led by the pope , with headquarters in Vatican City, which is surrounded by Rome, Italy. In many ways, the Catholic Church is run like an international corporation. There is a similar structure for religious ceremonies (such as Mass) and organization (such as the way dioceses are divided) for Catholics all over the world. Local priests, nuns, and bishops work with their congregations to make life better for their communities. This is similar to the way an international corporation organizes its workers in other countries.

Biggest Multinationals These are the largest companies by revenue in the world, as of 2022. The first two are U.S.-based retailers, while 3-5 are Chinese energy companies: 1. Walmart (United States) 2. Amazon (United States) 3. State Grid (China) 4. China National Petroleum (China) 5. Sinopec Group (China)

World's First Multinational Corporation The Dutch East India Company was the world's first international corporation. It was established in 1602 in the Netherlands and gained enormous amounts of power. It could wage war, establish colonies, create (coin) money, and negotiate treaties.

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Article contents

International organizations and power.

• Rodger A. Payne Rodger A. Payne Department of Political Science, University of Louisville
•  and  Nayef H. Samhat Nayef H. Samhat Wofford College
• https://doi.org/10.1093/acrefore/9780190846626.013.454
• Published in print: 26 November 2012
• Published online: 11 January 2018

Power plays an important role in the formation of international organizations (IOs), including the formal institutions established by nation-states to promote collective action at the intergovernmental level. Power is commonly defined as the ability or authority to act, to accomplish a task or to create something new. Those who wield power are typically seen as having the ability to influence or even control the behavior of others. The willingness of states to employ material (or “hard”) power to accomplish their goals—whether those goals primarily reflect the interests of the strongest states or the shared preferences of many states—has long been the subject of scrutiny by international relations (IR) scholars. More recent scholarship approaches the topic from different perspectives, with particular attention to both the power generated by collective action and the collective identity created during the recognition and pursuit of common purposes. According to Michael Barnett and Raymond Duvall, there are four types of power: compulsory, institutional, structural, and productive. This typology can be linked to the way four major schools of IR theory view IOs: realism, neoliberalism, constructivism, and critical theory. Realist and neoliberal institutionalist schools use compulsory or institutional views of power to explain the development of regimes and their effects, while social constructivists and critical theorists rely on productive or structural power to tackle the meaning and importance of regimes. Scholars argue that regimes serve a cooperative function very similar to more formal IOs and provide a rationalist account of regime formation and behavior.

• international organizations
• compulsory power
• institutional power
• structural power
• productive power
• neoliberalism
• constructivism

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International Organizations - PowerPoint PPT Presentation

International Organizations

Title: powerpoint presentation author: han liu last modified by: han liu created date: 3/1/2006 2:41:13 pm document presentation format: on-screen show (4:3) – powerpoint ppt presentation.

• TCH 347 Social Studies Methods
• Department of Education
• Shippensburg University
• Han Liu, Ph. D.
• The Content standards and benchmarks for social studies require students to have knowledge of international organizations. This list will be used as examples on the 5th and 8th grade social studies portion of the MEAP and the 11th grade HST.
• Alleviating the human suffering of vulnerable populations caused by war or natural
• disaster by protecting life and health and promoting peace and understanding.
• Acting independently and autonomously yet cooperatively with national governments, the Red Cross/Red Crescent Societies are a voluntary relief movement funded primarily by donation that
• Aids the wounded
• Assists with obtaining food, clothing and shelter for victims of disaster
• Coordinates communication between the military and civilians
• Is responsible for half of the nations blood supply and blood products
• Coordination and unification of petroleum production policies of Member Countries to ensure the stabilization of oil prices in international oil markets.
• OPEC member countries meet twice yearly (March and September) and make unanimous decisions regarding petroleum policies (to raise or lower their collective oil production to maintain stable prices and steady supplies.)
• Because OPEC controls 55 of the oil traded internationally, it is often used as an
• example of a cartel.
• Eleven Current OPEC Countries are Algeria Indonesia Iran Iraq Kuwait Libya Nigeria Qatar Saudi Arabia Venezuela United Arab Emirates
• Build a common future for the people and States of Europe based on stable democratic governments, good human rights records, properly functioning market economies, and sound macroeconomic policies.
• protection of the common values, interests and independence of the Union
• promotion of economic and social cohesion
• strengthening of the internal market, and of economic and monetary union
• promotion of a high level of employment and a high degree of social protection
• a high level of environmental protection
• encouragement for technological and scientific progress
• creation of an area of liberty, security and justice
• development of a common foreign and security policy, and a common defense policy, to defend and promote the Unions values in the wider world
• 15 Current Member Countries of the European Union
• Belgium, France, Germany , Italy , Luxembourg, The Netherlands, Denmark, Ireland, The United Kingdom, Greece, Spain , Portugal, Austria, Finland, Sweden
• The WTO is the only international body dealing with the rules of trade between nations. It sets the legal ground rules for international commerce and trade for the 146 member countries. All decisions must be ratified by the members parliaments or legislatures.
• facilitate, the implementation and operation of Multilateral Trade Agreements
• provide a forum for negotiations among its Members concerning their multilateral trade relations
• administer the Understanding on Rules and Procedures Governing the Settlement of Disputes
• administer the Trade Policy Mechanism
• cooperate with the IMF and the International Bank for Reconstruction and Development
• Alliance of 19 countries from North America and Europe committed to safeguarding the freedom and security of its member countries by political and military means.
• act as a forum for consultation for member countries
• provide for the defense of its member states
• crisis management for issues of concern to member states
• build partnerships
• 19 Member Countries
• Belgium, Canada, Czech Republic, Denmark, France, Germany, Greece, Hungary, Iceland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Spain, Turkey, United Kingdom, United States
• Fifty-one countries committed to preserving peace through international cooperation and collective security established the United Nations (UN) on October 24, 1945. Today, nearly every nation in the world belongs to the UN. In September 2000 members of the UN met to set the international agenda for the UN in the new century. The resulting Millennium Declaration sets out goals to be attained in seven key areas
• Peace, security and disarmament.
• Development and poverty eradication.
• Protecting our common environment.
• Human rights, democracy and good governance.
• Protecting the vulnerable.
• Meeting the special needs of Africa
• Strengthening the United Nations
• Cooperating in this effort are more than 30 specialized agencies known collectively as the UN system. The UN and its family of organizations work together to promote respect for human rights, protect the environment, fight disease, and reduce poverty around the world.
• The IMF is a specialized agency of the United Nations system set up by treaty in 1945 to help promote the health of the world economy. The IMF is the principle forum for discussing not only national economic policies in a global context, but also issues important to the stability of the international monetary financial system. Its mission includes promoting the balanced expansion of world trade, the stability of exchange rates, the avoidance of competitive currency devaluations, and the orderly correction of a countrys balance of payments problem.
• Monitors economic and financial developments and policies, in members countries and at the global level, and gives policy advice to its members.
• Lends to member countries with balance of payments problems. This provides temporary financing, and supports adjustment and reform policies aimed at correcting the underlying problems.
• Provides the governments and central banks of its member countries with technical assistance and training in its areas of expertise.
• The World Health Organization coordinates programs aimed at solving health problems and the attainment by all people of the highest possible level of health. The WHO was established on April 7, 1948 as one of the specialized agencies of the UN system. Health is defined in WHOs Constitution as a state of complete physical, mental and social wellbeing and not merely the absence of disease or infirmity.
• The WHO works in such areas as immunization, health education and the provision of essential drugs.
• The North American Free Trade Agreement (NAFTA) began as Canada-United States Free Trade Agreement (January 1, 1989). The NAFTA that included Mexico began January 1, 1994. Its purpose is to reduce barriers to trade between its member nations.
• NAFTA is integrating the economies of Canada, Mexico, and the United States. Trade and investment flows have increased greatly between the three NAFTA countries.
• Eliminate customs barriers and facilitate cross-border trade in goods and services
• Guarantee conditions of equitable competition in the free trade zone
• Substantially increase investment opportunities in the three member countries
• Provide for the protection and adequate application of intellectual property rights in each country
• Adopt efficient implementation, joint administration and dispute settlement procedures
• Improve trilateral cooperation to extend the benefits of the agreement
• DBW (Doctors without Borders)
• G8 Summit (Gleneagles Summit)
• G-20 (The Group of Twenty Finance Ministers and Central Bank Governors)
• OAS (Organization of American States)
• NAM (Non- Aligned Movement)
• United Nations Organizations
• Specialized Agencies of the United Nations
• International Financial Institutions
• Inter-American Organizations
• Other Regional Organizations
• Other International Organizations
• United Nations Secretariat
• UN Capital Development Fund
• UN Center for Human Settlements (UNCHS)
• UN Children's Fund (UNICEF)
• UN Development Fund for Women
• UN Development Program (UNDP)
• UN Environmental Program (UNEP)
• UN High Commissioner for Refugees (UNHCR)
• UN Office of Drug Control Crime Prevention (UNODCCP)
• UN International Training and Research Center (UNITAR)
• UN Relief and Works Agency for Palestine Refugees in the Near East (UNRWA)
• UN University
• UN Volunteers
• International Court of Justice (ICJ)
• International Civil Service Commission (ICSC)
• International Criminal Tribunal for the Former Yugoslavia
• International Criminal Tribunal for Rwanda
• International Research and Training Institute for the Advancement of Women (INSTRAW)
• World Food Program (WFP)
• Food and Agriculture Organization (FAO)
• International Atomic Energy Agency (IAEA)
• International Civil Aviation Organization (ICAO)
• International Fund for Agriculture Development (IFAD)
• International Labor Organization (ILO)
• International Maritime Organization (IMO)
• International Telecommunications Union (ITU)
• UN Educational, Scientific and Cultural Organization (UNESCO)
• Universal Postal Union (UPU)
• World Health Organization (WHO)
• International Agency for Research in Cancer (IARC)
• World Intellectual Property Organization (WIPO)
• World Meteorological Organization (WMO)
• Bank for International Settlements (BIS)
• International Monetary Fund (IMF)
• North American Development Bank (NADB)
• UN Regional Development Banks
• African Development Bank
• Asian Development Bank
• European Bank for Reconstruction and Development (EBRD)
• Inter-American Development Bank (IDB)
• World Bank Group
• International Bank for Reconstruction Development (IBRD)
• International Finance Corporation (IFC)
• Multilateral Investment Guarantee Agency (MIGA)
• Border Environment Cooperation Commission (BECC)
• Inter-American Center of Tax Administrators (CIAT)
• Inter-American Indian Institute (IAII)
• Inter-American Institute for Cooperation in Agriculture (IICA)
• Inter-American Institute for Global Change Research
• Inter-American Tropical Tuna Commission
• Organization of American States (OAS)
• Pan American Health Organization (PAHO)
• Pan American Institute of Geography and History
• Pan American Railway Congress Association
• Postal Union of the Americas, Spain and Portugal (PUASP)
• Asia Pacific Energy Research Center (APERC)
• Colombo Plan Council
• Great Lakes Fisheries Commission
• International Energy Agency (IEA)
• North Atlantic Assembly
• North Atlantic Treaty Organization (NATO)
• Nuclear Energy Agency (NEA)
• Organization for Economic Cooperation Development (OECD)
• Center for International Forestry Research (CIFOR)
• Commission For Labor Cooperation
• Commission for the Conservation of Antarctic Marine Living Resources
• Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)
• Fund for the Protection of the World Cultural and Natural Heritage (World Heritage Fund)
• Global Biodiversity Information Facility (GBIF)
• International Agreement on the Maintenance of Certain Lights in the Red Sea
• International Bureau of Weights and Measures
• International Bureau for the Permanent Court of Arbitration
• International Bureau for the Protection of Industrial Property
• International Bureau for the Publication of Custom Tariffs
• International Center for Agricultural Research in the Dry Areas (ICARDA)
• International Center for the Study of the Preservation and Restoration of Cultural Property (ICCROM)
• International Coffee Organization
• International Committee of the Red Cross
• International Cotton Advisory Committee
• International Council for the Exploration of the Sea (ICES)
• International Council of Scientific Unions and Associate Unions
• International Criminal Police Organization (INTERPOL)
• International Fertilizer Development Center
• International Grains Council (formerly Int'l Wheat Council)
• International Human Frontier Science Program Organization (HFSP)
• International Hydrographic Organization
• International Institute for Cotton
• International Institute for the Unification of Private Law
• International Mobile Satellite Organization (IMSO)
• International North Pacific Fisheries Commission
• International Organization for Legal Metrology
• International Organization for Migration (IOM)
• International Organization of Supreme Audit Institutions
• International Plant Genetics Resources Institute (IPGRI)
• International Rubber Study Group
• International Science and Technology Center (ISTC)
• International Seed Testing Association
• International Service for National Agriculture Research (ISNAR)
• International Sugar Council
• International Tropical Timber Organization (ITTO)
• International Union of Credit and Investment Insurers (Berne Union)
• Iran-United States Claims Tribunal
• Korean Peninsula Energy Development Organization (KEDO)
• Multinational Force and Observers (MFO)
• Organization for the Prohibition of Chemical Weapons (OPCW) (formerly the Preparatory Commission to OPCW)
• Pacific Aviation Safety Office (PASO)
• Permanent International Association of Navigation Congresses
• Preparatory Commission for the Comprehensive Nuclear Test-Ban Treaty (PC/CTBT)
• Regional Environmental Center for Central and Eastern Europe
• The Hague Conference on Private International Law
• Science and Technology Center in Ukraine (STCU)
• Sierra Leone Special Court
• The World Heritage Fund
• World Customs Organization (WCC) formerly the Customs Cooperation Council (CCC)
• World Trade Organization (WTO) formerly the General Agreement on Tariffs and Trade (GATT)

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International Organizations

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Presentation on theme: "International Organizations"— Presentation transcript:

To What Extent Should We Embrace Internationalism?

COOPERATION. Cooperation and Interdependence among the world’s peoples and nations is not new…

European Union. Which countries are members of the European Union? More than 25 Why did the European Union form? To encourage trade within Europe What.

Canada’s International Relationships Unit 5 – Global Systems Lesson 25 – Canada’s International Relationships.

International Organizations. The United Nations (UN) The United Nations was created on October 24, countries made up the original United Nations.

International Institutions ● Large and Powerful Organizations ● Make Policy ● Set the Rules ● Promote and Facilitate Globalization o World Bank o IMF o.

United States and International Organizations.  Factors like climate change pollution and trade all affect countries.  Nations often hold talks with.

Foreign Policy. Policies A policy is a principle or rule that guides decisions Two main policies when dealing with foreign affairs Isolationism – withdraw.

International Organizations Eleanor Joyce City of Salem Schools.

THE EUROPEAN UNION AND THE UNITED NATIONS. Cooperation between EU and UN  Over the years the EU has established a strong relationship with the UN. Co-operation.

Political Divisions WORLD GEOGRAPHY.

United Nations. History of U.N. Created in 1945 after WWII Created in 1945 after WWII International organization: International organization: Law Law.

Foreign Policy & International Trade

Post WW2 Alliances Present

International Organizations. The United Nations (U.N.) * An organization promoting peace and cooperation on a world wide level -Established after WWII.

Foreign Aid and Defense Alliances

What is international organization? What are the type of the international organizations?

International Organizations 1914-Present. The UN The United Nations Est (New York) Roles: provide forum for international diplomacy provide relief.

National & International Political Divisions Francisci WG.10b.

Regional Alliances Common interests.

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• Red de la ONU sobre la Migración

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Partenariados.

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• 2030 AGENDA

Sobre la migración

Día Mundial del Medio Ambiente 2024

El 5 de junio de cada año se celebra el Día Mundial del Medio Ambiente para concientizar y elogiar la acción medioambiental. Este año se ha puesto el foco en la restauración de la tierra y la resiliencia a la sequía y la desertificación.

La degradación del suelo afecta de manera directa la vida de las personas y sus medios de subsistencia, amenazando la seguridad alimentaria y del agua y provocando migración y desplazamiento. Necesitamos emprender acciones concretar para el logro de un cambio transformador que permita luchar contra la crisis climática y medio ambiental y sus implicancias sobre la movilidad humana.

Cada año, millones de personas son desplazadas por las catástrofes. En 2023, los desastres provocaron 26,4 millones de nuevos desplazamientos internos ( Informe Mundial 2024 del Centro de Monitoreo del Desplazamiento Interno ). De acuerdo con el Banco Mundial, sin una acción climática y para el desarrollo, temprana y concertada, más de 216 millones de personas podrían convertirse en migrantes climáticos internos en 2050. Urge emprender acciones concretas.   

La OIM convoca a todos los gobiernos y partes interesadas para abordar la realidad de la crisis climática, brindando soluciones concretas para las personas que ya están en movimiento, para las que desean mudarse y para las que quieren quedarse.

La migración bien encauzada y las iniciativas para la restauración de la tierra deben ser parte de la solución. Es necesario incluir y empoderar a las personas más afectadas por la degradación del suelo, la desertificación y la sequía en lo relacionado con la toma de decisiones y las acciones correspondientes.

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The Organization of International Business

Jul 05, 2012

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The Organization of International Business . Chapter Thirteen. One of world’s oldest multinational corporations Organized on a decentralized basis Annual conferences on company strategy and executive education sessions establish connections between managers

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• problems bureaucratic
• lever europe
• permanent teams
• new product information
• functional structure
• organizational change avoids duplication

Presentation Transcript

The Organization of International Business Chapter Thirteen

One of world’s oldest multinational corporations Organized on a decentralized basis Annual conferences on company strategy and executive education sessions establish connections between managers Duplication of facilities and high cost structure a problem in new competitive environment 1996: introduced structure based on regional business groups “Lever Europe” established to consolidate the company’s detergent operation in order to reduce costs and speed up new product information Opening Case

Organizational architecture includes the totality of a firm’s organization, including formal organization structure, control systems and incentives, processes, organizational culture, and people Superior enterprise profitability requires three conditions The different elements of a firm’s organizational architecture must be internally consistent The organizational architecture must match or fit the strategy of the firm The strategy and architecture of the firm must not only be consistent with each other but they also must be consistent with competitive conditions Introduction

Organizational structure refers to three things The formal division of the organization into sub-units The location of decision-making responsibilities within that structure The establishment of integrating mechanisms to coordinate the activities of subunits Control systems are the metrics used to measure the performance of sub-units and make judgments about how well managers are running them Incentives are the devices used to reward appropriate managerial behavior Organizational Architecture

Processes are the manner in which decisions are made and work is performed within the organization Organizational culture refers to the norms and value systems that are shared among the employees of an organization People are not just the employees of the organization; the term refers also to the strategy used to recruit, compensate, and retain those individuals and the type of people they are in terms of their skills, values, and orientation Organizational Architecture

Organizational Architecture

This should be thought of in terms of three dimensions Vertical differentiation: the location of decision-making responsibilities within a structure Horizontal differentiation: the formal division of the organization into sub-units Establishment of integrating mechanisms: mechanisms for coordinating sub-units Organizational Structure

Centralization: Facilitates coordination Ensure decisions consistent with organization’s objectives Top-level managers have means to bring about organizational change Avoids duplication of activities Decentralization: Overburdened top management Motivational research favors decentralization Permits greater flexibility Can result in better decisions Can increase control Centralization Versus Decentralization

Horizontal differentiation is concerned with how the firm decides to divide itself into sub-units. The decision is normally made on the Basis of function Type of business Geographical area Horizontal Differentiation: The Design of Structure

Typical Functional Structure

Many manufacturing firms expanded internationally by exporting the product manufactured at home to foreign subsidiaries to sell In time it might prove viable to manufacture the product in each country The result could be that Firms with a functional structure at home would replicate the functional structure in every country in which they do business Firms with a divisional structure would replicate the divisional structure in every country in which they do business The International Division

The International Division

Potential for conflict and coordination problems between domestic and foreign operations Heads of foreign subsidiaries are not given as much voice in the organization as the heads of domestic functions The international division is presumed to be able to represent the interests of all countries to headquarters Lack of coordination between domestic operations and foreign operations To combat these problems firms choose one of the following structures Worldwide product divisional structure which tends to be adopted by diversified firms that have domestic product division Worldwide area structure which tends to be adopted by undiversified firms whose domestic structures are based on functions Problems with the International Structure

The International Structural Stages Model

Worldwide area structure Favored by firms with low degree of diversification and domestic structure based on function World is divided into autonomous geographic areas Operational authority decentralized Facilitates local responsiveness Fragmentation of organization can occur Consistent with multi-domestic strategy Worldwide Area Structure

Worldwide Area Structure

Adopted by firms that are reasonably diversified Original domestic firm structure based on product division Value creation activities of each product division coordinated by that division worldwide Help realize location and experience curve economies Facilitate transfer of core competencies Problem: area managers have limited control, subservient to product division managers, leadingto lack of local responsiveness Worldwide Product Divisional Structure

Worldwide Product Divisional Structure

Helps to cope with conflicting demands of earlier strategies Two dimensions: product division and geographic area Product division and geographic areas given equal responsibility for operating decisions Problems Bureaucratic structure slows decision making Conflict between areas and product divisions Difficult to make one party accountable due to dual responsibility Global Matrix Structure

Global Matrix Structure

Need for coordination follows the following order on an ascending basis Localization International Global Transnational Integrating Mechanisms

Differing goals and lack of respect Different orientations due to different tasks Differences in nationality, time zone, and distance Particularly problematic in multinational enterprises with their many sub-units both home and abroad Impediments to Coordination

Direct contact between sub-unit managers Liaison roles: an individual assigned responsibility to coordinate with another sub-unit on a regular basis Temporary or permanent teams from sub-units to achieve coordination Matrix structure: all roles viewed as integrating roles Often based on geographical areas and worldwide product divisions Formal Integrating Systems

Formal Integrating Systems

Informal management networks supported by an organization culture that values teamwork and a common culture Non-bureaucratic flow of information It must embrace as many managers as possible Two techniques used to establish networks Information systems Management development policies Rotating managers through various sub-units on a regular basis Informal Integrating Mechanisms

Informal Integrating Mechanisms

Types of control systems Personal controls Bureaucratic controls Output controls Cultural controls Incentive systems Refer to devices used to reward appropriate behavior Closely tied to performance metrics used for output controls Control Systems and Incentives

Seniority and nature of work Reward linked to output target that the employee can influence Cooperation between managers in sub-units Link incentives to profit of the entire firm National differences in institutions and culture Consequences of an incentive system should be understood Factors that Influence Incentive Systems

Key to understanding the relationship between international strategy, control systems and incentive systems is performance ambiguity Caused due to high degree of interdependence between sub-units within the organization Level of performance ambiguity depends on number of sub-units, level of integration, and joint decision making Descending order of ambiguity in firms Transnational companies Global companies International companies Multi-domestic corporations Performance Ambiguity

Performance Ambiguity

Costs of control Time top management must devote to monitoring and evaluating performance of sub-units Performance ambiguity increases cost of control Creates conflicts as the costs of controlling transnational strategy are much higher Cultural controls Incentive pay of senior managers should be linked to the entity to which both subunits belong Implications for Control and Incentives

Manner in which decisions are made and work is performed Cut across national boundaries as well as organizational boundaries Can be developed anywhere within the firm’s global operations network Processes

Values and norms shared among people Sources Founders and important leaders National social culture History of the enterprise Decisions that result in high performance Cultural maintenance Hiring and promotional practices Reward strategies Socialization processes Communication strategy Organizational Culture

A “Strong” Culture Not always good Sometimes beneficial, sometimes not Context is important Adaptive cultures Culture must match an organization’s architecture Culture does not necessarily translate across borders Culture and Performance

Synthesis: Strategy and Architecture

Firms need to periodically alter their architecture to conform to changes in environment and strategy Hard to achieve due to organizational inertia Sources of inertia Possible redistribution of power and influence among managers Strong existing culture Senior manager’s preconceptions about the appropriate business model Institutional constraints such as national regulations including local content rules regarding layoffs Organizational Change

Change to match competitive and strategy environment Hard to change Existing distribution of power and influence Current culture Manager’s preconceptions about the appropriate business model or paradigm Institutional constraints Principles for change Unfreeze the organization Moving to the new state Refreezing the organization Organizational Change

Entry Strategy and Strategic Alliances Basic entry decisions Entry modes Selecting an entry mode Greenfield venture or acquisition Strategic alliances Looking Ahead to Chapter 14

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