Management challenge

As discussed in the previous chapter, the external environment exerts a variety of pressures on organizations and their managers. Chapter 3 explored the cultural environment. In this chapter, we examine a second major area in which global awareness and understanding are critical for managers: the organizational environment. Organizations come in many shapes, sizes, and forms. Nothing is simple. Some organizations adapt, some resist, and many find their own creative solutions for dealing with local pressures. Managers need to understand the type of organizations they are working with, the types of solutions they have found to deal with their environments, and the implications of these solutions for managers. In other words, organizations themselves put pressures on managers by defining what is expected or required. Some of the more common challenges managers face with regard to the organization concern the organization’s global strategy, organization design, control and decision-making processes, and organizational culture. These topics are discussed in this chapter, along with the implications for the managers, who are often caught in the middle.

Chapter outline

▪ Global strategy and structure page 110

▪ Regional models of organization 119

▪ Control, participation, and decision making 132

▪ Organizational culture 136

▪ Manager’s notebook: The organizational environment 141

▪ Summary points 145

Applications

4.1 Adaptation strategy at Unilever 112

4.2 Aggregation strategy at Playmobil 114

4.3 Arbitrage strategy at Ford 115

4.4 Global cultures at GE and Wal-Mart 138

4.5 Core values at Alibaba 138