What are the three types of management, according to Christopher Bartlett and Sumantra Ghoshal (1995, in De Wit & Meyer, 2010, Reading 10.4) in their article ‘Transnational management’, that a transnational firm needs?
International, national, and local management
Corporate, business, and operational management
National-subsidiary, global-business, and functional management
Strategic, divisional, and functional management.
According to Bartlett and Ghoshal (1995, in De Wit & Meyer, 2010, Reading 10.4) in their article ‘Transnational management’, the basic problem of many MNCs, in their search for a structural fit, is their focus on only one organizational variable. That is:
Interpersonal relationships
Informal structure
System of coordination and control
Formal structure.
According to Bartlett and Ghoshal (1995, in De Wit & Meyer, 2010, Reading 10.4) in their article ‘Transnational management’, a company’s administrative heritage plays an important role in shaping its organization. What are the major components of the company’s administrative heritage?
Its existing asset configurations and professional demography
Its past and existing administrative system (structure)
Its organizational history and management culture
Its past and existing product diversity.
Typical European companies develop a management philosophy which reinforces a company’s willingness to delegate more operating independence, and strategic freedom, to their foreign subsidiaries. According to Bartlett and Ghoshal (‘Transnational management’, 1995, in De Wit & Meyer, 2010, Reading 10.4), what is the resulting organizational model?
Centralized hub
Decentralized federation of independent national subsidiaries
Integrated network model
Coordinated federation of independent national subsidiaries.
According to Bartlett and Ghoshal (‘Transnational management’, 1995, in De Wit & Meyer, 2010, Reading 10.4), what is the major handicap of the coordinated federation organizational model?
The parent company management often adopts a parochial, and even superior, attitude toward international operations
Subsidiary companies tend to become more dependent on the parent company for resources
Decision making is centralized in the parent company, and subsidiary companies are forced to adopt parent-company strategies
Subsidiary companies tend to become independent from the parent company.
According to Bartlett and Ghoshal (‘Transnational management’, 1995, in De Wit & Meyer, 2010, Reading 10.4), what is the supporting organizational form for international strategy?
Decentralized federation
Coordinated federation
Multidivisional form
Network organization.
The transnational organization requires a management process that can resolve the diversity of interest, and integrate the dispersed responsibilities. Therefore, its decision-making machinery should be based on three interdependent management processes. According to Bartlett and Ghoshal (‘Transnational management’, 1995, in De Wit & Meyer, 2010, Reading 10.4), these processes are:
Divisionalization, decentralization and integration
Specialization, decentralization and coordination
Decentralization, diversification and divisionalization