Question

When designing an organizational structure for an international environment, management must choose between a ________, which integrates activities on a coordinated worldwide basis, and a ________, which differentiates activities in each country served.

A) global approach; local approach
B) product approach; customer approach
C) functional approach; network approach
D) decentralized approach; centralized approach

Answer 1

Answer: A) global approach; local approach

Explanation: An organizational structure of a firm is defined as a system that is employed to define hierarchy or ranking within the organization. It helps identifies each job, its function, where it reports to within the organization as well as superiority between employees based on their status, authority or some other trait. A structure when developed aims to establish how the organization operates to execute its goals.

While a global organizational structure is the way a company aims to merge local preferences with global strategy and also integrates activities on a coordinated worldwide basis, the local approach to organizational structure differentiates activities in each country served wherein the organization exists.