Clearly, the task of designing the organization of an MNC goes far beyond drawing neat boxes that represent positions within a hierarchy. Rather, the challenge is to develop a coherent system of communication and control which will provide an appropriate foundation for efficient decision making. To provide such a foundation, an organization structure must group organizational tasks into logical units of mutually supporting activities; provide for sufficient coordination and integration among units; and allow for proper staffing, with the right people in the right places. Environmental constraints, threats, and opportunities influence the organizational process. Peter Drucker ( among others) recommends that organizational design specialists perform the following three kinds of analysis: 1
- Activity analysis
- Decision analysis
- Relations analysis
Activity analysis clarifies what work has to be performed, what work belongs together, and how each activity should be emphasized in the organizational structure. Decision analysis determines what kinds of judgments are needed, where in the organization they should be made, and how each manager should be involved in them. Relations analysis reveals each manager's necessary contribution to programs, the people with whom he or she must work, and the assistance other managers must give him or her. Table 11.1 lists some specific questions that an organizational decision specialist might address to uncover vital information.
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