1.Organizations create structures to maximize sales and or minimize costs. Would a decentralized structure work in a...
Question:
1.Organizations create structures to maximize sales and or minimize costs. Would a decentralized structure work in a collectivist culture like China? We don't completely know the organizational structure of FuYao but it appears to be highly centralized with control over FuYao America being exerted from China. China is a high power distance country and the USA is a low power distance country how does the centralized structure of FuYao America create conflict?
2. How do organizations decide on structure? Why would a company have a product line structure or a geographic line structure with overlapping costs? What is always the answer? Explain. The corporate structure of FuYao is a bit unclear but I think they have set up a geographic management structure. Fu Yao has separate corporations or subsidiaries that focus on a particular region. It is more expensive to have separate management for each region (corporate subsidiaries have overlapping functions and costs), so why did FuYao create a separate corporate entity for the USA?
Organizations Behavior, Structure, Processes
ISBN: 978-0078112669
14th Edition
Authors: Gibson, Ivancevich, Donnelly, Konopaske