BUSI 610 Organization Theory & Design
Liberty University
Discussion Board Two
Discussion board two will complete a response to Chapter 6 question. The concept in question is if the transnational model would work in a huge global firm.
Transnational Model
Engaging in a response to if transitional model would work in a huge global firm one would first need to understand the principles of a transnational model. Describing the organization system Draft (2016), states it as a “highly differentiated to address the increased complexity of the global environment yet offers very high levels of coordination, learning, and transfer of organizational knowledge and innovations (p.242).” This organization type seems to take on more of a learning organization philosophy to allow for more efficiencies across global sites. Importance of shared information in a learning organization is the foundation to the success of achieving the mission of the business and therefore may be evident that the concept of transnational model may work in a huge global firm. Looking into the intricacies of a global firm even further will help decipher if the approach of transnational model would work in a huge global firm.
Global Firms
Larger global firms not only have the organization of the structures within just one country their crossing the countries boundaries which includes more difficulty in implementation of strategy. This may include additional laws, languages, ability to share resources, and ethics to determine. Complexity in nature calls for larger global firms to behave differently and creates a new mindset for leaderships of these global firms. In discussing global firms and the transnational approach Boussebaa, Morgan, and Sturdy (2012) identify this newer approach, “This new corporation abandons its ties to its country of origin, locates its operations anywhere in the world, taps into skills and knowledge wherever they might be located, and integrates its constituent parts into a unified structure by means of shared values, systems and practices (p.466). The system relies on the mission of the global firm to ground the processes and decisions that are needed to obtain the desired outcomes. Large global firms have more complexity than that of smaller global firms.
Difficulties
Within any organizational structure there can be difficulties with globalization strategies and support. Take into consideration the globalization of an accounting/professional service firm of PricewaterhouseCoopers. This company not only provides audit and assurance but they also are experts within finance advisory, tax advice and financial services. The support in all of these areas is expected from the smallest of local firms to the largest global client for this firm (Greenwood et. al, 2010, p. 175). These organizational dynamics are difficult to support well when tailoring to the different global sectors.
Not only can providing a complex service line similar to the accounting firm above this authors experience with globalization in the world of technology has not been proven to be the best for all organizations that were serviced. One example of this is within the dental field and the technological advances with digital scanning of the oral cavity to eliminate the need for physical storage of dental models as well as enhancing patient and service turn around as these scans can be electronically scanned. ITero Element is one global company that provides the scanning services and recently their company had strategized a more global approach to technological support. This is accomplished through remote access into the systems to troubleshoot and help facilitate correction of errors that may occur. With globalization in mind this allows for more of an opportunity to have ITero throughout the world and not have to send your experts into the field but have them regardless of location providing their knowledge to facilitate correction. Unfortunately not all service customers are able to allow remote access due to the need for security by organizational policies. This is a barrier that the company would have to consider as an area to evaluate and determine if the opportunity to support more of their clients is better globally and or if they need to work on tailoring to the needs of the individual organizations within the limits of those countries where security does not allow for the remote support. Expounding on the accounting professional service firm Greenwood et. al, (2010) states, “These services are targeted at the world’s largest international corporations as well as smaller, local clients, who expect not only cutting edge professional expertise, but up-to-date knowledge of the client’s industry and markets (p. 175).” With the understanding that no organizational approach has only positive evaluations, how does one determine if the large global firms are the appropriate structure of a transnational model?
Appropriate Model
Determining if transnational model is appropriate for large firms is a difficult question based more off of the desire for a company to think and act differently according to the needs of the target audience. Draft (2016) identifies the model as “more than just an organization chart. It is a managerial state of mind, a set of values, a shared desire to make a worldwide learning system work, and an idealized structure for effectively managing such a system (p. 244).” When a large firm is willing to see beyond the initial difficulties there is potential for the transnational model to be the best strategy for the firm to encompass. The four main assets in order for this model to be successful are identified as:
1) Assets and resources are dispersed worldwide into highly specialized operations that are linked together through interdependent relationships.
2) Structures are flexible and ever-changing.
3) Subsidiary managers initiate strategy and innovations that become strategy for the corporation as a whole.
4) Unification and coordination are achieved primarily through corporate culture, shared vision and values, and management style, rather than through formal structures and systems. (p.244-245).
Strong leadership, communication, ability to mentor and adapt within the global firm would be strong characteristics within the employees of the business in order to make this shared communication global strategy the most effective it can be.
Conclusion
Global firms have opportunities to set up models tailored to the individual companies’ needs and desires for success. One impactful model for the large global firms to practice would be that of the transnational approach. This approach broadens the perspective of how the firms can provide similar mission but tailored to the needs cross boarders in any global scenario. In a way the transnational approach is similar to sharing the love of Jesus to those that may not know the Good News. Disciples of Jesus are called to go and share the gospel to the nations stated in Psalms 96:3 “Declare His glory among the nations, His wonders among all peoples (NKJV).” Individuals may not be comfortable, let alone safe sharing among the nations but when the ultimate goal is to ensure all people have heard the Gospel, how can one ignore this calling when it means lives will be changed?
References
Boussebaa, M., Morgan, G., & Sturdy, A (2012). Constructing Global Firms? National, Transnational and Neocolonial Effects in International Management Consultancies. Organization Studies, 33 (4), 465-486
Daft, R. L. (2016). Organization theory & design. (12th ed.). Boston, MA: Cengage Learning.
Greenwood, R., Morris, T., Farclough, S., & Boussebba, M (2010). The organizational design of transnational professional service firms. Organizational Dynamics, 39(2), 173-183.
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