chapter  3
21 Pages

Organizational structure and design of the multinational enterprise

One of the challenges for HR in global firms is to become an organizational architect. Global organizations need appropriate structure in order to effectively conduct business in the chaotic yet interconnected global economy. The only clear source of sustainable global competitive advantage is designing organizations for knowledge creation and sharing across borders and, thus, learning and innovation on a global basis. The traditional needs for control and integration, combined with their need for learning and creativity, when applied across national borders in the highly complex global economy make the problems of organizational design especially difficult.