Breaking hierarchies

University essay from Uppsala universitet/Företagsekonomiska institutionen; Uppsala universitet/Företagsekonomiska institutionen

Abstract:

Abstract

Organizational structures are surrounding the entire businesses and are essential for the functionality of an organization. The importance of a structure that satisfies and encourages the staff in the success of the organization to do a god job reflects on the organization’s success.

There are many different kinds of people and behaviours in the world, which makes the world we live in very complex and diversified. The perceptions of one human being, living in Europe, most likely aren’t the same as the perceptions of one person living on the other side of the globe. This difference between people all over the world also diversifies the organizations, which consists of these people. Different behaviour and organization structures are preferred by different organizations. This fact makes it difficult to operate an organization that is expanding to operate between national boarders.

The difficulties in moving to new nations and meeting new cultures leads to many problems. How will an organization that operates over national boarders adopt to the different countries involved? This thesis will examine the difficulties for these kinds of problems and how they should minimize possible problems that might occur through internationalization. The main question in this thesis will look at exactly how the transformation to go from one organizational structure to another in a Multinational corporations.

For a further analyse of the problem, one organization in an expanding situation will be examined. The organization that will be analysed is LG Electronics, which is a Multinational Enterprise organization that operates in several countries. The LG Electronics is an organization from South Korea which in Sweden has an IT-division that has worked as an experiment, in an attempt to minimize the problems that might occur when different organization cultures starts to work with each other.

The thesis will be strengthened mainly through background and organizational preferences information about differences between nations and the nations that act as the host and the home country for the organization, the two different structures involved and a list of different types of Multinational organizations. To examine the situation in LG Electronics interviews with two different purposes will be done, one with investigational purpose and one with informational purpose.

Keywords

Culture, Organization structure, Multinational Enterprises, Matrix structure, Hierarchical structure, Organizational change, Transformation, Host country, Home country

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