Exam 4: Developing a Transnational Organization: Managing Integration, Responsiveness, and Flexibility

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The first is a focused and constrained escalation process that allows top management to intervene directly in key decision content.This carefully managed form of centralization may be appropriate for major resource allocation commitments,for example.The second is a process in which management structures individual roles and administrative systems to influence specific decisions.This formalization process is typically used for decisions involving repetitive or routine activities such as setting transfer prices.The third is a self-regulatory capability in which top management's role is to establish a broad culture and set of relationships that provide a supportive organizational context for delegated decisions.This is a sophisticated management process driven by socialization and is most useful in decisions that require the effective use of the large amounts of information,knowledge,and expertise that resides in the dispersed activities of the transnational organization.