Multinational Organizational Structure

Organizational structure is the chain of command that exists within a company. According to the IBS Center for Management Research, organizational structure is founded on the basis of reporting relationships that create a hierarchy. Multinational organizations have a unique structure that exhibits geographic regions.

Top Structure

The president or chief executive officer sits at the top of a multinational organizational chain. Beneath him are other chiefs, such as the chief financial officer and chief operations officer. The structure branches out from there. In a multinational company, this often identified by geographic regions. For example, command layers may include marketing executive, Europe and marketing executive, Asia. They perform the same function, but for different parts of the world.

Middle Structure

Under the executives come directors, assistant directors, managers and supervisors who are situated in the middle structure of a multinational organization. These individuals are responsible for overseeing their respective departments,and are stationed with their departments so they may be readily available for their direct reports.

Lower Structure

A company's line staff make up the lower portion of an organizational structure. These individuals do not have direct reports, but rather are responsible for carrying out various job duties. In a multinational company, some individuals may have to work together remotely from opposite ends of the world.

References

• IBS Center for Management Research: Management of Multinational Corporations