Organizational Structures

Formalization is defined as the use of rules and standard operating procedures to control an organization's activities, decision making, communicating and controlling.

Centralization is a management system under which important decisions are made at the top. While in the decentralized system all the managers in different hierarchical levels can make significant decisions.

There are three types of international organization structures- product, geographic and functional structure. Product structure is when each product, which is made by company, has its own marketing, HR, finance and production department. Each division is headed by its own general manager, and each is responsible for its own production and sales functions. Geographic structure is when the departments are divided by the regions or countries where the company is located. Each regional manager is then responsible for the operations and performance of the countries within a given region. Functional structure is when the company has the same departments for all products. Foreign operations are integrated into the activities and responsibilities of each department to gain functional specialization.…