January 10th, 2018
organization structure for Himin
Due to the difference in culture (Itim international, 2009), the company intends to institute an organization structure that has few hierarchical associations. As such the entity intends to establish a team strategy for managing its Australian operations.
The proposed organization structure for business operations in the Australia indicates a four level communication channel. At the top would be the country manager to serve as the intermediary between the parent country and the Australian entity. The Manager would also be part of the board that will safeguard investors’ interests. Further the manager would also be the chair of the business development team. The proposed manager is an expatriate with adequate cultural knowledge of Australia with previous experience in the country. This is envisaged to mitigate cultural adjustment challenges that may curtail successful business start-up (Caligiuri, Tarique & Jacobs 2009).
The business development team would be comprised of various section heads or their representative and support staff to offer technical assistance. External expert consultants may also form part of this group to give advice on their line of expertise (Kerzner, 2006). The purpose of this team would be to develop and propose actions for implementation of the entity’s business strategy. Further the team will be responsible for vetting the performance of various departments with a view on bettering the business strategy adopted.
The business team make-up comprises the managers for four departments – accounting and finance, human resources, sales and marketing, and operations/production. As such below the business strategy team each manager will be in charge of various sections under his department. The financial manager would for instance oversee processes such as financial reporting, budgeting and business financing; whereas the sales and marketing manager would be in charge of developing marketing strategy, sales and distribution and marketing public relations activities. The human resource manager would be in charge of processes such as staffing, compensation and benefits, and labour relations. Finally the operations and production head would oversee production, procurement and installation and maintenance activities. Out of these heads of departments the marketing and human resources managers are preferred to be filled up by host country nationals with adequate knowledge on host country culture and laws to prevent related inefficiencies that would arise with expatriate managers (Caligiuri, Tarique & Jacobs 2009). Whereas an expatriate would be preferable for financial and accounting processes that are in accordance with international practice, a host country manager would be well informed on country specific matters such as taxation. The choice of the accounting and finance manager would thus be advanced according to managerial experience in both international and national determinants (Benito, Tomassen, Bonache-Perez & Pla-Barber, 2005). The preferred manager for operations would be an expatriate with adequate technical knowhow to safeguard against lower product qualities (Harzing, 2001). Go to governance and succession plan.