By Jin Zhang
This book examines the position of company constitution, together with the function of company headquarters, within the luck of huge firms. It considers those concerns with regards to huge worldwide organizations, thereby offering a 'benchmark', that is then used as a distinction in a dialogue of company constitution and the function of company headquarters inside of huge chinese language businesses, lots of that have developed from former executive ministries. It contains a targeted case-study of enterprises within the crucially very important oil and petro-chemical area. total, the e-book exhibits what a highly aggressive conflict China's rising 'national champions' face with their international opponents, and places ahead coverage implications either for big chinese language organisations and for the chinese language executive referring to how enterprise structures will be reformed extra nonetheless so as to build globally aggressive huge commercial firms.
Read or Download Catch-Up and Competitiveness in China: The Case of Large Firms in the Oil Industry (Routledge-Curzon Studies on the Chinese Economy, 8) PDF
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Extra info for Catch-Up and Competitiveness in China: The Case of Large Firms in the Oil Industry (Routledge-Curzon Studies on the Chinese Economy, 8)
The key to the success of the multidivisional structure in the United States was ‘the delegation of authority over operational decision making without loss of control by top management over the implementation of enterprise strategy’ (Lazonick, 1991: 33). Moreover, the ‘organisational integration’ of the structure achieved through the training and motivation of managers is essential for the corporation to achieve superior performance. Setting up the multidivisional structure cannot in itself guarantee effective management and good performance.
Source: adapted from Chandler, 1962. Division product or region Functional department Functional department 12 Function of corporate headquarters devise the policy framework for the lower managers. Each division is responsible for a major product line or carries out activities in a geographical region. The divisional managers co-ordinate and administrate the functional departments in areas such as manufacturing, marketing, purchasing, research, and ﬁnance. Each of the functional departments, in turn, supervises the ﬁeld units.
It has the power to determine investment decisions and strategies for growth such as mergers and acquisitions. It has the power to devise policy as a framework to guide the divisions’ activities. It has the power to deﬁne the limits of the authority of the divisional managers as well as to appoint, appraise, reward, promote and remove divisional managers. It has the power to constantly monitor the progress and performance of the divisions. The power of corporate headquarters lies in its ability to plan and control.