Organizational structures of Transnational corporations

As strategies of transnational corporations (TNCs) change, so do their organizational structures. The traditional structure is based on stand-alone strategies involving affiliates linked to their parent firms via ownership and the supply of technology. The flow of resources and the functional links between parents and affiliates are limited. Decision-making lies mainly with the managers of each affiliate. Reporting arrangements are hierarchical: the top manager in each affiliate is in charge of operations and reports to the head of an international division and/or product division of the parent firm.

Sustainable Development Goals:

Decent Work and Economic Growth