Question

Brisonic is a British company that manufactures electric switch boards. The company manufactures and sells switch boards in Australia, Japan, USA, China and Israel. As countries can have different requirements for switch boards to fit the electric plugs, each manufacturing subsidiary only manufactures products for the local market. Based on this information, you are required to answer the following two questions:
1. What is the appropriate organizational structure for Brisonic? Explain your answer and provide a structure figure. ( 250 words)
2. Which staffing philosophy would be the most appropriate for Brisonic to follow for its international operations and explain the reasons. ( 250 words)

Answer 1

1. What is the appropriate organizational structure for Brisonic? Explain your answer and provide a structure figure. ( 250 words)

Since Brisonic is in the field of manufacturing electric switch boards and sells them in different countries through its subsidiaries that manufacture products as per the local requirements. In such an organization the functions have to be delineated along with the flexibility of the extensive local operations. Therefore the structure that will be most suitable for Brisonic will be the Matrix Structure.

The company will have a CEO who will look after the entire business across geographies. Each country will have its Country Head reporting to the CEO and in each country the structure will be functional.

1. Which staffing philosophy would be the most appropriate for Brisonic to follow for its international operations and explain the reasons. ( 250 words)

Since the organization is operating in different geographies and is manufacturing products that are specific to that geography, the local sourcing for staff methodology would be preferred. However, Subject matter experts could be used across locations from various geographies. But, the base staff which works in the factory to get the desired results should be from that particular geography itself. This will ensure that any advantages in terms of cost saving from low cost of labour or local sourcing etc. are fully taken and passed on to the local consumer. In conjunction with this we could have tie-ups with technical local institutes and hire them as part of our organization.

Another methodology will be to hire local graduate engineer and post graduate engineer trainees and salesmen from local colleges and institutes. The advantages of local staffing and hiring are manifold ranging from avoiding local legal complications to conformance to the local labour laws and better union management. Local staffing will also help the company build a brand image which will send the message that the company is not only manufacturing switch boards but also creating a spark in the lives of the local people by giving employment opportunities