An organization, which has assets in more than one country other than its home country is called as global organization. Such companies have offices and/or factories in different countries and usually have a centralized head office where they coordinate the global management. These organizations have centralized head office in their home country that controls their various office in other parts of the world.


A global organization must modify and adapt its design to allow it to function effectively. e.g. Nestle is a big global organization and highly decentralized. Us organizational design is like an umbrella. Nestlé’s various organizations scattered around the world are operated by its own general managers, who arc empowered with a great deal of autonomy and authority to make decisions. As a result, Nestle is almost a confederation of independent operating organizations. Its design is similar to the M-form but because the operating units are so far apart that there is little synergy.

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