Decision Making in Global OrganizationsIn today's business environment, businesses are under constant pressure to maximize their productivity in order to compete in the marketplace. Many companies are offshoring various activities, such as manufacturing and product development, to countries with low labor costs. They are also opening sales channels in many new markets. The resulting global organizations must structure themselves to be able to effectively manage their operations across many locations. This article examines how the organizational structure of a global company influences decision-making at the regional level and how this can affect company performance. This article will:- Examine whether centralized and decentralized business structures will make different business decisions based on the cultural values ​​of the region.- Explore how the transition from an autonomous to a centralized structure affects regional performance.- Examine how a A global business can define decision-making accountability that balances a corporate code of conduct with regional cultural differences to achieve optimal business results. - Recommend steps that global organizations can take to optimize regional decision-making and corresponding business outcomes, in regions with different cultural backgrounds. Companies have been trying for many years to find a balance between the traditional hierarchical structure and the flexible local entrepreneurial structure. Increasing global competition has made it essential that multinational companies be both globally integrated and locally responsive (Bartlett and Ghoshal, 1988). Sohn & Paik (2004) describe Toshiba's efforts to achieve a hybrid of centralized control and localized autonomy. Regardless of the structure chosen, businesses can all be placed somewhere on the continuum between centralized and decentralized management. A centralized structure will be slower to respond to changing market conditions, but it will provide stability and control. A decentralized structure provides local businesses with the autonomy to make their own decisions quickly; however, decisions may not align with the strategic goals and ethics of the parent organizations. Many business decisions involve a conflict between making money and ethically treating employees, customers, and the environment. Centrally managed organizations are more likely to align their decisions with a universal code of conduct. Autonomous subsidiaries will make decisions that reflect local cultural values. The risk for the parent organization is that some of these decisions seriously conflict with shareholder values. The treatment of women, children and respect for the environment are areas in which regional differences exist.