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The term that best describes how an organization arranges its domestic and international units and activities is organizational structure. This concept encompasses the framework within which an organization operates, detailing how different roles, responsibilities, and activities are coordinated and managed.
Organizational structure can include the hierarchy of teams and departments, enabling clear pathways for communication and decision-making both in domestic markets and at international levels. A well-defined organizational structure helps ensure that various units, whether they are based locally or globally, work cohesively towards the organization's goals.
While organizational design refers to the process of creating an organizational structure, it is specifically about how that structure is implemented and developed to meet strategic objectives. Organizational culture, on the other hand, pertains to the values, beliefs, and behaviors that influence how members of the organization interact and work together but does not define the arrangement of units. Lastly, the term organizational international plan typically refers to strategies and initiatives focused on international operations, rather than the structural arrangements of the organization.