THE MULTIPERSON MANAGERIAL MODEL OF DIFFERENT ORGANIZATION STRUCTURES IN PREFERENCE ORDERINGS AND PROFITABILITY

The Multiperson Managerial Model of Different Organization Structures in Preference Orderings and Profitability deals with the composition of the objective function of goal programming. The model is illustrated according to a case in point: Direct Foreign Investment in Manufacturing and International Business. Ceteris paribus, the model is composed of four major variables: Organization structure preference, environmental pressures, cost constraints and profit. The model is supported by the empirical findings of a survey of selected top professional executives from the Fortune 500 corporations in the United States and top professional executives of U.S. firms in Taiwan.;Five general conclusions are drawn from the present survey. (1) The vast majority of changes in organization structure are positively related to or aimed at improving organizational (economic) efficiency and profitability. (2) The integrative or reconcilable concept of profit maximization and social responsibility is practiced. (3) The organization structure-multiple goal-environmental pressure paradigm is operative. (4) Organizational response is positively related to environmental pressures and cost constraints. (5) Structural synergy is positively related to profit and goal-setting.;Five comparative propositions are derived from the comparative analysis of different organization structures and profitability. (I) An increase in profit and revenue brought about by an increase in resources is higher in function structure than in product structure. (II) An increase in economic or competitive strategy brings about an increase in profit which is higher in function structure than in product structure. (III) An increase in the level of aspiration and management sensitivity brings about an increase in profit which is higher in function structure than in product structure, and an increase in revenue which is higher in product structure than in function structure. (IV) An advancement in the state of technology brings about an increase in profit which is higher in function structure than in product structure, and an increase in revenue which is higher in product structure than in function structure. (V) A combination of function structure which is suitable for company growth in equity and product structure which is suitable for company growth in sales, is recommended for company growth in equity, sales and size.