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| 1.
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Companies with a low degree of diversification, and a domestic structure based on functions tend to favor the worldwide area structure. |
| | A) | True |
| | B) | False |
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| 2.
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The worldwide product division structure facilitates local responsiveness. |
| | A) | True |
| | B) | False |
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| 3.
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The need for coordination is greatest in transnational firms. |
| | A) | True |
| | B) | False |
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| 4.
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The most complex integrating mechanism is teams. |
| | A) | True |
| | B) | False |
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| 5.
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Control through a system of rules and procedures that directs the actions of subunits is known a output control. |
| | A) | True |
| | B) | False |
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| 6.
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_______ refers to the totality of a firm's organization including its formal organizational structure, control systems and incentives, processes, organizational culture, and people comprise its |
| | A) | organizational design |
| | B) | organizational architecture |
| | C) | organization plan |
| | D) | organizational setup |
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| 7.
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_______ includes the employees of the organization, the strategy used to recruit, compensate, and retain those individuals, and the type of people that they are in terms of their skills, values, and orientation. |
| | A) | people |
| | B) | organizational structure |
| | C) | organizational processes |
| | D) | human resources |
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| 8.
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Control systems are |
| | A) | the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits |
| | B) | the devices used to reward appropriate managerial behavior |
| | C) | the manner in which decisions are made and work is performed within the organization |
| | D) | the formal division of the organization into subunits |
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| 9.
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A firm's processes include |
| | A) | the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits |
| | B) | the devices used to reward appropriate managerial behavior |
| | C) | the manner in which decisions are made and work is performed within the organization |
| | D) | the formal division of the organization into subunits |
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| 10.
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The manner in which decisions are made and work is performed within the organization is known as the |
| | A) | organizational structure |
| | B) | control system |
| | C) | the processes |
| | D) | the incentive system |
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| 11.
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_________ are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits. |
| | A) | control systems |
| | B) | processes |
| | C) | incentive systems |
| | D) | organizational culture |
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| 12.
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A firm that wants to give top-level managers the means to bring about needed major organizational changes should choose a _______ organizational structure. |
| | A) | centralized |
| | B) | decentralized |
| | C) | vertically differentiated |
| | D) | horizontally differentiated |
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| 13.
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When a firm wants to void the duplication of activities that can occur when similar activities are carried on by various subunits within the organization, the firm should choose |
| | A) | horizontal differentiation |
| | B) | vertical differentiation |
| | C) | centralization |
| | D) | decentralization |
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| 14.
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A firm that wants decisions to be made by managers who are closer to the issue at hand should choose |
| | A) | vertical differentiation |
| | B) | horizontal differentiation |
| | C) | centralization |
| | D) | decentralization |
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| 15.
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When a firm wants to increase control within the organization, the firm should adopt |
| | A) | decentralization |
| | B) | centralization |
| | C) | vertical differentiation |
| | D) | horizontal differentiation |
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| 16.
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Which of the following decisions is typically not decentralized? |
| | A) | human resource management |
| | B) | R&D |
| | C) | financial expenditures |
| | D) | operating decisions |
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| 17.
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Firms following a local responsiveness strategy are more likely to choose to |
| | A) | centralize |
| | B) | decentralize |
| | C) | vertically differentiate |
| | D) | horizontally differentiate |
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| 18.
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_______ makes sense for firms pursuing global standardization strategies. |
| | A) | centralization |
| | B) | decentralization |
| | C) | vertical integration |
| | D) | horizontal differentiate |
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| 19.
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A firm in the upper right hand corner of the international structural stages model has _______ foreign product diversity and _____ foreign sales as a proportion of total sales. |
| | A) | high, high |
| | B) | high, low |
| | C) | low, low |
| | D) | low, high |
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| 20.
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Firms in the lower left corner of the international structural stages model have _______ foreign product diversity and ______ foreign sales as a proportion of total sales. |
| | A) | low, low |
| | B) | low, high |
| | C) | high, low |
| | D) | high, high |
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| 21.
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A Harvard study shows that some ______ percent of all firms that have expanded internationally have initially adopted the international structure. |
| | A) | 10 |
| | B) | 25 |
| | C) | 60 |
| | D) | 85 |
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| 22.
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The ______ structure is consistent with a localization strategy, but may make it difficult to realize gains associated with global standardization. |
| | A) | worldwide product |
| | B) | worldwide area |
| | C) | international |
| | D) | global matrix |
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| 23.
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A ______ structure is more appropriate for firms pursuing global standardization or an international strategy. |
| | A) | worldwide product |
| | B) | worldwide area |
| | C) | international |
| | D) | global matrix |
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| 24.
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The need for coordination is greatest for firms pursuing _____ strategies. |
| | A) | international |
| | B) | transnational |
| | C) | localization |
| | D) | global standardization |
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| 25.
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The least complex integrating system is |
| | A) | a matrix structure |
| | B) | teams |
| | C) | liaison roles |
| | D) | direct contact |
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