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| 1 | |
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 | |
The worldwide product division structure facilitates local responsiveness. |
| | A) | True |
| | B) | False |
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| 3 | |
The need for coordination is greatest in transnational firms. |
| | A) | True |
| | B) | False |
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| 4 | |
The most complex integrating mechanism is teams. |
| | A) | True |
| | B) | False |
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| 5 | |
Successful organization change goes through three stages: goal setting, awarding incentives, and preparing for the next set of changes. |
| | A) | True |
| | B) | False |
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| 6 | |
_______ 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 | |
_________ 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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| 8 | |
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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| 9 | |
__________________ refers to the norms and value systems that the employees of an organization share. |
| | A) | Organizational structure |
| | B) | Organizational processes |
| | C) | Organizational culture |
| | D) | Human resources |
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| 10 | |
_______ 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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| 11 | |
Which three dimensions generally refer to an organization's structure? |
| | A) | owner, managers, and employees |
| | B) | location of decision-making responsibilities, formal divisions, and integrating mechanisms |
| | C) | strategy, tactics, and operations |
| | D) | national, international, and global |
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| 12 | |
Which of the following is not one of the four main arguments for centralizing decision making? |
| | A) | Centralization can ensure compliance with complex legal regulations and trade barriers. |
| | B) | Centralization can facilitate coordination. |
| | C) | Centralization can help ensure decisions are consistent with organizational objectives. |
| | D) | Centralization can avoid duplication of activities. |
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| 13 | |
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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| 14 | |
_______ makes sense for firms pursuing global standardization strategies. |
| | A) | centralization |
| | B) | decentralization |
| | C) | vertical integration |
| | D) | horizontal differentiate |
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| 15 | |
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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| 16 | |
Which of the following is not one of the most common ways of dividing an international business into subunits? |
| | A) | headquarters location |
| | B) | function |
| | C) | type of business |
| | D) | geographical area |
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| 17 | |
One way to coordinate units of a firm is through centralization, but if the units are large, diverse or geographically dispersed, the firm may instead use formal and informal __________________. |
| | A) | processes |
| | B) | systems |
| | C) | strategic planning |
| | D) | integrating mechanisms |
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| 18 | |
A knowledge network |
| | A) | is a formal, IT-enabled system to capitalize on the intellectual assets of the firm. |
| | B) | has little application in firms using matrix structure. |
| | C) | is often based on informal contacts among managers. |
| | D) | tends to break down in international business situations. |
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| 19 | |
Multinationals need integration, especially if they are pursuing global standardization, international or transnational strategies, but integration is difficult to achieve for all of the following reasons EXCEPT: |
| | A) | Informal networks work well, but these are difficult to organize and support. |
| | B) | A common culture helps support the integration, but it is difficult to create or change an organizational culture. |
| | C) | A formal integrating mechanism, like a bureaucratic structure, is generally best even though it takes energy to support it and bring the subunit operations into line with the established way of doing things. |
| | D) | A complex matrix structure creates its own problems even though it is excellent for simultaneously achieving location and experience curve economies, local responsiveness and transfer of core competencies. |
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| 20 | |
Depending on the strategy of the firm, it may use any of the following four types of control systems: |
| | A) | automated, exception, social and statistical process controls. |
| | B) | personal, bureaucratic, output and cultural controls. |
| | C) | legal, ethical, social and cultural controls. |
| | D) | global standardization, international, transnational and localization controls. |
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| 21 | |
For incentives to work well, |
| | A) | they must be linked to the employee's scope of work and his or her ability to affect the outcome. |
| | B) | they should not be linked to annual performance, since employees can skew results. |
| | C) | they should not considered part of a compensation package but something over and above regular compensation. |
| | D) | they should focus on individual performance and not group performance. |
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| 22 | |
__________ exists when the causes of a subunit's poor performance are not clear. |
| | A) | A strategic mismatch |
| | B) | A management problem |
| | C) | Performance ambiguity |
| | D) | A cultural misunderstanding |
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| 23 | |
Which of the following is not generally recognized as a source from which organizational culture develops? |
| | A) | an organization's founders or important leaders |
| | B) | the history of the enterprise |
| | C) | the broader social culture in which the organization began |
| | D) | the enterprise-wide control systems |
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| 24 | |
When considering elements of organizational architecture, one must include vertical differentiation, horizontal differentiation, need for coordination, integrating mechanisms, performance ambiguity and the need for cultural controls. Among the four basic types of strategy – localization, international, global standardization and transnational – one can make the following summary: |
| | A) | There is little difference among the four strategies in key elements of organizational architecture. |
| | B) | Each strategy is completely different among the elements of organizational architecture. |
| | C) | The need for coordination and integrating mechanisms don't change much across the strategies, but the other elements do change. |
| | D) | There is some similarity with the international and global standardization strategies in terms of both vertical and horizontal differentiation, but other elements are very different across the strategies. |
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| 25 | |
Which of the following is not true about organizational change: |
| | A) | As long as change is clearly explained and demonstrated, it can be accomplished quickly and relatively painlessly. |
| | B) | Strong inertial forces within organizations make change difficult. |
| | C) | The trend toward globalization in many industries makes organizational change more critical than ever. |
| | D) | The basic principles of organizational change include three stages: unfreezing, moving to a new state and refreezing. |
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