Question 1

The best organizational structure is the one that ________.
A) does not allow any compromise on the globalization-localization continuum.
B) upholds the status quo
C) actively resists organizational change
D) facilitates the firm's goals and is appropriate to its industry, size, technology, and competitive environment

Accepted Answer

The best organizational structure is one that facilitates the firm's goals and is appropriate to its industry, size, technology, and competitive environment. Such a structure will help the company operate efficiently and effectively and provide the framework for achieving its strategic objectives. It will also ensure that everyone within the organization understands their roles and responsibilities and how they fit into the overall structure. A structure that upholds the status quo or actively resists organizational change is unlikely to be effective given the rapidly changing business environment, while a structure that does not allow for any compromise on the globalization-localization continuum may not be appropriate for all industries or companies.

Question 2

Which of the following indicates a need for change in organizational design?
A) low turnover
B) a decrease in overseas customer complaints
C) seamless innovation
D) new management with different goals and strategies

Accepted Answer

A change in management with different goals and strategies may require a corresponding change in organizational design to effectively align with the new vision and direction. Low turnover, a decrease in overseas customer complaints, and seamless innovation may not necessarily indicate a need for change in organizational design.

Question 3

Using the Internet to streamline global supply systems ________.
A) enhances the efficiency of the supply chain
B) eliminates the reliance on local suppliers
C) creates a vertical hierarchical structure within organizations
D) increases fixed costs

Accepted Answer

Using the Internet to streamline global supply systems enhances the efficiency of the supply chain by allowing for faster communication and easier tracking of shipments and inventory. It does not necessarily eliminate the reliance on local suppliers, create a vertical hierarchical structure within organizations, or increase fixed costs.

Question 4

The feedback from the control process and the information systems should ________.
A) point out the most suitable organizational structure for a company at a given point in time
B) help employees formulate a plan for personal development
C) signal any necessary change in strategy, structure, or operations in a timely manner
D) eliminate organizational anarchy

Accepted Answer

The feedback from the control process and the information systems should signal any necessary change in strategy, structure, or operations in a timely manner. This helps the organization stay on track and adapt to changing circumstances. The other choices are not directly related to the feedback from the control process and information systems.

Question 5

________ is most likely to reduce the effectiveness of an organizational structure.
A) Low adaptability
B) Fluidity
C) Dynamism
D) High flexibility

Accepted Answer

An organizational structure needs to be adaptable to changes in the environment, market trends, and customer needs to remain effective. If the organizational structure is not adaptable, it will not be able to cope with changes, which could result in reduced effectiveness.

Question 6

The organizational culture has a low impact in a ________ strategy.
A) global
B) transnational
C) multidomestic
D) international

Accepted Answer

The answer of The organizational culture has a low impact...

Question 7

According to the ________ model,as the company becomes larger,more complex,and more sophisticated in its approach to world markets,it may evolve into a transnational corporation.
A) four stages of contribution
B) crowdsourcing
C) matrix
D) evolutionary stages

Accepted Answer

The evolutionary stages model explains how a company may evolve over time, and one of the potential stages is the transnational corporation stage. This stage is characterized by a large and complex organization that operates in multiple countries with a sophisticated approach to world markets. The other answer choices (four stages of contribution, crowdsourcing, and matrix) are not relevant to this concept.

Question 8

Diana's,an Illinois-based cosmetics company,manufactures a wide range of natural cosmetics and skin-care products.The company has international divisions located in Singapore and London.The top management at Diana's is currently considering making a change to the company's organizational structure. Which of the following,if true,best supports the argument that Diana's should change its organizational structure?
A) Employees at Diana's complain that they are too bogged down with administrative tasks to focus on creating new products and concepts.
B) Diana's exports its products to the emerging markets in Asia and Africa.
C) Employee attrition is low at Diana's.
D) The labor union consisting of Diana's full-time employees successfully negotiated a hike in their annual compensation with management a few months ago.

Accepted Answer

The employees complaining about being bogged down with administrative tasks indicates that the current organizational structure may not be efficient and productive. Changing the structure could potentially alleviate this issue and allow employees to focus on more important tasks such as product development. The other options do not provide a strong argument for changing the organizational structure.

Question 9

Which of the following organizational structures is typical of most transnational companies?
A) matrix structure
B) bureaucratic structure
C) global product structure
D) global functional structure

Accepted Answer

Most transnational companies operate in multiple countries and regions, as well as in multiple product lines. This requires a complex organizational structure that can best be managed through a matrix structure that combines both functional and divisional structures. This allows for collaboration among different departments and regions, while also ensuring efficiency and effectiveness in managing different product lines.

Question 10

Nimbus Inc.is a hybrid organization.The organizational structure of the company has been developed to combine geographic support for both global integration and local responsiveness.Nimbus is not a hierarchical organization and uses cross-functional teams to quickly adapt to the dynamic business environment. If the above information is true,which of the following can be fittingly inferred?
A) that Nimbus has only a few SBUs
B) that Nimbus has a matrix structure
C) that Nimbus is a born global
D) that Nimbus does not favor standardization of its products

Accepted Answer

The hybrid organizational structure described in the passage is indicative of a matrix structure, where cross-functional teams are used to promote both global integration and local responsiveness. The passage does not provide any information about the number of strategic business units (SBUs) within Nimbus, whether it is a born global, or whether it favors standardization of its products.

Question 11

The ________ strategy involves maximizing opportunities for both efficiency and local responsiveness by adopting a structure that uses alliances,networks,and horizontal design formats.
A) multidomestic structure
B) transnational corporation
C) international division structure
D) bureaucratic structure

Accepted Answer

The described strategy is that of a transnational corporation, which aims to balance efficiency and local responsiveness through the use of alliances and networks, as well as a horizontal structure that enables greater communication and coordination across national boundaries. The other options listed are not as closely aligned with this particular strategy.

Question 12

Two major variables in choosing the structure and design of an organization are the opportunities and need for ________.
A) globalization and localization
B) mass marketing and niche marketing
C) vertical mobility and horizontal mobility
D) differentiation and integration

Accepted Answer

The answer of Two major variables in choosing the structure...

Question 13

To address the globalization-localization dilemma,firms that have evolved through the multinational form and the global company seek the advantages of ________ in the pursuit of transnational capability.
A) niche marketing
B) horizontal organization
C) a narrow product line
D) vertical organization

Accepted Answer

Horizontal organization is the best choice because it allows firms to balance global scale efficiencies with local responsiveness by assembling and coordinating resources globally. It allows for more communication and collaboration across departments and regions, enabling firms to respond to local market needs while maintaining global consistency in operations and branding. Vertical organization and niche marketing do not directly address globalization-localization issues, while a narrow product line may limit a firm's market potential.

Question 14

In general,centralized decision making is common for some functions such as ________.
A) sales
B) finance
C) marketing
D) production

Accepted Answer

Centralized decision making is common for finance because it involves critical decisions regarding the allocation of resources, investments, and financial planning, which typically require oversight and control at a higher, centralized level of an organization to ensure consistency and alignment with the overall strategic goals.

Question 15

________ refers to the ability to manage across national boundaries,retaining local flexibility while achieving global integration.
A) Positioning
B) Globalization
C) Transnational capability
D) Filtering capability

Accepted Answer

Transnational capability refers to the ability to manage across national boundaries while retaining local flexibility and achieving global integration. It involves balancing global integration with local responsiveness and is crucial for multinational corporations operating in diverse markets. Positioning refers to the way a product or brand is perceived in the marketplace. Globalization refers to the process of integrating economies, societies, and cultures on a global scale. Filtering capability is not a term commonly used in business management.

Question 16

Which of the following is true with regard to direct coordinating mechanisms?
A) Expatriates from "headquarters" do not exert control over the foreign affiliate through the expectations of the national and corporate culture of the parent company.
B) Even in situations where parent control is considered less important, delegating the control to the local level is ritually avoided.
C) Direct coordinating mechanisms that provide the basis for the overall guidance and management of foreign operations include, the design of appropriate organizational structures and the use of effective staffing practices.
D) Direct coordinating mechanisms do not include staffing practices.

Accepted Answer

Direct coordinating mechanisms such as appropriate organizational structures and effective staffing practices are important for providing overall guidance and management of foreign operations. Option A is false as expatriates from "headquarters" do exert control over foreign affiliate through the expectations of the national and corporate culture of the parent company. Option B is false as delegation of control to the local level is sometimes necessary and practiced. Option D is false as staffing practice is a part of direct coordinating mechanisms.

Question 17

In a ________ strategy,the need to coordinate is low.
A) multidomestic
B) international
C) global
D) transnational

Accepted Answer

In a multidomestic strategy, each individual country or region operates independently with little coordination needed between them. This allows for local responsiveness and customization to the specific needs of each market. Therefore, the need for coordination is low. In contrast, in a global or transnational strategy, there is a greater need for coordination as companies aim to standardize processes and products across multiple markets.

Question 18

To be effective,an organizational structure should ________.
A) not accommodate overlapping responsibilities
B) be rigid
C) be highly adaptable to the changing needs of the company
D) be the same as that of its competitors

Accepted Answer

An effective organizational structure should be highly adaptable to the changing needs of the company. This allows for flexibility and the ability to quickly pivot when necessary. A structure that is too rigid or the same as that of its competitors may not be able to respond effectively to market changes or new opportunities. Accommodating overlapping responsibilities can also be beneficial in promoting collaboration and teamwork within the organization.

Question 19

In general,decentralized decision making is common for some functions such as ________.
A) finance
B) research and development
C) production
D) strategic management

Accepted Answer

The answer of In general,decentralized decision making is common for...

Question 20

At persistent signs of ineffective work,a company should ________.
A) switch from a customer orientation to a product orientation
B) implement price skimming
C) analyze its organizational design, systems, and work flow for the possible causes of those problems
D) acquire smaller born globals to regain lost market share

Accepted Answer

When a company is experiencing persistent signs of ineffective work, it is important to identify the root cause of the problem. This requires an analysis of the company's organizational design, systems, and work flow. Only by identifying the root cause of the problem can the company take appropriate steps to address it and improve its performance. Switching from a customer orientation to a product orientation or implementing price skimming may not address the underlying issues and could potentially exacerbate the problem. Acquiring smaller born globals may be an option to regain lost market share, but it does not address the root cause of the ineffective work. Therefore, the best choice is to analyze the organizational design, systems, and work flow.

Quiz 8: Organization Structure and Control Systems

The best organizational structure is the one that ________.

Which of the following indicates a need for change in organizational design?

Using the Internet to streamline global supply systems ________.

The feedback from the control process and the information systems should ________.

________ is most likely to reduce the effectiveness of an organizational structure.

The organizational culture has a low impact in a ________ strategy.

According to the ________ model,as the company becomes larger,more complex,and more sophisticated in its approach to world markets,it may evolve into a transnational corporation.

Which of the following organizational structures is typical of most transnational companies?

The ________ strategy involves maximizing opportunities for both efficiency and local responsiveness by adopting a structure that uses alliances,networks,and horizontal design formats.

Two major variables in choosing the structure and design of an organization are the opportunities and need for ________.

To address the globalization-localization dilemma,firms that have evolved through the multinational form and the global company seek the advantages of ________ in the pursuit of transnational capability.

In general,centralized decision making is common for some functions such as ________.

________ refers to the ability to manage across national boundaries,retaining local flexibility while achieving global integration.

Which of the following is true with regard to direct coordinating mechanisms?

In a ________ strategy,the need to coordinate is low.

To be effective,an organizational structure should ________.

In general,decentralized decision making is common for some functions such as ________.

At persistent signs of ineffective work,a company should ________.