Deck 3: Design and Structure of the Multinational Enterprise

Question 1

The traditional needs for control and integration when applied across national borders in the highly complex global economy make organizational design problems especially difficult.

Answer 1

True

Question 2

Organizational design is an outcome, whereas organizational structure is a process.

Answer 2

False

Question 3

Obviously, no one type of international organization structure embodies the right system for all firms.

Answer 3

True

Question 4

This integration-responsiveness grid categorizes the internationalized structure of the firm in terms of the HQ-subsidiaries relationship into four types.

Question 5

You could describe the basic global structure of every MNE in terms of how it is designed to manage the competing demands of integrating activities in different countries and coordinating foreign subsidiaries with headquarters.

Question 6

Using a matrix structure for reporting relationships resolves the dilemma associated with having managers reporting to a local, national boss and a regional functional office.

Question 7

In a shared service model, individual country operations can specialize in varying aspects of international HR services. Then other countries can access these services and products without developing them all themselves.

Question 8

The level of trust between team members is the critical variable in the successful functioning of virtual teams.

Question 9

International organizations need appropriate structure to effectively

A) conduct business in the chaotic and interconnected global economy
B) manage an increasing number of partnerships
C) develop new mental mindsets
D) all of the above

Question 10

Which of the following is TRUE about Organizational Design

A) Organizational design is the process used by management to determine the formal
Arrangement of components such as the headquarters, subsidiaries, business units/
Divisions within the headquarters and subsidiaries, product lines, jobs, positions,
Tasks, and reporting relationships in the organization
B) Organizational design is the outcome, whereas organizational structure is the process.
C) The organizational design depends on how well MNEs can determine their core business and their ability to expand
D) All of the above

Question 11

Organizational _______ refers to the formalized arrangement of organizational components such as headquarters, business units, and product lines in an organization

A) systems
B) structure
C) design
Dsilos

Question 12

The process or style used by management to arrange the various components of the organization is referred to as

A) organizational design
B) organizational change
C) organizational structure
D) none of the above

Question 13

Which of the following is a factor in determining organizational structure:

A) The firm's stage of international development
B) The diversity and complexity of business operations
C) The amount of cross-border coordination required by the firm's strategy
D) All of the above

Question 14

The emphasis on increased layers and size of formal organizational structures and more sophisticated systems has

A) slowed down communication, learning, and decision-making
B) limited firms' abilities to adapt to local differences
C) increased managements' ability to respond to local issues
D) A and B

Question 15

Organizations with an international structure face

A) weak pressures for local responsiveness
B) fewer coordination and control issues than those with a global structure
C) weak pressures for worldwide integration
D) all of the above

Question 16

Organizations that bring together the production of goods and services from their many locations around the globe to deliver value to clients worldwide have adopted a ________ structure.

A) global matrix
B) globally-integrated
C) cproduct integrated
D) functional

Question 17

Organizations that are in the early stages of internationalization usually have _________divisional structure.

A) global matrix
B) geographic
C) cproduct
D) functional

Question 18

Managers can have a significant impact upon the success of internationalized firms by developing informal ________ throughout the many centers of the firm.

A) systems
B) networks
C) practices
D) teams

Question 19

Two major new challenges related to the successful implementation of cross-border teams are

A) managing people you can't see and redefining the role of management itself
B) managing conflict and working in isolation
C) supporting managers with appropriate IHRM strategies and rewarding performance
D) managing communications in large teams and increasing diversity

Question 20

The use of virtual teams will become more prevalent because

A) technology now makes it easier for cross-border teams to meet in a virtual fashion
B) this approach costs firms less in terms of travel and relocation expenses
C) the complexity of international business requires the interaction of people with multiple competencies from many locations
D) all of the above

Question 21

Describe the structure of a transnational firm and explain how it differs from a global firm.

Question 22

Describe the concerns with the Global Matrix Structure.

Question 23

Discuss the Challenges of Cross-Border Teams.

Question 24

List five strategies for improving the effectiveness of cross-border and virtual teams.

Question 25

Identify and explain how IHRM can help ensure firms' success with a global organizational structure.

Question 26

Evaluate the merits of developing networks and a learning organization approach to how this helps facilitate competitive advantage for MNEs.