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.

Accepted Answer

The complexity of the global economy, with its diverse markets, legal systems, and cultural nuances, significantly complicates the challenges of control and integration for multinational organizations, making the design of such organizations particularly difficult.

Question 2

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

Accepted Answer

Organizational design is the process of shaping an organization's structure and roles, while organizational structure is the outcome of this design process, defining how tasks are divided, coordinated, and controlled.

Question 3

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

Accepted Answer

Different firms have varying objectives, strategies, and operational needs, which means that no single international organization structure can be universally optimal for all firms. The most suitable structure depends on the specific circumstances and goals of each company.

Question 4

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

Accepted Answer

The integration-responsiveness (I-R) grid is a framework used to categorize firms based on their approach to managing the demands of global integration and local responsiveness, which indeed affects the HQ-subsidiaries relationship, leading to four types of strategies: global, transnational, international, and multidomestic.

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.

Accepted Answer

The basic global structure of every Multinational Enterprise (MNE) is indeed designed to manage the competing demands of integrating activities across different countries while also coordinating foreign subsidiaries with the headquarters. This involves balancing global efficiency, local responsiveness, and the transfer of knowledge within the organization.

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.

Accepted Answer

A matrix structure can create more complexity in reporting relationships because employees report to both a functional manager and a project or product manager, potentially leading to confusion and conflict, not necessarily resolving the dilemma.

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.

Accepted Answer

In a shared service model, different units or country operations can specialize in specific services or products, allowing other units to access these specialized services without having to develop the expertise or resources in-house. This model promotes efficiency and expertise sharing across the organization.

Question 8

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

Accepted Answer

Trust among team members is crucial for the success of virtual teams as it fosters communication, collaboration, and effective coordination in an environment where face-to-face interactions are limited.

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

Accepted Answer

The answer of International organizations need appropriate structure to effectively
A)...

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

Accepted Answer

The answer of Which of the following is TRUE about...

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

Accepted Answer

Organizational structure refers to the formal arrangement of an organization's components, including its headquarters, business units, and product lines, defining how tasks are divided, grouped, and coordinated.

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

Accepted Answer

Organizational design refers to the process of structuring an organization’s components to achieve its goals effectively.

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

Accepted Answer

All of the choices listed are factors in determining an organization's structure. The firm's stage of international development, the diversity and complexity of its business operations, and the amount of cross-border coordination required by the firm's strategy all influence how an organization is structured to effectively manage its operations and strategy.

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

Accepted Answer

The emphasis on larger and more complex organizational structures tends to slow down communication, learning, and decision-making due to the increased bureaucracy and layers of management. It also limits firms' abilities to adapt to local differences because the standardized processes and systems may not be flexible enough to accommodate unique local needs.

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

Accepted Answer

Organizations with an international structure often face weak pressures for local responsiveness and worldwide integration, as they try to balance a global presence with the need to adapt to local markets. Additionally, they typically encounter more coordination and control issues than those with a purely global structure, due to the complexity of operating across diverse environments.

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

Accepted Answer

Globally-integrated structures allow organizations to leverage resources and capabilities across borders to deliver value worldwide, integrating production and services from various global locations.

Question 17

Organizations that are in the early stages of internationalization usually have _________divisional structure.
A) global matrix
B) geographic
C) cproduct
D) functional

Accepted Answer

Organizations in the early stages of internationalization typically maintain a functional divisional structure, focusing on functions such as marketing, finance, and production, before transitioning to more complex structures like geographic or global matrix as they expand internationally.

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

Accepted Answer

Managers can significantly influence the success of internationalized firms by developing informal networks across the various centers of the firm. These networks facilitate communication, collaboration, and the sharing of best practices across different locations, enhancing the firm's overall performance.

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

Accepted Answer

The two major new challenges related to the successful implementation of cross-border teams are managing people you can't see due to geographical dispersion and redefining the role of management itself to adapt to the virtual and global team dynamics.

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

Accepted Answer

All the options provided are valid reasons for the increasing prevalence of virtual teams. Technology facilitates cross-border virtual meetings, reducing travel and relocation costs, and the complexity of international business necessitates the collaboration of diverse competencies from various locations.

Quiz 3: Design and Structure of the Multinational Enterprise

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

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

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

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

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.

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.

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.

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

International organizations need appropriate structure to effectively

Which of the following is TRUE about Organizational Design

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

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

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

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

Organizations with an international structure face

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.

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

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

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

The use of virtual teams will become more prevalent because