Question 1

The Japanese make heavy use of a decision-making process called ringisei or decision making by consensus.

Accepted Answer

The Japanese are somewhat different from the Europeans, though they still employ a long-term focus. They make heavy use of a decision-making process called ringisei, or decision making by consensus. Under this system any changes in procedures and routines, tactics, and even strategies of a firm are organized by those directly concerned with those changes. The final decision is made at the top level after an elaborate examination of the proposal through successively higher levels in the management hierarchy, and results in acceptance or rejection of a decision only through consensus at every echelon of the management structure.

Question 2

Decisions that are heavily economic in orientation concentrate on such aspects as return on investment (ROI) for overseas operations.

Accepted Answer

Decisions which are heavily economic in orientation concentrate on such aspects as return on investment (ROI) for overseas operations.

Question 3

Amazon's target market is significantly larger, but less loyal, than Alibaba's.

Accepted Answer

Amazon, unlike Alibaba, specializes primarily in just business-to-consumer sales. As a result, Amazon's target market is significantly smaller, but more loyal, than Alibaba's.

Question 4

ISO 9000 certification is becoming a necessary prerequisite to doing business in the EU.

Accepted Answer

ISO 9000 certification is becoming a necessary prerequisite to doing business in the EU, but it also is increasingly used as a screening criterion for bidding on contracts or getting business in the United States and other parts of the world.

Question 5

Financial performance evaluation of a foreign subsidiary or affiliate usually is based on profit and return on investment.

Accepted Answer

Financial performance evaluation of a foreign subsidiary or affiliate is usually based on profit and loss, and return on investment.

Question 6

When local managers are inexperienced or not highly effective, decision making tends to be decentralized.

Accepted Answer

Experience proves to be a simple indicator of efficiency. For example, if the subsidiary has highly competent local managers, the chances for decentralization are increased, because the home-office has more confidence in delegating to the local level and less to gain by making all the important decisions. Conversely, if the local managers are inexperienced or not highly effective, the MNC likely will centralize decision making and make many of the major decisions at headquarters.

Question 7

An assessment center is an evaluation tool that is used to evaluate employees.

Accepted Answer

An assessment center is an evaluation tool that is used to identify individuals with the potential to be selected for or promoted to higher-level positions.

Question 8

General Motors designed and built an inexpensive vehicle, the Ikon, for the Indian market.

Accepted Answer

Ford Motor designed and built an inexpensive vehicle, the Ikon, for the Indian market.

Question 9

A quality control circle is a group of workers who meet on a regular basis to discuss ways of improving the quality of work.

Accepted Answer

A quality control circle (QCC) is a group of workers who meet on a regular basis to discuss ways of improving the quality of work. This approach has helped many MNCs improve the quality of their goods and services dramatically.

Question 10

A legal system called codetermination requires workers and their managers to participate in the discussion of major decisions.

Accepted Answer

In addition, management education is highly technical, and a legal system called codetermination requires workers and their managers to discuss major decisions.

Question 11

In Germany, managers place a greater emphasis on managing subordinates than on productivity and product quality.

Accepted Answer

In Germany, managers focus more on productivity and quality of goods and services than on managing subordinates, which often translates into companies pursuing long-term approaches.

Question 12

Efficient processes become increasingly important as diversification or differences between the parent and subsidiary increase.

Accepted Answer

Efficient processes become increasingly important as diversification or differences between the parent and subsidiary increase. This refers not only to specific products and services that may need to be tailored to geographic areas, but also to the socioeconomic, political, legal, and cultural environments in which the subsidiary exists.

Question 13

Larger organizations typically emphasize decentralized decision making in their international operations.

Accepted Answer

Larger organizations may choose to centralize authority for critical decisions in order to ensure efficiency through greater coordination and integration of operations.

Question 14

Direct controls use reports and other written forms of communication to control operations.

Accepted Answer

Indirect controls involve the use of reports and other written forms of communication to control operations.

Question 15

Direct controls are particularly important in international management because of the great expense associated with indirect methods.

Accepted Answer

Indirect controls are particularly important in international management because of the great expense associated with direct methods of control.

Question 16

Surprisingly one of the least common approaches to personnel performance evaluation is the periodic appraisal of work performance.

Accepted Answer

One of the most common approaches to personnel performance evaluation is the periodic appraisal of work performance.

Question 17

The process of giving individuals and teams the resources, information, and authority they need to develop ideas and effectively implement them is referred to as reengineering.

Accepted Answer

A particularly critical issue is how much decision making to delegate to subordinates. TQM uses employee empowerment. Individuals and teams are encouraged to generate and implement ideas for improving quality, and are given the decision-making authority and necessary resources and information to implement them.

Question 18

As a TQM technique, rewards and recognition tend to be effective universally.

Accepted Answer

The important thing to realize is that the rewards and recognition approaches that work well in one country may be ineffective in another.

Question 19

Decision making and controlling are two vital and often interlinked functions of international management.

Accepted Answer

Decision making and controlling are two vital and often interlinked functions of international management.

Question 20

Through its diverse set of websites, Alibaba can cater to virtually any type of transaction.

Accepted Answer

The Alibaba Group is a conglomerate of over a half-dozen individual ecommerce websites, combining business-to-business, business-to-consumer, and consumer-to-consumer transactions under a single ownership umbrella. Through its diverse set of websites, the company can cater to virtually any type of transaction, whether it is a small personal purchase or a multi-million dollar business transaction.

Quiz 11: Management Decision and Control

The Japanese make heavy use of a decision-making process called ringisei or decision making by consensus.

Decisions that are heavily economic in orientation concentrate on such aspects as return on investment (ROI) for overseas operations.

Amazon's target market is significantly larger, but less loyal, than Alibaba's.

ISO 9000 certification is becoming a necessary prerequisite to doing business in the EU.

Financial performance evaluation of a foreign subsidiary or affiliate usually is based on profit and return on investment.

When local managers are inexperienced or not highly effective, decision making tends to be decentralized.

An assessment center is an evaluation tool that is used to evaluate employees.

General Motors designed and built an inexpensive vehicle, the Ikon, for the Indian market.

A quality control circle is a group of workers who meet on a regular basis to discuss ways of improving the quality of work.

A legal system called codetermination requires workers and their managers to participate in the discussion of major decisions.

In Germany, managers place a greater emphasis on managing subordinates than on productivity and product quality.

Efficient processes become increasingly important as diversification or differences between the parent and subsidiary increase.

Larger organizations typically emphasize decentralized decision making in their international operations.

Direct controls use reports and other written forms of communication to control operations.

Direct controls are particularly important in international management because of the great expense associated with indirect methods.

Surprisingly one of the least common approaches to personnel performance evaluation is the periodic appraisal of work performance.

The process of giving individuals and teams the resources, information, and authority they need to develop ideas and effectively implement them is referred to as reengineering.

As a TQM technique, rewards and recognition tend to be effective universally.

Decision making and controlling are two vital and often interlinked functions of international management.

Through its diverse set of websites, Alibaba can cater to virtually any type of transaction.