A firm's organizational culture refers to the: A. norms and value systems that are shared among the employees of an organization. A. norms and value systems that are shared among the employees of an organization. A firm's _____ determines where in its hierarchy the decision-making power is concentrated. A. organizational architecture B. vertical differentiation By centralizing decision making, a firm: A. allows managers to respond to environmental changes more quickly. C. can avoid the duplication of activities that occurs when similar activities are carried on by various
subunits within the organization. _____ gives top-level managers the power and authority to be able to bring about needed major organizational changes. A. Personal control A firm pursuing a(n) _____ will have a strong incentive to decentralize decision-making. A. localization strategy In firms pursuing a(n) _____, some operating decisions are relatively centralized, while others are relatively decentralized. A. global standardization strategy B. transnational strategy Regardless of a firm's domestic structure, its international division tends to be: A. organized on economy. C. organized on geography. The _____ tends to be adopted by firms with a low level of diversification whose domestic structures are based on functions. A. global matrix structure D. worldwide area structure A _____ tends to be adopted by firms that are reasonably diversified and originally had domestic structures based on product divisions. A. worldwide product division structure A. worldwide product division structure In a _____, individual managers belong to two hierarchies (a divisional hierarchy and an area hierarchy) and have two bosses (a divisional boss and an area boss). A. worldwide product division structure B. classic matrix structure The need for coordination is high in: A. firms trying to pursue localization strategies. C. firms trying to profit from location and experience curve economies. In a _____ all roles are viewed as integrating roles. A. worldwide area structure D. global matrix structure _____ is a type of control that tends to be most widely used in small firms. A. Personal control In a company using _____, employees tend to control their own behavior, which reduces the need for direct supervision. A. bureaucratic controls _____ can be defined as the amount of time top management must devote to monitoring and evaluating subunits' performance. A. Performance ambiguity Firms pursuing a global standardization strategy must cope with a higher level of _____, and this raises their costs of control. A. vertical differentiation Which of the following is more difficult for a leader? A. To change an established organizational culture A. To change an established organizational culture Firms pursuing a(n) _____ have a low need for coordination between subunits. A. global standardization strategy Firms pursuing a(n) _____ are more centralized than enterprises pursuing a localization or international strategy. A. localization strategy C. global standardization strategy Because of inertia forces, _____ is often no change. A. big bang change To unfreeze the established culture of an organization, the company: A. must take bold steps such as shaking up the management structure in order to implement change. A. must take bold steps such as shaking up the management structure in order to implement change. Organizational structure includes several elements. Which of the following is one of them? A. The establishment of integrating mechanisms to coordinate the
activities of subunits. A. The establishment of integrating mechanisms to coordinate the activities of subunits. Which of the following terms refers to the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits? A. Key processes Historically, Unilever measured the performance of national operating subsidiary companies according to profitability. In this example, profitability is a(n) _____. A. control system The manner in which decisions are made and work is performed within the organization is known as the firm's _____. A. organizational culture The norms and values systems that are shared among the employees of a company are referred to as _____. A. processes D. organizational culture A firm's _____ determines where in its hierarchy the decision-making power is concentrated. A. integrating mechanism B. vertical differentiation What is horizontal differentiation? A. The mechanisms that enable each subunit to operate independently B. The formal division of the organization into subunits Integration mechanisms are the: A. formal division of the organization into subunits. C. mechanisms for coordinating subunits. Which of the following is an argument favoring centralization? A. It permits greater flexibility. C. It can avoid the duplication of activities. Which of the following is an argument favoring decentralization? A. It can facilitate coordination. D. It permits greater flexibility. Centralization: A. gives top management time to focus on critical issues by delegating more routine issues to lower-level managers. B. can give top-level managers the means to bring about needed major organizational changes by concentrating power and authority in one individual or a management team. A firm that needs greater flexibility should choose _____ for its decision-making. A. horizontal differentiation Centralization and decentralization differ because: A. centralization hinders coordination, while decentralization facilitates coordination. C. centralization ensures that decisions are consistent with organizational objectives, while decentralization can result in decisions at variance with organizational goals. Which of the following decisions is typically centralized at a firm's headquarters? A. Production decisions The emphasis on local responsiveness in firms pursuing a localization strategy creates strong pressures for: A. centralizing all
decisions regarding marketing, R&D, and human resource management. B. decentralizing operating decisions to foreign subsidiaries. Global learning based on the multidirectional transfer of skills between subsidiaries and the corporate center is a central feature of a firm pursuing a(n) _____ strategy. A. localization Which of the following would be a typical responsibility of a product division in a worldwide product divisional structure? A. Operating decisions Which of the following statements is true about a product divisional structure? A. In a product divisional structure, the responsibility for the financial control of the firm is typically decentralized. C. In a product divisional structure, each product division is set up as a self-contained, largely autonomous entity with its own functions. Regardless of a firm's domestic structure, its international division tends to be organized on _____. A. product Which of the following is a problem that arises due to an international division structure? A. In an
international division structure, a firm's international division tends to be organized on products. C. The heads of foreign subsidiaries are not given as much voice in the organization as the heads of domestic functions or divisions. In which of the following organizational structures are the domestic operations and foreign operations isolated from each other leading to coordination problems? A. Global matrix structure B. International division structure Which of the following is true regarding a worldwide area structure? A. It tends to be favored by firms with a high degree of diversification. C. It tends to be favored by firms with a domestic structure based on functions. A _____ encourages fragmentation of the organization into highly autonomous entities. A. worldwide area structure A. worldwide area structure A(n) _____ tends to be adopted by firms that are reasonably diversified. A. worldwide area structure C. worldwide product division structure The worldwide product division structure: A. is weak in local responsiveness. A. is weak in local responsiveness. In the classic global matrix structure, horizontal differentiation proceeds along two dimensions. These dimensions are: A. hierarchy and overall strategy. D. product division and geographic area. In practice, the dual-hierarchy in a global matrix structure: A. lessens all forms of conflict. D. can lead to perpetual power struggles. The need for coordination between subunits is lowest in firms pursuing a(n) _____. A. localization strategy The need for coordination between subunits is highest in firms pursuing a(n) _____. A. localization strategy D. transnational strategy _____ refers to giving a person in each subunit responsibility for coordinating with another subunit on a regular basis. A. Global learning A(n) _____ is valuable because it can be used as a nonbureaucratic conduit for information flows within a multinational enterprise. A. liaison network Which control system is most widely used by small firms? A. Personal Control through a system of rules and procedures that directs the actions of subunits is _____. A. personal control _____ control is achieved by comparing actual performance against targets and intervening selectively to take corrective action. A. Personal There is low interdependence, performance ambiguity, and costs of control in firms pursuing a(n) _____. A. localization
strategy Which of the following is true of a strong corporate culture? A. Almost all managers share a relatively consistent set of values and norms that have a clear impact on the way work is performed. A. Almost all managers share a relatively consistent set of values and norms that have a clear impact on the way work is performed. Firms pursuing a(n) _____ attempt to create value by transferring core competencies from home to foreign subsidiaries. A. localization strategy B. international strategy Firms pursuing a global standardization strategy: A. have low performance
ambiguity. D. have a high need for coordination and cultural controls. A firm that operates with matrix-type structures in which both product divisions and geographic areas have significant influence would use which of the following strategies? A. International strategy B. Transnational strategy Firms pursuing a transnational strategy: A. have a low need for coordination. C. have a very high need for cultural controls. Which of the following is an effective strategy for implementing organizational change? A. Physically move the organization to a new state. C. Refreeze the organizational structure. _____ refers to the location of decision-making responsibilities within a structure. A. Vertical differentiation A. Vertical differentiation What type of control system uses a system of rules and procedures that directs the actions of subunits? A. Personal controls Which of the following is a potential drawback of the worldwide area structure? A. This structure discourages division of the organization into autonomous entities. C. This structure makes it difficult to realize location and experience curve economies. The establishment of integrating mechanisms that coordinate subunits is a dimension of _____. A. horizontal differentiation D. organizational structure In Firm A, each division is a self-contained, largely autonomous entity with full responsibility for its own value creation activities. What type of structure does Firm A employ? A. Worldwide product division structure A. Worldwide product division structure
In the _____, the philosophy is that responsibility for operating decisions pertaining to a particular product should be shared by the product division and the various areas of the firm. A. worldwide product division structure B. classic global matrix structure When the need for integration is very high, firms may: A. use direct contact between subunit managers. C. institute a matrix structure, in which all roles are viewed as integrating roles. _____ is achieved by comparing actual performance against targets and intervening selectively to take corrective action. A. Personal control _____ exists when the causes of a subunit's poor performance are not clear. A. Performance ambiguity _____ are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits. A. Cultural controls Which of the following is a disadvantage of a worldwide area structure? A. Firms that use this structure tend to have a high degree of diversification. C. The fragmentation of the organization that makes it difficult to realize location and experience curve economies. Do firms pursuing a localization strategy tend to operate with an array of formal and informal integrating mechanisms?Firms pursuing a localization strategy tend to operate with an array of formal and informal integrating mechanisms. National regulations including local content rules and policies pertaining to layoffs might act as a source of inertia.
Which control system is most widely used by small firms?Personal Controls
It is the most widely used type of control mechanism in small firms for providing direct supervision of operational and employee management. Personal control is used to construct relationship processes between managers at different levels of employees in multinational companies.
Which refers to the locational of decisionCentralization refers to the process in which activities involving planning and decision-making within an organization are concentrated to a specific leader or location.
What is a disadvantage of the localization strategy?Social Problems – centralising a business in a certain region may create industrial slums and unhealthy living conditions. Criminal activities arise and may cause bigger problems for the business.
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Which structure control is most appropriate for a firm pursuing a localization strategy?
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