Question 1 True/False 1 of 1 point(s)
Horizontal differentiation is concerned with how the firm decides to divide itself into subunits.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 446
Question 2 True/False 1 of 1 point(s)
Performance ambiguity exists when the causes of a subunit's poor performance are not clear.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: EasyPage: 460
Question 3 Multiple Choice 0 of 1 point(s)
Which of the following is not true regarding a worldwide area structure?
Your Answer: A worldwide area structure tends to be favored by firms with a low degree of diversification
Correct Answer: Decision-making responsibilities are centralized
Feedback: Difficulty: HardPage: 449-450
Question 4 Multiple Choice 0 of 1 point(s)
__________ are the manner in which decisions are made and work is performed within the organization.
Your Answer: Practices
Correct Answer: Processes
Feedback: Difficulty: MediumPage: 442
Question 5 True/False 1 of 1 point(s)
Culture is a social construct ascribed to societies, including organizations.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 464
Question 6 Multiple Choice 0 of 1 point(s)
There are five main arguments for decentralization. These are:
Your Answer: facilitates coordination, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization, can result in better decisions because decisions are made closer to the spot, greater flexibility, decreases control
Correct Answer: frees top managers to focus on critical issues by delegating more routine issues to lower-level managers, provides employees a greater degree of individual freedom and control over their work, greater flexibility, can result in better decisions because decisions are made closer to the spot, increases control
Feedback: Difficulty: HardPage: 445
Question 7 Multiple Choice 0 of 1 point(s)
The weakness of the worldwide area structure is that it:
Your Answer: is often clumsy and bureaucratic
Correct Answer: encourages fragmentation of the organization into highly autonomous entities
Feedback: Difficulty: MediumPage: 450
Question 8 True/False 1 of 1 point(s)
A firm's vertical differentiation determines where in its hierarchy the decision-making power is concentrated.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 444
Question 9 True/False 1 of 1 point(s)
By organizational architecture we mean the totality of a firm's organization, including formal organization structure, control systems and incentives, processes, organizational culture, and people.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 440
Question 10 True/False 1 of 1 point(s)
We define processes as the manner in which decisions are made and work is performed within the organization.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: EasyPage: 463
Question 1 Multiple Choice 1 of 1 point(s)
__________ controls involve setting goals for subunits to achieve.
Your Answer: Output
Correct Answer: Output
Feedback: Difficulty: MediumPage: 458
Question 2 Multiple Choice 1 of 1 point(s)
There are four main arguments for centralization. These are:
Your Answer: facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization
Correct Answer: facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization
Feedback: Difficulty: HardPage: 444
Question 3 Multiple Choice 0 of 1 point(s)
__________ systems are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits.
Your Answer: Statutory
Correct Answer: Control
Feedback: Difficulty: EasyPage: 442
Question 4 Multiple Choice 0 of 1 point(s)
Which of the following selections correctly lists the formal integrating mechanisms from the highest level of complexity to the lowest?
Your Answer: Teams, matrix structure, liaison roles, direct contact
Correct Answer: Matrix structure, teams, liaison roles, direct contact
Feedback: Difficulty: HardPage: 455
Question 5 True/False 1 of 1 point(s)
Processes are the manner in which decisions are made and work is performed within the organization.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 442
Question 6 True/False 1 of 1 point(s)
A firm's vertical differentiation determines where in its hierarchy the decision-making power is concentrated.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 444
Question 7 Multiple Choice 0 of 1 point(s)
__________ managers are concerned with issues such as pricing, promotions, distribution, and market value.
Your Answer: Production
Correct Answer: Marketing
Feedback: Difficulty: MediumPage: 454
Question 8 Multiple Choice 0 of 1 point(s)
The weakness of the worldwide area structure is that it:
Your Answer: is often clumsy and bureaucratic
Correct Answer: encourages fragmentation of the organization into highly autonomous entities
Feedback: Difficulty: MediumPage: 450
Question 9 True/False 0 of 1 point(s)
Output controls exist when employees "buy into" the norms and value systems of the firm.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: MediumPage: 459
Question 10 Multiple Choice 0 of 1 point(s)
Which of the following is not true regarding a worldwide area structure?
Your Answer: A worldwide area structure tends to be favored by firms with a low degree of diversification
Correct Answer: Decision-making responsibilities are centralized
Feedback: Difficulty: HardPage: 449-450
Question 1 True/False 1 of 1 point(s)
Culture is a social construct ascribed to societies, including organizations.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 464
Question 2 Multiple Choice 0 of 1 point(s)
__________ managers are concerned with issues such as pricing, promotions, distribution, and market value.
Your Answer: Production
Correct Answer: Marketing
Feedback: Difficulty: MediumPage: 454
Question 3 Multiple Choice 0 of 1 point(s)
Which type of control tends to be most widely used in small firms, where it is seen in the direct supervision of subordinates' actions?
Your Answer: Bureaucratic control
Correct Answer: Personal control
Feedback: Difficulty: MediumPage: 458
Question 4 Multiple Choice 0 of 1 point(s)
__________ are the manner in which decisions are made and work is performed within the organization.
Your Answer: Practices
Correct Answer: Processes
Feedback: Difficulty: MediumPage: 442
Question 5 Multiple Choice 1 of 1 point(s)
There are four main arguments for centralization. These are:
Your Answer: facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization
Correct Answer: facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization
Feedback: Difficulty: HardPage: 444
Question 6 Multiple Choice 0 of 1 point(s)
The person in a subunit that is responsible for coordination with another subunit is referred to as a:
Your Answer: manager
Correct Answer: liaison
Feedback: Difficulty: MediumPage: 455
Question 7 Multiple Choice 0 of 1 point(s)
__________ managers are typically concerned with issues such as capacity utilization, cost control, and quality control.
Your Answer: All-purpose
Correct Answer: Production
Feedback: Difficulty: MediumPage: 454
Question 8 Multiple Choice 0 of 1 point(s)
The main problem with the worldwide product division structure is:
Your Answer: that it rarely provides an organizational context that enhances the consolidation of value creation activities at key locations necessary for realizing location and experience curve economies
Correct Answer: the limited voice it gives to area or country managers
Feedback: Difficulty: MediumPage: 451
Question 9 True/False 1 of 1 point(s)
Direct contact between subunit managers is the simplest integrating mechanism.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 455
Question 10 Multiple Choice 0 of 1 point(s)
__________ systems are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits.
Your Answer: Statutory
Correct Answer: Control
Feedback: Difficulty: EasyPage: 442
Question 1 True/False 1 of 1 point(s)
Performance ambiguity exists when the causes of a subunit's poor performance are not clear.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: EasyPage: 460
Question 2 True/False 1 of 1 point(s)
By organizational architecture we mean the totality of a firm's organization, including formal organization structure, control systems and incentives, processes, organizational culture, and people.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 440
Question 3 True/False 0 of 1 point(s)
The formal integrating mechanism with the lowest complexity of integrating mechanisms is matrix structures.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: MediumPage: 455
Question 4 Multiple Choice 1 of 1 point(s)
There are four main arguments for centralization. These are:
Your Answer: facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization
Correct Answer: facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization
Feedback: Difficulty: HardPage: 444
Question 5 True/False 0 of 1 point(s)
Incentive systems are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: MediumPage: 442
Question 6 Multiple Choice 0 of 1 point(s)
__________ exists when the causes of a subunit's poor performance are ambiguous.
Your Answer: Statutory ambiguity
Correct Answer: Performance ambiguity
Feedback: Difficulty: EasyPage: 460
Question 7 Multiple Choice 1 of 1 point(s)
A system of informal contracts between managers within an organization is referred to as a(n)
Your Answer: management network.
Correct Answer: management network.
Feedback: Difficulty: MediumPage: 456
Question 8 Multiple Choice 0 of 1 point(s)
The main problem with the worldwide product division structure is:
Your Answer: that it rarely provides an organizational context that enhances the consolidation of value creation activities at key locations necessary for realizing location and experience curve economies
Correct Answer: the limited voice it gives to area or country managers
Feedback: Difficulty: MediumPage: 451
Question 9 Multiple Choice 0 of 1 point(s)
Which of the following is not true regarding a worldwide area structure?
Your Answer: A worldwide area structure tends to be favored by firms with a low degree of diversification
Correct Answer: Decision-making responsibilities are centralized
Feedback: Difficulty: HardPage: 449-450
Question 10 True/False 0 of 1 point(s)
The formal integrating mechanism with the highest complexity of integrating mechanism is liaison roles.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: MediumPage: 455
Question 1 True/False 0 of 1 point(s)
The formal integrating mechanism with the highest complexity of integrating mechanism is liaison roles.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: MediumPage: 455
Question 2 Multiple Choice 1 of 1 point(s)
There are four main arguments for centralization. These are:
Your Answer: facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization
Correct Answer: facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization
Feedback: Difficulty: HardPage: 444
Question 3 True/False 1 of 1 point(s)
We define processes as the manner in which decisions are made and work is performed within the organization.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: EasyPage: 463
Question 4 Multiple Choice 0 of 1 point(s)
The main problem with the worldwide product division structure is:
Your Answer: that it rarely provides an organizational context that enhances the consolidation of value creation activities at key locations necessary for realizing location and experience curve economies
Correct Answer: the limited voice it gives to area or country managers
Feedback: Difficulty: MediumPage: 451
Question 5 True/False 1 of 1 point(s)
Processes are the manner in which decisions are made and work is performed within the organization.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 442
Question 6 Multiple Choice 1 of 1 point(s)
A __________ tends to be favored by firms with a low degree of diversification and a domestic structure based on function.
Your Answer: worldwide area structure
Correct Answer: worldwide area structure
Feedback: Difficulty: MediumPage: 448-449
Question 7 Multiple Choice 1 of 1 point(s)
__________ control is control through a system of rules and procedures that direct the actions of subunits.
Your Answer: Bureaucratic
Correct Answer: Bureaucratic
Feedback: Difficulty: MediumPage: 458
Question 8 True/False 1 of 1 point(s)
Direct contact between subunit managers is the simplest integrating mechanism.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 455
Question 9 Multiple Choice 0 of 1 point(s)
__________ are the manner in which decisions are made and work is performed within the organization.
Your Answer: Practices
Correct Answer: Processes
Feedback: Difficulty: MediumPage: 442
Question 10 True/False 0 of 1 point(s)
Control systems are the devices used to reward appropriate managerial behavior.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: MediumPage: 442
Question 1 Multiple Choice 0 of 1 point(s)
The need for coordination between the subunits of a firm is:
Your Answer: lowest in global companies, is higher in international companies, higher still in multidomestic companies, and highest of all in transnational companies
Correct Answer: lowest in multidomestic companies, is higher in international companies, higher still in global companies, and highest of all in transnational companies
Feedback: Difficulty: HardPage: 453-454
Question 2 True/False 1 of 1 point(s)
Personal control is control by personal contact with subordinates.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: EasyPage: 458
Question 3 True/False 0 of 1 point(s)
The need for coordination is greatest in global firms.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: MediumPage: 453-454
Question 4 Multiple Choice 0 of 1 point(s)
The weakness of the worldwide area structure is that it:
Your Answer: is often clumsy and bureaucratic
Correct Answer: encourages fragmentation of the organization into highly autonomous entities
Feedback: Difficulty: MediumPage: 450
Question 5 Multiple Choice 0 of 1 point(s)
Decision making in a functional structure tends to be:
Your Answer: decentralized
Correct Answer: centralized
Feedback: Difficulty: MediumPage: 446
Question 6 Multiple Choice 0 of 1 point(s)
A(n) __________ tends to be adopted by firms that are reasonably diversified and, accordingly, originally had domestic structures based on product divisions.
Your Answer: international geographic division structure
Correct Answer: worldwide product division structure
Feedback: Difficulty: MediumPage: 450
Question 7 Multiple Choice 1 of 1 point(s)
A __________ tends to be favored by firms with a low degree of diversification and a domestic structure based on function.
Your Answer: worldwide area structure
Correct Answer: worldwide area structure
Feedback: Difficulty: MediumPage: 448-449
Question 8 Multiple Choice 0 of 1 point(s)
Which of the following selections correctly lists the formal integrating mechanisms from the highest level of complexity to the lowest?
Your Answer: Teams, matrix structure, liaison roles, direct contact
Correct Answer: Matrix structure, teams, liaison roles, direct contact
Feedback: Difficulty: HardPage: 455
Question 9 True/False 1 of 1 point(s)
A worldwide area structure tends to be favored by firms with a low degree of diversification and a domestic structure based on function.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 449
Question 10 Multiple Choice 1 of 1 point(s)
A system of informal contracts between managers within an organization is referred to as a(n)
Your Answer: management network.
Correct Answer: management network.
Feedback: Difficulty: MediumPage: 456
Question 1 Multiple Choice 0 of 1 point(s)
__________ contact between subunit managers is the simplest integrating mechanism.
Your Answer: Indirect
Correct Answer: Direct
Feedback: Difficulty: MediumPage: 455
Question 2 Multiple Choice 1 of 1 point(s)
There are four main arguments for centralization. These are:
Your Answer: facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization
Correct Answer: facilitates coordination, helps ensure that decisions are consistent with organizational objectives, gives top-level managers the means to bring about needed major organizational changes, avoids the duplication of activities that occurs when similar activities are carried on by various subunits within the organization
Feedback: Difficulty: HardPage: 444
Question 3 True/False 0 of 1 point(s)
The formal integrating mechanism with the highest complexity of integrating mechanism is liaison roles.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: MediumPage: 455
Question 4 Multiple Choice 0 of 1 point(s)
The need for coordination between the subunits of a firm is:
Your Answer: lowest in global companies, is higher in international companies, higher still in multidomestic companies, and highest of all in transnational companies
Correct Answer: lowest in multidomestic companies, is higher in international companies, higher still in global companies, and highest of all in transnational companies
Feedback: Difficulty: HardPage: 453-454
Question 5 Multiple Choice 0 of 1 point(s)
According to our textbook, the need for coordination between the subunits of a firm varies with the __________ of the firm.
Your Answer: geographic location
Correct Answer: strategy
Feedback: Difficulty: EasyPage: 453
Question 6 True/False 1 of 1 point(s)
Production managers are typically concerned with production issues such as capacity utilization, cost control, and quality control.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: EasyPage: 454
Question 7 Multiple Choice 0 of 1 point(s)
The main problem with the worldwide product division structure is:
Your Answer: that it rarely provides an organizational context that enhances the consolidation of value creation activities at key locations necessary for realizing location and experience curve economies
Correct Answer: the limited voice it gives to area or country managers
Feedback: Difficulty: MediumPage: 451
Question 8 Multiple Choice 0 of 1 point(s)
Four types of control systems are used in multinational firms. These are:
Your Answer: feedforward controls, output controls, input controls, and bureaucratic controls
Correct Answer: personal controls, bureaucratic controls, output controls, and cultural controls
Feedback: Difficulty: MediumPage: 458
Question 9 Multiple Choice 0 of 1 point(s)
In transnational firms, the need to realize location and experience curve economies requires some degree of __________ control over global production centers. However, the need for local responsiveness dictates the __________ of many operating decisions, particularly for marketing, to foreign subsidiaries.
Your Answer: integrated, parallel decentralization
Correct Answer: centralized, decentralization
Feedback: Difficulty: HardPage: 445
Question 10 True/False 0 of 1 point(s)
Output controls exist when employees "buy into" the norms and value systems of the firm.
Your Answer: true
Correct Answer: false
Feedback: Difficulty: MediumPage: 459
Question 1 Multiple Choice 1 of 1 point(s)
A __________ tends to be favored by firms with a low degree of diversification and a domestic structure based on function.
Your Answer: worldwide area structure
Correct Answer: worldwide area structure
Feedback: Difficulty: MediumPage: 448-449
Question 2 Multiple Choice 0 of 1 point(s)
Decision making in a functional structure tends to be:
Your Answer: decentralized
Correct Answer: centralized
Feedback: Difficulty: MediumPage: 446
Question 3 Multiple Choice 0 of 1 point(s)
A(n) __________ tends to be adopted by firms that are reasonably diversified and, accordingly, originally had domestic structures based on product divisions.
Your Answer: international geographic division structure
Correct Answer: worldwide product division structure
Feedback: Difficulty: MediumPage: 450
Question 4 True/False 1 of 1 point(s)
A worldwide product division structure tends to be adopted by firms that are reasonably diversified.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 450
Question 5 True/False 1 of 1 point(s)
Personal control is control by personal contact with subordinates.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: EasyPage: 458
Question 6 Multiple Choice 0 of 1 point(s)
In attempting to alleviate or avoid the problems associated with formal integrating mechanisms in general, and matrix structures in particular, firms with a high need for integration have been experimenting with two informal integrating mechanisms. These are:
Your Answer: management teams and organizational citizenship behavior
Correct Answer: management networks and organizational culture
Feedback: Difficulty: MediumPage: 456
Question 7 True/False 1 of 1 point(s)
By organizational architecture we mean the totality of a firm's organization, including formal organization structure, control systems and incentives, processes, organizational culture, and people.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 440
Question 8 True/False 1 of 1 point(s)
A firm's vertical differentiation determines where in its hierarchy the decision-making power is concentrated.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: MediumPage: 444
Question 9 Multiple Choice 0 of 1 point(s)
__________ exists when the causes of a subunit's poor performance are ambiguous.
Your Answer: Statutory ambiguity
Correct Answer: Performance ambiguity
Feedback: Difficulty: EasyPage: 460
Question 10 Multiple Choice 1 of 1 point(s)
__________ control is control through a system of rules and procedures that direct the actions of subunits.
Your Answer: Bureaucratic
Correct Answer: Bureaucratic
Feedback: Difficulty: MediumPage: 458
Question 1 Multiple Choice 0 of 1 point(s)
In transnational firms, the need to realize location and experience curve economies requires some degree of __________ control over global production centers. However, the need for local responsiveness dictates the __________ of many operating decisions, particularly for marketing, to foreign subsidiaries.
Your Answer: decentralized, centralization
Correct Answer: centralized, decentralization
Feedback: Difficulty: HardPage: 445
Question 2 Multiple Choice 1 of 1 point(s)
There are five main arguments for decentralization. These are:
Your Answer: frees top managers to focus on critical issues by delegating more routine issues to lower-level managers, provides employees a greater degree of individual freedom and control over their work, greater flexibility, can result in better decisions because decisions are made closer to the spot, increases control
Correct Answer: frees top managers to focus on critical issues by delegating more routine issues to lower-level managers, provides employees a greater degree of individual freedom and control over their work, greater flexibility, can result in better decisions because decisions are made closer to the spot, increases control
Feedback: Difficulty: HardPage: 445
Question 3 Multiple Choice 1 of 1 point(s)
__________ exists when the causes of a subunit's poor performance are ambiguous.
Your Answer: Performance ambiguity
Correct Answer: Performance ambiguity
Feedback: Difficulty: EasyPage: 460
Question 4 Multiple Choice 1 of 1 point(s)
Four types of control systems are used in multinational firms. These are:
Your Answer: personal controls, bureaucratic controls, output controls, and cultural controls
Correct Answer: personal controls, bureaucratic controls, output controls, and cultural controls
Feedback: Difficulty: MediumPage: 458
Question 5 True/False 1 of 1 point(s)
Processes can be found at very few levels within an organization.
Your Answer: false
Correct Answer: false
Feedback: Difficulty: MediumPage: 463
Question 6 Multiple Choice 1 of 1 point(s)
Which of the following is not true regarding a worldwide area structure?
Your Answer: Decision-making responsibilities are centralized
Correct Answer: Decision-making responsibilities are centralized
Feedback: Difficulty: HardPage: 449-450
Question 7 True/False 1 of 1 point(s)
Output controls exist when employees "buy into" the norms and value systems of the firm.
Your Answer: false
Correct Answer: false
Feedback: Difficulty: MediumPage: 459
Question 8 True/False 1 of 1 point(s)
Production managers are typically concerned with production issues such as capacity utilization, cost control, and quality control.
Your Answer: true
Correct Answer: true
Feedback: Difficulty: EasyPage: 454
Question 9 Multiple Choice 1 of 1 point(s)
The person in a subunit that is responsible for coordination with another subunit is referred to as a:
Your Answer: liaison
Correct Answer: liaison
Feedback: Difficulty: MediumPage: 455
Question 10 Multiple Choice 1 of 1 point(s)
Which of the following selections correctly lists the formal integrating mechanisms from the highest level of complexity to the lowest?
Your Answer: Matrix structure, teams, liaison roles, direct contact
Correct Answer: Matrix structure, teams, liaison roles, direct contact
Feedback: Difficulty: HardPage: 455
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