47) What is horizontal differentiation?
A) the mechanisms that enable each subunit to operate independently
B) the formal division of the organization into subunits
C) the location of decision-making responsibilities within a structure
D) the mechanisms for coordinating subunitsB) the formal division of the organization into subunits48) Integration mechanisms are the
A) formal division of the organization into subunits.
B) mechanisms that enable each subunit to operate independently.
C) mechanisms for coordinating subunits.
D) location of decision-making responsibilities within a structure.C) mechanisms for coordinating subunits.49) Which of the following is one of the four main arguments favoring centralization?
A) It permits greater flexibility.
B) Motivational research favors it.
C) It can avoid the duplication of activities.
D) It gives top management time to focus on critical issues by delegating routine issues to lower-level managers.C) It can avoid the duplication of activities.50) Which of the following is one of the five main arguments favoring decentralization?
A) It can facilitate coordination.
B) It can help ensure that decisions are consistent with organizational objectives.
C) It can give top-level managers the means to bring about needed major organizational changes.
D) It permits greater flexibility.D) It permits greater flexibility.51) 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.
C) permits greater flexibility because decisions do not have to be "referred up the hierarchy" unless they are exceptional in nature.
D) can be used to establish relatively autonomous, self-contained subunits within an organization.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.52) A firm that needs greater flexibility should choose ________ for its decision making.
A) horizontal differentiation
B) decentralization
C) localization strategy
D) control systemsB) decentralization53) Centralization and decentralization differ because centralization
A) hinders coordination, while decentralization facilitates coordination.
B) prevents top-level managers from making required organizational changes, while decentralization gives top-level managers greater power to make organizational changes.
C) ensures that decisions are consistent with organizational objectives, while decentralization can result in decisions at variance with organizational goals.
D) promotes flexibility, while decentralization reduces flexibility.C) ensures that decisions are consistent with organizational objectives, while decentralization can result in decisions at variance with organizational goals.54) Which of the following decisions is typically centralized at a firm's headquarters?
A) production decisions
B) human resource management
C) marketing decisions
D) overall firm strategyD) overall firm strategy55) 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.
C) centralizing all operating decisions.
D) global learning.B) decentralizing operating decisions to foreign subsidiaries.56) Global learning based on the multidirectional transfer of skills between subsidiaries and the corporate center is a central feature of a firm pursuing ________ strategy.
A) a localization
B) a global standardization
C) a transnational
D) an internationalC) a transnational57) Which of the following would be a typical responsibility of a product division in a worldwide product divisional structure?
A) operating decisions
B) overall strategic development of the firm
C) financial control of the various divisions
D) decisions regarding legal issuesA) operating decisions58) 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.
B) A product divisional structure tends to be organized on geography.
C) In a product divisional structure, each product division is set up as a self-contained, largely autonomous entity with its own functions.
D) In a product divisional structure, the responsibility for operating decisions is typically centralized.C) In a product divisional structure, each product division is set up as a self-contained, largely autonomous entity with its own functions.59) Regardless of a firm's domestic structure, its international division tends to be organized on
A) product.
B) geography.
C) people.
D) economy.B) geography.60) 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.
B) The heads of domestic functions are presumed to be able to represent the interests of all countries to headquarters.
C) The heads of foreign subsidiaries are not given as much voice in the organization as the heads of domestic functions or divisions.
D) The dual-hierarchy structure can lead to conflict and perpetual power struggles between the areas and the product divisions.C) The heads of foreign subsidiaries are not given as much voice in the organization as the heads of domestic functions or divisions.61) 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
C) worldwide product division structure
D) worldwide area structureB) international division structure62) 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.
B) It inhibits local responsiveness.
C) It tends to be favored by firms with a domestic structure based on functions.
D) Decision-making responsibilities are centralized.C) It tends to be favored by firms with a domestic structure based on functions.63) A ________ encourages fragmentation of the organization into highly autonomous entities.
A) worldwide area structure
B) global matrix structure
C) worldwide product structure
D) global network structureA) worldwide area structure64) ________ tends to be adopted by firms that are reasonably diversified.
A) A worldwide area structure
B) An international division structure
C) A worldwide product division structure
D) A global matrix structureC) A worldwide product division structure65) The worldwide product division structure
A) is weak in local responsiveness.
B) inhibits the realization of location economies.
C) inhibits the realization of experience curve economies.
D) limits the transfer of core competencies between areas.A) is weak in local responsiveness.66) In the classic global matrix structure, horizontal differentiation proceeds along two dimensions. These dimensions are
A) hierarchy and overall strategy.
B) target returns and sales potential.
C) marketing strategy and sales potential.
D) product division and geographic area.D) product division and geographic area.67) In practice, the dual hierarchy in a global matrix structure
A) lessens all forms of conflict.
B) makes it easy to ascertain accountability.
C) results in extremely quick decision making.
D) can lead to perpetual power struggles.D) can lead to perpetual power struggles.68) The need for coordination between subunits is lowest in firms pursuing
A) a localization strategy.
B) an international strategy.
C) a global strategy.
D) a transnational strategy.A) a localization strategy.69) The need for coordination between subunits is greatest in firms pursuing
A) a localization strategy.
B) an international strategy.
C) a global strategy.
D) a transnational strategy.D) a transnational strategy.70) ________ refers to giving a person in each subunit responsibility for coordinating with another subunit on a regular basis.
A) Global learning
B) Liaison roles
C) Knowledge network
D) Matrix structuresB) Liaison roles71) ________ is valuable because it can be used as a nonbureaucratic conduit for information flows within a multinational enterprise.
A) A liaison network
B) A matrix structure
C) An organizational structure
D) A knowledge networkD) A knowledge network
