Edition Updated PDF
organizational structure refers to the totality of firms organization - answer-false
a manger receives a bonus because the national operating subsidiary, that she is in
charge of, exceeds its performance target. this is an example of an incentive - answer-
true
a centralized organization allows managers to respond to environmental changes more
quickly than in a centralized organization - answer-true
the choice between centralization and decentralization is not absolute - answer-true
beyond the initial functional division of the organization, further horizontal differentiation
may be required if the firm significantly diversifies its product offering, which takes the
firm into different business areas - answer-true
in a world wide area structure each area tends to be a self contained largely
autonomous entity with its own set of value creation activities - answer-true
in a worldwide product divisional structure each division is self contained largely
autonomous entity with full responsibility for its own value creation activities - answer-
true
the worldwide product division structure facilitates local responsiveness - answer-false
it is is difficult to ascertain accountability in the global matrix structure - answer-true
the need for coordination between units is greatest win frills pursuing a localization
strategy - answer-false
direct contact between subunit managers is the simplest integrating mechanism -
answer-true
a knowledge network is a network for transmitting information within an organization
that is based on formal organizational structure - answer-false
bureaucratic control involves personal contact with subordinates - answer-false
the basic principle behind incentive system is to ensure that the incentive scheme for an
individual employee is liked to an output target that he or she has some control over and
can influence - answer-true
, performance ambiguity lowers the cost of control - answer-false
new processes that might lead to a competitive advantage can be developed anywhere
within the organizations global network of operations - answer-true
Norms are abstract ideas about what a group believes to be good, right, and desirable. -
answer-false
an organizational culture can be strong but bad - answer-true
firms pursuing a localization strategy tend to operate with an array of formal and
informal integrating mechanisms - answer-false
national regulations including local content rules and policies pertaining to layoffs might
act as a source of inertia - answer-true
it is important to realize that organizational change will occur regardless of the
commitment of senior managers to it - answer-false
refreezing the organization takes longer. It may require a new culture be established
while the old one is being dismantled - answer-false
a firms organizational culture refers to the - answer-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. - answer-vertical differentiation
By centralizing decision making, a firm: - answer-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 - answer-centralization
a firm pursuing ____ will have a strong incentive to decentralize decision-making -
answer-localization strategy
in firms pursuing a ____ some operating decisions are relatively centralized while others
are relatively decentralized - answer-transnational strategy
Regardless of a firm's domestic structure, its international division tends to be organized
on: - answer-geography