MAN6635 EXAM 1 UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
Organizational Structure
Answer:
How jobs and tasks are divided and coordinated between individuals and
groups within the company, an outcome of design
Question:
Organizational Design
Answer:
a process or style used by management to arrange the components of
structure
Question:
Functional Structure
Answer:
functional departmentalization and high centralization.
•very efficient
•tend to be inflexible and insensitive to subtle differences across products,
regions, or clients •most appropriate in stable, predictable environments
President --- VP Finance, VP Marketing, VP R&D
Question:
Divisional Structure
Answer:
workflow departmentalization and low levels of centralization.
•not very efficient
•tend to be more flexible and innovative
•tend to be sensitive to subtle differences across products, regions, or clients
Product Structure President -- VP Electronics (Finance, Marketing R&D) , VP
Home furnishings (Finance, Marketing R&D), VP Automotive (Finance,
Marketing R&D)
Client Based Structure President -- VP Direct Sales (Finance, Marketing R&D) ,
VP Internet Sales (Finance, Marketing R&D), VP Large Vendor Contracts
(Finance, Marketing R&D)
Geographic Structure
Question:
Assume our company, HRM Sup-
pliers, sells 2 distinct product lines, bombs and baby formula. What type of
structural configuration would be most appropriate, a divisional or functional
structure? Why?
Answer:
Functional Structure
Question:
What is organizational design impacted by?
, Answer:
Business Environment
•Consists of customers, competitors, suppliers, distributors, and other factors
external to the firm
•Global Presence
Company Strategy
•Low-Cost vs. Product Differentiation
Company Size
•As companies become larger, they need to rely on some combination of
specialization, formalization, and centralization to control activities
Question:
Multinational Enterprise Organizational Design Challenges
Answer:
Integration; local responsiveness problem...coordinating and balancing the
opposing forces of integrating their foreign operation
Question:
International Organizational Structure
Answer:
•Weak pressures for local responsiveness and weak pressures for worldwide
integration
•Foreign subsidiaries dependent on headquarters for resources and limited
direction, but still have major freedom to adapt to local conditions
Question:
Multi-domestic Organizational Structure
Answer:
concentrates efforts on location
•Strong pressures for local responsiveness and weak pressures for worldwide
integration
•Subsidiaries in multiple countries operate independently within each
country, independently of operations in other countries, and often fairly
independently of parent company headquarters
•Each national market seen as a specialized market for its particular
subsidiaries products
Question:
Global Organizational Structure
Answer:
•Strong pressures for local responsiveness and strong pressures for worldwide
integration
•Structure resembles a centralized hub where foreign subsidiaries are heavily
managed and controlled by headquarters
•Products and services are generally designed for and marketed to customers
all over the world
Question:
Transnational Organizational Structure
Answer:
• Weak pressures for local responsiveness and strong pressures for worldwide
CORRECT ANSWERS
Question:
Organizational Structure
Answer:
How jobs and tasks are divided and coordinated between individuals and
groups within the company, an outcome of design
Question:
Organizational Design
Answer:
a process or style used by management to arrange the components of
structure
Question:
Functional Structure
Answer:
functional departmentalization and high centralization.
•very efficient
•tend to be inflexible and insensitive to subtle differences across products,
regions, or clients •most appropriate in stable, predictable environments
President --- VP Finance, VP Marketing, VP R&D
Question:
Divisional Structure
Answer:
workflow departmentalization and low levels of centralization.
•not very efficient
•tend to be more flexible and innovative
•tend to be sensitive to subtle differences across products, regions, or clients
Product Structure President -- VP Electronics (Finance, Marketing R&D) , VP
Home furnishings (Finance, Marketing R&D), VP Automotive (Finance,
Marketing R&D)
Client Based Structure President -- VP Direct Sales (Finance, Marketing R&D) ,
VP Internet Sales (Finance, Marketing R&D), VP Large Vendor Contracts
(Finance, Marketing R&D)
Geographic Structure
Question:
Assume our company, HRM Sup-
pliers, sells 2 distinct product lines, bombs and baby formula. What type of
structural configuration would be most appropriate, a divisional or functional
structure? Why?
Answer:
Functional Structure
Question:
What is organizational design impacted by?
, Answer:
Business Environment
•Consists of customers, competitors, suppliers, distributors, and other factors
external to the firm
•Global Presence
Company Strategy
•Low-Cost vs. Product Differentiation
Company Size
•As companies become larger, they need to rely on some combination of
specialization, formalization, and centralization to control activities
Question:
Multinational Enterprise Organizational Design Challenges
Answer:
Integration; local responsiveness problem...coordinating and balancing the
opposing forces of integrating their foreign operation
Question:
International Organizational Structure
Answer:
•Weak pressures for local responsiveness and weak pressures for worldwide
integration
•Foreign subsidiaries dependent on headquarters for resources and limited
direction, but still have major freedom to adapt to local conditions
Question:
Multi-domestic Organizational Structure
Answer:
concentrates efforts on location
•Strong pressures for local responsiveness and weak pressures for worldwide
integration
•Subsidiaries in multiple countries operate independently within each
country, independently of operations in other countries, and often fairly
independently of parent company headquarters
•Each national market seen as a specialized market for its particular
subsidiaries products
Question:
Global Organizational Structure
Answer:
•Strong pressures for local responsiveness and strong pressures for worldwide
integration
•Structure resembles a centralized hub where foreign subsidiaries are heavily
managed and controlled by headquarters
•Products and services are generally designed for and marketed to customers
all over the world
Question:
Transnational Organizational Structure
Answer:
• Weak pressures for local responsiveness and strong pressures for worldwide
