MAN6635 EXAM 1 QUESTIONS AND ANSWERS 100% CORRECT

MAN6635 EXAM 1 QUESTIONS AND
ANSWERS 100% CORRECT
Organizational Structure - ANSWER-Formally dictates how jobs and tasks are divided
and coordinated between individuals and groups within the company
Organizational Structure is an outcome

Organizational Design - ANSWER-Process or style used by management to arrange the
components of structure
Organizational design is a process

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
Likely to be appropriate for most MNEs
Efficient due to lack of repeated functions and inflexible due to lack of specialization
Most appropriate with few similar products or if you sell to one region or customer base

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
Not very efficient due to repeated functions, but flexible due to specialization
Most appropriate when there are multiple distinct product lines. Common divisions are
product lines, geographical locations, or client types

Global Matrix Structure - ANSWER-Involve two or more lines of reporting
· Typically a country "leg" with managers reporting to local and HQ supervisors
At best, allows local and global realities to be reconciled
At worst, allows managers to pursue narrow objectives without regard for other "legs"
on the matrix
Create divided loyalties due to having different supervisors and bosses in different parts
of the world
· Loyalty tends to be local
Integrates traditional business functions with country and product

Elements of Organizational Structure - ANSWER-work specialization, chain of
command, span of control, centralization, formalization

, Work Specialization - ANSWER-Degree to which tasks in an organization are divided
into separate jobs

Chain of Command - ANSWER-Answers "who reports to whom?" and signifies formal
authority relationships

Span of Control - ANSWER-Represents how many employees each manager in the
organization has responsibility for

Centralization - ANSWER-Refers to where decisions are formally made in the
organization

Formalization - ANSWER-Degree to which rules and procedures are used to
standardize behaviors and decisions in an organization

Organizational Design - ANSWER-Process of creating, selecting, or changing the
structure of an organization

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 some companies become larger, they need to rely on some combination of
specialization, formalization, and centralization to control activities

· International Organizational Structure - ANSWER-o Low levels of worldwide
integration
o Low levels of local responsiveness
o No overseas office or operations
o Generally used for exporting, licensing, or subcontracting
o Separate company, integration is more or less unnecessary. Corporate level decisions
have little impact on subsidiaries.

Multi-Domestic Organizational Structure - ANSWER-o Low levels of worldwide
integration
o High levels of local responsiveness
o Subsidiaries in multiple countries operate
§ Independently within each country
§ Independently of operations in other countries
§ Fairly independently of parent company headquarters
o Each national market is seen as a specialized market for its particular subsidiaries
products
o Each subsidiary concentrates its efforts on the nation in which it is located