Exam 14: The Organization of International Business

In a classic matrix structure,individual managers belong to two hierarchies (a divisional hierarchy and an area hierarchy)and have two bosses (a divisional boss and an area boss).

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.

Which of the following is an argument favoring decentralization?

Performance ambiguity lowers the cost of control.

In which of the following organizational structures are the domestic operations and foreign operations isolated from each other leading to coordination problems?

Control through a system of rules and procedures that directs the actions of subunits is:

In the classic global matrix structure,horizontal differentiation proceeds along two dimensions.These dimensions are:

A(n)_____ is valuable because it can be used as a nonbureaucratic conduit for information flows within a multinational enterprise.

A firm's organizational culture refers to the formal organizational structure of the company,the control systems and incentives in place,and the human resources component.

A firm's vertical differentiation determines where in its hierarchy the decision-making power is concentrated.

The manner in which decisions are made and work is performed within the organization is known as the firm's:

Discuss the location of decision-making in a firm that is following a transnational strategy.

By centralizing decision making,a firm can avoid the duplication of activities that occurs when similar activities are carried on by various subunits within the organization.

In a worldwide product divisional structure,each division is a self-contained,largely autonomous entity with full responsibility for its own value creation activities.

The basic principle behind incentive systems is to ensure that the incentive scheme for an individual employee is linked to an output target that he or she has some control over and can influence.

The norms and values systems that are shared among the employees of a company are referred to as:

Explain organizational structure.

A decentralized organization allows managers to respond to environmental changes more quickly than in a centralized organization.

What are output controls?

Discuss the global matrix structure.