Question 1

A permanent unit of the organization designed to focus the efforts of different subunits on particular problems is a

Accepted Answer

The answer of A permanent unit of the organization designed...

Question 2

Knowledge that usually resides within employees and is dependent on the organization's culture and context is

Accepted Answer

Tacit knowledge is the knowledge that is difficult to express, communicate or codify, and it usually resides within individuals based on their experiences and insights gained from working within the organization. It is context-specific and dependent on the organization's culture, values, and norms.

Question 3

All of the following are TRUE about product structures EXCEPT

Accepted Answer

The answer of All of the following are TRUE about...

Question 4

Which of the following statements regarding explicit knowledge is FALSE?

Accepted Answer

The statement that explicit knowledge usually resides within employees and is dependent on the organization's context and culture is false. Explicit knowledge is knowledge that can be codified and written down, and is therefore not dependent on any specific individual or context.

Question 5

Output control systems

Accepted Answer

Output control systems assess the performance of a unit based on results, not on the processes used to achieve those results. This type of control system focuses on output goals rather than specific behaviors or attitudes within the organization. The other options - A, B, and D - are not accurate descriptions of output control systems.

Question 6

The type of vertical control mechanism most often associated with a profit center is

Accepted Answer

The output control mechanism is most often associated with a profit center, as it focuses on the achievement of specific goals and targets, such as increasing revenues and profits, cost reductions, and improvements in efficiency and productivity. This type of control mechanism ensures that the profit center is meeting its financial objectives and can be easily measured and monitored through financial performance indicators such as sales and revenue figures, profit margins, and return on investment (ROI). Bureaucratic control mechanisms are more commonly associated with centralized organizations, cultural control mechanisms are based on shared values and beliefs, and decision-making control mechanisms are more relevant to complex, decentralized organizations.

Question 7

Which of the following control systems uses the organizational culture to control behaviors and attitudes of employees?

Accepted Answer

Cultural control systems use the norms, values, and beliefs of an organization's culture to shape and control the behaviors and attitudes of employees. Bureaucratic control systems rely on rules, policies, and procedures to regulate employee behavior and output control systems focus on measurable results. Decision-making control systems are centered around decision-making processes rather than controlling employee behavior.

Question 8

Subunits of a multinational company located in other countries than the parent company's headquarters is known as

Accepted Answer

Subunits located in other countries than the parent company's headquarters are known as foreign subsidiaries. Functional divisions refer to departments within the parent company, while foreign functional divisions and international minireplicas are not common or standard terms used in the definition of multinational companies.

Question 9

A __________ helps link the organization horizontally.

Accepted Answer

A coordination system helps to link the organization horizontally by facilitating communication and collaboration across different departments, functions, and locations. It helps ensure that everyone is working towards the same goals and that tasks are being completed in a timely and efficient manner. Control systems and centralized operations focus more on vertical management of the organization, while cultural systems refer to the values and beliefs that shape the organization's identity.

Question 10

Which of the following control systems focuses on managing behaviors of employees rather than outcomes?

Accepted Answer

Bureaucratic control systems focus on managing behaviors of employees through rules, procedures, and formal hierarchies, rather than outcomes. Budgets and standard operating procedures may also focus on outcomes, and cultural control systems focus on shaping organizational values and norms.

Question 11

Which of the following is NOT one of the questions asked when designing an organization?

Accepted Answer

The number of subunits that a multinational should have is not one of the questions asked when designing an organization. The other three questions (work division, coordination, and control) are key considerations in designing an organization.

Question 12

Which of the following represents the strongest coordination mechanism?

Accepted Answer

Teams represent the strongest coordination mechanism as they involve a group of individuals working together towards a shared goal or objective with clear roles and responsibilities. Task forces may be temporary and have a specific objective. Liaison roles involve communication between different departments or groups but may not involve as much structure and organization as a team. Direct contact may be effective in some cases but may not provide the same level of coordination and collaboration as a team.

Question 13

_________ mean/means that management locates subsidiaries anywhere in the world where they can benefit the company.

Accepted Answer

Dispersed subunits refer to the practice of locating subsidiaries all over the world to benefit the company. This strategy allows for a diversification of risk and a more global approach to business.

Question 14

Which of the following is NOT true regarding the use of control options by most multinationals?

Accepted Answer

The statement that multinationals with export departments have very high need for coordination is not true. While coordination is important in any multinational organization, having an export department does not necessarily increase the need for coordination.

Question 15

Which of the following types of control system uses budgets,statistical reports,standard operating procedures,and centralized decision making to manage organizational processes?

Accepted Answer

Bureaucratic control systems use budgets, statistical reports, standard operating procedures, and centralized decision making to manage organizational processes. Profit center control systems rely on financial performance measures, decision-making control systems involve participative decision-making processes, and cultural control systems use values, beliefs, and symbols to guide behavior.

Question 16

A large,entrepreneurial multinational that is able to tap into hidden pockets of innovation,technology,and market know-how scattered around the world,especially in emerging markets is known as

Accepted Answer

A metanational is a term coined by Kenichi Ohmae to describe a large multinational corporation that is decentralized and able to tap into innovation, technology, and market knowledge from various locations scattered around the world, especially in emerging markets. The term emphasizes the importance of a flexible and networked organizational structure that allows for innovation and adaptation to local market needs.

Question 17

__________ help link the organization vertically,up and down the organizational hierarchy.

Accepted Answer

Control systems help link the organization vertically by ensuring that lower levels of the organization are following the strategies and objectives set by the upper levels. They provide a mechanism for monitoring performance and ensuring compliance with organizational goals.

Question 18

The basic issue (s)that need to be considered for organizational design are

Accepted Answer

All three factors, division of work, coordination, and control, are critical considerations for successful organizational design. Proper division of work ensures that tasks are distributed efficiently and effectively, while coordination ensures that individuals and teams work together to achieve organizational goals. Control mechanisms ensure that work is carried out according to established standards and policies, and that deviations are minimized. Therefore, all of the above factors are essential for effective organizational design.

Question 19

Temporary groups created to solve a particular organizational problem such as entering a new market are

Accepted Answer

Taskforces are temporary groups created to solve a particular organizational problem or task. Teams are often permanent groups formed for ongoing work and projects. Liaisons are individuals who serve as a connection or link between two different groups or departments. Full time integrators are not a common term in organizational management.

Question 20

The type of control system favored by the transnational is

Accepted Answer

Transnational organizations often favor cultural control systems. This approach allows them to maintain a cohesive corporate culture across diverse geographical locations, which is essential for aligning values, practices, and objectives globally. Cultural control helps in managing the complexities of operating in multiple countries by embedding a common set of beliefs and behaviors among employees.

Quiz 8: Organizational Design for Multinational Companies