Chapter 14 The Organization of International Business. Complete With Answer Key.True / False Questions
1. Organizational structure refers to the totality
... [Show More] of a firm's organization.
True False
2. A manager 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.
True False
3. A decentralized organization allows managers to respond to environmental changes
more quickly than in a centralized organization.
True False
4. The choice between centralization and decentralization is not absolute.
True False
5. 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.
True False
6. In a worldwide area structure, each area tends to be a self-contained, largely
autonomous entity with its own set of value creation activities.
True False
7. In a worldwide product divisional structure, each division is a self-contained, largely
autonomous entity with full responsibility for its own value creation activities.
True False
8. The worldwide product division structure facilitates local responsiveness.
True False
9. It is difficult to ascertain accountability in the global matrix structure.
True False
10. The need for coordination between units is greatest in firms pursuing a localization
strategy.
True False
11. Direct contact between subunit managers is the simplest integrating mechanism.
True False
12. A knowledge network is a network for transmitting information within an organization
that is based on formal organizational structure.
True False
13. Bureaucratic control involves personal contact with subordinates.
True False
14. 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.
True False
15. Performance ambiguity lowers the cost of control.
True False
16. New processes that might lead to a competitive advantage can be developed anywhere
within the organization's global network of operations.
True False
17. Norms are abstract ideas about what a group believes to be good, right, and desirable.
True False
18. An organizational culture can be strong but bad.
True False [Show Less]