29) ________ are the metrics used to measure the performance of subunits and make judgments
about how well managers are running those subunits.
A) Cultural controls
B) Control systems
C) Output controls
D) Incentives
30) A firm’s ________ determines where in its hierarchy the decision-making power is
concentrated.
A) organizational architecture
B) vertical differentiation
C) organizational structure
D) horizontal differentiation
31) By centralizing decision making, a firm
A) allows managers to respond to environmental changes more quickly.
B) runs the risk of not being able to respond to environmental changes quickly.
C) can avoid the duplication of activities that occurs when similar activities are carried on by
various subunits within the organization.
D) often has issues with duplication of activities that occurs when similar activities are carried on
by various subunits within the organization.
32) ________ gives top-level managers the power and authority to be able to bring about needed
major organizational changes.
A) Personal control
B) Decentralization
C) Bureaucratic control
D) Centralization
33) A firm pursuing ________ will have a strong incentive to decentralize decision making.
A) a localization strategy
B) a transnational strategy
C) a global standardization strategy
D) an international strategy
34) In firms pursuing ________, some operating decisions are relatively centralized, while others
are relatively decentralized.
A) a global standardization strategy
B) a transnational strategy
C) a localization strategy
D) an international strategy
35) Regardless of a firm’s domestic structure, its international division tends to be
A) organized on economy.
B) decentralized.
C) organized on geography.
D) centralized.
36) The ________ tends to be favored by firms with a low level of diversification whose domestic
structures are based on functions.
A) global matrix structure
B) worldwide product division structure
C) performance structure
D) worldwide area structure
37) A ________ tends to be adopted by firms that are reasonably diversified and originally had
domestic structures based on product divisions.
A) worldwide product division structure
B) global matrix structure
C) worldwide area structure
D) performance structure
38) In a ________, individual managers belong to two hierarchies (a divisional hierarchy and an
area hierarchy) and have two bosses (a divisional boss and an area boss).
A) worldwide product division structure
B) classic matrix structure
C) worldwide area structure
D) performance structure
39) The need for coordination is great in
A) firms trying to pursue localization strategies.
B) international firms.
C) firms trying to profit from location and experience curve economies.
D) domestic corporations.
40) In a ________, all roles are viewed as integrating roles.
A) worldwide area structure
B) process structure
C) worldwide product division structure
D) global matrix structure
41) ________ control is a type of control that tends to be most widely used in small firms.
A) Personal
B) Output
C) Bureaucratic
D) Cultural
42) In a company using ________, employees tend to control their own behavior, which reduces
the need for direct supervision.
A) bureaucratic controls
B) cultural controls
C) personal controls
D) output controls
43) ________ can be defined as the amount of time top management must devote to monitoring
and evaluating subunits’ performance.
A) Performance ambiguity
B) The formal matrix
C) The costs of control
D) Differentiation
44) Firms pursuing a global standardization strategy must cope with a higher level of ________,
and this raises their costs of control.
A) vertical differentiation
B) cultural division
C) horizontal differentiation
D) performance ambiguity
45) Which of the following is more difficult for a leader?
A) to change an established organizational culture
B) to import an organizational culture
C) to create an organizational culture from scratch in a new venture
D) to export an organizational culture
46) A firm’s ________ determines where in its hierarchy the decision-making power is
concentrated.
A) integrating mechanism
B) vertical differentiation
C) knowledge network
D) horizontal differentiation
47) What is horizontal differentiation?
A) the mechanisms that enable each subunit to operate independently
B) the formal division of the organization into subunits
C) the location of decision-making responsibilities within a structure
D) the mechanisms for coordinating subunits
48) Integration mechanisms are the
A) formal division of the organization into subunits.
B) mechanisms that enable each subunit to operate independently.
C) mechanisms for coordinating subunits.
D) location of decision-making responsibilities within a structure.