Instructor Resource
Thomas/Peterson, Cross-Cultural Management, 4e
SAGE Publishing, 2018
C. matrix
D. conceptual cohesion
53. The ______ structure of integrating international activity groups all functional areas into geographic
units (e.g., North American Division, European Division, etc.).
A. geographic division
B. matrix
C. international division
D. functional division
54. In the ______ of integrating international activity, each subsidiary reports to more than one group
(product, geographic, or functional) for the purpose of integrating international operations with
functional areas, product areas, or both.
A. functional division
B. international division
C. geographic division
D. matrix structure
55. According to the categorization of multinational organizations, configuration of assets and
capabilities in a global organization are ______.
A. decentralized and nationally self-sufficient
B. centralized and globally scaled
C. sources of core competencies centralized, others decentralized
D. dispersed, interdependent, and specialized
56. According to the categorization of multinational organizations, configuration of assets and
capabilities in an international organization are ______.
A. decentralized and nationally self-sufficient
B. centralized and globally scaled
C. sources of core competencies centralized, others decentralized
D. dispersed, interdependent, and specialized
57. According to the categorization of multinational organizations, configuration of assets and
capabilities in a transnational organization are ______.
A. decentralized and nationally self-sufficient
B. centralized and globally scaled
C. sources of core competencies centralized, others decentralized
D. dispersed, interdependent, and specialized
58. According to the categorization of multinational organizations, the role of overseas operations for
the multinational organization is
A. sensing and exploiting local opportunities.
B. implementing parent company strategies.
C. adapting and leveraging parent company competencies.
D. differentiating contributions by national units to integrated worldwide operations.
59. According to the categorization of multinational organizations, the role of overseas operations for
the global organization is
A. sensing and exploiting local opportunities.
B. implementing parent company strategies.
C. adapting and leveraging parent company competencies.
D. differentiating contributions by national units to integrated worldwide operations.
60. According to the categorization of multinational organizations, the role of overseas operations for
the international organization is
A. sensing and exploiting local opportunities.
B. implementing parent company strategies.
C. adapting and leveraging parent company competencies.
D. differentiating contributions by national units to integrated worldwide operations.
61. According to the categorization of multinational organizations, the role of overseas operations for
the transnational organization is
A. sensing and exploiting local opportunities.
B. implementing parent company strategies.
C. adapting and leveraging parent company competencies.
D. differentiating contributions by national units to integrated worldwide operations.
62. According to the categorization of multinational organizations, development and diffusion of
knowledge in a multinational organization is marked by ______.
A. knowledge developed and retained within each unit
B. knowledge developed and retained at the center
C. knowledge developed at the center and transferred to overseas units
D. knowledge developed jointly and shared worldwide
63. According to the categorization of multinational organizations, development and diffusion of
knowledge in a global organization is marked by ______.
A. knowledge developed and retained within each unit
B. knowledge developed and retained at the center
C. knowledge developed at the center and transferred to overseas units
D. knowledge developed jointly and shared worldwide
64. According to the categorization of multinational organizations, development and diffusion of
knowledge in an international organization is marked by ______.
A. knowledge developed and retained within each unit
B. knowledge developed and retained at the center
C. knowledge developed at the center and transferred to overseas units
D. knowledge developed jointly and shared worldwide
65. According to the categorization of multinational organizations, development and diffusion of
knowledge in a transnational organization is marked by ______.
A. knowledge developed and retained within each unit
B. knowledge developed and retained at the center
Instructor Resource
Thomas/Peterson, Cross-Cultural Management, 4e
SAGE Publishing, 2018
C. knowledge developed at the center and transferred to overseas units
D. knowledge developed jointly and shared worldwide
66. Which of the following is NOT one of the recently emerged collaborative alliances with foreign firm
form of international organizations?
A. Informal cooperative alliances
B. Formal cooperative alliances
C. International joint ventures
D. International enterprise
67. The ______ collaborative alliance with foreign firms within an international organization is usually
limited in scope and has no contractual requirement.
A. informal
B. formal
C. joint ventures
D. mergers
68. The ______ collaborative alliance with foreign firms within an international organization typically
requires a contractual agreement and is often indicated by broader involvement.
A. informal
B. formal
C. joint ventures
D. mergers
69. The international ______ collaborative alliance with foreign firms within an international
organization is separate legal entities with joint ownership.
A. informal
B. formal
C. joint ventures
D. mergers
70. Cross-border mergers and acquisitions demand a ______, as organizations must align both
organizational and national cultures.
A. double-layered acculturation
B. organizational replication
C. value creation
D. Incompatibility of the partners
71. Cultural difference can be a source of conflict as well as a source of ______ in mergers and
acquisitions.
A. double-layered acculturation
B. imperative for control
C. value creation
D. organizational replication
72. Given the pressures for consistency among subsidiaries in the international form, ______ is the
tendency of the firm to duplicate, in new environments, existing structures and procedures that are
effective.
A. value creation
B. organizational replication
C. incompatibility of the partner
D. value creation
73. Given the pressures for consistency among subsidiaries in the international form, the ______
suggests that standardization of policies is used to reduce the complexity and uncertainty inherent in
the control of international operations.
A. imperative for control
B. incompatibility of the partners
C. value creation
D. double-layered acculturation
74. In the global environment of multinational organizations, when there is a(n) ______ of subunits of
the organization, much of the coordination and control shifts to individuals in positions that link the
subunits.
A. global integration
B. loose coupling
C. managerial role
D. extra role
75. In the international environment, subsidiary managers may feel the opposing pressures for local
adaptation and ______.
A. loose coupling
B. extra role
C. managerial role
D. global integration
76. Because employers can never specify all the terms and conditions of the employment relationship,
individuals supplement this information by forming what is called their ______.
A. psychological contract
B. global integration
C. cultural variability
D. social cues
77. ______ aspects of psychological contracts emphasize specific, short-term, monetary obligations,
such as payment for services provided by employees.
A. Compensation
B. Social
C. Transactional
D. Cultural
78. ______ aspects of psychological contracts emphasize broad, long-term, socioemotional obligations,
such as commitment and loyalty.
Instructor Resource
Thomas/Peterson, Cross-Cultural Management, 4e
SAGE Publishing, 2018
A. Transactional
B. Cultural
C. Relational
D. Global
True/False
1. Organizational structure can be described by its degree of complexity, formalization, and
centralization.
2. Mintzberg proposed that all organizations are composed of five essential parts: the operating core,
the middle line, the support staff, the technostructure, and the strategic apex.
3. Institutional theories focus not on single organizations but on the strategies, structures, and
management of whole populations of organizations, such as industries.
4. Institutional theory focuses on the ways that organizations in shared environments come to adopt
similar structures that are reinforced in interactions with other organizations.
5. Regardless of country, larger organizations tended to be more formalized, specialized, and less
centralized.
7. The international joint venture organization is a single organization with a need to coordinate its
operations across multiple environments.
Instructor Resource
Thomas/Peterson, Cross-Cultural Management, 4e
SAGE Publishing, 2018
8. A recently emerged international organizational form is that of collaborative alliances with foreign
firms including informal cooperative alliances, formal cooperative alliances, and international joint
ventures.
9. The multinational organization is a form of collaborative alliance with foreign firms that creates
separate legal entities with joint ownership.
11. Informal organizational structure limits the choices that organization members have about how they
perform their jobs and also constrain and place demands on their behavior.
13. Because employers can never specify all the terms and conditions of the employment relationship,
individuals supplement this information by forming what is called their psychological contract.
14. The employment contract consists of individual beliefs or perceptions concerning the terms of the
exchange relationship between the individual and the organization.
Completion (Fill in the Blank)
1. ______ differentiation refers to the number of different types of jobs that exist in an organization’s
structure.
2. According to Mintzberg, in a ______, an organization has decentralized, coordination by
standardization of skills, operating core of highly trained professionals who have collective control over
administration.
3. The ______ is composed of technical analysts, such as accountants and industrial engineers, who have
responsibility for formulating rules and procedures to standardize the work that is done in the operating
core.
4. In ______ isomorphism, professional bodies promote “proper” organizational structure.
5. The ______ structure of integrating international activity groups all international activities together in
a single organizational unit.
7. The ______ structure of integrating international activity expands domestic functional units into its
foreign counterparts based on geography.
8. The ______ collaborative alliance with foreign firms within an international organization is usually
limited in scope and has no contractual requirement.
9. The ______ collaborative alliance with foreign firms within an international organization typically
requires a contractual agreement and is often indicated by broader involvement.
Instructor Resource
Thomas/Peterson, Cross-Cultural Management, 4e
SAGE Publishing, 2018
Essay
1. What are the fundamental characteristics through which the structure of any organization can be
described?
Ans: Structure of the organization can be described by its degree of complexity, formalization, and
centralization.
The complexity of an organization is the extent to which it is differentiated along three dimensions:
2. Describe Mintzberg’s perspective on the fundamentals of organizational forms composed of five
essential parts.
3. Describe two mechanisms through which culture might have an influence on the structure of
organizations.
Ans: 1. Organizational structure is seen as a manifestation or symptom of the management group’s
cultural background. The logical extensions of specific cultural value orientations include explicit
2. National culture competes with global forces to influence the extent to which different ways of
organizing are accepted by the members of a society. Pressures from the organizational environment,
which includes the cultural context, dictate the type of structure seen as correct or legitimate.
4. Describe the five ways multinational organizations structure their divisions to integrate their
international activity.
Ans:
Five ways of integrating international activity are common.
1. The international division groups all international activities together in a single organizational
unit and is more popular with the United States than European MNOs. This structure has also
been the initial choice of a significant number of firms as they expand internationally.
5. In the matrix structure, each subsidiary reports to more than one group (product, geographic, or
functional) for the purpose of integrating international operations with functional areas, product
5. Describe how culture impacts the development of the psychological contract between an individual
and the organization?
Ans: The psychological contract consists of individual beliefs or perceptions concerning the terms of the
exchange relationship between the individual and the organization. A key element of establishing
employee expectations is the differentiation of roles and hierarchy of authority embodied in the
organizational structure.