Deck 15: International Organizational Structures

Question 1

In comparison to a functional structure, a divisional structure:

A) organizes a company's units by its activities.
B) works without cross-functional communication.
C) is suitable for meganational companies.
D) organizes a company's units by the geographic location in which it operates.

Answer 1

D

Question 2

Unlike a matrix structure, a network structure:

A) is an informal organizational structure.
B) is a combination of functional and divisional structure.
C) is a formal organizational structure.
D) is suitable for transnational organizations.

Answer 2

A

Question 3

In the context of organizational structures, unlike a divisional structure, a functional structure organizes a company's units by:

A) the products they make.
B) their activities.
C) the geographic location in which they operate.
D) the customer segments they serve.

Answer 3

B

Question 4

Unlike in divisional structures, in network structures, _____.

A) the importance of informal structures is low
B) the division of labor is based on inputs
C) the coordination is hierarchical.
D) the structure shifts and people constantly move

Question 5

Inlitex has some global product organizations, such as Inlitex Beverages, Inlitex Edibles, and Inlitex Baby Foods. The products of the company are globally standardized. In addition, Inlitex also classifies its consumer markets based on geography. This enables the company to focus on the unique needs of different markets. In this scenario, Inlitex is said to be following a _____.

A) megafunctional structure
B) multidivisional structure
C) hybrid structure
D) transverse structure

Question 6

Unlike a functional structure, a divisional structure:

A) organizes a company's units by its activities.
B) is suitable for meganational companies.
C) works without cross-functional communication.
D) organizes a company's units by the customer segments it serves.

Question 7

In the context of organizational structures, when companies use both _____, it is called a multidivisional structure.

A) geographic and task divisional structures
B) product and consumer divisional structures
C) product and task divisional structures
D) product and geographic divisional structures

Question 8

In the context of organizational structures, which of the following is a difference between a functional structure and a divisional structure?

A) Unlike a functional structure, a divisional structure organizes a company's units by their activities.
B) Unlike a functional structure, a divisional structure organizes a company's units by the products they make.
C) Unlike a divisional structure, a functional structure organizes a company's units by the geographic location in which they operate.
D) Unlike a divisional structure, a functional structure organizes a company's units by the customer segments they serve.

Question 9

AshtonSep, a transnational company, is organized based on three categories: different geographies (such as Asia and Australia), different products (such as airlines, telecom service, and supermarkets), and different activities (such as sales, operations, marketing, and customer advocacy). These units serve the entire organization. It is evident that AshtonSep has adopted a _____ for the entire organization.

A) functional structure
B) matrix structure
C) divisional structure
D) transverse structure

Question 10

Widget Corp. is a meganational company that is undergoing organizational restructuring. Jason, the chief executive officer, meets with all the department heads to decide the type of structure that would be most suitable for the firm. The department heads and Jason jointly decide to adopt a functional structure. Which of the following statements will most likely support their decision?

A) The people in each function will be able to better coordinate their tasks and develop expertise.
B) The structure will allow for improved interaction and coordination between functions.
C) The company will be better able to respond to market needs and opportunities that affect more than one functional unit simultaneously.
D) The structure will enable streamlining of the horizontal flow of knowledge within each functional unit.

Question 11

Allied Tech is a multidomestic company that is undergoing organizational restructuring. Matt, the chief executive officer, meets with the heads of all the departments to decide the type of structure that would be most suitable for the firm. The heads agree that the firm would benefit from a divisional structure. However, Matt is not convinced with the idea. Which of the following statements justifies Matt's viewpoint in this scenario?

A) Organizations with a divisional structure often struggle to respond to market needs and opportunities, especially if these affect more than one functional unit simultaneously.
B) If the company adopts a divisional structure, it will not be able to organize units by the geographic location in which it serves.
C) A divisional structure will lead to inefficient knowledge flows between units and high coordination costs.
D) If the company adopts a divisional structure, it will not be able to develop specific and unique offerings for each target group.

Question 12

Bill is a production engineer at Leghom Tech. He reports to his immediate manager who leads the manufacturing department. Being part of a company that follows a transnational strategy, Bill also reports to the company's regional manager and the manager of the production team. Which of the following organizational structures is Leghom Tech following in this scenario?

A) A spread structure
B) A matrix structure
C) A leadership structure
D) A transverse structure

Question 13

In the context of organizational structures, which of the following statements is true of a divisional structure?

A) It allows a company to develop specific and unique offerings for each target group.
B) It leads to efficient knowledge flow between different units of a company.
C) It lacks a centralized decision-making process.
D) It lacks the ability to reinforce a meganational business.

Question 14

Prolever Systems is a multidomestic company that is undergoing organizational restructuring. Chris, the managing director, meets with the managers from various departments to decide the most suitable type of structure for the firm. The managers believe that a functional structure would work best for the firm. However, Chris is not convinced with the idea. Which of the following statements justifies Chris's viewpoint in this scenario?

A) People belonging to each function will be unable to develop expertise.
B) Coordinating with all the people who work on the same tasks will be difficult.
C) Cross-functional interaction will be limited leading to slow response to market needs.
D) Streamlining the vertical flow of knowledge within each functional unit will be restricted.

Question 15

Faimler is a multinational corporation. The company is divided into various units, such as research and development, sales, marketing, public relations, and human resources. In the context of organizational structures, Faimler represents a _____.

A) divisional structure
B) functional structure
C) hybrid structure
D) network structure

Question 16

Zentoe, a meganational company in Belwick, has three major business divisions. Zentoe TP is the commercial transport division, EasyZen is the taxi service, and ZenLux is the luxury hotel division. In this scenario, it is evident that ZenToe has adopted a divisional structure _____.

A) focused by region
B) organized by products
C) divided based on employee types
D) ordered by metrics

Question 17

In which of the following organizational structures does a company often designate one boss as the primary boss and the other bosses as secondary bosses?

A) A matrix structure
B) A functional structure
C) A transverse structure
D) A behavioral structure

Question 18

Fiogo Tint, a luxury brand, is a meganational business. Its commercial activities are split into four business groups, namely wine, designer clothing, perfumes, and cosmetics. In the context of organizational structures, which of the following structures is Fiogo Tint most likely to have adopted?

A) A functional structure
B) A divisional structure
C) A task-oriented structure
D) A hybrid structure

Question 19

Leugeot Tech. is a company that follows a multidomestic strategy. It has its outlets spread across various cities. Each of its outlets has a product development team that designs products after understanding customer demands. In this scenario, which of the following organizational structures is Leugeot most likely to have adopted?

A) A divisional structure focused by region
B) A divisional structure organized by products
C) A divisional structure divided based on employee types
D) A divisional structure ordered by metrics

Question 20

Mxor Motors is an automobile manufacturer with a meganational strategy under which the company targets only premium customers with its limited range of automobiles. However, in spite of its limited product range, the company requires large capital investments. In this context, it can be said that Mxor Motors most likely uses a _____.

A) metric-based organizational structure
B) transitional organizational structure
C) functional organizational structure
D) cloud-based organizational structure

Question 21

_____ is the use of frequent human interaction to enforce control.

A) Normative control
B) Output control
C) Personal control
D) Bureaucratic control

Question 22

_____ is control that focuses on profitability and/or market share.

A) Digital control
B) Output control
C) Personal control
D) Bureaucratic control

Question 23

Alton and Co., a technology company, adopts an informal structure for its projects. To execute a project, the company forms a team by bringing together experts from various departments such as research, design, production, sales, and customer service. The team is dissolved after the completion of each project. Which of the following statements is most likely to be true of Alton and Co.?

A) The company follows a matrix organizational structure.
B) The company has rigid hierarchies.
C) The company is able to respond to rapid and frequent change.
D) The company follows a centralized decision-making pattern.

Question 24

Karlanium Tech. decides to develop a mobile-based money exchange application for the residents of Farland, a town with limited access to banking facilities. To develop this application, the company hires design and development experts based in Farland and forms a team that understands the needs of the town's residents. Which of the following organizational structures has Karlanium most likely adopted in this scenario?

A) A linear structure
B) A functional structure
C) A divisional structure
D) A network structure

Question 25

Xenchip Inc. aims for control in its global operations by reiterating the organizational values during frequent team meetings. This way, the company is able to reduce the need for external control factors by ensuring that its global employees value and seek the same thing. It is evident that Xenchip Inc. aims for _____ in its global operations.

A) normative control
B) output control
C) personal control
D) bureaucratic control

Question 26

In the context of organizational structures, identify a difference between a functional structure and a network structure.

A) Division of labor in a functional structure is based on outputs, whereas division of labor in a network structure is based on inputs.
B) Coordination is hierarchical in a functional structure, whereas coordination in a network structure is in the form of cross-functional teams.
C) A functional structure organizes units based on the products manufactured, whereas a network structure organizes units based on the activities that each unit performs.
D) The importance of informal structure is modest in a functional structure, whereas the importance of informal structure is low in a network structure.

Question 27

DailyHomes, a global lodging service provider, has set standardized rules for all its managers. In addition to manuals that outline the company's routines in detail, the managers are given scripted greetings to give to customers and scripted methods of behavior. Which of the following is likely to be true in this scenario?

A) Managers will be able to develop contextual variance in their behavior.
B) DailyHomes will be able to use feedback and learning systems to empower its managers.
C) The routines followed would lack rigidity.
D) There will be a lack of flexible working practices.

Question 28

FrenzyStyle Clothing, a leading fashion house, has opened its stores in various countries around the world. The company uses achieved profitability as a control mechanism to decide which stores should remain open and which ones should close. The regional managers are responsible for the sales performances of the stores in their respective regions. Which of the following control systems is FrenzyStyle following in this scenario?

A) Digital control
B) Output control
C) Personal control
D) Bureaucratic control

Question 29

_____ is control that get subunits to adhere to the values of the organization.

A) Normative control
B) Output control
C) Personal control
D) Bureaucratic control

Question 30

Unlike in functional structures, in network structures, _____.

A) the importance of informal structures is high.
B) the division of labor is based on inputs.
C) the coordination is hierarchical.
D) the basic of authority is functional expertise.

Question 31

In the context of organizational structures, identify a difference between a divisional structure and a network structure.

A) Division of labor in a divisional structure is based on outputs, whereas division of labor in a network structure is based on knowledge.
B) Coordination in a divisional structure is hierarchical, whereas coordination in a network structure is in the form of dual reporting.
C) The basic of authority in a divisional structure is functional expertise, whereas the basic of authority in a network structure is negotiation.
D) The importance of informal structure is low in a divisional structure, whereas the importance of informal structure is modest in a network structure.

Question 32

_____ are the means by which headquarters can force compliance from global subsidiaries.

A) Digital platforms
B) Control systems
C) Cloud-based networks
D) Isolated systems

Question 33

In the context of organizational structures, which of the following is an advantage of a network structure?

A) Collaboration occurs in an informal manner as there are no rigid hierarchies.
B) Employees share a good understanding as they work with the same team members for all their projects.
C) The structure excels at efficiency by streamlining the vertical flow of knowledge within each functional unit.
D) Companies are able to follow a centralized decision-making pattern.

Question 34

U&I Fashions is a global fashion retailer that operates through physical stores spread across various cities. If the company uses an output control system to evaluate the performance of its stores and explore growth opportunities, which of the following difficulties is it most likely to face?

A) Rigid routines that create problems for managers to function
B) High cost of individual interaction
C) Lack of accountability by subunits of the firm
D) Difficulty in obtaining timely performance data

Question 35

A _____ is a structure that organizes a company by groups that form to work on a project, and then dissolve once the project is complete.

A) network structure
B) matrix structure
C) functional structure
D) divisional structure

Question 36

Vaerio Systems develops unique electronic gadgets that have been conceptualized after careful analysis of customer needs and current trends. To develop a product, the company brings together experts from various sectors, such as research, design, production, sales, and customer service, to form one team that designs and builds the product. The team dissolves once the product has been developed and launched. Which of the following organizational structures is exemplified in this scenario?

A) A matrix structure
B) A network structure
C) A functional structure
D) A divisional structure

Question 37

Taste of Turrain, a leading fast-food restaurant chain, operates globally. It clearly specifies its global operational routines, which include taking customers' orders, preparing food, floor arrangement and restaurant décor. This helps the restaurant chain ensure that customers in various parts of the world have similar experiences with the restaurant. Which control system has Taste of Turrain adopted in this scenario?

A) Digital control
B) Input control
C) Personal control
D) Bureaucratic control

Question 38

In the context of organizational structures, which of the following is a difference between a matrix structure and a network structure?

A) Unlike in a matrix structure, in a network structure, employees are responsible for reporting to multiple managers.
B) Unlike a network structure, a matrix structure follows decentralized decision making.
C) Unlike in a network structure, in a matrix structure, a team dissolves after the completion of a project.
D) Unlike in a matrix structure, in a network structure, a company constantly introduces new people with new ideas into the organization.

Question 39

_____ is control accomplished through rules and routines.

A) Output control
B) Normative control
C) Bureaucratic control
D) Personal control

Question 40

Which of the following is a true statement that strengthens the argument that a network structure is not suitable for the military?

A) Network structures have centralized decision making.
B) Network structures are fluid and flexible.
C) Network structures have division of labor based on outputs.
D) Network structures are formal organizational structures.

Question 41

How do incentives act as a control mechanism?

Question 42

Areon Logic Systems is a company that provides ample facility and flexibility to its workers. It uses cloud-based servers for all its official data allowing employees to telecommute to work. In this scenario, Areon Logic can be referred to as a _____.

A) coercive organization
B) spatial organization
C) chronological organization
D) virtual organization

Question 43

Evaluate the argument that the advantage of a functional structure is its efficiency in coordinating all the people who work on different tasks.

Question 44

Explain virtual organizations.

Question 45

Chris Simmon, the head of Trion International Group, wishes to use behavioral incentives as a control mechanism. However, the board of directors is not convinced with the idea. They argue that individual incentives would lead to unintended consequences of limiting efforts to collaborate and teach coworkers. Which of the following suggestions can Chris make to justify that using behavioral incentives in the right manner can be beneficial for the company?

A) Offering cross-unit incentives only to the senior leaders of the company
B) Discarding the grant of status symbols as incentives
C) Eliminating profit-sharing
D) Replacing financial incentives with innovative sources of motivation

Question 46

In the context of virtual organizations, which of the following statements is true of contract employees?

A) They perform unscheduled tasks for a company.
B) They are permanent employees of a company.
C) They are paid for the job undertaken.
D) They are hired full-time by a firm.

Question 47

Widget Corp.'s subsidiary in Timpus, Belwick attempts to seek knowledge from its Campa unit, also in Belwick. However, the Timpus subsidiary faces resistance from individuals in the Belwick subsidiary who are reluctant to invest the time, energy, and effort required to share their knowledge. This creates _____ in subsidiaries.

A) a not-invented-here problem
B) a hoarding of expertise problem
C) a needle-in-a-haystack problem
D) a foreigner problem

Question 48

In the context of control systems, which of the following is a drawback of personal control?

A) Output measures cannot be standardized.
B) Individual interaction is expensive.
C) Organizational vision cannot be extended to subsidiaries.
D) Routines followed are highly rigid.

Question 49

ZenTechno's subsidiary in Belwick attempts to share its best practice of collecting consumer data with another subsidiary of the company in Zaneland. However, the Belwick subsidiary faces resistance from individuals in the Zaneland subsidiary who are reluctant to use knowledge that was not created in their unit. This creates _____ in subsidiaries.

A) a not-invented-here problem
B) a hoarding of expertise problem
C) a needle-in-a-haystack problem
D) a foreigner problem

Question 50

_____ is a problem that limits a subsidiary's ability to transfer knowledge across other subsidiaries because of the inability of other subsidiaries to understand knowledge provided to them.

A) A not-invented-here problem
B) A hoarding of expertise problem
C) A needle-in-a-haystack problem
D) A foreigner problem

Question 51

Widget Corp. aims to manufacture and sell its products in different countries across the globe. Between divisional structure and functional structure, which one do you think would be a better organizational structure for Widget Corp.?

Question 52

Leugeot Cycles, a leading bicycle manufacturer, operated based on the idea of modular design principles. It uses a common modular platform, which can be configured based on consumer needs in different countries, for its bicycle models. In this scenario, which of the following statements is likely to be true of modularity?

A) The overall design of the manufactured products is likely to be optimized.
B) The company is likely to be restricted from simultaneously working on different aspects of a product.
C) The company is likely to be able to achieve economies of scale.
D) All components of the developed products are likely to work well together with minimal integration.

Question 53

A _____ enables employees to coordinate and execute activities almost entirely through information technology, rather than by working in the same physical space.

A) chronological organization
B) spatial organization
C) coercive organization
D) virtual organization

Question 54

TravelDiaries, a leading travel agency, does not function from a physical office space. Instead, it hires workers from across the world who can work from their homes using their personal computers. These contract workers are responsible for various tasks such as planning travel itineraries, guiding and advising customers, booking flights and hotels, and making transportation arrangements. Which of the following statements is true of TravelDiaries in this scenario?

A) Its employees are unlikely to have the freedom of flexible working hours.
B) The company is likely to face difficulties in building a strong company culture.
C) Its employees are likely to have high morale due to increased socialization opportunities.
D) The company is unlikely to face any difficulty while hiring workers to take up projects when needed.

Question 55

Volseley Automotive frequently sends experts from its headquarters to its regional automotive production units. These experts are trusted employees of the company who visit global subsidiaries to interact with and enforce compliance by the units. In this scenario, Volseley Automotive appears to have adopted a(n) _____.

A) output control system
B) input control system
C) personal control system
D) normative control system

Question 56

_____ is a system in which a process, product, or service is divided into components that can be changed independently and then reintegrated into the system.

A) Paired design
B) Descriptive design
C) Podular design
D) Modular design

Question 57

Jenny is not employed as a full-time employee in a particular company. Instead, she chooses to be an outside worker who can be hired by different firms to perform specific predetermined tasks. She is paid solely for the job performed by her. In this scenario, Jenny is a(n) _____.

A) homemaker
B) mercenary
C) salaried employee
D) contract employee

Question 58

Evaluate the argument "In the context of challenges in horizontal coordination, the knowledge providers face a motivation problem called the needle-in-a-haystack problem."

Question 59

Evaluate the argument that a company that aims to achieve high profitability and market share should focus on using bureaucratic control.

Question 60

In the context of communication in organizations and their subsidiaries, _____ is the process by which subsidiaries communicate and coordinate work among themselves.

A) horizontal coordination
B) vertical coordination
C) top-down coordination
D) bottom-up coordination