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[solution]: Chapter 8: Organization Structure and Control Systems


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61) Which of the following is NOT necessarily a characteristic of the best organizational structure for a firm? A) dynamic B) global C) adaptable D) flexible 62) According to the author, the future for MNC structure most likely lies in a ________. A) global web of networked companies B) global functional structure C) global product structure D) centralized hierarchy 63) Organix Cosmetic Company manufactures all-natural cosmetics and skin-care products. Organix is based in the U.S. with international divisions located in Singapore and London. Executives at Organix are considering making a change to the firm's organizational structure. Which of the following best supports the argument that Organix should change its organizational structure? A) Employees at Organix complain that they are too bogged down with administrative tasks to focus on creating new products and concepts. B) Organix managers recently attended a cosmetics trade show in Europe and were dismayed to learn that few attendees knew of the firm. C) Line managers at Organix are required to give employee performance appraisals semi-annually. D) The human resource department at Organix is overwhelmed by the flood of job applicants. 64) Those who design organizational structures must account for the relationships among the three interdependent factors of ________. A) structure, human resources, and financing B) differentiation, integration, and alliances C) strategy, structure, and staffing D) culture, politics, and economics 65) The two primary means of direct control for foreign operations are ________. A) financial statements and performance appraisals B) currency transactions and currency repatriation C) structure and staffing procedures D) sales quotas and budgets 66) Which of the following is NOT one of the direct control mechanisms used by McDonald's in Russia? A) financial performance reports B) visits by headquarters personnel C) extensive management training D) construction of a food processing plan 67) Which of the following is a financial variable in MNC reports that complicates financial statements and performance evaluations? A) global structures B) inflation levels C) sales quotas D) political systems 68) How many sets of financial statements from subsidiaries are usually required to reconcile an MNC's accounting statements? A) one B) three C) five D) seven 69) Which of the following terms refers to the control of foreign operations through the use of reports, budgets, and financial controls? A) direct controls B) internal analysis C) indirect controls D) resource management 70) Which of the following variables will most likely affect the appropriateness of monitoring systems? A) management practices B) infrastructure stability C) employee skills D) exchange rates 71) Which of the following is suggested by the research on monitoring systems by Ueno and Sekaran? A) U.S. firms use long-term evaluations to a greater extent than Japanese firms. B) Japanese firms build slack into budget calculations more often than U.S. firms do. C) U.S. firms use communication and coordination processes more extensively than Japanese firms. D) Japanese managers are more likely to use formal communication procedures than U.S. managers. 72) According to research by Neghandi and Welge, ________ firms require the greatest number of functional reports not including performance reviews. A) U.S. B) German C) Japanese D) Italian 73) Which of the following terms refers to the ability to gather timely and accurate information necessary for international management, especially in less developed countries? A) direct control B) MIS adequacy C) PCN analysis D) indirect control 74) The problem regarding noncomparability of performance data across countries is primarily caused by all of the following variables EXCEPT ________. A) taxes B) market share C) political upheaval D) currency devaluation 75) Which of the following is a non-financial measure for the performance evaluation of a subsidiary? A) transfer pricing B) union relations C) public image D) employee morale

 


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