Q&A Hero

Q: The GLOBE framework for assessing cultures is similar to Hofstede's framework, but measures fewer dimensions.

Q: When an American company earns profits in a foreign country, those profits are taxed according to the tax laws of the United States.

Q: What style of organization relies almost entirely on employees working on a common project with little or no underlying functional hierarchy? A) Team B) Virtual C) Learning D) Flexible E) Stratified

Q: Only when a country's political/legal environment is unstable or revolutionary is it of concern to managers.

Q: What are departments called that resemble separate businesses in that they produce and market their own products? A) Regions B) Divisions C) Function centers D) Cost centers E) Work hubs

Q: Which of the following structures relies on product departmentalization? A) Matrix B) Functional C) Divisional D) International E) Regional

Q: "In this company, what you do matters a whole lot more than your last name." Bill's father, the company founder, expected Bill's supervisor to mentor the young man, to help him set goals, to train him and to develop his managerial skills with an emphasis on continuous improvement. Bill likely lives in a country with a ________. A) high in-group collectivism culture B) high institutional collectivism culture C) high performance orientation culture D) high assertiveness culture

Q: Helga has noticed an increasing number of female CEOs of large corporations and also that more fathers are staying home to raise children while the mothers assume positions of leadership in business. This is a culture with ________. A) high gender differentiation B) low gender differentiation C) high humane orientation D) low humane orientation

Q: Firms with what structure are organized around departments for each basic business action? A) Divisional structure B) Matrix structure C) Functional structure D) International structure E) Regional structure

Q: The hero is always a loner, riding off into the sunset. Employers expect key employees to make critical decisions alone; rewards are given to individuals, not to teams. This describes a culture that is ________. A) low in institutional collectivism B) high in institutional collectivism C) high in assertiveness D) low in in-group collectivism

Q: Which form of organization is used by most small to medium-sized firms? A) Divisional B) Functional C) Matrix D) International E) Stratified

Q: Outsiders would call them clannish. Ianos and his family are very close. At work, he gives his all to the team. His neighbors support each other but exclude people they do not know. This describes a culture that is ________. A) high in institutional collectivism B) high in in-group collectivism C) low in humane orientation D) high in performance orientation

Q: List and describe the three forms of authority.

Q: What is delegation? Identify four reasons that managers have trouble delegating.

Q: "Let's forget about tomorrow for tomorrow never comes." "Live for today." These expressions would be typical of a culture that is ________. A) high in assertiveness B) low in humane orientation C) high in performance orientation D) low in future orientation

Q: What is the difference between responsibility and authority?

Q: In South America, the Sawi tribe values deceit and treachery. Taking advantage of other tribes is cause for celebration. This culture is ________. A) high in assertiveness B) low in humane orientation C) high in future orientation D) low in gender differentiation

Q: Caron admits she's a tough cookie. She thrives in an environment in which employees compete against each other for big rewards. It is likely that Caron's culture ________. A) is high in performance orientation B) is high in in-group collectivism C) is high in future orientation D) is high in assertiveness

Q: Briefly summarize the steps in the delegation process.

Q: Bettina likes to know the end from the beginning. She gathers as much information as possible before making a decision. Bettina likely lives in a culture ________. A) with high power distance B) with high uncertainty avoidance C) with high future orientation D) with high performance orientation

Q: Identify and discuss three factors that may affect a manager's span of control.

Q: Alfredo believes that the CEO is no better than the janitor of the organization and neither should receive preferential treatment. Using the GLOBE model, what can we infer about Alfredo's culture? A) Alfredo's culture is high in power distance. B) Alfredo's culture is high in assertiveness. C) Alfredo's culture is low in low in humane orientation. D) Alfredo's culture is low in power distance.

Q: Line departments are linked directly to the production and sales of a specific product.

Q: Jack moved to China to manage his company's production facility there. Immediately he instituted the company practice of recognizing an employee of the month. The Chinese employees were horrified. Why might this be so? A) The employees are acting on their national cultural behavior patterns. B) Each employee took the competition seriously and wanted to win the recognition. C) None of them wanted to lose face by not being recognized. D) The company culture was stronger than their national culture.

Q: When several employees perform the same simple task, a narrow span of control is most appropriate.

Q: Hofstede's Five Dimensions of National Culture would predict which of the following? A) American employees working in the United States prefer to work in teams and to share team rewards. B) The French employees believe that rank should have its privileges. C) An Italian manager will readily and comfortably make decisions with few acts; he is willing to take great risks. D) A manager in Sweden will be driven to compete, to excel, and to amass wealth.

Q: Employees' abilities and the supervisor's managerial skills help determine whether span of control is wide or narrow.

Q: Coca-Moka, an American beverage company, sells its soft drinks in Thirstania. After earning large profits, Coca-Moka discovered it could not export those profits back to its American banks because of the ________ in Thirstania. A) tax policies B) exchange rate C) inflation rate D) export policies

Q: Flat organizational structures are usually associated with centralized decision making.

Q: For American company Leather Exporters, first quarter sales in Italy were higher compared to the preceding year but profits were down. What could account for this difference? A) a difference in the currency exchange rate B) a change in the national leadership in Italy C) a cultural change in Italian society D) a reduction in trade barriers with Italy

Q: Accountability refers to the obligation of subordinates for accomplishing tasks assigned by managers.

Q: In Malbadia, a central committee formed by the political powers decides what products and how many of each will be produced. This situation is typical of a ________. A) free market economy B) foreign economy C) free enterprise economy D) planned economy

Q: In a centralized structure, most decision-making authority is delegated to levels of management at various points below the top.

Q: A ________ economy is one in which resources are primarily owned and controlled by the private sector. A) free market B) planned C) command D) democratic

Q: Which term describes groups of operating employees who are empowered to plan and organize their tasks and to perform those tasks with a minimum of supervision? A) Task forces B) Standing committees C) Work teams D) Division committees E) Board members

Q: If the rate of inflation in Tomturkistan increased suddenly, what effect would that have on the exchange rate of Tomturkistan currency for U.S. dollars? A) More U.S. dollars would be needed to purchase the same quantity of Tomturkistan goods as before inflation. B) One U.S. dollar would purchase more Tomturkistan currency. C) Tomturkistan currency would purchase more U.S. goods than before. D) There would be no change; inflation is a domestic problem only.

Q: What are an organization's specialists in law, accounting, and human resource management commonly called? A) Profit centers B) Cost centers C) Staff members D) Line members E) Unit managers

Q: The Corrupt Foreign Practices Act forbids U.S. citizens to offer bribes to officials in other countries, but some of those officials depend on bribes to supplement their meager incomes. This particular dilemma is part of the ________ environment. A) demographic B) political/legal C) economic D) cultural

Q: What authority is based on special expertise and usually involves counseling and advising? A) Line authority B) Matrix authority C) Delegated authority D) Staff authority E) Divisional authority

Q: Unlike the United States, the change from one regime to another in foreign countries can be less than peaceful. Differences in the ________ environment can lead to uncertainty and risk for global managers. A) economic B) cultural C) political/legal D) demographic

Q: Which of the following BEST describes accountability? A) The power to make the decisions necessary to complete a task B) The obligation employees have to their manager for the successful completion of an assigned task C) The decision to communicate clear expectations related to assigned tasks D) The number of people supervised by one manager E) The duty to perform a financial task

Q: Describe the different approaches that a company may use when it decides to go international.

Q: Which of the following BEST describes authority? A) The power to make the decisions necessary to complete a task B) The liability of subordinates for accomplishing tasks assigned by managers C) The number of people supervised by one manager D) The ability to take on new responsibility E) The duty to perform an assigned task

Q: Which of the following BEST describes responsibility? A) The power to make the decisions necessary to complete a task B) The liability of subordinates for accomplishing tasks assigned by managers C) The number of people supervised by one manager D) The duty to perform an assigned task E) The need to prove satisfactory work performance

Q: Explain the differences between a multidomestic corporation, a global company, and a borderless organization. Include examples of companies for each of the types of organizations discussed.

Q: What type of management is exemplified by the idea that managers should delegate to subordinates and allow those subordinates to be responsible for decisions? A) Authentic management B) Linear management C) Centralized management D) Group management E) Decentralized management

Q: A strategic alliance is a partnership between an organization and a foreign company partner in which both share resources and knowledge in developing new products or building production facilities.

Q: After responsibility for a task is assigned, which of the following comes next to ensure the successful completion of the task? A) The centralization of the task is identified. B) The liability of the task is determined. C) The span of control is decided. D) The work team is created. E) Authority is granted.

Q: Licensing is primarily used by service organizations and franchising is primarily used by manufacturing organizations.

Q: Licensing and franchising are similar approaches involving one organization giving another organization the right to use its brand name, technology, or product specifications in return for a lump sum payment or a fee usually based on sales.

Q: Which of the following begins when a manager assigns responsibility to a subordinate? A) Centralization B) Delegation C) Liability D) Authority E) Training

Q: The process of exporting involves acquiring products made abroad and selling them domestically.

Q: What is the preferred span of control when jobs are more diversified or prone to change? A) Wide B) Narrow C) Tall D) Deep E) Authoritative

Q: Managers who want to get into a global market with minimal investment start with global sourcing.

Q: In tall organizations, which feature describes the span of control? A) Short B) Tall C) Wide D) Narrow E) Vertical

Q: Companies with centralized authority systems typically require multiple layers of management. What type of organizational structures are these companies utilizing? A) Tall B) Short C) Flat D) Broad E) Compressed

Q: A transnational organization reflects an ethnocentric attitude.

Q: What type of structure represents one with relatively few layers of managers? A) Tall organizational structure B) Short organizational structure C) Flat organizational structure D) Elliptical organizational structure E) Triangular organizational structure

Q: Part of Jose's company's business plan involves setting up a foreign subsidiary. This arrangement involves ________. A) making products domestically and selling them abroad B) Jose's company giving the foreign subsidiary the right to use its brand name C) directly investing in a foreign country D) minimum global investment

Q: Melamark's advisor on global affairs is concerned that ________ carries too much risk. A) a strategic alliance B) franchising C) setting up a foreign subsidiary D) a joint venture

Q: What kind of organization becomes more responsive to its environment by breaking the company into more manageable units? A) Centralized B) Decentralized C) Geographic D) Process-oriented E) Customer departmentalized

Q: In what type of organization is decision-making authority delegated to levels of management at various points below the top? A) Centralized B) Decentralized C) Point-of-sale D) Geographic E) Autocratic

Q: Melamark LLC has customers on four continents. It would like to increase its global presence as a supplier to its global customers. The most expensive option would be to ________. A) form a strategic alliance with an existing company in another country B) directly invest in a production facility in another country C) export from a single production plant D) license producers in several countries

Q: In which type of organization are most lower-level decisions approved by upper management before they are implemented? A) Line B) Staff C) Decentralized D) Centralized E) Learning

Q: A domestic firm and a foreign firm sharing the cost of developing new products or building production facilities in a foreign country constitute a ________. A) franchising agreement B) strategic alliance C) foreign subsidiary D) joint venture

Q: What is authority given to a decision-making body with power beyond that possessed by any one person? A) Risk aversion B) Committee and team C) Line D) Matrix E) Product and labor

Q: Joint ventures are a type of ________. A) license B) franchise C) foreign subsidiary D) strategic alliance

Q: What type of departments are linked to the production and sales of specific products? A) Staff departments B) Matrix departments C) Line departments D) Organizational departments E) Entrepreneurial departments

Q: In 1984 Toyota and General Motors formed a company called NUMMI to build cars carrying both the General Motors and Toyota brands. NUMMI is an example of a(n) ________. A) equity strategic alliance B) joint venture C) global venture D) nonequity strategic alliance

Q: What is authority that flows up and down the chain of command called? A) Staff authority B) Departmental authority C) Delegated authority D) Divisional authority E) Line authority

Q: Adam has been hired by an organization that has a partnership with a foreign company. Both the partners share resources and knowledge while developing new products. Adam's organization has formed a ________. A) licensing company B) franchising company C) strategic alliance D) foreign subsidiary

Q: Theodore and James decide to enter into an agreement with a firm in Europe allowing them to use their software, brand name, and business methods in return for a lump sum payment and a percentage of sales. The European firm is a service organization that plans to use the software to serve its customers. Their agreement is a(n) ________. A) export agreement B) licensing agreement C) franchise agreement D) import agreement

Q: What is the power to make the decisions necessary to complete a task called? A) Delegation B) Specification C) Authority D) Responsibility E) Accountability

Q: Harley Davidson makes motorcycles but in its retail stores it also sells clothing, motorcycle accessories, jewelry, and many related products carrying the Harley trademarks made by other companies. Harley Davidson is engaging in ________. A) global sourcing B) exporting C) franchising D) licensing

Q: What is an employee's duty to perform an assigned task? A) Delegation B) Authority C) Responsibility D) Accountability E) Specialization

Q: Which feature characterizes the organization of centralized firms? A) Flat B) Tall C) Very large D) Responsive to change E) Well capitalized

Q: Natalya operates a retail store in Romania. She buys consumer electronics from vendors in China and Japan to sell in her store. Natalya is engaging in ________, A) global sourcing B) licensing C) importing D) franchising

Q: What is the main organizational characteristic of decentralized firms? A) Flat B) Tall C) Diverse D) Multi-layered E) Matrix

Q: Nathan uses ethnic craftsmen to make high quality oak furniture. If he decides to offer his furniture for sale in other countries, he will be engaging in ________. A) importing B) exporting C) licensing D) franchising

Q: Granting the authority or power to make decisions is done through the process of A) line authority. B) committee. C) delegation. D) functional structure. E) department authority.