Professional Documents
Culture Documents
Prepared by: Group: 8 (Eight) Group Members Md. Al Amin Sagir Hossain Mahabub Alam Roll 222 223 224
Prepared for: Dr. Md. Ataur Rahman Professor Department of Management Studies, University of Dhaka
Table of Contents
Meaning of culture: --------------------------------------------------------------------------------------- 4 Meaning of Organizational structure ------------------------------------------------------------------- 4 The Importance of an Organizational Structure ------------------------------------------------------ 5 Benefits of Organizational Structure ------------------------------------------------------------------- 7 Types of Organization Structure ------------------------------------------------------------------------ 9 Line Organization Structure --------------------------------------------------------------------------- 10 Functional Organization Structure-------------------------------------------------------------------- 10 Line and Staff Organization Structure --------------------------------------------------------------- 12 Six Elements of Organizational Structure----------------------------------------------------------- 13 Condition of good structure---------------------------------------------------------------------------- 15 Causes of poor structure: ------------------------------------------------------------------------------- 16 Functions of Structure ---------------------------------------------------------------------------------- 17 Factors Affecting Structure Other Than Culture --------------------------------------------------- 18 Relationship between Culture and Structure-------------------------------------------------------- 19 Bureaucracy ---------------------------------------------------------------------------------------------- 20 Types of Bureaucracy on the Basis of Cultural Dimensions ------------------------------------ 25 Critical Evaluation of Bureaucracy ------------------------------------------------------------------- 26 Positive Qualities of Bureaucracy -------------------------------------------------------------------- 26
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Negative Qualities of Bureaucracy ------------------------------------------------------------------- 27 Global Structural Integration -------------------------------------------------------------------------- 27 Organizing for Globalization: ------------------------------------------------------------------------- 28 Emergent Structural Forms: --------------------------------------------------------------------------- 29 The Transnational Corporation Network Structure: ----------------------------------------------- 29 Choice of Organizational Form: ---------------------------------------------------------------------- 30 Control System for Global Operations -------------------------------------------------------------- 30 Possible Questions--------------------------------------------------------------------------------------- 31 References ------------------------------------------------------------------------------------------------ 32 Multiple Choice Questions----------------------------------------------------------------------------- 33
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"Culture is learned and shared human patterns or models for living; day- to-day living
patterns these patterns and models pervade all aspects of human social interaction. Culture is mankind's primary adaptive mechanism" Damen, L. (1987).
Culture consists of patterns, explicit and implicit, of and for behavior acquired and
transmitted by symbols, constituting the distinctive achievements of human groups, including their embodiments in artifacts; the essential core of culture consists of traditional (i.e. historically derived and selected) ideas and especially their attached values; culture systems may, on the other hand, be considered as products of action, and on the other as conditioning elements of further action. Kroeber, A.L., & Kluckhohn, C. (1952)
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James Mooney defines organization as "the form of every human association for attainment of a common purpose". Structures are applicable to people in how a society is as a system organized by a characteristic pattern of relationships. Organizational structure refers to the different hierarchies or levels in a company. An organizational structure appears as a series of boxes, vertical and horizontal lines. The boxes represent various titles within the organization, and the vertical lines represent to whom that position reports. Horizontal lines show which employees are on the same level. The appearance of an organization structure is usually pyramidal because there are fewer executive-level positions at the top of the company. An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. It considers as the viewing glass or perspective through which individuals see their organization and its environment.
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3. Departmentalization Departments within an organization structure are sections of the structure divided into functional divisions relevant to specific tasks. Determining what activities, tasks, and talents are to be grouped to best achieve an organization's objective is called the departmentalization process. 4. Distribution of Authority Distribution of authority determines if decision-making authority is concentrated among a few high-level figures or is the authority shared and distributed throughout a variety of departments working closet to the their corresponding tasks. 5. Organization Height Organization height defines how many departments, divisions, and layers there are between the highest levels and the lowest levels of an organization. 6. Change Role Assignments Another way to change the culture of an organization is to reassign technical specialists in existing departments. For example, you can decentralize the HR department and move an HR professional into each major department. 7. Employee Involvement Some management teams bring the need for culture change to workers, using a grassroots approach to changing the structure of the company. Managers might present the problem of wanting to make the company more responsive to the market's changing conditions. 8. Strong Culture A company with a strong organizational culture can effectively change its culture because its employees are responsive to their organizational structure. If employees are highly committed to a work-team structure and their teams desire to shift the culture to focus on new products or services, they might follow the team.
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9. Function Organizational structure is particularly important for decision-making. Most companies either have a tall or flat organizational structure. Small companies usually use a flat organizational structure. 10. Communication The importance of organizational structure is particularly crucial for communication. Organizational structure enables the distribution of authority. When a person starts a job, he knows from day one to which he will report. Most companies funnel their communication through department leaders. 11. Evaluating Employee Performance Organizational structure is important for evaluating employee performance. The linear structure of functional and product organizational structures allow supervisors to evaluate the work of their subordinates. Supervisors can evaluate the skills employees demonstrate. 12. Achieving Goals Organizational structure is particularly important in achieving goals and results. Organizational structure allows for the chain of command. Department leaders are in charge of delegating tasks and projects to subordinates so the department can meet project deadlines.
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activities include better communication among specialists, increased teamwork and shared knowledge, and it allows for quicker decision-making. 2. Divisional Structure A divisional structure can group employees by product divisions, geographic divisions or, geographic divisions. The advantages of divisional structures include higher quality products and customer service because of specialization, facilitated communication and teamwork within divisions and encouragement of hands-on problem solving. 3. Matrix Structure Matrix structures group employees by a combination of positions held, tasks performed and product divisions. A matrix structure results in employees having multiple bosses, facilitates product development through innovation and creativity, improves
communication and teamwork between divisions and increases responsibility and freedom of employees. 4. Hierarchical and Horizontal Structures Communication and decision-making is more efficient and quicker in horizontally structured organizations compared with communicating up each level of the hierarchy. Also, the decentralization of a flatter structure allows for greater job responsibility and motivation. 5. Unified Marketing Message A company can present a unified front to customers, vendors and investors when a common marketing message is used throughout the organization. A unified marketing message can help the entire company better understand its marketing goals, and then work together to achieve them. 6. Succession A strong organizational structure is better able to prepare qualified employees for management. Departments can work together on a developmental plan to help encourage the training of managerial candidates within any department.
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7. Focus on Strategy Using a strong organizational structure allows a company to better focus on a single set of goals instead of each group working towards its own agenda. It helps the company to use resources wisely in the pursuit of company goals as opposed to doubling efforts or experimenting with options perhaps not in the company's best interests. 8. Training A good organizational structure makes employee training easier to administer, and it also allows it to remain flexible based on the changes within the organization. When organizational structure regulates the flow of information, then changes within that information are easier to monitor and better adaptable for a company-wide training program. 9. Decision Making An organizational structure can make decision making a more efficient process, according to Lamar University. When a defined hierarchy is in place, the company is better equipped to make important decisions and adjust practices to meet the demands of competition.
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and control the work. Workers at the plant level will have to follow the instructions of all these eight specialists called bosses. In the functional Organization suggested by F. W. Taylor, the job of management is divided according to specialization. As a result, functional departments are created. In the functional foremanship, there will be eight specialists/functional heads called bosses. Out of eight bosses, four bosses will be at the planning level and the remaining four will be at the slop floor level. The functional Organization structure is given in the following chart:-
Merits of Functional Organization Structure 1. Facilitates specialization: Functional Organization structure facilitates division of work and specialization. Each boss has specialized knowledge of his functional area. He is in a better position to guide and help the workers.
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2. Benefits of large-scale operations: Functional Organization offers the benefit of economy of large-scale operation. In this Organization, one administrative unit manufactures all products. The available machinery, equipment and facilities are used fully for large-scale production. 3. Facilitates effective coordination: Functional Organization facilitates effective coordination within the function. This is possible as one boss is in-charge of a particular function and he looks after all activities, which come within that function. 4. Operational flexibility: Functional Organization possesses operational flexibility. Necessary changes can be introduced easily to suit the needs of the situation without any adverse effect on the efficiency. 5. Ensures effective supervision: Functional Organization facilitates effective supervision by the functional heads and foremen. Due to specialization, they concentrate on the specific functional area and keep effective supervision on their subordinates.
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The line executives are concerned with the execution of plans and Policies. They do their best to achieve the organizational objectives. The staff concentrates their attention on research and planning activities. They are experts and conduct advisory functions. The staff is supportive to line. The staff specialists offer guidance and cooperation to line executives for achieving organizational objectives. This reduces the burden of functions on the line executives and raises overall efficiency of the Organization.
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2. Number of Employees A large employee population can necessitate that there be several layers of management for a company to run efficiently. The organizational structure needs to be elastic enough to accommodate more employees and the potential need for a larger management structure. 3. Product Evolution A company may start with a small line of products that cover a general part of the industry. The need to create specified departments for product development and manufacturing can have an effect on the company's organizational structure. 4. Distribution of Authority A company's organizational structure is affected by whether the company wants centralized management or decentralized management. Centralized management keeps all major decisions with one specific executive group, while decentralized management allows company managers to have more said in the decision-making process. 5. Control A company that requires a higher product quality will have stricter rules and more regimented environment equipment. Companies that engage in the mass production of products may not exert as much control over the quality of their products and may create a different organizational structure. 6. Marketplace The marketplace has a bearing on how a company is structure. A manufacturer may decide to sell products through wholesalers and directly to end users. In order for this model to be successful, the structure of the company would need to be set up to keep these elements separate, including a separate marketing team and a separate sales force.
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visible easily to suit the needs of the situation without any adverse effect on the efficiency 8. Training opportunities to employees: Better opportunities of advancement are provided to workers. The scope for learning and training for promotions are available.
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9. Sound decision-making: Line and staff Organization facilitates sound managements decision because of services of experts and specialists. The decisions are taken in a democratic method in consultation with the experts.
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7. Costly: Functional Organization is costly, as more specialists are required to be appointed. 8. Absence of unity of command: Unity of command is absent in the functional Organization as each worker gets orders and instructions from several bosses. 9. Fixing responsibility is difficult: In functional Organization, responsibility is difficult to fix on a specific person. This is because the responsibility itself is divided among many.
Functions of Structure
Structure is the formal arrangement of roles, responsibilities and relationships within an organization. It is a powerful tool to implement strategy. Its functions are divided into two broad parts- general functions and specific functions. These group-wise functions are stated below. 1. General Functions: Structure serves general functions of regulating responsibilities and relationships. The services include the followings. It regulates the responsibilities assigned to each member for performing specific tasks. Responsibilities are structured either by common function or by common purpose. It regulates the relationships that each member has with other members within the organization. 2. Specific Functions: Besides general functions, structure has some specific functions to carry out within an organization. Those functions are as follows. It channels messages around the organization. It shows the chain of command and determines span of management.
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It designs and groups jobs as well as coordinates and differentiates among jobs. The structure of an organization generally does the above mentioned functions. But these functions may vary across different organizations and countries.
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5. Technology: Modern age is the age of technology. Technology changes very fast. It substantially affects firms operations. An entire industry may be transformed or revitalized due to use of new technology, let alone structure! 6. Complexity of the Task: A task is a piece of work to be done, especially one done regularly. It may be easy or complex or in between the two. More complex the task requires more need for supervisory control. Hence, a complex task influences how the structure is implemented. Although these factors influence the structure, the influence of culture on structure is the vital one. It is longer lasting too.
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have different effects. When members have a high need to avoid uncertainty, they are uncomfortable in dual reporting situations. In high power distance cultures, employees prefer hierarchical line of control and communication and are reluctant to trust peers. Form the above discussion; we can safely say that the relationship between culture and structure is inevitable. We cannot ponder over one singly leaving the other in real life situation.
Bureaucracy
Definition Any goal-oriented organization that consists of thousands of individuals would require the carefully controlled regulation of its activities. To fulfill this requirement, the German sociologist Max Weber (1864-1920) has developed a theory of bureaucratic management, simply called Bureaucracy. Basically, bureaucracy is a system of managing organizations by the officers instead of individual norms and values. It involves an organization with a legalized formal and hierarchical structure. It also involves the structural process within the organizations. Here a strictly defined hierarchy governed by clearly defined regulations and lines of authority is in operations. All activities and objectives are clearly thought out and divisions of labor are explicitly spelled out. Technical competence of members is emphasized and performance evaluations are made entirely one the basis of merit. Features of Bureaucracy An organization is a group of people organized in a systematic manner to achieve a desired end. It is a role relationship among people with a common goal. There are different types of organizations. Each type is distinguished from the other one because of their features. The features of bureaucracy are described as below.
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1. Hierarchy of Authority: Hierarchy of authority refers to the line of authority in an organization. It must be strictly defined in the bureaucratic organization. 2. Division of Work: Division of work is the breakdown of a complex task into components so that individuals are responsible for a limited set of activities instead of the task as a whole. In bureaucracy, it is explicitly spelled out. 3. Framework of Rules: Rules are standing plans that detail specific actions in a given situation. In bureaucratic organization, the work and the people are regulated by rules and procedures to achieve uniform behavior, control and disciplinary system. 4. Role Structure: In this system, every office or position has specific and well defined functions, responsibilities and authorities. 5. Impersonality: This organization is run by codes, not by the personal whims or preferences of the office holders. Features tell about the important part of something. And the bureaucratic features tell about the important parts of the bureaucracy. Principles of Bureaucracy `Principles are tested guidelines for decision making. They tell about how an organization works. Since bureaucracy involves an organization, it has got some principles of its own. Those principles are described as below. 1. Professionalism: Since work is a career, there must be a process of professionalism into the bureaucracy.
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2. Organization of Work: The organization of work shall be clearly defined by the hierarchy of offices. 3. Job Specification: There must be a clearly defined sphere of competence of each office. 4. Technical Competence: Technical qualification shall be the basis of selecting manpower for every office. 5. Discipline and Control: Office holders must be subject to strict and systematic discipline and control. 6. Record keeping: Every action either small or big shall be recorded clearly at concerned offices by concerned officers. 7. Rewards: Rewards structure must be set on the basis of the hierarchy of positions. It has been seen that all in all forms of bureaucratic organizations have principles. But principles may vary from one bureaucratic organization to another one. Factors Affecting Bureaucracy The model of bureaucratic rules cannot be applied equally in all companies. Because these rule are set taking into considerations of some essential factors. The followings are the factors influencing bureaucracy. 1. Industry: An industry involves similar firms but different needs. The needs of firms in an industry differ, so does the bureaucracy. 2. Size: The size of a particular firm also affects bureaucracy because a small firm may have less need for regulation than a large firm.
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3. Individual Power: The power of an individual determines the applicability of rules over him/her. If he/she holds much power, he/she may exploit the rules applicable and thus, affect the bureaucracy. 4. Organizational Culture: Organization culture may also work as a factor affecting bureaucracy because informal norms may be more powerful than formal rules. 5. Exceptional Events: Special events such as political turmoil, civil war, national emergency can also affect the bureaucracy. 6. National Culture: The dimensions of national culture such as power distance, uncertainty avoidance largely affect the bureaucracy of that particular nation. All these factors directly or indirectly influence the forms of bureaucracy an organization may apply or not. Model of Bureaucratic Rules Model of bureaucratic rules means what rules determine throughout the bureaucracy. It is well accepted that all organizations beyond the very small ones have needs for bureaucratic rules. These rules are needed to determine the followings. 1. Entry: Rules determine the entry qualifications to the organization. Typical entry qualifications are age, educational achievements and professional expertise. 2. Rank: Rules determine relationships with superiors, subordinates and peers. If rank needs to be changed, proper bureaucratic procedures must be followed.
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3. Job Specifications: The member is expected to perform specific duties and not to meddle in the duties of others. If jobs are to be changed, bureaucratic procedures must be followed. 4. Performance Specifications: There are rules and procedures for doing the jobs. Behavior breaking these rules may be punished. 5. Remuneration: Pay and allowances are paid for satisfactory service depending on rank, job specification and length of service. Bonus may be given for good performance. 6. Punishment: Rules make clear what behavior can be punished and what punishments can be imposed. 7. Promotion: Rules determine the criteria for promotion. Typical promotion criteria include length of service, good performance and qualifications. 8. Timetable: Rules set the length of the working day and week, opportunities for breaks, flextime, vacations etc. 9. Exit: Rules determine how staffs are made redundant and how they are compensated. Exit can be forced for certain offences. Model of bureaucratic rules are applicable to all members whatever their identity such as social status, family membership etc. outside the organization.
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occupy senior posts in the operation core. Emphasis is given upon standardizing operating procedures. This type of bureaucracy is applied in Germany, Israel and Costa Rica etc. It is to be noted that all these four types of bureaucracy can be used in a single country alone. Other possibilities may not also be ignored.
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financial activities associated with that product division are under the control of this manager. 2. Global Geographic / Area Structure: A global area division is a structural arrangement where global operations are organized based on a geographic rather than a product orientation. This approach often requires a major change in company strategy, because now international operations are put on the same level as domestic operations. In other words, European and Asian operations are just as important to the company as North American operations. For example, when British Petroleum purchased Standard Oil of Ohio, the firm revised its overall structure and adopted a global area division structure. Under this arrangement, Global division managers are responsible for all business operation in their designated business area. 3. Global Functional Structure: A global functional division organizes worldwide operations based on primarily on function and secondarily on product. This approach is not widely used other than extractive companies, such as oil and mining firms. 4. Mixed Organizational Structure: Some companies find neither a global product, an area, or a functional arrangement is satisfactory. They opt for a mixed organization structure, which combines all three into an MNC that supplement its primary structure with a secondary one and, perhaps, a tertiary one. For example, uses a global area approach, committee of functional managers may provide assistance and support to the various geographic divisions. Conversely, if the firm uses a global functional approach, product committee may be responsible for coordinating transactions that cut across functional lines. In other cases, the organization will opt for a matrix structure that results in managers having two or more bosses.
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markets and the need for integration, coordinating those same markets. The way the firm is organized along a localization differentiation integration continuum determines how well strategies along a localization- globalization continuum are implemented. This is why the structural imperatives of various strategies such as globalization must understood to organize appropriate worldwide systems and connections. Organizing to a globalization strategy typically involves rationalization and the development of strategic alliances. To achieve a rationalization, managers choose the manufacturing location for each product based on where the best combination of cost, quality, and technology can be attained.
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Possible Questions
1. Define broadly the meaning of structure and culture. 2. What is the importance of organizational structure? 3. What are the conditions of good structure? 4. What are the causes of poor structure? 5. a) Describe the functions of structure. b) Explain the influences affecting structure. 6. a) Define bureaucracy. b) What are the essential features and principles of bureaucracy? c) Do a critical evaluation over bureaucracy. 7. What do mean by global structural integration? Discuss different types of global structures 8. What are the different emergent structural forms? Explain with example. 9. What is a control system for global operations? How many ways it can be done explain?
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References
Damen, L. (1987). Culture Learning: The Fifth Dimension on the Language Classroom. Reading, MA: Addison-Wesley. Daniel, John, D., Radebaugh, Lee, H., & Sullivan, Daniel, P. (Eds). (2010). International Business: Environment and Operations. Pearson Education International Griffin, Ricky, W. (Eds). (2008). Management. Boston New Yoek: Houghton Mifflin Company. Helem Deresky, (2006) International Management Managing Across Borders and Cultures, Pearson. Kroeber, A.L., & Kluckhohn, C. (1952) Culture: A critical review of concepts and definitions. Harvard University Peabody Museum of American Archeology and Ethnology Papers 47 Mead, Richard. (Eds). (1998). International Management: Cross-Cultural Dimensions. Great Britain: Blackwell Business Richard M. Hodgetts, Fred Luthans, and Jonathan P. Doh, (2006), International Management-Culture, Strategy, and Behavior, Tata McGraw Hill Edition. Stoner, James, A.F., Freeman, R., Edward & Gilbert.JR., Daniel, A. (Eds). (2004). Management. Engewood Clifffs: Prentice-Hall Websites: Job Dig: Organizational Structure Can Be Underlying Cause of Workplace Issues N. Dean Meyer and Associates: Organizational Structure: Frequently Asked Questions Wiriadinata, Michael. (2011). Bureaucracy: Advantages and Disadvantage. Available at http:// mamikikeyu.wordpress.com www.practical-management.com/org
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1. Many departments, divisions and layers are between highest level and lowest level
of an organization is called -----------a) Distribution of authority d) Chain of Command 2. What are basis of the divisional structure of organization? a) Product divisions b) Geographic divisions c) Market division d) a+b b) Departmentalization c) Organization Height
3. Who developed the Line Organization Structure at first? a) U. S army b) Egypt army c) Roman army d) Spain army
4. What are the elements of organizational structure? a) Geography b) Product Evolution c) Number of Employees d) All of them
5. When bureaucracy is badly used, the result is another system. What is that system? a) Plutocracy b) Theocracy c) Autocracy d) Oligarchy
6. What makes a bureaucratic organization impersonal? a) Rules b) Social status c) Family membership d) Benevolence
7. Which is not the disadvantage of bureaucracy? a) Concentration of Power c) Employee Commitment b) Goal Displacement d) Employee Alienation
8. In which type of bureaucracy vertical communication is not strictly the norm? a) Full Bureaucracy c) Personnel Bureaucracy b) Marketplace Bureaucracy d) Workflow Bureaucracy
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9. Max Weber is called the father of bureaucracy. Which country he belongs to? a) Germany b) Belgium c) Austria d) France
10. Bureaucracy is needed to get which of the following needs fulfilled? a) Rationalizing roles c) Achieving efficiency b) Rationalizing relationships d) All of these
11. Which organizational structure, simply called structure, allows an employee to report to two superiors? a) Functional structure c) Matrix structure b) Divisional structure d) Mixed structure
12. Which statement of the followings is not relevant? a) Structures are of various forms satisfying different needs. b) Structures may be superficially the same but implemented differently. c) Full bureaucracy is built around a strong leader. d) Structures may be formal or informal or both. 13. Divisional structure regulates roles and responsibilities of executives in terms of --a) Inputs b) Outputs c) a + b d) None
14. Matrix structure institutes a dual hierarchy that is a sheer violation of which fundamental management principle? a) Unity of Command b) Unity of Direction c) Discipline d) Esprit de corps
15. Which of the following is a global structure? a) Global product structure b) Global functional structure
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d) All of them
16. _ _ _ _ _ _ _ is a global functional division organizes worldwide operations based on primarily on function and secondarily on product. a) Global product structure c) Global area structure b) Global functional structure d) None
17. _ _ _ _ _ _ _ is a global area division is a structural arrangement where global operations are organized based on a geographic rather than a product orientation a) Global product structure c) Global area structure b) Global functional structure d) None
18. _ _ _ _ _ _ is a structure that is a combination of a global product, area, or functional arrangement. a) Vertical structure c) Mixed organization structure b) Transnational network structure d) None
19. _ _ _ _ _ is a multinational structural arrangement that combines elements of function, products, and geographic design, while relying on a network arrangement to link worldwide subsidiaries. a) Interorganizational structure c) Interorganizational division b) Transnational network structure d) None
20. Which of the following is not a control system for global operations? a) Monitoring systems c) Direct coordinating mechanism b) Indirect coordinating mechanism d) None
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Answer:
1 2 3 4 5 C D C D D 6 7 8 9 10 A C B A D 11 12 13 14 15 C C B A D 16 17 18 19 20 B C C B D
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