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Questions and Answers
In a multinational company, which type of organization decentralizes management and other decisions to the local country where it is doing business?
Which dimension of Hofstede's cultural dimensions refers to the degree to which people in a country accept that power in institutions and organizations is distributed equally?
In a global company, which type of organization centralizes its management and other decisions in the home country?
Which dimension of Hofstede's cultural dimensions refers to the degree in which people in a country prefer structured or unstructured situations and whether they are willing to accept risks?
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Which type of global company uses an arrangement that eliminates artificial geographical barriers?
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Which dimension of Hofstede's cultural dimensions refers to the degree in which people in cultures with long-term orientation look to the future and value persistence?
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What is the main focus of short-term values?
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What does CSR (corporate social responsibility) refer to?
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What does the anchoring effect describe in decision making?
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What is the framing bias in decision making?
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Which error involves decision makers forgetting that current choices can’t correct the past?
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What does the term 'self-serving bias' refer to in decision making?
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Which aspect of intuition involves decisions based on feelings or emotions?
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Study Notes
Organizational Structures in Multinational Companies
- Decentralized Management: A multinational company that decentralizes management decisions allows local offices to make operational choices, adapting to regional markets.
- Centralized Management: Global companies often centralize management, making key decisions at the home country level to maintain uniformity and control across all operations.
Hofstede's Cultural Dimensions
- Power Distance: This dimension measures how much less powerful members accept that power is distributed unequally in institutions and organizations.
- Uncertainty Avoidance: Refers to the extent to which individuals prefer structured over unstructured situations and their willingness to accept risks.
- Long-Term Orientation: Indicates how cultures focus on future rewards, emphasizing persistence and maintaining long-term commitments.
Global Company Structures
- Global Arrangements: Some companies adopt a structure that eliminates geographical barriers, allowing for seamless international operations and collaboration.
Values and Corporate Social Responsibility
- Short-Term Values Focus: The main emphasis is on immediate results, including quick profits and rapid outcomes rather than long-lasting success.
- Corporate Social Responsibility (CSR): Relates to the ethical obligation of organizations to contribute positively to society and operate sustainably.
Decision-Making Biases and Effects
- Anchoring Effect: A cognitive bias where individuals rely heavily on the first piece of information encountered when making decisions.
- Framing Bias: Involves how choices are presented, affecting decision outcomes based on the context and wording rather than the actual information.
- Sunk Cost Fallacy: Decision makers may forget that previous investments cannot be recovered, leading to continuation of poor choices.
- Self-Serving Bias: Refers to the tendency of individuals to attribute successes to their abilities while blaming failures on external factors.
- Intuitive Decision-Making: Involves choices driven primarily by feelings or emotions rather than analytical reasoning.
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Description
Test your knowledge of organizational structures and the global business environment with this quiz. Explore topics such as efficiency, effectiveness, planning, organizing, and global company strategies.
