The organizing function is concerned with arranging and assigning tasks, allocating resources, and structuring work in order to reach organizational objectives.

The key elements in organizational design include division of labor, chain of command, span of control, centralization/decentralization, formalization and departmentalization.

The most basic method to divide job activities for managers is to follow the sequence of activities: ? Examine objectives, ? Design job activities to reach those objectives, ? Group similar activities to specific jobs, and ? Assign individuals to those jobs.

Economies of scale, which refers to decreases in average costs per unit of production as output increases, have important effects on lowering costs. The main reasons for decreasing costs while increasing production output are (1) spreading fixed, advertising, selling, and distributing costs over more units; (2) having specialized employees and systems and equipment like 3-D printers and manufacturing robots, which lead to higher efficiency; and (3) providing discounts on bulk purchases of raw material inputs and component.

“Balances scorecard” is the term that completes the sentence above. For further study you can study the pages 236-238.

Ethnocentrism is the belief that one’s own culture is superior to others which creates barriers between members of a group or a work team.

A global-standardization strategy is composed of achieving significant economies of scale and low cost inputs by pursuing a global division of labor based on wherever best-of-class capabilities reside at the lowest cost. This strategy results from the combination of high pressure for cost reductions and low pressure for local responsiveness. Companies adopting this strategy are often organized as networks, such as companies in the PC, smartphones, and automobile industries. This lets them strive for the lowest-cost position possible. Besides, industrial products, such as screws, nuts, and bolt, are ideal for a global-standardized strategy, since they are highly isolated from the local differences.

There are four factors that have a major effect on the intensity of rivalry among established companies within an industry: market structure, demand conditions, cost conditions, and the height of exit barriers in the industry.

A hybrid structure has several business units or divisions and makes use of different forms of structures in order to tailor them to an organization’s specific needs.

There are three important contingency factors that affect design choices: strategy, environment, and technology.

Sociocultural factors are one of the dimensions of the general environment. The sociocultural component within sociocultural factors is concerned with societal and cultural factors such as values, attitudes, trends, traditions, lifestyles, beliefs, tastes, and patterns of behavior. Among the answers, D is the correct one because interest rates is one of the economic factors.

Strategic alliance is the cooperation of companies for realizing their strategic objectives. Companies can choose to bring their resources and capabilities together. An “alliance” is any medium to long-term cooperative relationship between companies. It excludes one-time or short-term contracts and other agreements and does not imply some joint working relationship between companies over time. We term alliances often “strategic” because they are normally formed to help the partner companies realize their strategic objectives on the basis that this can be done better through cooperation than alone.

International Organization for Standardization (ISO) certification has become the recognized standard for evaluating and comparing companies on a global basis. ISO members are the primary standard organizations in their countries and there is only one member for each country. Each member represents ISO in its country. Individuals or companies cannot become ISO members. Turkish Standards Institution (TSE) is the sole authorized body for standardization in Turkey. It is a public institution founded with the Law. TSE operates in diverse fields of the quality infrastructure that includes certification, testing, training as well as surveillance and inspection activities.

Tactical control is the assessment and regulation of the day-to-day functions of the organization and its major units during the implementation of its strategies. For further study you can look the pages 234-236 in the book.

Incremental innovation refers to exploiting the existing knowledge base and small improvements of existing products whereas radical innovation refers to exploring novel
knowledge and development of new and different products.

They have many producers which sell an undifferentiated product with a little or no pricing power in a fragmented market.

Contingency models of leadership focus on the match between environmental factors and the leader’s behaviors. Some of the factors examined are organizational goals, leader-employee relations, task structure, and position power. Situational model refers to the differing set of factors and that the best leadership approach changes by these factors.

A vision is a statement about where the company wants to be in the future. It is composed of the desired achievements of the company. A clearly phrased vision communicates management’s aspirations to stakeholders about “where we are going” and helps channel the energies of company personnel in a common direction. 

Social needs are a person’s need for friendship, belongingness, acceptance, and love. Employees and group or team members of a company become satisfied by the work environment beyond basic needs when they have good relationships with their peers and managers. The correct answer is C.

Transformational leadership is explained in four I’s: charisma or idealized influence; inspirational motivation; intellectual stimulation; and individualized consideration.