CUSTOMER_CODE SMUDE DIVISION_CODE SMUDE EVENT_CODE JULY15 ASSESSMENT_CODE BB0027_JULY15 QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 1910 QUESTION_TEXT Briefly explain the organisation characteristics of MNCs. 1.Organisational structure 2.Characteristics of formalization SCHEME OF EVALUATION 3.Specialization 4.Centralisation QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 1913 QUESTION_TEXT Explain the general categories of communication that are especially important to communication in international business. SCHEME OF EVALUATION The general categories of communication that are especially important to communication in international business are: 1.Kinesics (2 ½ marks) •Oculesics •Haptics 2.Proxemics (2 ½ marks) •Intimate distance •Personal distance •Social distance •Public distance 3.Chronemics (2 ½ marks) 4.Chromatics (2 ½ marks) [The above said points have to be discussed in detail] QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 73206 QUESTION_TEXT Analyse the communication barriers. Communication is the process of transferring meanings from sender to receiver. The sender of a message will determine what he or she wants to say and then encode the message to convey his or her meanings. The communiqué then is transmitted using some medium such as telephone, email or face to face verbal interaction. Finally the message is decoded and interpreted by the receiver. Two–way process. Reverse flow means feedback. Distortions called noise. 2M There are number of barriers in the communication especially the upward flow. It is the transfer of information from subordinate to superior. The robust world economy id well connected electronically and psychologically. Many companies are MNCs (a firm having operations in more than one country). Regardless of the culture of MNCs home country the manager needs to have knowledge of other plants/offices enabling effective communication. Important barriers include 2M SCHEME OF EVALUATION Language barriers: knowledge of the home country’s language is important. Written communication is also important, if a manager do not understand the language that is used locally it is likely that they will make wide assortments of errors. Ability to speak the language used at MNC headquarters isn’t enough. 2M Cultural barriers: can affect communication in a number of ways : Cultural values: lot of work related behaviour or actions are due to difference in cultural values. why are many European workers unwilling to work in the night shifts. Etc. Misinterpretation : cultural differences can cause misinterpretation both in how others see expatriate managers and in how the latter see themselves. Culture even affects day–to–day activities of corporate communications. 2M Perception barriers: perception is a person’s view of reality. How people see reality can vary and will influence their judgement and decision making. In international management when one person uses words that are interpreted in different way by the other. Perception influences communication when it deals with how individuals ‘see’ themselves and others. Another reason for perception problems is accounted for by non verbal communication which is transfer of meaning through body language. 2M QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 73207 QUESTION_TEXT Elaborate Hofstede’s four dimensions of cultural analysis with examples. Geert Hofstede a researcher from Netherland was an expert on cross ultural differences and management. Hid definition of culture is the collective programming of the mind which distinguishes the members of one human group from another. Culture according to him includes systems of values and values are among the building blocks of culture. He isolated four dimensions of culture that he claimed summarized different cultures viz, power distance, uncertainty avoidance, individualism vs. Collectivism and masculinity vs. Femininity. 2M SCHEME OF EVALUATION Power distance (orientation towards authority)dimension focus on how a society deals with the fact that people are unequal in physical and intellectual capabilities. High power distance cultures were found in countries that let inequalities grow over time into inequalities of power and wealth. E.g. low power distance North America, Germany. High power distance: African countries. 2M Individualism vs. Collectivism focuses relationship between the individuals and his or her fellows. In individualist societies the ties between individuals were loose and individual achievement and freedom were highly valued. 2M E.g. individualistic cultures : the United States, Great Britain, Australia. Collectivist societies: Colombia, Pakistan, Venezuela uncertainty avoidance (desire for stability) dimension measured the extent to which different cultures socialized with their members into accepting ambiguous situations and tolerating uncertainty. High uncertainty avoidance cultures placed a premium on job security, career patterns, retirement benefits and so on. High uncertainty avoidance countries: Japan, Africa2M Low uncertainty avoidance cultures: China Masculinity and femininity (assertive and relational)dimension looked at relationship between gender and work roles. In masculine cultures sex roles were sharply differentiated and traditional masculine values such as achievement and the effective exercise of power determined cultural ideals. High Masculine cultures are Japan, Mexico and high feminine cultures are Denmark, Sweden2M QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 73208 QUESTION_TEXT What are the basic organisational structures? Point out the advantages and disadvantages of global area division structure. SCHEME OF EVALUATION Organisational structure is the typical hierarchical arrangement of lines of authority, communication and rights and duties of an organisation. Design of the organisation usually changes with the operations. Basic organisation structures are : product organisation, global area division, Global functional division, matrix structure, decentralized business unit structure, strategic business unit structure, transnational global network structures and mixed organisation structure. 2M Product organisation: structural arrangement in which domestic divisions are given worldwide responsibility for product group. Global area division: the functions are grouped into departments based on activities performed in different geographic areas. firm with high marketing orientation and low technology products use this structure. Global functional division : major functions are the focus. 2M Matrix function: allows local subsidiaries to develop products but at core centralised. Decentralised BU: based on product lines. SBU structure: grouped in SBU each has strategies related to. Transnational structure combines elements of functions, products and geographic design while relying on network arrangement with subsidiaries. 2M Advantages : decentralisation: authority and responsibility and therefore performance accountability is delegated directly to regional office. Better product/service: better deigned to climatic and cultural needs of the region. Adoption: better able to adopt then local needs, better response to technical needs, Pinpointing of profits, losses easy, Maximisation of functional cooperation and regional experience2M Disadvantages: duplication of functions and costly application, lack of specialisation; conflicts between local and global objectives; uniformity of quality difficult; managers have only localised expertise; weak worldwide product emphasis and technical knowledge.; policy barriers; weak communication; technology transfer barriers2M QUESTION_TYP DESCRIPTIVE_QUESTION E QUESTION_ID 103626 QUESTION_TEX What do you mean by Matrix structure? Explain its advantages. T SCHEME OF EVALUATION Is a structure that allow for highly decentralized decision making and development while simultaneously maintaining a centralized corporate strategy and vision (2 Marks) Advantages 1. Co ordination and co operation across the subunits enable firm tousle its overall resource efficiency and to respond well to global competition. 2. Overall corporate performance is highlighted. 3. Many internal conflicts are resolved at the lowest possible level 4. and Specialized skills and knowledge can be made available to project. 5. Motivation can be improved 6. are The strengths of functional and divisional departmentalization combined 7. Technical and market perspective are brought together 8. Provides champion for needed projects. Marks) (8