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Questions and Answers
What characterizes a mechanistic organizational structure?
What characterizes a mechanistic organizational structure?
What is a primary advantage of an organic organizational structure?
What is a primary advantage of an organic organizational structure?
Which of the following is NOT a feature of a mechanistic organization?
Which of the following is NOT a feature of a mechanistic organization?
In what type of organizational structure do employees typically work in teams?
In what type of organizational structure do employees typically work in teams?
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Which of the following best describes the communication style in a mechanistic organization?
Which of the following best describes the communication style in a mechanistic organization?
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What type of organization is most likely to adapt to change quickly?
What type of organization is most likely to adapt to change quickly?
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What is a disadvantage of a mechanistic organizational structure?
What is a disadvantage of a mechanistic organizational structure?
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Which organizational structure would likely be found in a government agency?
Which organizational structure would likely be found in a government agency?
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What is a characteristic of a mechanistic structure?
What is a characteristic of a mechanistic structure?
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Which advantage is associated with a functional structure?
Which advantage is associated with a functional structure?
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What is a major disadvantage of a divisional structure?
What is a major disadvantage of a divisional structure?
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Which statement best describes an organic structure?
Which statement best describes an organic structure?
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In which scenario is a matrix structure most suitable?
In which scenario is a matrix structure most suitable?
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Which of the following is NOT a characteristic of a functional structure?
Which of the following is NOT a characteristic of a functional structure?
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What aspect of a divisional structure can complicate standardization?
What aspect of a divisional structure can complicate standardization?
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Which is a common outcome of having a narrow span of control?
Which is a common outcome of having a narrow span of control?
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What is a primary advantage of the matrix structure?
What is a primary advantage of the matrix structure?
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What potential issue can arise from having both a product leader and a functional leader in a matrix structure?
What potential issue can arise from having both a product leader and a functional leader in a matrix structure?
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In which environment is a horizontal structure particularly effective?
In which environment is a horizontal structure particularly effective?
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What is a characteristic of a network organization?
What is a characteristic of a network organization?
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Which of the following is NOT a disadvantage of the matrix structure?
Which of the following is NOT a disadvantage of the matrix structure?
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What attribute of a horizontal structure enhances its effectiveness?
What attribute of a horizontal structure enhances its effectiveness?
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What can lead to inconsistencies across product divisions in a matrix structure?
What can lead to inconsistencies across product divisions in a matrix structure?
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Which statement best describes the goal of a horizontal structure?
Which statement best describes the goal of a horizontal structure?
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What is a characteristic of network organizations?
What is a characteristic of network organizations?
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Which environmental characteristic requires a decentralized, organic structure?
Which environmental characteristic requires a decentralized, organic structure?
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What is NOT considered an influence on organizational structure?
What is NOT considered an influence on organizational structure?
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What does the informal structure of an organization refer to?
What does the informal structure of an organization refer to?
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In which type of organizational culture is decision-making typically centralized?
In which type of organizational culture is decision-making typically centralized?
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What attribute represents the need for organizations with limited resources?
What attribute represents the need for organizations with limited resources?
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What is a characteristic of formal mechanisms in stable environments?
What is a characteristic of formal mechanisms in stable environments?
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What type of structure is suggested for an unstable and complex environment?
What type of structure is suggested for an unstable and complex environment?
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A mechanistic structure encourages a flexible workplace with horizontal communication.
A mechanistic structure encourages a flexible workplace with horizontal communication.
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Organic organizational structures are less adaptable compared to mechanistic structures.
Organic organizational structures are less adaptable compared to mechanistic structures.
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In mechanistic organizations, task assignments are typically made by a central authority.
In mechanistic organizations, task assignments are typically made by a central authority.
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Organic structures usually promote a welcoming environment that values employee opinions.
Organic structures usually promote a welcoming environment that values employee opinions.
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Mechanistic structures are commonly found in dynamic and rapidly changing industries.
Mechanistic structures are commonly found in dynamic and rapidly changing industries.
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Decision-making in organic organizations is distributed among various employees rather than centralized.
Decision-making in organic organizations is distributed among various employees rather than centralized.
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The primary goal of a mechanistic organizational structure is to foster innovation and collaboration.
The primary goal of a mechanistic organizational structure is to foster innovation and collaboration.
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In organic structures, employees work primarily within their designated roles with limited interaction.
In organic structures, employees work primarily within their designated roles with limited interaction.
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A mechanistic structure typically features centralized authority.
A mechanistic structure typically features centralized authority.
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Organic structures have a rigid chain of command.
Organic structures have a rigid chain of command.
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In a divisional structure, there is often duplication of effort and resources.
In a divisional structure, there is often duplication of effort and resources.
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Functional structures facilitate high levels of formalization.
Functional structures facilitate high levels of formalization.
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Matrix structures are characterized by a single focus on either product or function.
Matrix structures are characterized by a single focus on either product or function.
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Organic structures typically have a narrow span of control.
Organic structures typically have a narrow span of control.
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A divisional structure often results in lost economies of scale.
A divisional structure often results in lost economies of scale.
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Decentralized decision-making is a characteristic of functional structures.
Decentralized decision-making is a characteristic of functional structures.
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The matrix structure allows for collaboration across different departments.
The matrix structure allows for collaboration across different departments.
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A horizontal structure typically involves multiple layers of management to enhance coordination.
A horizontal structure typically involves multiple layers of management to enhance coordination.
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In a matrix structure, having both product leaders and functional leaders can lead to enhanced clarity.
In a matrix structure, having both product leaders and functional leaders can lead to enhanced clarity.
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Network organizations rely on a traditional top-down supervisory system.
Network organizations rely on a traditional top-down supervisory system.
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One of the disadvantages of a matrix structure is that decision making can be slower.
One of the disadvantages of a matrix structure is that decision making can be slower.
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The horizontal structure is effective in environments that are stable and predictable.
The horizontal structure is effective in environments that are stable and predictable.
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The primary goal of a horizontal structure is to achieve high levels of bureaucracy.
The primary goal of a horizontal structure is to achieve high levels of bureaucracy.
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In a network organization, employees typically work independently without any team collaboration.
In a network organization, employees typically work independently without any team collaboration.
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Centralized decision making is characteristic of high power cultures.
Centralized decision making is characteristic of high power cultures.
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A network organization is characterized by extensive independent operations with no need for collaboration.
A network organization is characterized by extensive independent operations with no need for collaboration.
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Informal structures in an organization develop parallel to formal structures through natural interactions.
Informal structures in an organization develop parallel to formal structures through natural interactions.
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Organizations facing high environmental uncertainty should adopt a centralized mechanistic structure.
Organizations facing high environmental uncertainty should adopt a centralized mechanistic structure.
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Collaborative teams and shared information are vital attributes of informal structures.
Collaborative teams and shared information are vital attributes of informal structures.
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Stable environments require a decentralized structure with numerous departments.
Stable environments require a decentralized structure with numerous departments.
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Moderate environmental uncertainty is best addressed through structured organizations with many departments and integration roles.
Moderate environmental uncertainty is best addressed through structured organizations with many departments and integration roles.
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Inorganic organizational structures tend to complicate communication and reduce innovation.
Inorganic organizational structures tend to complicate communication and reduce innovation.
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A major challenge in a matrix structure is potential confusion and conflict between the product leader and the ______ leader.
A major challenge in a matrix structure is potential confusion and conflict between the product leader and the ______ leader.
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In a horizontal structure, teams are often organized around core ______.
In a horizontal structure, teams are often organized around core ______.
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A network organization features small, independent multidisciplinary teams focused on achieving a common ______.
A network organization features small, independent multidisciplinary teams focused on achieving a common ______.
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One of the advantages of a matrix structure is better resource ______.
One of the advantages of a matrix structure is better resource ______.
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In horizontal structures, customer satisfaction is a primary ______.
In horizontal structures, customer satisfaction is a primary ______.
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In a matrix structure, decision-making can be ______ due to the involvement of multiple people.
In a matrix structure, decision-making can be ______ due to the involvement of multiple people.
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Horizontal corporations are characterized by having minimal layers of ______.
Horizontal corporations are characterized by having minimal layers of ______.
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A primary challenge in the matrix structure is addressing ______ priorities among different teams.
A primary challenge in the matrix structure is addressing ______ priorities among different teams.
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A ______ organizational structure is characterized by a top-down communication method and centralized decision-making.
A ______ organizational structure is characterized by a top-down communication method and centralized decision-making.
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In an ______ organizational structure, communication is more flexible and encourages collaboration across various departments.
In an ______ organizational structure, communication is more flexible and encourages collaboration across various departments.
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Mechanistic structures are characterized by ______ authority.
Mechanistic structures are characterized by ______ authority.
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The primary goal of a mechanistic organization is to ensure maximum ______ in any organization.
The primary goal of a mechanistic organization is to ensure maximum ______ in any organization.
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Examples of environments where mechanistic structures are common include ______, government agencies, and the healthcare sector.
Examples of environments where mechanistic structures are common include ______, government agencies, and the healthcare sector.
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In an organic structure, communication tends to be ______.
In an organic structure, communication tends to be ______.
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A major disadvantage of a functional structure is that integration and ______ can be challenging.
A major disadvantage of a functional structure is that integration and ______ can be challenging.
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An ______ structure promotes a welcoming environment that values the opinions of all employees.
An ______ structure promotes a welcoming environment that values the opinions of all employees.
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In a divisional structure, customer satisfaction is often improved due to a focus on ______.
In a divisional structure, customer satisfaction is often improved due to a focus on ______.
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In a mechanistic structure, everything must be done according to established ______ and procedures.
In a mechanistic structure, everything must be done according to established ______ and procedures.
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Matrix structures have a dual focus on both products and ______.
Matrix structures have a dual focus on both products and ______.
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An organization adopting a horizontal structure typically involves ______ layers of management to enhance coordination.
An organization adopting a horizontal structure typically involves ______ layers of management to enhance coordination.
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Organic structures typically feature a ______ span of control.
Organic structures typically feature a ______ span of control.
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Organic organizations are often seen as more adaptable to ______ compared to mechanistic structures.
Organic organizations are often seen as more adaptable to ______ compared to mechanistic structures.
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A key attribute of functional structures is that they are generally found in ______ organizations.
A key attribute of functional structures is that they are generally found in ______ organizations.
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Decentralized decision-making is a characteristic of ______ structures.
Decentralized decision-making is a characteristic of ______ structures.
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In a network organization, firms can ______ out functions they cannot afford to maintain.
In a network organization, firms can ______ out functions they cannot afford to maintain.
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The ______ structure evolves naturally and reflects the informal interactions within an organization.
The ______ structure evolves naturally and reflects the informal interactions within an organization.
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A ______ organizational structure is characterized by centralized decision-making and a rigid chain of command.
A ______ organizational structure is characterized by centralized decision-making and a rigid chain of command.
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In environments with high uncertainty, organizations are recommended to adopt a decentralized, ______ structure.
In environments with high uncertainty, organizations are recommended to adopt a decentralized, ______ structure.
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The ______ of an organization significantly impacts its structure, guiding decisions and processes.
The ______ of an organization significantly impacts its structure, guiding decisions and processes.
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In a network organization, ______ and distributors play crucial roles in connecting suppliers and consumers.
In a network organization, ______ and distributors play crucial roles in connecting suppliers and consumers.
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A ______ structure may be preferable in industries characterized by rapid changes and high complexity.
A ______ structure may be preferable in industries characterized by rapid changes and high complexity.
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Organizations with high power cultures typically exhibit a ______ decision-making process.
Organizations with high power cultures typically exhibit a ______ decision-making process.
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Study Notes
Organizational Structures
- There are two main types of organizational structures: mechanistic and organic.
- A mechanistic structure is vertical, with centralized decision-making, and strict hierarchy.
- An organic structure is horizontal, with decentralized decision-making, and more communication and collaboration.
Types of Organizational Structures
-
Functional Structure:
- Organizes departments based on their core functions, such as marketing, manufacturing, or accounting.
- Advantages: Focuses on developing functional expertise and commitment, facilitates centralized activities like payment processing and policy making.
- Disadvantages: Integration and coordination across departments can be challenging, leading to slow decision-making.
-
Divisional Structure:
- Organizes departments based on product lines or divisions.
- Advantages: Focuses on specific products, leading to improvements and customer satisfaction.
- Disadvantages: Duplication of effort and resources, lost economies of scale, and decreased opportunities for technical specialization.
-
Matrix Structure:
- Combines elements of functional and divisional structures, with employees reporting to both product and functional managers.
- Advantages: Encourages collaboration across areas, reduces costs, and utilizes resources better.
- Disadvantages: Can be confusing for team members, decision making can be slower, and inconsistencies across products may arise.
-
Horizontal Structure:
- Flat structure with minimal layers of management, organized around core processes and self-managing multidisciplinary teams.
- Attributes: Short product life and development cycles, customer satisfaction is critical, works well in fast-changing and uncertain environments
-
Network Organization:
- Structure composed of small, independent, multidisciplinary teams focused on achieving common objectives.
- Attributes: Emphasizes core functions and outsourcing, avoids high start-up costs, suitable for fast-paced, changing industries, and uncertain environments.
Informal Structures
- Refers to the naturally occurring formations that arise from people and teams working together, including informal communication patterns and leadership.
Influencing Factors
- Corporate Culture: Shared values and beliefs that shape the organization's behavior.
- Leadership: Leaders play a crucial role in establishing the organizational structure, influencing the flow of information and decision-making.
- Size of Organization: Larger organizations often require more structured organizational designs with formalized processes.
- Environment (Market): The external environment, whether stable or dynamic, affects the appropriate organizational structure.
- Technology: The level of technology sophistication can influence the structure and communication flow.
Environmental Characteristics and Recommended Designs
- Low Uncertainty, Stable Change: A formal, centralized, mechanistic structure with few departments is ideal.
- Moderate Uncertainty, Stable Change: A formal, centralized, mechanistic structure with many departments and integration roles is recommended.
- Moderate Uncertainty, Unstable Change: A decentralized, organic structure with participation and teamwork, few departments, and boundary-spanning roles is best.
- High Uncertainty, Unstable Change: A decentralized, organic structure with participation and teamwork, numerous departments, and boundary spanners is necessary.
- Simple Complexity: A simple structure suits this environment.
- ** Complex Complexity:** A complex structure thrives in this environment.
Organizational Design Considerations
- High-power cultures tend to have centralized decision-making.
- Organizational structure must align with company goals, strategies, and environment.
Organizational Structures
- Mechanistic structures are vertical and centralized, with a clear hierarchy. They prioritize efficiency and control, making them suitable for stable environments.
- Organic structures are horizontal and decentralized, fostering collaboration and adaptability. They excel in dynamic and unpredictable environments.
- Functional structures organize employees based on specialized functions like marketing, manufacturing, and accounting. They promote expertise development but struggle with coordination across functions.
- Divisional structures group employees around specific products or services, facilitating focus and responsiveness to market changes. However, duplication of effort can be a drawback.
- Matrix structures combine functional and product structures, aiming to benefit from both. They enable collaboration but can lead to confusion and conflict.
- Horizontal structures minimize management layers and emphasize self-managing, multidisciplinary teams. This structure excels in fast-paced environments with short product lifecycles.
- Network organizations utilize independent, multidisciplinary teams focused on specific goals. They offer flexibility and cost-effectiveness but require strong collaboration and communication.
- Informal structures emerge naturally within organizations and run parallel to the formal structure. They encompass informal leadership and communication patterns.
Factors Influencing Organizational Structure
- Corporate Culture: Shared values and beliefs influence organizational structure.
- Leadership: Leadership style and vision directly impact the structure.
- Strategy: The chosen business strategy determines the organizational structure.
- Size of Organization: Larger organizations often adopt more complex structures.
- Environment (Market): The stability or dynamism of the market impacts structure choice.
- Technology: The type and level of technology influence organizational structure.
Environmental Characteristics and Recommended Designs
- Low Uncertainty: Formal, centralized, mechanistic structures with few departments are suitable.
- Moderate Uncertainty: Formal, centralized, mechanistic structures with many departments and integration roles are recommended.
- High Uncertainty: Decentralized, organic structures with participation and teamwork are most effective.
- Simple Complexity: Structures can be less complex.
- Complex Complexity: More complex structures are required to manage the environment.
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Description
This quiz explores the key concepts of organizational structures, focusing on the differences between mechanistic and organic systems. Additionally, it delves into various types of structures such as functional and divisional, highlighting their advantages and disadvantages. Test your knowledge on how organizations are designed and function effectively.
