İşletme Yönetimi Deneme Sınavı Sorusu #1100684
I- Environmental uncertainty is low
II- Firm wishes to switch to customized products
III- Instead of mass production, company will use unit production.
Which ones of the above conditions would encourage the company to adopt an organic organizational structure?
Only I |
I and II |
I and III |
II and III |
I, II, and III |
A mechanistic designis more appropriate for a firm with stable or low uncertainty in its external environment.
An organization can use its skills and knowledge (core competencies) to produce unique or differentiated products or services following a differentiation strategy. In this case, it should develop new and innovative products and bring them to market quickly. This requires organizational flexibility and innovations with a high level of communication and coordination among important functions such as production, marketing and R&D. Therefore, firms should follow organic design.
Both the unit production and process production require a higher level of direct supervision and decentralized decision making, that is it needs to be responsive to customers. The overall structure is organic.
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