After the industrial civilization began, structures of production and consumption began changing, too. Production mechanisms shifted to fabrication methods in small size establishments. Achievement of production efficiency came as a result of cooperation, which Adam Smith wrote in detail in his famous book Wealth of Nations (1760). The correct answer is choice D

A focus business-level strategy would put all their efforts and resources to serve a narrow segment of a market well.

Business organizations are established with the aim of economic benefit. The fundamental problem of these organizations is operating efficiency and achievement of maximum gain at minimum cost for further survival and growth in competition with other organization. This type of organization has also a high failure rate.

A cost leadership strategy is adopted when a firm tries to gain market share by keeping costs low compared to its competitors. Thus, the correct answer is A.

Following the classical period, studies of the behavioral school’s current representatives are known as the micro-organization theory. The basic contribution of the behavioral school to the classical management theory is the emphasis on the informal aspects of organizations. While the classical management thought tackles the structural and physical design of organizations, the behavioral school focuses on human relations within organizations. The starting point of the behavioral school is the criticism that the classical school was not humanist and it regarded the human being as a machine, which makes it harder to increase productivity. Effectiveness and productivity, too,  are at stake in this period. However, the theorists mentioned try to explain that the human being has also a soul. So, the relations and situations within the organization are seen as variables that influence productivity. The most important studies within this field are Harwood and Hawthorne Experiments. Especially, Hawthorne concludes that productivity can only be increased by the emphasis on the emotional side of the human being and on managerial practices that make an employee feel important. In short, human behavior, human relations, motivation, managerial change, and development are the topics examined in this period, which maintained its importance until the 1960s. As also understood from the information given the correct answer is “C”. “The emphasis on the informal aspects of organizations” and “examining human behavior, human relations, motivation, managerial change, and development” are the basic contributions of the behavioral school to the classical management theory.  “Tackling the structural and physical design of organizations” is the contribution of the classical management thought. “taking the relationship of organizations with their environment into consideration” and “considering the organization as an open system” are the benefits of systems approach.

Only one of the arrangements above is not considered within structural arrangements to resolve coordination problems. Making permanent contracts with the clients is neither doable nor a functional strategy to eliminate coordinaton problems. thus, the correct answer is B. 

James Tompson who made contributions to the field highlights that organizations are not completely closed structures in his famous book Organizations in Action. He divided organizations into three levels: institutional level, managerial level, and technical level.

There are various strategies to manage dependency relations with the actors in the external environment:

a. Acquisition of suppliers

b. Developing long term contracts with the critical suppliers.

c. Interlocking directorates – to assign some members of board of directors to the      sup­plier firms’ boards.

d. Founding joint ventures with the critical firms in terms of resource flow.

e. Joining trade associations.

f. Lobbying.

Elton Mayo and his colleagues had started to search the behavioral aspects in organizations after they completed a series of experiments in Hawthorne Electric Company. They developed counseling interview techniques and other managerial tools that may help to reduce the burden on employees in workplace. Choice (b) is the correct answer.

Daft groups the dimensions of organization design into two basic categories. He sorts structural dimensions as formalization, specialization, the hierarchy of authority, centralization, professionalism and personnel ratios, while he labels contextual dimensions as size, technology, environment, goals and strategy, and culture. The correct answer is choice E.

Organisational form, as offered by Hannan and Freeman, refers to goals, formal structure, technology, normative order, and human resources. Thus, the correct answer is E.

A mission often states in general terms the firm’s purpose and philosophy. A mission is an organization’s reason for existence, its value and beliefs, and what it should be doing.

Specialized Resources: Functional resources are the highly skilled personnel from an organization’s various functions that must be special, unique or difficult to imitate. Another is organizational resources which are the skills that are specific to the organization such as excellent top management team and possession of valuable and scarce resources such as raw materials, land and capital assets.

Environmental complexity is a measure of the number and degree of dissimilarity among the factors surrounding an organization. Thus, the correct answer is E.

Raison d’etre of mutual benefit organizations is to increase their members and thus the benefit they have. Political parties, clubs, and professional
organizations are examples of mutual benefit organizations. Individuals tend to participate in these organizations just to make use of their own benefits to the organization. Members of these organizations begin shaping them since their
establishment. However, when these organizations reach a certain size and become active in their environments, the potential of members to influence them decreases. This kind of organizations is inclined to conflicts. When the needs of members are not satisfied fully and completely, possible and potential conflicts and problems are among the most encountered problems with this type of organizations.

Information Systems

• Business processes automation
• Abilities of managers to make faster and better decisions for high responsiveness to organizational environments

Organizations as Flux and Transformation: Organizations are complex, non-linear, self-organizing systems characterized by contradiction. Chaos and complexity theory explains this perspective.

Four of the options don’t have the right match though only Balanced Scorecard Approach has because it is introduced by Kaplan and Norton. Thus, the correct answer is A.

Low-moderate uncertainty environments have to be formal and centralized, but many departments should exist to manage environmental complexity. Integration among units and boundary spanning seem to be particularly important due to the environmental stability. It is not necessary to organize extensive planning activities in stable-complex environments.

An organization can pursue cooperative business strategies to gain competitive advantage within its industry by working with, rather than against, others. This can be done using strategic alliances. A strategic alliance is any cooperative efforts of two or more organizations to achieve strategic objectives of developing, producing or selling products or services