Having social ties with the key decision makers and the other organizations can enable flow of resources into an organization. Famous French sociologist Pierre Bordieu and other network researchers define social capital as network relations of an actor that can provide benefits.

Performance generally means the level of work. Effective resource use, productivity, efficiency, profitability or the realization level of similar organizational aims reflect the performance level of a business. Performance is also the level of a work finished or outputs achieved according to certain goals. Organizational performance is the skill for reaching the organization’s aims using the scarce resources in effective and efficient ways and the consequence of an output or work after a certain period of time. Organizational efficiency means reaching and achieving organizational goals. Organizational effectiveness indicates that how an organization satisfies the demands of various groups. Effectiveness means an evaluation of the usefulness of an organization’s work and how sources are used during this process and also the level of achieving the result that the organization aims to reach. We may summarize these three concepts which are very similar to each other as follows: Efficiency is the criterion for the capability of doing things right during the valuecreation process and effectiveness is the measure of realizing the plans made beforehand, while productivity means producing an output with the least possible input.  As also understood from the information given the definitions “Organizational efficiency means reaching and achieving organizational goals.”, “Organizational effectiveness indicates that how an organization satisfies the demands of various groups.” and “Productivity means producing an output with the least possible input.” are correct. The correct answer is “D”. The definitions in the options IV and V are not correct. Efficiency is the criterion for the capability of doing things right during the valuecreation process, while effectiveness is the measure of realizing the plans made beforehand.

Task environment includes the sectors that have a direct impact on an organisation’s ability to achieve its goals. Thus, the correct answer is A.

High degree of standardization is one of the features of cost leadership strategy. 

Environmental complexity is a measure of the number and the degree of dissimilarity of the factors surrounding an organization. It simply refers to the number of interactions of organizations with many sectors or elements within those sectors.

James Thompson, who made contributions to the field, highlights that organizations are not completely closed structures. He divided organizations into three levels: institutional level, managerial level, and technical level. System approach treats organizations as open systems and assumes that it is impossible for a closed system to survive. Institutional level should be open because its task is to relate the organization to its broader context. However, technical level should be closed and organized rationally. Managerial level should act as a mediator between the other two levels according to Thompson. Technical system refers to the units, departments or parts in organizations where the main operations are carried on such as assembly line in a factory, software development units in an IT company and clinical units in a hospital -consultation rooms, operation theatres, radiology, and laboratories. Technical systems must be isolated from possible external effects to work properly. Therefore, closeness of the technical system is essential for efficiency in an organization. The given example represents the technical level of an organization. Therefore, choice (a) is the correct answer.

The network form combines legally separate companies along with a value chain into a loosely integrated whole. There are three types of a network form: The dynamic network includes independent companies along the value chain form temporary alliances from among a large pool of potential partners. The stable network consists of a large core company creates market-based linkages to a limited set of partners. The internal network is composed of commonly owned companies allocate resources along the value chain using prices established in the open market. Therefore, the correct option is C.

Organizations establish buffer units or departments to control uncertainty and to protect their technical cores from external effects. The units which have buffering roles are responsible for absorbing environmental uncertainty. These departments apply systematic procedures during the exchange of resources -supplies, raw materials, labor- between an organization and its environment. Departments such as human resource and procurement are the well-known examples of these buffering departments.

It is possible to state that principles of classical management are most fit with the organizations operating in a stable environment since achieving maximum efficiency is a prerequisite to survive. These mechanic structures are characterized by high levels of formalization- rules, procedures, guidelines, instructions and written communication-, routine tasks – standardization of production processes-, vertical design focus to increase control, rigid culture which favors accomplishments of predefined tasks and competitive behavior towards rivals. Whereas, it was observed that the electronic manufacturers in the same research preferred completely different organizational design. Learning and creativity become vital when organizations face with turbulent environments. In this case, old-fashioned ways of organizing business may restrict learning, creativity and innovation. Turbulent environment requires natural or organic system design according to Burns and Stalker. Organizational structure should enable learning and creativity. Applying written rules, guidelines and instructions to employees is not a good idea in this respect. Employees should feel themselves free and powerful to become innovative and creative. Horizontal structures, which aim at enabling information share among units and employees, have to be adopted to increase learning capacity of these organizations. Management has to be tolerant towards faults and mistakes of employees to encourage them to learn. It may not be sufficient only to make internal adjustments for innovation and creativity. Organizations need to interact with the other organizations in their environment to transfer knowledge and new ideas. This requires the development of good relations and search for some opportunities to have collaboration with the others. Therefore, competitive strategy is associated with stable environments, whereas horizontal structure with turbulent environments. Choice (c) involves non-matching members.

Long-linked technologies involve linear transformation processes in which inputs enter at one end of a long series of sequential steps from which products emerge at the other end

There are many advantages of the M-form. The M-form enables growing quickly; it provides better training for future executives; it offers enhanced responsiveness to the needs of customers; and it allows for accountability based on divisional profits. However, duplication and the challenge of coordinating across the different departments are the main disadvantages.

Organizations as Machines: This metaphor emphasizes the technical, hierarchical, rational, prolific, mechanical, and productive aspects of organizations. Organizations mostly defined by classical organizational approaches are defined by this metaphor.

The possible difficulty of cross-department coordination, slow decision making, and narrowing the experience and expertise of the employees are some disadvantages of the U-form.

Traditionally organizational environment is defined as all elements that exist outside the organizational boundaries and an organizational domain is the chosen environmental field of action

There are five general categories of organizational resources and capabilities which lead to competitive advantage. These are:

• Physical resources
• Human resources
• Financial resources
• Learning resources
• General resources

Choice A, B, and C are arguments of scientific management theory and D is argues by the bureaucratic theory. The contingency theory that regards the organization as a system argues that only one ever-successful management and organization style is not possible. The success of organizational structures will change depending on the conditions. This theory especially focuses on conditions, organization’s environment, technology, size, and variables. The correct answer is choice E.

A strategic alliance is any cooperative efforts of two or more organizations to achieve strategic objectives of developing, producing or selling products or services.

IKEA specializes in selling lower-price furnishing to customers who want or can afford to pay for mid- and lower-priced products. It follows a cost leadership business-level strategy and it is successful in its select domain and positions itself to use its resources and abilities to manage its environment. Choice (b) is the correct answer.

Although four of the options are among Miles and Snow’s strategies,‘‘Differentiation Strategy’’ belongs to Michael E. Porter. Thus, the correct answer is E.

A strategy determines an organization’s basic long-term goals and objectives; including courses of action and allocation of resources in order to reach those goals. Correct answer is C.