One of the common classifications based on organizations aims and functions is the one argued by Blau and Scott5. As to their argument, we can separate organizations into four basic types on a very simple level; Mutual benefit organization, Business concerns, Service organizations and Commonwealth Organizations.

Mass production technologies produce vast numbers of identical products using highly routinized and often mechanized procedures. These technologies involve breaking the total production process into many discrete steps that can be performed either by human hands or machines. Automobile, computer, and processed food manufacturing are examples for mass production.

Control refers to a process through which management is able to initiate and regulate activities such that their results fit in with the goals and expectations held by management.

Organization’s Outputs: The organization releases outputs to its environment;

• Finished goods

• Servies

• Dividends

• Salaries

• Value for stakeholders

It is needed to correct three of the above mentioned statements. Firstly, a typical organization often considers three levels of strategy: corporate level, business level and functional level. Secondly, corporate-level strategy is often made at the highest levels of the organization such as the board of directors, the CEO and executive management with inputs from other managers. And lastly, a retrenchment strategy is to reduce a firm’s level of activities. In this chapter, we discuss growth strategies at the corporate level. Correct answer is A. 

The following are five of the common approaches that managers can use to measure organizational effectiveness:

• A Goal approach is to look at the degree to which an organization achieves its goals or how well it is performing.
• An external resource approach focuses on the ability of organizations to acquire inputs from their external environment.
• An internal process approach focuses on the transformation process and to what extent organizational skills and resources are used to convert into finished products or services.
• A strategic constituency approach is concerned with how successfully an organization satisfies its strategic constituency or the key stakeholder groups from which it requires support to survive and thrive.
• The balanced scorecard approach is an integrated measure of organization effectiveness that includes not only traditional financial measurements and business processes but also includes concerns for customers, employees and organizational learning.

Choice (e) is the correct answer.

A,B,C and E are all structural dimensions of organizational design. However, profitability is not one of them. The correct answer is D.

Vertical structure, routine tasks, rigid culture, formal systems and competitive strategy are all mechanical system design's characteristics. However empowered roles have a crucial role in natural system designs.

ANALYZER STRATEGY • Maintain stability and flexibility • Efficient production processes for existing products with tight cost control • Innovationandcreativityfornew productswithloosercontrols • Moderate level of centralization

Organizational environment is defined as all elements existing outside the organizational boundaries; and an organizational domain is the chosen environmental field of action. Task environment includes the sectors, which have a direct impact on organization’s ability to achieve its goal. Environmental uncertainty is defined as a function of environmental complexity and speed of change. Environmental complexity is a measure of the number and the degree of dissimilarity of the factors surrounding an organization. Choice (d) is the correct answer.

Unit technologies produce one item or unit at a time or a few items all at once. Mass production technologies deliver high numbers of identical products using highly routinized and often mechanized procedures. The continuous processing is a series of non-discrete transformations occurring in a sequence. Mediating technologies serve parties by bringing them together in an exchange or other transaction. Intensive technologies necessitate coordinating the specialized abilities of two or more experts in the transformation of a usually unique input into a customized output.

This means it is quite simple to predict the future and to organize internal activities accordingly under such environmental conditions. Therefore, it is not so meaningful to adopt a structural design that can increase level of creativity and innovation for such organizations. 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

The contingency theory brings a new dimension to the relations of organizations with their environment. It regards the organization as a system and 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. Therefore, choice (b) is the correct answer.

Reward refers to allocating incentives for managers and employees to improve performance and meet unit goals. Therefore, the correct option is A.

So many authors have presented their ideas to define existing organizations of our lives. There are so many comprehensive definitions that emphasize different specifics of organizations. One of the most accepted, comprehensive and common definitions is the one made by C. I. Barnard, which argues that “organization is a system of consciously coordinated activities of two or more persons.” This very definition by Barnard is used commonly since it encompasses all organizations with different features. This definition increasingly emphasizes the coordination created among individuals. The common side of all organizations is to act in coordinated ways to reach their aims within a certain frame of aims. As two prestigious names in the field of organizational studies, Blau P.M. and Scott W.R. extend the scope of the definition above and utter these words: “The accomplishment of an objective requires collective effort, men set up an organization designed to coordinate the activities of many persons and to furnish incentives for others to join them for this purpose.” There are many other definitions by various other theorists. The definitions above are common ones, which make us prefer them to include in our text. The reason for this much variety about the definitions of organizations is related to the nature of the organizational structure. Organizations are, by their nature, social structures with a highly dynamic system and intense interaction with the surrounding, which leads to treating organizations with different approaches from different academic fields. Not just organizational theorists, but also theoreticians from sociology, economics, psychology, and politics elaborate on organizations to understand and explain them. Organizational theory field has also drawn a lot from other academic disciplines. Researchers that were influenced by different disciplines and trends within organization theory strived for understanding organizations with differenttheoretical backgrounds, which caused various schools of thoughts to emerge. As also understood from the information given the correct answer is “E”.

Some offices and business organizations of certified public accountants have great similarities because they must obey occupational standards imposed on them by the professional association. This is called Normative Isomorphism.

Organizations as Organisms: By this metaphor, organizations relations with
their surrounding is emphasized and their taking shape as a result of expectations and demands is expressed. And it is inspired by the general conceptual framework of systems and contingency theories.

Exclusive use of the goal approach to measure organizational effectiveness may be questionable. One single indicator cannot measure effectiveness as several goals should be taken into consideration simultaneously. Thus, the correct answer is A.

The machine bureaucracy is huge, typically mature, and is often oriented to mass production. The middle management area reflects the tall hierarchy for control. This form demostrates extensive formalization and specialization, with a primary goal of efficiency. This form is suitedto a simple, stable environment. Examples of machine bureaucracy are steel companies and large government organizations. 

Backward integration involves acquiring ownership or increasing control over its suppliers to make some of its own inputs.