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Which structural design does an innovation strategy call for?
AMechanistic, for efficiency and tight control
BMechanistic, for a longer chain of command
COrganic, because it narrows the span of control
DOrganic, for flexibility and fluid information flow
Answer & Solution
Correct answer: D. Organic, for flexibility and fluid information flow
1. A structure should enable a firm to achieve its goals, and setting goals is part of strategy, so structure depends on strategy.
2. A company with an innovation strategy needs flexibility and fluid movement of information.
3. An organic organization provides exactly that, so innovation points to the organic design.
4. Efficiency and tight control are what a mechanistic structure supplies, and they serve a cost-control strategy.
5. The organic form widens rather than narrows the span of control, so that option misstates it.
6. A long chain of command is a mechanistic feature and would slow the information flow innovation depends on.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.6 Organizational Design Considerations_
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