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A firm operates in a simple, predictable environment. Which design serves it best?
AOrganic, so it can adapt to unexpected change
BA matrix, so every project has two managers
CMechanistic, for the efficiencies it creates
DA virtual network of independent partner firms
Answer & Solution
Correct answer: C. Mechanistic, for the efficiencies it creates
1. In complex, dynamic, and unstable environments companies need to organize for flexibility and agility.
2. For companies operating in stable environments, the demands for flexibility and agility are not so great because the environment is predictable.
3. In a simple, stable environment companies therefore benefit from the efficiencies created by a mechanistic structure.
4. The organic design earns its keep only where rapid and unexpected change has to be absorbed.
5. A matrix answers a project coordination problem rather than an environmental stability question.
6. A virtual network is a trend in structure, not the response called for by a predictable environment.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.6 Organizational Design Considerations_
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