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Application of Organizational Structure

question 5

Multiple Choice

Application of Organizational Structure
Jim Johnson is the CEO of a major manufacturer of farming equipment. His company has been in business for the last 100 years and has been very profitable. The company is very formal and tall with formalized communication channels and rigid hierarchical relationships. Mr. Johnson makes all major decisions. This has worked very well until lately. It has begun to have some major global competition. Companies overseas are bringing new products into the United States at a lower price.
Furthermore, just yesterday, the new vice- president had mentioned that he felt that there was a major market overseas for the company's products. As its strategy was beginning to change, Mr. Johnson also realized its structure too would need to change, but to what? The company was large and, prior to these changes, the technology utilized, while extensive, had been very routine. What is he to do?
-The large size of the company and the use of routine technology are indicators that which type of structure would be most effective?

Identify appropriate research techniques for acquiring in-depth feedback on new products.

Compare and contrast focus groups and interviews as qualitative research methods.

Understand the differences and effectiveness of various virtual communication tools in organizations.

Identify and describe the functions of specific digital collaboration tools and platforms.

Definitions:

Rational Model

A decision-making approach based on logical and systematic analysis of information and alternatives to achieve the most reasonable outcome.

Optimize

The act of making something as effective, perfect, or useful as possible, often involving the allocation of resources in the most efficient way.

Satisfice

Satisfice is a decision-making strategy that involves choosing an option that meets the minimum requirements necessary for satisfaction, rather than optimizing for the best possible outcome.

Escalation of Commitment

A phenomenon where people increase their investment in a decision despite new evidence suggesting it may be wrong, often due to cognitive biases or emotional attachment.