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Application of Organizational Structure

question 137

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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?
-What qualifies the company to be a mechanistic structure?

Definitions:

Individualistic Cultures

Cultures that emphasize personal achievements and individual rights over collective goals and group identity.

Cooperate

This action involves working together with others towards a common goal or objective, typically requiring communication and coordination.

Personality Trait

Enduring characteristics or dispositions that influence an individual's behavior across different situations.

Conscientiousness

A personality trait characterized by meticulousness, responsibility, and a structured approach to tasks, often associated with high levels of success and achievement in various domains.