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?

• A)mechanistic organization
• B)organic organization
• C)matrix
• D)strategic organization

---

Definitions:

Service Feature

An element of a service that provides a specific benefit and is offered to meet the needs and expectations of customers.

Workout Plan

A scheduled routine of exercises designed to achieve specific fitness goals.

Reader Benefit

The advantage or positive outcome that a reader gains from consuming written material, making the communication relevant to their needs or interests.

Subjunctive Verbs

Refers to a verb mood used to express various states of unreality such as wish, emotion, possibility, judgement, opinion, necessity, or action that has not yet occurred.