According to the study conducted by Lawrence and Lorsch, an organization functioning in a highly unstable environment was most effective when it ________.
A) used rules and SOPs extensively to coordinate tasks
B) concentrated decision-making authority at the top-management level
C) incorporated high levels of organizational integration
D) relied more on mutual adjustment between subunits

Question

Quizplus · Accepted Answer

According to the study conducted by Lawrence and Lorsch, an organization functioning in a highly unstable environment was most effective when it relied more on mutual adjustment between subunits. In such environments, frequent changes make it difficult to anticipate and regulate all activities through rules and procedures or centralized decision-making. Instead, subunits must respond and coordinate quickly and flexibly through mutual adjustment, communication, and cooperation. This approach facilitates ongoing adaptation to changing circumstances and enables the organization to be more effective in unpredictable environments.

According to the Study Conducted by Lawrence and Lorsch, an Organization