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?
-Mr. Johnson's company probably needs to change from a(n) _________structure to a _________structure.
A)mechanistic; organic
B)organic; matrix
C)organic; mechanistic
D)mechanistic; bureaucracy

Question

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?
-Mr. Johnson's company probably needs to change from a(n) _________structure to a  _________structure.
A)mechanistic; organic
B)organic; matrix
C)organic; mechanistic
D)mechanistic; bureaucracy

Quizplus · Accepted Answer

The company needs to shift from a mechanistic structure, characterized by its rigid hierarchy and formal communication, to an organic structure, which is more flexible and adaptable, to better respond to global competition and explore new markets.