The more scarce, dynamic, and complex the environment, the more _______ an organizational structure should be; the more abundant, stable, and simple the environment, the more _______ an organizational structure should be.A.decentralized; organicB.mechanistic; organicC.organic; mechanisticD.centralized; mechanistic
Question
The more scarce, dynamic, and complex the environment, the more _______ an organizational structure should be; the more abundant, stable, and simple the environment, the more _______ an organizational structure should be.A.decentralized; organicB.mechanistic; organicC.organic; mechanisticD.centralized; mechanistic
Solution
The correct answer is C. Organic; Mechanistic.
Here's why:
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In a scarce, dynamic, and complex environment, an organization needs to be more flexible and adaptable to changes. This is best achieved through an organic structure, which is characterized by a flat structure, low levels of formalization, and decentralization of authority.
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On the other hand, in an abundant, stable, and simple environment, an organization can afford to have a more rigid and hierarchical structure. This is best achieved through a mechanistic structure, which is characterized by a high degree of formalization, centralization of authority, and a clear chain of command.
So, the more scarce, dynamic, and complex the environment, the more organic an organizational structure should be; the more abundant, stable, and simple the environment, the more mechanistic an organizational structure should be.
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