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Free IIA-CIA-PART4 Exam Braindumps (page: 52)

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A large company uses assembly line techniques to manufacture a single product. Its choice of relatively mechanistic organizational design was more likely based on its:

  1. Need for rapid response to environmental change.
  2. Primary concern for operational efficiency.
  3. Low fixed technology requirements.
  4. Project management emphasis.

Answer(s): B

Explanation:

Mechanistic organizations have vertical structures with duties and authority clearly defined by position in the hierarchy, a stringent set of formal controls, and a centralized staff. Such organizations tend to emphasize efficiency and operate in a stable environment withwell- establishedtechnology. Large firms in basic industries autos, utilities) often adopt this structure.



When an organization depends to a great extent on its environment, which of the following statements best characterizes the relationship among an organization's environment, the level of uncertainty it faces, and its structure? The more dynamic and complex the environment, the

  1. More uncertainty the organization will face and the more organic the structure should be.
  2. More uncertainty the organization will face and the more mechanistic the structure should be.
  3. Less uncertainty the organization will face and the more autocratic the structure should be.
  4. Less uncertainty the organization will face and the more organic the structure should be.

Answer(s): A

Explanation:

A dynamic and complex organizational environment faces constant change, so the level of uncertainty increases. The more uncertainty an organization faces, the more organic the structure should be. Organic organizations tend to be flexible and adaptive to change.



The structure of an organization generally follows its overall strategy. At one end are loosely structured, organic organizations. At the other end are highly centralized, tightly controlled, mechanistic organizations. Consider the overall strategy of a company that is a pioneer in the combination of laser and robotic technologies. The company's scientists and engineers hold many patents. They are continually looking for ways to improve their products as well as to introduce new ones. Identify the most appropriate structural option for this organization.

  1. Mechanistic.
  2. Imitative.
  3. Organic.
  4. Bureaucratic.

Answer(s): C

Explanation:

Organizational structure depends on the company's overall strategy. This organization has adopted an innovation strategy. It introduces major new products or services. The structure that provides the flexibility required for major innovation is organic, a form of organization characterized by a loose structure, low division of labor, low formalization, and decentralization.



With the shift in some countries' economies toward service industries, a new form of organization has developed. This organization structure is referred to as the professional bureaucracy. While this structure resembles the machine bureaucracy which relies on standardized work processes) in several respects, it is different in one key aspect. This significant difference is that in a professional bureaucracy:

  1. Senior management has had to give up a substantial amount of control.
  2. Tasks are accomplished with a high degree of efficiency.
  3. There is strict adherence to rules.
  4. There is a tendency for subunit conflicts to develop.

Answer(s): A

Explanation:

A professional bureaucracy e.g., a university or library) is a complex and formal but decentralized organization in which highly trained specialists have great autonomy. The jobs performed by these professionals require years of education and training. By their nature, such jobs can be performed effectively only if the employees are afforded substantial autonomy.






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