Answer the following statements true (T) or false (F)

Question

1. Contingencies such as size, technology, and environment do not necessarily determine an
organization's structure.
2. Organizational strategy influences both the contingencies of structure and the structure itself.
3. If a company's strategy is to compete through innovation, a more organic structure is
preferred.
4. If a company chooses a low-cost strategy, an organic structure is preferred because it
maximizes production and service efficiency.
5. ''Structure follows strategy'' means that organizational designers should base their choice of structure on the implications of their strategic decisions.

Answer 1

1. TRUE
Although size, technology, and environment influence the optimal organizational structure,
these contingencies do not necessarily determine structure.
2. TRUE
Organizational structures don't evolve as a natural response to environmental conditions; they
result from conscious human decisions. Thus organizational strategy influences both the
contingencies of structure and the structure itself.
3. TRUE
If a company's strategy is to compete through innovation, a more organic structure would be
preferred because it is easier for employees to share knowledge and be creative.
4. FALSE
If a company chooses a low-cost strategy, a mechanistic structure is preferred because it
maximizes production and service efficiency.
5. TRUE
Organizational leaders decide how large to grow and which technologies to use. They take
steps to define and manipulate their environments, rather than let the organization's fate be entirely determined by external influences. Furthermore, organizational structures don't evolve
as a natural response to environmental conditions; they result from conscious human
decisions. Thus, organizational strategy influences both the contingencies of structure and the
structure itself.