Chapter 10

Question 1

What are the advantages for a big organizational size?

Answer 1

Access to resources for undertaking large and risky projects.
Beter able to spread fixed costs such as R&D.
more exerpience with innovation.
complementary activities.

Question 2

What are the disadvantages for big organizations.

Answer 2

less responsive and flexible.
only interested in innovations with clear and high turnover potential.
decreasing R&D efficiency and motivation of staff.
Assets and contracts with suppliers are source of inertia

Question 3

what are the key structural dimensions of a organization?

Answer 3

centralization, formalization and standardization.

Question 4

centralization/ decentralization

Answer 4

Centralization is the degree to which decision-making authority is kept at top levelsof the firm, while decentralization is the degree to which decision-making authority is
pushed down to lower levels of the firm.

Question 4

centralization/ decentralization

Answer 4

Centralization is the degree to which decision-making authority is kept at top levelsof the firm, while decentralization is the degree to which decision-making authority is
pushed down to lower levels of the firm.

Question 5

formalization

Answer 5

The formalization of the firm is the degree to which the firm utilizes rules, procedures, and written documentation to structure the behavior of individuals or groups
within the organization

Question 6

Standardization

Answer 6

Standardization is the degree to which activities in a firm are performed in a uniform manner.

Question 7

Mechanistic

Answer 7

An organization structure
characterized by
a high degree
of formalization
and standardization, causing
operations to be
almost automatic
or mechanical.

Question 8

Organic structure

Answer 8

An organization structure
characterized by
a low degree of
formalization
and standardization. Employees
may not have
well-defined job
responsibilities
and operations
may be characterized by a high degree of variation.

Question 9

Why is it that organic structures are thought to be better for innovation?

Answer 9

In the organic structure, employees are given far more latitude in their job responsibilities and operating procedures. Because much innovation
arises from experimentation and improvisation, organic structures are often thought to be better for innovation despite their possible detriment to efficiency.

Question 10

ambidextrous organization?

Answer 10

The ability of an organization to
behave almost
as two different
kinds of companies at once.
Different divisions of the firm
may have different structures and
control systems,
enabling them to
have different cultures and patterns
of operations.