1. What factors determine the balance between centralization and decentralization, and between standardization and mutual adjustment?
2. Under what conditions is an organization likely to prefer (a) a mechanistic structure, (b) an organic structure, or (c) elements of both?
Draw an organizational chart of the business school or college that you attend. Outline its major roles and functions. How differentiated is it? Do you think the distribution of authority and division of labor are appropriate?
1. According to transaction cost theory, what motivates organizations to form interorganizational linkages? Under what conditions would a company prefer a more formal linkage mechanism to a less formal one?
2. When does an organization need to use complex integrating mechanisms? Why?