The purpose of this exercise is to choose an organization and to diagnose it in terms of the concepts we covered in the chapter. Doing such a diagnosis should enable you to see better how the degree of “fit” among organizational structure, environment, strategy, and technology influences the effectiveness of the organization.

This exercise is suitable for an individual, a group project completed outside the class, or a class discussion guided by the instructor. In the case of the group project, each group might choose and contact a local organization for information. Alternatively, library resources might be consulted to diagnose a prominent national or international organization. Your instructor might suggest one or more organizations for diagnosis.

1. Discuss in detail the external environment of the chosen organization.

a. How has the general economy affected this organization recently? Is the organization especially sensitive to swings in the economy?

b. Who are the organization’s key customers? What demands do they make on the organization?

c. Who are the organization’s key suppliers? What impact do they have on the organization?

d. Who are the organization’s important competitors? What threats or opportunities do they pose for the organization?

e. What general social and political factors (e.g., the law, social trends, and environmental concerns) affect the organization in critical ways?

2. Drawing on your answers to question 1, discuss both the degree of environmental uncertainty and the nature of resource dependence the organization faces. Be sure to locate the firm or institution in the appropriate cell of Exhibit 15.3 and defend your answer.

3. What broad strategies (excluding structure) has the organization chosen to cope with its environment?

4. Describe in as much detail as possible the structure of the organization, and explain how this structure represents a strategic response to the demands of the environment. Is this the proper structure for the environment and the broad strategies that you described in response to the earlier questions?

a. How big is the organization?

b. What form of departmentation is used?

c. How big are the spans of control?

d. How tall is the organization?

e. How much formalization is apparent?

f. To what extent is the organization centralized?
g. How complex is the organization?

h. Where does the organization fall on a continuum from mechanistic to organic?

5. Describe the organization’s core technology in terms of routineness and interdependence. Is its structure appropriate for its technology?

6. What impact has advanced information technology had on the organization?