COLLAB 2N03 Chapter Notes -Spackling Paste, Fender Wide Range, Shampoo

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Which is better? (cid:224) no one best way to organize: more mechanistic structures are called for when an organization"s environment is more stable and its technology is more routine, organic structures work better when the environment is uncertain, the technology is less routine, and innovation is important, many organizations have more than one structure. Tension stems from both requiring organizational resources, generated by exploitation, exploiting is a more certain activity but with diminishing returns, while exploring is a highly uncertain activity but has the potential to unlock fabulous opportunities for renewal: hard to accomplish, rare and difficult to imitate, providing a distinct source of competitive advantage, has been associated with superior innovation, better financial performance, and longer survival b/c it provides a dynamic capability for change, need to have synergy between exploitation and exploration while protecting the exploratory unit from creeping bureaucracy.

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