Read the passage carefully and answer the question that follows. According to…
2020
Read the passage carefully and answer the question that follows.
According to Richard Beckhard, a transformation represents a vital organizational change. Transformation is characterized by certain features that clearly differentiate it from other types of change. First, it involves substantial and discontinuous change in the shape, structure and nature of the organization, rather than incremental adjustments and fine-tuning of the current situation. One example of a discontinuous change would be a firm changing from a product orientation to a market orientation. Another example would be the merger of two organizations. In both instances, the shape of the organization can be expected to change radically. An organization transforming from a production orientation to a customer orientation will need to decentralize drastically and delegate authority. In a merger, entirely new roles and working relationships will be created.
A second characteristic of transformation is that the need for change is caused by forces external to the organization rather than forces inside the organization. A typical example would be an organization changing from a functional to a divisional structure in response to market forces or industry pressures in the form of competitor actions or regulatory changes. Currently, globalization is one of the most powerful external forces for organizational transformation.
A third distinguishing feature of transformation is that the change is deep and pervasive, rather than shallow and contained. The change affects all parts of the organization and involves many levels. Decentralization, downsizing and the geographic relocation of functions and activities exemplify changes that transform structural relationships deeply and pervasively.
Finally, transformation requires significantly different, and even entirely new, sets of actions by the members of the organization, rather than more or less of existing behavior patterns. Examples include changes to the norms and core values of an organization brought about through acquisition, deregulation and privatization, or through drastic strategic repositioning such as shifting from a production-efficiency focus to a customer-service strategy.
Question: The pressure of market force can result in:
- A.
Distortion of role perceptions
- B.
Changing to a functional structure
- C.
Changing to a divisional structure
- D.
Deregulation of competitive factors
Show answer & explanation
Correct answer: C
The correct answer is option 3: Changing to a divisional structure.
In the second characteristic of transformation, the passage explains that the need for change often comes from external forces. It gives a typical example: an organization may change from a functional to a divisional structure in response to market forces or industry pressures such as competitor actions or regulatory changes.
Thus, the pressure of market force can result in changing to a divisional structure. The other options are not the direct result stated in the passage.