Organizational architecture varies from firm to firm. The three big external (exogenous) determinants of a firm's administrative structure are:
A) decision rights, rewards, and technology.
B) government regulation, technology and decision rights.
C) government regulation, technology and markets.
D) decision rights, rewards, evaluation systems.

Question

Quizplus · Accepted Answer

The three big external determinants of a firm's administrative structure are government regulation, technology, and markets. These external factors influence the decision-making process, organizational structure, and performance evaluation systems of a firm. For example, government regulation may require certain standards for production and may mandate specific reporting requirements, which can impact a firm's structure. Similarly, advances in technology can streamline certain processes within an organization, requiring a new division of labor or coordination mechanisms. Finally, changes in the market can impact a firm's strategy, requiring a different focus on certain products, services, or stakeholders.

Organizational Architecture Varies from Firm to Firm