Answer to Question 1
D
Answer to Question 2
The three basic organization designs are mechanistic, organic, and boundaryless. The mechanistic design has rigid hierarchical relationships, high formalization, top-down communication, centralized decision authority, narrowly defined specialized jobs, and an emphasis on individuals working independently. The organic design has both vertical and horizontal collaboration, low formalization, informal communication, decentralized decision authority, broadly defined flexible jobs, and an emphasis on teams. The boundaryless design has vertical and horizontal collaboration (that includes customer, suppliers, and competitors), low formalization, informal communication, decentralized decision authority, broadly defined flexible jobs, and an emphasis on teams that also may cross organization boundaries.