Answer to Question 1
C
Answer to Question 2
James March has proposed that two principal types of organizational learning strategies can be pursued: exploration and exploitation.
Exploration: Exploration involves organizational members searching for and experimenting with new kinds or forms of organizational activities and procedures to increase effectiveness. Learning that involves exploration might involve finding new ways to manage the environmentsuch as experimenting with the use of strategic alliances and network organizationsor inventing new kinds of organizational structures for managing organizational resourcessuch as product team structures and cross-functional teams.
Exploitation: Exploitation involves organizational members learning ways to refine and improve existing organizational activities and procedures to increase effectiveness. Learning that involves exploitation might involve implementing a total quality management program to promote the continuous refinement of existing operating procedures, or developing an improved set of rules to perform specific kinds of functional activities more effectively.
Exploration is therefore a more radical learning strategy than exploitation, although both must be used together to increase organizational effectiveness.
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