Question
NexaTech Solutions began as a highly centralized firm where every decision required approval from the top-tier executives. The company followed a strict chain of command, with clear departmental boundaries and a "one best way" approach to every process. However, as the software industry became more volatile and competitive, this rigid structure led to delays and missed opportunities. In response, the CEO transitioned the company into a decentralized model. They removed several layers of middle management and created cross-functional teams that operate like mini-startups within the company. These teams are given the autonomy to adapt their strategies based on the specific market conditions they face. The CEO now believes that the "perfect" structure for the company depends entirely on the external technological environment and the complexity of the tasks at hand. NexaTech’s initial structure, characterized by high centralization, a strict chain of command, and formal rules, is a classic example of which organization theory?
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