We suggest you remove Office for Mac 2011 prior to when installing the latest version to avoid confusion. Yes, you are able to install and run Office 2016 for Mac along with Office for Mac 2011. The Exchange feature in Outlook requires connectivity to Microsoft Exchange Server 2010 Service Pack 2 or later OR Office 365 for commercial.
The absence of Word, as well as other Office applications, has been a major drawback when purchasing a MacBook instead of a PC. The most renowned and used word processor available is Microsoft Word.