Question

List and explain in detail the contingency variables that should be considered in determining an appropriate structure in organizational design. This writing assignment should be completed in the standard APA format

Answer 1

Answer:-

Strategy and structure:- the organization’s structure should be such that it supports the organizational goals.     As organizational strategy influences its goals, thus it is very logical to say that there must be a close relationship between the organizational structure and its strategy. In fact, the strategy should be the foundation of the structure. If there is a significant change in the organizational strategy, then it is important to modify the structure in order to accommodate new strategy.

Size and structure:- There is a lot of evidence that there is a close relationship between the size and the structure of the organization. The organization having larger size tend to have greater specialization, departmentalization, centralization and various rules and regulations in comparison to a small organization. But this relationship is not linear. In fact, the size affects the structure in a decreasing rate which means that as the organization grows, the size becomes less important.

Structure and Technology:- each organization utilizes at least some kind of technology to produce products. The degree of routines determines the process or methods which are used by the organization in order to produce the products. This indicates that greater the routinized process is, the more standardized and mechanistic structure will be. The organic structure will be possessed by thee organizations having nonroutine production process.

Environmental uncertainty and structure:- As the organizations' effectiveness is threatened by the uncertainty, attempts will be made to reduce it. This can be done by changing the structure. Greater the uncertainty, greater should be the flexibility in structure.

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