In contrast to the models discussed so far, several contingency systems of late have come into wider practice.
Contingency
Organization Design
In contrast to the models
discussed so far, several contingency systems of late have come into wider
practice. The emphasis in these systems is on flexibility. Accordingly, so many
flexible structures are adopted these days to meet the specific needs of the
organizations. This approach basically led to the development of a contingency
theory of organization. The approach is based on the exigencies of the
situation. William F. Glueck, offers the following guidelines for contingency
design:
-- When low cost and efficiency are the keys to
successful goal achievement, organizations should use functional depart
mentation;
-- When the
environment is complex, matrix structure is effective;
-- If the organization is large and operates in a stable environment,
it can afford a more formal or rigid structure;
-- The greater the intensity of competition, the greater will be the
degree of decentralization;
-- The
greater the volatility of the environment, the more decentralized and
flexible the organization has to be; and
-- Companies that adopt the organizational
structure appropriate to their strategy will be more effective than those that
use an inappropriate style.
Tags : Management Concepts & Organisational Behaviour - Organisation Structure And Design
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