Question

List and discuss contingency variables that should be considered in determining an appropriate structure in organizational design

Answer 1

Answer:

What Contingency Variables Affect Structural Choice?

6.2 Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Top managers typically think long and hard about what structure will work best.

John Cogill/Associated Press

IF these are the contingency factors, THEN this is the most appropriate structure.

The “THEN”: Appropriate Organizational Structure

Exhibit 6–7

Mechanistic versus Organic Organizations

Combines traditional aspects of all six elements of organization structure

High specialization

Rigid departmentalization

Clear chain of command

Narrow spans of control leading to taller structure

Centralization

High formalization

Collaboration (both vertical and horizontal)

Adaptable duties

Few rules

Informal communication

Decentralized decision authority

Wider spans of control leading to flatter structures

Loose structure allows for rapid adjustment to change18

Go to the Assignments section of your MyLab to complete these discussion questions.

Talk About It 3: Why is (a) mechanistic structure more appropriate for an organization with routine technology and (b) organic structure more appropriate for an organization with nonroutine technology?

Talk About It 4: Does Woodward’s framework still apply to today’s organizations? Why or why not?

Exhibit 6–8

Woodward’s Findings on Technology and Structure

Considering there are numerous situations where rules may be too restrictive, many organizations have allowed employees some latitude, giving them sufficient autonomy to make those decisions that they feel are best under the circumstances. It doesn’t mean throwing out all organizational rules because there always will be rules that are important for employees to follow—and these rules should be explained so employees understand why it’s important to adhere to them. But for other rules, employees may be given some leeway.