How do the four contingency variables influence organizations' structure?

1760 Words May 15th, 2005 8 Pages
How do the four contingency variables influence organizations' structure?

During 1970s, the United States of America was suffering unprecedented social, economic and political instability, with the great impact posed on western society by the crisis of oil, and the changing environment all the industries were facing. Previous management theories, such as scientific management theory, science of behaviour management theory and so on, only focused on how to improve enterprises' internal organizational structure. Furthermore, what the vast majority of these theories pursued were models and principals of universal suitability and the best solution to the unstable environment. Unfortunately none of these theories worked. As a result, people no
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Size and the organizational structure

The size of the organization used to significantly affect the organizational structure. For example, a large organization with thousands of employees will tend to have more specialization, departmentalization, centralization and more rules than the small organizations (Galbraith, 1997). It means more specialised jobs, decreased span of control and the more formalised structure (Robbins, et al., 2003). However, the change of the organizational structure is not directly proportional to the increase in the size of the organization. For instance, if an organization, with a fairly mechanistic structure, that has already had 3000 employees, increases its number of employees by about 500, its mechanistic structure wouldn't change much, though it will become more mechanistic. As the number of employee increases, specialization will switch to a higher degree and more departments will be divided. This will decrease the span of control or increase the number of managers needed to be in charge of those additional employees. It follows that the organization