What Are The Four Contingency Variables That An Organization’s Structure Depends On?
Organizational structures are important for how a business or organization is run. The structure of the organization is dependent on a few key contingency variables. These variables must be taken into account when determining the structure of an organization.
The four contingency variables that an organization’s structure depends on include:
- Technology: The technology used by an organization will have a big impact on its structure. For example, if the organization uses advanced technology, it may need to have more layers in its hierarchy in order to manage all the different processes.
- Size: The size of the organization will also influence its structure. A larger organization may have more layers and different departments in order to keep up with its size.
- Environment: The environment in which the organization exists may also affect its structure. Organizations that exist within a more competitive environment may need to be more structured in order to stay ahead of the competition.
- Goals and Strategy: The goals and strategy that the organization has will also have an effect on its structure. Organizations that have goals of fast growth may need to have a different structure in order to meet that goal.
These four contingency variables are important to consider when determining the structure of an organization. Knowing how each of these variables influences the structure can help to make sure the organization is set up in a way that will best support its goals and objectives.