The Effects of Different Organizational Environments Upon Decisions About Organizational Structure

Abstract

The article examines the effects of different organizational environments on decisions about organizational structure. Much of the organization theory literature concentrates on defining which organizational structures and management styles are most fit for different technologies and/or environmental contingencies. Managers may address increased environmental pressure by an increase in structure, possibly followed by a relaxation of controls once the danger has subsided. The reasoning is that turbulence causes uncertainty or stress which leads to attempts to reduce that uncertainty or stress by structuring the organizational setting.