Side 1

The most important contingencies in organisational design have changed over time.

Previously, the most important contingencies were size, strategy and environment. With

the arrival of more advanced information and communication technologies, some say

that technology is now the most important contingency. What do you think is the most

important contingency in organisational design and why?

Slide 2

Organizational design is a step-by - step approach that recognizes inefficient facets of

management, operations, frameworks and systems, synchronises them to suit existing

organisational outcomes / goals, and then creates strategies to incorporate the new

modifications. The method works on developing both the technological side of the

organisation and the human side.

The example may include:

1. Excellent customer service

2. Reduced operating costs

3. A culture of engaged and committed employees

4. Increased profitability

5. Improved cycle time and efficiency

Factors that regulate the impact of organisational features on organisational effectiveness are

organisational contingencies. Depending on the degree of the contingency element, whether a

certain type of organisational trait will contribute to high results.

Slide 3
Organizational structures can differ in a variety of ways. This can be seen in the strategy they

use, the size of the organization, the technology employed, and the environment of the

organization (Šiška, 2016).

This study source was downloaded by 100000860373474 from CourseHero.com on 01-21-2023 10:53:36 GMT -06:00

https://www.coursehero.com/file/86838055/ABC1024105928script-docx/
 Slide 4
Organizations are built to achieve goals that have been set up. This is accomplished through

the implementation of strategies. These strategies are formulated based on the company’s

mission and objectives. Therefore, as any strategies change, so does the structure in order to

accommodate for the changes.

Slide 5
Organizational strategies can be a variety of styles. Two examples include the tall model and

the matrix model. The tall model represents the more traditional model of leadership. This is

what has been typically used in the past and is based on a hierarchy, where power belongs to

a person of authority. This person is then the one who is responsible for assigning duties or

responsibilities. This has a direct correlation to the structure of the organization.

Slide 6
The organizational size is determined by the number of employees an organization has

employed. Larger organizations versus smaller organizations function differently. Some of

the factors affected are the division of labor, rules and regulations, performance appraisals,

and budgeting procedures. Labor is divided up differently when there are more employees to

share the job duties than when there are less. The rules that are established may be different,

as oftentimes when trying to regulate a large group, rules are more stringent, as any small

variation has more of an effect on the whole. Time allocated for performance appraisals also

varies, as when there are an increased number of appraisals to be completed, the time

allocated to complete them must be increased. Further, there may be different guidelines with

the timing of them (completing them all at once or spacing them out throughout the year), as

well as the grading system behind them. Further, budgeting procedures vary, where

companies may be more lax when requests are proposed in a smaller business, as the

company does not receive as many requests; however, when it is a large company, there may

be more red tape to go through in order to get monetary items approved, as there inherently

This study source was downloaded by 100000860373474 from CourseHero.com on 01-21-2023 10:53:36 GMT -06:00

https://www.coursehero.com/file/86838055/ABC1024105928script-docx/
 are many more people making requests, and these will then need to be evaluated before

becoming approved or not.

Slide 7
Some organizations are large and some are small. An organization with a large amount of

employees inherently tends to have a more top down approach. Further, it tends to have

more processes and routines that are spelled out. In contrast, a smaller organization tends to

disperse leadership. Because of its small size, it tends to have fewer resources to pull from

which can be constraining. This affects the structure of the organization as well.

Slide 8
Technology determines the production system of an organization. Technology is everything

that converts inputs into outputs. It is what is used to manufacture the company’s products.

Slide 9
In an organization, technology can include the knowledge, machinery, work procedures, and

the materials which all converts inputs into outputs. Depending on which of these

technologies are utilized, the company must develop a structure to accommodate these

(Gadomski, 2017).

Slide 10
Further, an organization’s environment further affects the organization. Important to the

environment is its stability vs predictability. In an unstable environment, the organization

must be one that is capable of adapting and must be able to coordinate things among the

departments

Slide 11
Some organizational environments are more stable and others more dynamic. In dynamic

environments, there is increased complexity, which requires close cooperation amongst

different people and different levels for the organization to run smoothly

Slide 12
Top executives evaluate the organisation's final objective and assess the path it will take to

achieve it. It is this intent and purpose that determines how the business is organised and

This study source was downloaded by 100000860373474 from CourseHero.com on 01-21-2023 10:53:36 GMT -06:00

https://www.coursehero.com/file/86838055/ABC1024105928script-docx/
 operated. Indeed, top management's primary duty is to decide the priorities, plan, and

architecture of an organisation, while adapting the organisation to an evolving climate

(Alberset al., 2016).

Slide 13
Design should promote the strategic approach of the firm. For example , the design should

concentrate on efficacy if the company chooses the low-cost leadership or defender approach,

while if the organisation uses the distinction or prospector approach, the design calls for a

practicing organisational framework with clear horizontal structures of communication to

improve cooperation and teamwork.

The primary role of strategy is to decide the priorities, policy, and architecture of

an organization, while adapting the organization to an evolving climate.

The business will then decide its goal, priorities and strategies. The way priorities and plans

are followed is reflected by organisational design. This is the role of organisational

philosophy.

Evaluating choice of strategies and policy impacts organisational design.

New strategies and methods are mostly chosen based on environmental needs, and so top

management tries to reinvent the enterprise to meet those aims.

Quality metrics philtre directly into the organisational climate, ensuring that the organisation

's previous performance is measured by senior leadership in setting new strategies and plans

for the future.

Slide 14
Designate the targets sought by the organisation's actual operational practises and describe

what the organisation is currently attempting to do.

Describe individual observable effects which are mostly concerned with the short term.

Usually, the primary activities that an entity must undertake are important.

This study source was downloaded by 100000860373474 from CourseHero.com on 01-21-2023 10:53:36 GMT -06:00

https://www.coursehero.com/file/86838055/ABC1024105928script-docx/
 Clear strategies for each primary role include guidance within divisions for day-to-day

decisions and activities.

Slide 15
From the above assessment it can be concluded that all four contingencies such as size,

strategy, technology and environment plays a significant role in creating organizational

design. Although among these four, “strategy” is among the most important contingencies.

Reason being, it helps in maintaining organizational design, formulates structures, meets

environmental needs and promotes high efficacy of the organization.

This study source was downloaded by 100000860373474 from CourseHero.com on 01-21-2023 10:53:36 GMT -06:00

https://www.coursehero.com/file/86838055/ABC1024105928script-docx/
 References

Albers, S., Wohlgezogen, F., & Zajac, E. J. (2016). Strategic alliance structures: An

organization design perspective. Journal of Management, 42(3), 582-614.

Aubry, M., & Lavoie-Tremblay, M. (2018). Rethinking organizational design for managing

multiple projects. International Journal of Project Management, 36(1), 12-26.

Burton, R. M., Obel, B., & Håkonsson, D. D. (2020). Organizational design. Cambridge

University Press.

Ershadi, M. J., & Dehdazzi, R. E. (2019). Investigating the role of strategic thinking in

establishing organizational excellence model. The TQM Journal, 66(1).

Fjeldstad, Ø. D., & Snow, C. C. (2018). Business models and organization design. Long

Range Planning, 51(1), 32-39.

Gadomski, M. K. (2017). Technology and organization design of the office building

construction works with the profitability analysis of the work acceleration (Doctoral

dissertation, Instytut Inżynierii Budowlanej). Retrieved from:

http://repo.pw.edu.pl/info/bachelor/WUTa9186b4a2f1149e1bff94a87bbe5e774/

Hossain, S., Hasan, M. H., & Saleh, F. (2018). Factors Affecting Organizational Design: A

Study on the Selected Dimensions in the Bangladeshi Context. American Journal of

Management, 18(4).

Johnson McPhail, C. (2016). From tall to matrix redefining organizational structures.

Change, 55-62. Retrieved from: https://libraryresources.columbiasouthern.edu/login?

url=http://searc

Magalhães, R. (2018). Human-centred organization design. The Design Journal, 21(2), 227-

246.

This study source was downloaded by 100000860373474 from CourseHero.com on 01-21-2023 10:53:36 GMT -06:00

https://www.coursehero.com/file/86838055/ABC1024105928script-docx/
 Marcus, A. A., & Fremeth, A. R. (2017). Strategic direction and management. Business

Management and Environmental Stewardship: Environmental Thinking as a Prelude

to Management Action, 38-55.

Singh, A., Klarner, P., & Hess, T. (2020). How do chief digital officers pursue digital

transformation activities? The role of organization design parameters. Long Range

Planning, 53(3), 101890.

Šiška, L. (2016). The contingency factors affecting management accounting in Czech

companies. Acta Universitatis Agriculturae et Silviculturae Mendelianae

Brunensis, 64(4), 1383-1392.

This study source was downloaded by 100000860373474 from CourseHero.com on 01-21-2023 10:53:36 GMT -06:00

https://www.coursehero.com/file/86838055/ABC1024105928script-docx/
Powered by TCPDF (www.tcpdf.org)