Organizational Systems Theory Essay Example | Topics and Well Written Essays - 1500 words

Organizational Systems Theory - Essay Example If environment is Placid, Predictable, Homogeneous, Stable and Resource Munificent then structural form is Mechanistic, Bureaucratic, Centralized and Clear Goals. But if environment is Turbulent, Uncertain, Complex, Unstable and Resource Scarce then structural form is Organic, Informal, Networked; Ambiguous Goals. Since organizations differ in the type of tasks they perform and environments they face, the appropriate organizational structure in each case is a function of four factors which are Organization’s size, technology, environment and strategy. The resulting structures can be formal, differentiated, vertical, horizontal, central and complex. [4] In the book Handbook of Media Management And Economics by Alan B. Albarran, Sylvia M. Chan-Olmsted, Michael O. Wirth, it is explained that the primary approach in organizational studies to the study of issues of organizational structure has been Structural Contingency theory. This theory describes the relationship between the organizational structures and performance outcomes. Grounded in assumptions of economic rationality this theory argues that organizations will adopt structures that maximize efficiency and optimize financial performance according to the specific contingencies that exists within the organizations’ marketing environments. Consequently there is no single organizational structure that will be equally effective for all companies. According to them Structural Contingency theory first emerged in organizational studies during the 1950s and generated a great deal of attention. This book states that under this theory, organizational structures are considered to include authority, reporting, decision and communication relationships and organizational rules, among other elements. The primary contingency factors that influence organizational structures include organizational scale and task uncertainty. Small organizations and those facing low levels of