Explain the contribution of "Contingency Theory" in general and list in full the boundary conditions that define Contingency Theory while studying organizational structure.
Contribution
- To make us aware that there are many different ways to organize successfully.
› All organization theories have boundary conditions, each theory only applies to a subset of all organizations.
Boundary conditions
› In dynamic environments mechanistic forms of organizing are inappropriate
› Small organizations do not need formalization
› Non‐routine technologies and unstable environments undermine the effectiveness of mechanistic organizations - as under these conditions formal rules and procedures cannot cover all the possibilities and problems that arise.
› Large organizations that exist in stable environments and provide standardized services or products operate most efficiently when they use mechanistic forms
› As environments change, organizations need to change as well
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