Strategy and structural adjustment to regain fit and performance: in defence of contingency theory

Article Abstract:

Comparative, contingency approaches to organization structure have been criticized as being inherently static. The present article argues that functionalist theories and quantitative methods can explain structural change. This is exemplified by a diachronic enquiry into strategy and structure. Several propositions about organizational dynamics relating diversification, reorganization and performance are supported. However, the notion of contingency adjustment to structure to attain match as a frequent alternative to structural adjustment to contingencies is not borne out. Neither of the two prevailing theories of structural change, 'contingency determinism' nor 'strategic choice', is completely adequate and a third formulation is advanced: that of 'structural adjustment to regain fit'. While structural-functional enquiry into organizations using comparative quantitative methods has yielded information about structural statics, the contribution to knowledge of dynamics seems more problematic. This article seeks to record that structural-functionalism does inform the analysis of organizational change and to show that quantitative contingency approaches can illuminate change if the theory used in the analysis is formalized properly. This involves the partial abandonment of both of the main prevailing theories of structural change: contingency determinism and strategic choice. In their place this article offers as a potentially more fruitful model the structural adaptation to regain fit formulation. Within this the role of performance is shown to be important. The advantage of this framework is demonstrated empirically by means of an examination of the relationship between strategy and structure. (Reprinted by permission of the publisher.)

Research, Usage, Business planning, Strategic planning (Business)

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Organization design and the life-cycles of products

Article Abstract:

Corporations with multiple product offerings generally have separate organizational divisions for each product. This theory is a logical extension of earlier theories relating product life cycle to maturity of organization and organization structure. Organizations can thus be identified as 'early' structures dedicated to the design and development of new products, and 'mature' structures that are more product-oriented. The model developed to relate product life cycles with organization structures is divided into four product mixes, 'all early', 'mostly early', 'mostly mature', and 'all mature', which are related to ideal structures.

Product life cycle

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The process organizational structure

Article Abstract:

Systems theory introduced one approach to studying organization structures; an innovative theory suggests that process organization structure can be used to identify organizational structures along dynamic, if overlapping, processes and purposes. A framework for the process organization structure is developed, which should be applicable to all organizations. The research concludes with possible uses for the model and framework developed.

Organizational research

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