Question

Subject: Contingency Factors Influencing Organizational Design

Organizational design aids in aligning the overall structure of the company with its vision, mission and objectives. This helps in enhancing the overall effectiveness of the business processes and help in achieving the business goals. There are various contingency factors, which may have considerable impact on the overall organizational design:

Organizational strategy: Organizational strategy is developed with the objective of achieving the company’s vision and mission as well as business objectives. Usually organization design is directly dependent on the organization’s strategy. If there is a change in organizational strategy, the organizational design must be modified to suit or facilitate the new strategy.

Environment: If the environment is in alignment with the organization’s strategy, the organization design can be quite stable and effectively maintained. If the environment is not conducive to the organization’s strategy, then organizational design will be quite difficult to develop and maintain.

Size: Usually if the organization is small, its organizational design can be quite crisp and effective. If the organization is large, then it can be difficult to maintain a single organizational design to the overall company. Different units may require different organization design so as to enhance its effectiveness.

Age: A company has 4 lifecycle stages: birth, youth, mature and decline. Usually a company evolves with age and hence the organization design must also evolve to suit its lifecycle stage. In youth stage, the company is in its development stage. The organization design must be flexible enough to facilitate its growth objectives.

Technology: Technology, like organization’s age, keeps evolving with time. The technology gets refined with time. The organization design must evolve at the same rate to maintain the company’s compatibility with the rate of technological evolution.

Required: How do contingency factors—organizational strategy, environment, size, age, and technology—influence organizational design? Please provide examples with illustration all of the above factors and provide the links which you'll be using in your writing. Write at least 300 words.

Please don't copy from anywhere. Write in your own words and write appropriate words. Thank You!

Answer 1

As per the details of above we understand the overall meaning and details of the contingency factors. so that we need to understand the bellow details information of the same. And we need to understand how these factors influence the organization so far.

1. Organizational strategy : Organization strategy is like that where company will move towards that direction. How to develop the market presence is completely based upon the organizational strategy. It is the very much important thing here to understand the overall business policy. Like for example if we focus on e-commerce company , they have very huge no of brands. SO that they have to develop such a software where we can monitor movement of overall inventory and other operation. Hence this should be based upon a perfect strategy and logic. Hence we need to develop a certain logic where we can implement everything live. Here strategy of the following thing i important. Another example is , warehouse operation monitor. We need to understand that how to monitor warehouse operation like expenses ,costing, work measurement, employee work output analysis etc are part of strategy where warehouse will be monitored. Apart from that , marketing strategy like campaign , events, brand highlighting , social awareness development is also important here.

2. Environment :

Environment is very much important point here. It actually impacts the mindset of employee. Environment is basically two types like office environment and employee attitude related. Environment should be very calm and healthy. Due to this employee are very much affected in work.

3.Size: Size is the another very important part over here. Size of the company exactly affect the overall operation. On the basis of size employee will divided under work. Work pressure will be minimize.

4. Age: Sometimes age is the very important factor over here. Age is the main part of experience and skill count. Some point of time Experience is the very important part. Another part is age reduces the skill of an employee.

5. Technology: This thing is the very basic important part. Now all of us know that Technology makes the difference from others. It will influence the overall part. technology like SAP/ ERP etc are important thing for the overall service.