Organizations and Environment

Paper Summary:

Contingency theory is the term describing the relationship between the organization and the environment faced by the organization. The writer gives examples of ways in which the environment must provide a system that is coordinated and stable in order for an organization to function with efficiency.

From the Paper:

"Related to the stability of the environment is the issue of how similar or dissimilar the parts of the organization may be. Although all parts of the organization may be experiencing the same amount of stability from the environment in a mechanistic system, that is much less likely to be true in an organic system, with its constant change and resultant dynamic stress, impacting different areas at different times. The formal structure and process of the units or departments within an organization must be more diverse and flexible for an organization working within a changing, or dynamic, environment."

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