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Contingency approach

KEY TERMS | PRODUCT | GEOGRAPHIC AREA | TEAM ORGANIZATION | DELEGATION PROCESS, AUTHORITY, AND ACCOUNTABILITY | TECHNIQUES OF DELEGATION | PARITY OF AUTHORITY AND RESPONSIBILITY | CENTRALIZATION VERSUS DECENTRALIZATION | KNOW THE BASICS |


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This approach indicates that the most appropriate organizational structure depends not only on the organizational objectives but also on the situation, which includes the environment, the technology employed, the rate and pace of change, the managerial style, the size of the organization, and other dynamic forces.

By the year 2000 and later, the period of change resulted in organizational change, with many of the old hierarchies being replaced with flat structures, cross-functional teams, and empowered and highly skilled employees mak­ing their own decisions, all made possible by developments in information technology and communications.

Communications within organizations will continue to evolve utilizing information technology-based office automation, as well as the latest tech­nology offered by the Internet and video conferencing. The increasing use of this technology will make where managers are based less important, and the emphasis in the management of human resources will be switched to measurement by performance and away from the traditional need to be in the office from 9 am to 5 pm each day Management information systems will enable managers and other staff to view high-level information in multiple dimensions for faster decision-making.[3]

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MAJOR TYPES OF ORGANIZATIONAL STRUCTURE| Exhibit 1
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