Highlights
Assessment overview
Organisation design is not (and cannot be) based on simplistic principles that can be applied in all situations. Differences and changes in the organisation’s operating environment require different approaches to organisation design. For example, division of labour is valuable and widely used, but jobs can become too specialised. Centralized decision-making may work well in some situations, but in other circumstances other structural designs are more effective. This is the premise of contingency theory (sometimes called situational theory), which explains how planned dimensions (or designed aspects) of an organisation interact with contingency factors (also called contextual dimensions) in today’s complex and turbulent environments.
The purpose of this assessment task is for you to demonstrate your understanding of some key aspects of organisational design and how organisations can adjust those in response to shifting stakeholder agendas.
Assessment task:
Using the framework of “Interacting Contextual and Structural Dimensions of Organization Design” (Daft et al., 2017, pp. 24-26), discuss the following question:
What does contingency mean? And what are the implications of contingency theories for managers?
In your analysis, focus on two structural dimensions and two contextual dimensions, and discuss how changes on those affect relevant stakeholders within and outside of an organisation.
Tipps for analysis
In addressing this assessment task, you may wish to consider the following points:
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