Theories on Environmental and Structural Fit

THEORIES ON ENVIRONMENTAL AND STRUCTURAL FIT 4

Theorieson Environmental and Structural Fit

Theorieson Environmental and Structural Fit

Thetwo most important theories regarding environmental and structuralfit are the Structuralcontingency theory and the Configurational theory.The structural contingency theory asserts that the most effectivefeatures of an organization are those that fit the contingencyvariables. The theory is the most important because it recognizes thecontingency of the organizational environment and theunpredictability of the strategies that a firm can take to achievecertain results in an unpredictable environment (Andrewet al, 2013).Therefore, the theory holds that there is no single best way oforganizing the structure of an organization to give the bestperformance.

Theother theory is the configurational theory which holds that eachelement of the organizational structure can be understood and bymaking a reference to the whole configuration. The theory isimportant because it views the organization in totality, and does notalienate any factor of the organizational structures. It perceivesthe organization in a holistic manner and conceives the idea of theorganizational structure as composed of mutually supportive andinterdependent elements that define the whole configuration (Fink&amp Einat, 2011).The theory is also important because it breaks from the contingencytheory by despite sharing a functionalist viewpoint in relation tothe fitting of an organizational structure to the environment.

Thetwo theories can be applied to an organization by combining theelements of the approaches. This can be done by adoptingorganizational structures that respond to the contingent variables ofthe business environment while considering the organizationalenvironment. This will consider the various ways of achievingperformance of the organizational structure, while focusing on allthe elements of the company (Bellingkrodt&amp Wallenburg, 2013).Therefore, the structure will involve various aspects of the firm andthe contingent variables of the environment.

References

AndrewH.V., Martin, G., &amp Hinings, C. R. (2013). Returningto the Frontier of ContingencyTheoryof Organizational and Institutional Designs.Academyof Management Annals. 2013,Vol. 7 Issue 1, p393-440Bellingkrodt,S., &amp Wallenburg, C.M. (2013). TheRole of External Relationships for LSP Innovativeness: A ContingencyApproach.Journalof Business Logistics. Sep2013,Vol. 34 Issue 3, p209-221Fink,L., &amp Einat, S. (2011). TheEffect of Organizational Factors on the Business Value of IT:Universalistic, Contingency, and ConfigurationalPredictions.InformationSystems Management. Fall2011,Vol. 28 Issue 4, p304-320