Structural Contingency Factors And Organization Structure: An Empirical Synthesis

Abstract

This study examines factors that determine organizationstructures. The objective was to examine the extant empirical literature in order to identify the salient factors that influence organization structures. Several studies have been cited revealing that structural contingency framework has for a long while provided the determinants of organization structures. The assumption has always been that structural-contingency framework is deterministic on organization structures. Many of such studies are bivariate, testing the relationships between size, strategy, technology, environment and structure. But the structural contingency framework fails to explain the process by which decisions on structures are reached although it names the factors that have to be considered. This paper concludes that the structural contingency factors are not deterministic in the formation of organization structure. These factors are necessary but not sufficient condition for restructuring organizations. The process of structuring organizations is a political process through which those who have the power to direct firms play significant roles. In any case the factors do not choose but people do. This paper recommends that the designers of organization structures must pay attention to the political process that ultimately influences the organizational forms. The need for alignment with the respective contingency factors cannot be taken for granted. The bargaining powers of those who have the power to direct the organizations ought to be channeled towards the most optimal structural forms