Case Study

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Contingency concepts according to James D. Thompson Thompson thinks organizational structure must reflect the interdependences of the organization and its environment as well as its technology. He recognizes three types of interdependence stemming from technological requirements within organizations: Types of interdependence: | Coordinated by: | Extent of effort: | Pooled | Standardization | Least demanding | Sequential | Planning | Intermediate | Reciprocal | Mutual adjustment | Most demanding | Each has an appropriate method of coordination. It is the task of structure to facilitate the exercise of the appropriate coordinating processes. Under norms of rationality, organizations group positions to minimize coordination costs, first reciprocally interdependent positions then the sequentially interdependent ones, which are both in common groups which are localized and conditionally autonomous. Grouping positions homogeneously is done when reciprocal and sequential interdependence is absent, this facilitates standardization. The first groupings do not handle the interdependence entirely, organizations link the remaining groups into higher-order groups, thus introducing hierarchy. When interdependence is not contained by such departmental and divisional arrangements, organizations assign remaining problems of coordination to committees or to task-force or project teams. Contingency concepts according to Lawrence and Lorsch Lawrence & Lorsch believed that highly differentiated and integrated organization leads to effective performance of the system. The differentiation here is different from classical definition as the formal division. So they segmented organization into three subsystems: sales subsystem, production subsystem, research and development subsystem which indicate an organization as a whole task. Findings show that subsystems in any

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