Organization Theory and Alignment of Organizations’ Structure to Their Environment
DOI:
https://doi.org/10.53819/81018102t30139Abstract
The purpose of this study was to explore how various schools of thought in organizational theory can assist organizations in highlighting the challenges they face and prescribing suitable structures to deal with those challenges. The research methodology used for this study was a literature review. The researcher reviewed the literature on organizational theory, with a focus on the various schools of thought that exist within this field. The researcher also reviewed the literature on the challenges facing organizations in the modern world. The findings of the study suggest that the various schools of thought in organizational theory can offer valuable insights into the challenges facing organizations and the means by which to deal with them. The researcher found that the following schools of thought are particularly relevant to the challenges facing organizations in the modern world: Contingency theory argues that the most effective organizational structure is contingent on the specific environment in which the organization operates. Resource-based view argues that organizations should structure themselves in a way that maximizes their use of their unique resources and capabilities. Institutional theory argues that organizations are influenced by the institutions in their environment, such as the legal system and the culture. The conclusion of the study is that organizations can benefit from considering the various schools of thought in organizational theory when designing their structures. By doing so, organizations can better align their structures with the challenges they face and the goals they seek to achieve. The researcher recommends that organizations use a contingency approach when designing their structures. This means that organizations should consider the specific environment in which they operate, as well as their unique resources and capabilities, when making decisions about their structure. Organizations should also be aware of the institutional factors that may influence their structure.
Keywords: Organization Theory, Alignment, Organizations Structure, Environment
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