International Analysis of Organization Design
Key Elements of
Contingency Analysis
PURPOSE to effectively integrate findings from the Multiple Perspective Analyses into a Contingency Analysis that will allow you to evaluate your organization’s Strategic Stance
PRE-REQUISITES
· Completed analyses from mechanistic/bureaucratic, human relations, and open systems perspectives
· Contingency Analysis Chart
PROCESS
1. Link Multiple Perspective Analysis findings to Contingency Dimensions (for each dimension, explicitly state your conclusion, identify the rating you assign, and record your conclusion on the Contingency Chart):
a. External Environment :
Contingency dimension 1: Environmental Uncertainty
From Open Systems Perspective, use complexity and instability findings from Environmental Uncertainty Chart to determine conclusion re: environmental uncertainty .
b. Internal design :
Contingency dimension 2: Environmental Scanning
From Open Systems Perspective, use assessment of predominant type of scanning practiced to determine conclusion re: environmental scanning.
Contingency dimension 3: Task Technology
From Mechanistic/Bureaucratic Perspective, use task design finding regarding degree to which organization is mechanistic to determine conclusion re: task technology .
Contingency dimension 4: Motivation
4a: From Human Relations Perspective, use Maslow and Herzberg findings regarding employee needs to determine conclusion re: employees’ needs/expectations.
4b: From Human Relations Perspective, use Maslow and Herzberg findings regarding motivators/rewards to determine conclusion re: motivators provided by the organization .
Contingency dimension 5: Organization Structure
· From Mechanistic/Bureaucratic Perspective, use organization design finding regarding degree to which organization is bureaucratic to determine conclusion re: formal structure .
Contingency dimension 6: Management Style
· From Human Relations Perspective, use transactional/transformational leadership findings to derive conclusion re: management style.
2. Identify Fit & Misfit:
Describe position of those internal dimensions that fit and those that are misfit in relation to the uncertainty in the external environment.
3. Determine Strategic Stance:
Use Miles & Snow’s typology of organization strategies — defender/analyzer/prospector — to:
· identify what the organization’s strategic stance is from the alignment of the internal design dimensions.
· identify what the organization’s strategic stance should be from the position of the external environmental uncertainty dimension.