How contingency factors determine organization: Re-examinig their influence in building organizational structure

The paper examines basic theoretical principles of contingency theory influence in organizational design. It has been recognized that each organizational design represents a unique idea with organizational outcome being the result of a specific organizational environment and influences that shape the choice of organizational structure. Since organizational structure has important implications for successful goal achievement, resource allocation and defining key organizational relationship that eventually influence overall organizational performance, it is necessary to understand possible influences that affect its design and shape. Conducted research had a goal to examine relative importance of different internal and external contingencies affecting organizational structure. Results show how each organizational solution is indeed shaped by different factors, depending on organizational goals and strategy, technology used, size and human resources, as well as different external environment conditions. Also analysis of strategy structure fit indicates how organizations having structure suitable to their strategy can expect to have a better competitive position.