Contingency theorists suggest that we can best proceed by appointing 'the right people' to the job we have in mind, and by creating flexible authorit… - Gareth Morgan

To self-regulate, learning systems must be able to 1. Sense, monitor and scan significant aspects of their environment, 2. Relate this information to the operating norms that guide system behavior 3. Detect significant deviations from these norms, and 4. Initiate corrective action when discrepancies are detected. If these four conditions are satisfied, a continuous process of information exchange is created between a system and its environment, allowing the system to monitor changes and initiate appropriate responses. In this way, the system can operate in an intelligent, self-regulating manner.

Organizations are complex and paradoxical phenomena that can be understood in many different ways. Many of our taken-for-granted ideas about organizations are metaphorical, even though we may not recognize them as such. For example, we frequently talk about organizations as if they were machines designed to achieve predetermined goals and objectives, and which should operate smoothly and efficiently. And as a result of this kind of thinking, we often attempt to organize and manage them in a mechanistic way, forcing their human qualities into a background role. By using different metaphors to understand the complex and paradoxical character of organizational life, we are able to manage and design organizations in ways that we may not have thought possible before.

The metaphor suggests that different environments favor different species of organizations based on different methods of organizing and that congruence with the environment is the key to success.