Different subunits within an organization may confront different external demands. To cope with these various environments, organizations create spec… - William Richard Scott
" "Different subunits within an organization may confront different external demands. To cope with these various environments, organizations create specialized subunits with differing structural features. For example, some subunits may exhibit higher levels of formalization than others; some may be more centralized in decision making; some may be oriented to longer planning horizons. The more varied the types of environments confronted by an organization, the more differentiated its structure needs to be.
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About William Richard Scott
William Richard (Dick) Scott (born Dec. 18, 1932) is an American sociologist, and Emeritus Professor at Stanford University, specialised in institutional theory and organisation science. He is known for his research on the relation between organizations and their institutional environments.
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W. Richard Scott
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Paul Lawrence and Jay Lorsch (1967), who coined the label “contingency theory,” argue that different environments place differing requirements on organizations: specifically, environments characterized by uncertainty and rapid rates of change in market conditions or technologies present different challenges—both constraints and opportunities—to organizations than do placid and stable environments
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