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2006 | OriginalPaper | Buchkapitel
The Contingency Theory of Organizational Design: Challenges and Opportunities
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Contingency theory presently provides a major framework for organizational design. There are, however, several major challenges to it. Contingency theory is said to be static. However, the SARFIT formulation of structural adaptation, with the Cartesian approach to fit, provides a theory of organizational change. Moreover, difficulties become opportunities for theory development, in the new concepts of quasi-fit and hetero-performance. The contingency theory of organizational structure is said to be obsolete because of new organizational forms, but this lacks credibility. A rival theory of organizational structure is institutional theory, however it is problematic. Challenges and opportunities in methodology are also discussed.