modern organization theory 2modern organization theory 2modern organization theory 2modern organization theory 2modern organization theory 2modern organization theory 2Contingency approach 2) environment• Environmental conditions → organizational structure• Characteristics of environmental conditions → will affect the organizational structure.✓ Some of the studies on this subject:1. Burns and Stalker study:▪ At 20 industrial enterprises in 1961▪ They determined the environmental factor as “the rate of change in technology and the market”.▪ The rate of change in technology and market = emergence of new inventions andtechnological innovations▪ In other words, the effect of the rate of change in technology and the market on the organizational structure.they have researched.▪ Result = 1) The rate of change is low (environmental conditions are stagnant and balanced) → mechanical organizational structure is appropr2. Lawrence and Lorsh Study:He focused on the following three concepts:a) Differentiation:▪ In terms of purposes =Some units are for marketing purposes, while othersfor cost purposes.▪ In terms of time=Some units are long term, some units are short termterm.▪ In terms of interpersonal relations=to do business or to get alongfor the purpose of▪ Foreman of organizational structure=Unit predetermined first e andDoes it focus on methods?b) Coordination (Integration): Cooperation and solidarity among employeesIt means.c) Ambient uncertainty:▪ The rate of change in environmental conditions▪ The degree of certainty in obtaining information▪ Time taken to obtain feedback on the results of decisions. Result = Increasing uncertainty in the environment → Differentiation and3. Emery and Trist Study:▪ In this study, what kind of organizational structure will be appropriate in which environmental conditions.did not dwell on it. This study only conceptualizes environmental elements.it is a work. In other words, it allows us to better understand the concept of environment.▪ Emery and Trist said that there will be 4 types of relationships in the environment:➢ L11= Internal interdependence relations → Inter-unit relations within the organization➢ L12= giving from within the organization → output outside the organization, that is to the environment➢ L21=from outside the organization → giving input into the organization (from the environment) → (to the organization)➢ L22=Interorganizational relations outside the main organization▪ Emery and Trist divided the environments in which the L22 exists into 4: this environment type is also 2examined in terms of size:a) Strength of mutual relations: The change in one environmental factorthe degree to which it affects the environment.Example: The high number of competitors greatly affects the sales of a company.b) Rate of Change: rate of change in environmental factorsOutcome: If the strength of the interrelationships and → A turbulent environment (difficult to decide) the rate of change is HighIf the strength of interrelationships and → a stagnant messy environment (uncertainty )If the rate of change is low4. James Thompson Studies:Thompson studies:1) The organization has classified its sub-systems and divided them into 3:a) Technical (operational) sub-system: where the technology is actually used anddone part) Cb) Coordinative subsystem: It provides coordination between 2 levels.c) Institutional (strategic) subsystem: the level at which business strategies are determinedConclusion : Due to changes and variability in environmental factors, institutional subWhile the system is operating under uncertainty, the part that is least affected by these factors(operating under certainty) is a technical subsystem.2) Thompson examined the environment in terms of 2 dimensions:a) Variability: degree of change in the relevant environmental factorsb) Complexity: It refers to the less or more of the relevant environmental elements.Example: low competition (low complexity) and competitivein environments where the rate of change is low (low variability)While the organizational structure is appropriate; high complexity, high variabilityIn environments, organic organizational structure is appropriate.Conclusion: If variability  and complexity  → mechanical organizational structureIf variability is  and complexity is  → Organic organizational structure is appropriate.3) He mentioned the strategies that organizations can follow while establishing environmental relations:a) Intra-organizational strategiesb) Strategies for field selectionc) Inter-organizational strategies5. Robert Duncan Research:▪ emphasized 'decision making'.▪ He investigated the impact of environmental factors on decision making.▪ He classified the environment under 3 dimensions:a) simple or complex: More or less environmental factorsb) Static or dynamic. Environmental factors are highly variable or less variable.to bec) Perceived uncertainty: What environmental factors are or what their consequences are.It is not known what will happen or how much will affect the success of the decisions.is not known. Conclusion:o : Perceived uncertainty is low in simple and static environments.o Perceived uncertainty is high in complex and dynamic environments.o In environments with low perceived uncertainty, decision-makersbecomes rigid and uncertain.o In environments with high perceived uncertainty, decision-makersbecomes complex, differentiated, and uncertain.Source:• Hellriegel, D., Jackson, SE, Slocum, JW(2007). Management: ACopmetencyBased Approach . Ohio: Southwestern Publishing.• Koçel,T.(2015).Business Management. Istanbul:Beta• Daft, RL, Kendrick, M., Vershinina, N.(2010). management.