DSpace at Khazar University

organization in different directions, leading to conflicting demands and priorities. If no
structural change takes place the resulting performance of the firm is likely to
deteriorate. Increasing diversity is best dealt with by allowing parts of the organization
to tailor their activities to match the particular requirements of the product/markets they
serve, leading ultimately to a multidivisional structure. One interim solution is the
matrix structure, which usually involves overlaying the existing functional
specializations with a product/market or project organization.
Combinations of these contingent variables lead to pressure to adopt particular
types of structure. Four different combinations of task complexity and environmental
dynamism are represented. Finns tackling simple tasks in stable environments are likely
to evolve structures that are centralized and use extensive work-process standardization.
As the environment becomes more dynamic, standardization becomes less viable, as the
firm needs to be much more responsive to unpredictable changes. Because of the basic
nature of the tasks, coordination can be effected through direction from the top.
Complex tasks being tackled in stable environments mean that it is worthwhile
investing time in developing specialist skills to cope with the complexities involved
(e.g. in surgery). Each specialist can work almost independently if the environment
remains stable and predictable. The anesthetist and the surgeon need not even speak to
each other in the operating theatre. However, increasing dynamism unpredictability
mean that new problems emerge, and new creative solutions are required. Now the
experts must collaborate in multi disciplinary teams that form and reform according to
changing t demands.
2-5-7. Structural responses to changes in strategy and environment
Changes in the environment (e.g. from stable to dynamic) can be regarded as
passive strategic decisions insofar as the firm's management chooses to continue to
operate in the changing environment. They could, conceivably, consider withdrawing
from increasingly hostile environments. However, changes in task complexity and
product market diversity are more clearly the stuff of strategic decisions.
If the strategy change involves a shift along just one of the three main
contingent variables it should be fairly clear what the required structural changes are
likely to be. Moreover, coherent structures can be achieved with the four combinations
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