The main contingency factors that affect structural choice are:
- Strategy - As strategies move from single product to diversification, structure moves from organic to mechanistic.
- Size - Larger organizations require more mechanistic structures.
- Technology - More non-routine technologies favor organic structures.
- Environment - Stable environments match mechanistic structures while dynamic environments fit organic structures.
Compare and contrast traditional and contemporary organizational designs
- Traditional designs include simple, functional, and divisional structures. Contemporary designs include team-based, matrix/project structures, and boundaryless organizations like virtual and network structures.