Organizational Dynamic Congruence
April 6, 2010 2 Comments
Organization’s structure is shaped by the environment where the organization functions and its performance is determined by the congruence between the organization and its environment (Randolph & Dess, 1984). The organization will grow and compete when it is dynamically congruent with its environment. Large organization will have multiple products and markets which will result in exposing the organization to multiple environments, however, new and growing organizations need to decide which products and services to produce. These products will decide the environment where the organization will function (Randolph & Dess, 1984).
Randolph & Dess (1984) suggest analyzing technology importance to match the environment, technologies and structure to the company performance. Dynamic congruence can be tested by analyzing the relationship between objective and the subjective measures of the environment and its influence on the technologies, structures and performance. Fry & Slocum (1984) show three forms of congruence which should be assisted, and they are effect and functional. Effect congruence is the measure of individual and situational factors in explaining the organizations behavior, the more independent variables the better the effectiveness. The general congruence suggests that one or two independent variables may be enough to produce high organizational effectiveness (Schoemaker, 1993).
Fry, L., & Slocum, J. (1984). Technology, structure, and workgroup effectiveness: a test of a contingency model. Academy of Management Journal, 27(2), 221-246.
Randolph, W., & Dess, G. (1984). The congruence perspective of organization design: A conceptual model and multivariate research approach. Academy of Management Review, 9(1), 114-128.
Schoemaker, P. (1993). Strategic decisions in organizations: rational and behavioural views. Journal of Management Studies, 30(1), 107-129.