The Contingency Theory - Essay Example

Questions
1. The Contingency Theory may be applied in the analysis of the complex interactions occurring among the different dimensions of any particular phenomenon within an organization (Simon 1976).

Weick’s organizational model views the entire process of organizing as a social process, where the normal order of working is periodically interrupted by shocks, where individuals are forced to rethink the traditional way of doing things. ( Miller, 2005:84). As a result, there is a need for a constant reappraisal of the need for sense-making of a situation where an organizational rupture of sorts takes place and serious or drastic measures must be taken. This model may be relevant to an organization during a time of acute crisis, however, its relevance may be limited in everyday situations.

The Open Systems model of the organization on the other hand is based on the belief that all organizations are unique and are subject to general and environmental influences. Each organization should therefore be uniquely structured in such a manner that it is best able to respond to the problems and changes in its environment. To be successful and profitable, an organization must interact well with elements in the environment such as suppliers, distributors, government agencies, and customers. This model appears to offer the best means of understanding how organizations work because each organization must accommodate itself to specific influences in a changing environment and learn to function effectively within it.

2. In a process-based organization, the activities of the Company are defined in terms of groups of business processes, each of which is a unit in itself, while also functioning as a part of the whole, such as order fulfillment, manufacturing, accounts payable, etc. (Hammer and Champy 1993). In a process-based organization, it is possible to tailor the performance of each business process unit without unduly interfering with the functioning of another business process. In the modern global environment which is intensely competitive, a company can therefore tackle a problem of high costs through outsourcing one or more of its business processes, in order to achieve a cost advantage.

As opposed to the process-based organizations, the traditional format of organizations has been structural, where there is a definite hierarchical structure in place. This traditional organizational format is derived from the idea of specialization of labor, as a result of which the management function was developed especially to supervise the performance of various specialized functions. An example of a traditional structural-based organization is the Health care environment, where the functions of nurses, doctors, office staff, and hospital administration are all well defined and structured. In such an environment, any change in existing hierarchical patterns can be a source of confusion. The participants in a study conducted by Miller, Jospeh, and Apker (2000) were a group of nurses who were trying to cope with a change from a managed care system to an interdisciplinary health care environment, in a bid to respond more effectively to the fierce competition. It was only through intense and effective communication between nurses and others in the hospital environment that the rules on the assignment of specific roles were developed. Hence in an organization that functions in a complex and dynamic environment, where there are likely to be constant changes occurring on an almost continuous basis, requiring changes and adaptation, it is the use of communication in various business processes and in problem-solving which is likely to ensure the smooth functioning of an organization which is structure-based.