Contingency approach
4 important questions on Contingency approach
Characteristics of dynamic environment
- Much information needs to be processed to come up with solution for operating
- Quick responses are required
- Tasks cannot be standardized and
- hierarchical control will always be too late to respond
What are the two ways to deal with a dynamic environment
- reduce the need for information processing
- increase the capacity to process information
What methods can be used to specifically deal with the dynamic environment?
- increase slack resources (autonomous units)
- adding to the information system/creation of lateral communications
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What are the two fundamental goals of an organisation?
- to be efficient; limit inputs, use of resources and costs
- to be effective: output, products/services and revenue
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