Organizations in action - Boek Thompson - Organizations in Action - Organizational rationality and structure

3 important questions on Organizations in action - Boek Thompson - Organizations in Action - Organizational rationality and structure

The chapter organizational rationality and structure is about the structure and environment. Based on what two elements can the task environment be conceptualized?

1. Based on geographical space (transport and communication costs)
2. Based on social composition (degree of homogeneity)

Chapter 6 is more about the macro level, and how to adapt to this environment with the internal structure. What is Thompson's line of reasoning regarding the social composition (extend of homogeneity)?

Thompson's line of reasoning is that in a heterogeneous task environment, organizations search for homogeneous groups. For these homogeneous groups, structural units are identified. When these homogeneous groups are big, they can be further subdivided into segments, mostly based on geography. This for the surveillance capacity.

When you have a heterogeneous task environment, multiple divisions should be created. When you have a homogeneous task environment, few divisions should be created. 

What is Thompson's line of reasoning regarding a dynamic vs stable environment?

When there is a stable environment (few contingencies), either in heterogeneous or homogeneous groups, the organization can rely on rules to achieve adaptation to that environment.

When there is a dynamic environment (many contingencies), either in heterogeneous or homogeneous groups, and when the dynamic variation is known, the organization can also depend on rules (if... Then).
When the dynamic variation is unknown, the organization should rely in monitoring and planning. 

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