Effect of Uncertain and Turbulent Environment on Organizational Design

Many researchers have argued that organizations must tailor their structures and decision-making process to fit the demand of their external environments. Uncertain environments require more flexible and responsive structure. The new design must achieve a fit, both with the organization’s external environment, and among its elements of structure and processes (Thompson, 1967). In this paper, I explore the various design approaches including using an object-oriented paradigm for developing flexible design. Since the uncertain environment will eventually affect almost all organizations, it is concluded that organizations should adapt a flexible structure and move from one archetype to another or to mixed archetypes as the environment changes. Managers must involve employees and communicate the details to them as they work through the organizational design and implementation process.