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Relating the Organisation to its Environment

As a designer of organisation structure, you have to see that sufficient and proper efforts have been made to relate the organisation to its general and specific environment. You need to understand that organisations are basically 'information-processing systems'. People in the organisation must have access to relevant information, and process and interpret it properly as a basis for problem-solving, decision-making, and action. Note that information processing becomes more difficult and complex as the uncertainty present in the situation increases. 

Examples 

Few organisations exist in a competely stable (certain) environment. Organisations making matches, bottles, cans, and toothpicks experience relatively little change. Their customers and competitors are fairly well-known. But organisations involved with plastics, electronics and solar power experience great uncertainty and rapid changes. Technological breakthroughs occur frequently. You may be aware that the organisations manufacturing mini computers are constantly changing their products. 

Implications 

The successful organisations or their sub-units existing in relatively uncertain and unpredictable environments should be designed and structured differently from those existing in relatively known and certain environments. 

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