An open systems view and a contingency model of organisational design focuses on two sets of situational forces - environmental, and contextual.
Environmental forces include general and specific factors in the external environment of the organisation. On the other hand, contextual forces include internal elements of the organisation such as organisational strategy, its technology, age of the organisation, size of the organisation in terms of number of employees, nature of output, goals and values of the organisation, ownership pattern, and people working in the organisation.
You need to ensure that the structure of an organisation is compatible with the situation as defined by organisational environment and its context.
To ensure organisational compatibility, you have to identify and assess the design implications of the following strategic factors :
- Environment - general and specific,
- Size of the organisation,
- Technology,
- Strategy, and
- People.
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