External factors affect organizational design from "summary" of Organization Theory and Design by Richard L. Daft
Organizational design is not solely determined by internal factors such as strategy, structure, and culture. External factors also play a significant role in shaping how organizations are structured and operate. These external factors include the environment in which the organization operates, the industry in which it competes, and the overall economy. The environment, for example, can have a direct impact on the design of an organization. Organizations that operate in stable environments may opt for a more mechanistic structure that emphasizes efficiency and control. On the other hand, organizations operating in dynamic environments may choose a more organic structure that allows for greater flexibility and adaptability. Similarly, the industry in which an organization competes can influence its design. Industries that are heavily regulated may require a mor...
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