Blackwell Reference Online

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Organizational contingencies are factors that moderate the effect of organizational characteristics on organizational performance. Whether a particular level of organizational characteristic would lead to high performance depends on the level of the contingency factor. If there is a fit between the level of contingency and the level of organizational characteristic, then, other things being equal, superior performance results; if there is a misfit, performance suffers. An organizational contingency is thus best understood as one of the variables in a three-variable relationship, the other two variables being an organizational characteristic and organizational performance. Each of these variables has a fairly broad meaning: 1 Organizational contingencies include two general groups of factors: those internal to the organization, such as organizational size, technology, and strategy, and those external to it, covered by the umbrella term “organizational environment.” 2 Organizational characteristics most frequently imply dimensions of organizational structure (e.g., formalization, centralization) and an overall structural type (e.g., bureaucratic structure) or structural design alternative (e.g., divisional structure). 3 Organizational performance covers a wide range of measures, including standard financial measures, such as efficiency and profitability, and various indicators ... log in or subscribe to read full text