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Macro Environment and Organisational Structure: A Review

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Macro Environment and Organisational Structure: A Review

Hannah Chika, Anyanwu | Dr. Justin Mgbechi. O. Gabriel

Hannah Chika, Anyanwu | Dr. Justin Mgbechi. O. Gabriel "Macro Environment and Organisational Structure: A Review" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-1, December 2020, pp.25-33, URL: https://www.ijtsrd.com/papers/ijtsrd35834.pdf

This piece of work theoretically or descriptively considered the impact of the external environment on the structure of organizations. The key variables being organizational structure (the dependent variable) and the external environment of the organization (as the independent variable). Dimensions of organizational structure adopted were: centralization, formalization, standardization, specialization and configuration while the measures of external environment applied were: level of uncertainty or changeability, intolerance or xenophobia and complexity. The theoretical foundation was hinged on social identity theory and contingency theory. Meaning, types and factors affecting organizational structure were considered alongside environmental factors. It was observed that the external environment has great impact on the organization and is largely responsible for the dynamic nature of the business world. It was therefore recommended that an adequate environmental scanning be carried out to ascertain the stability or otherwise of the environment to be able to know which structural type to adopt at every point in time.

Organizational Structure, Organizational Environment, Centralization, formalization, standardization, specialization, complexity, xenophobia, uncertainty

Volume-5 | Issue-1, December 2020
IJTSRD | www.ijtsrd.com | E-ISSN 2456-6470
Copyright © 2019 by author(s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http://creativecommons.org/licenses/by/4.0)

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