Question

_______ is the idea that the organizational structures and control systems that are chosen by managers depend on characteristics of the external environment in which the organization operates.

Answer 1

Answer:

The Contingency theory is the idea that the organizational structures and control systems that are chosen by managers depend on characteristics of the external environment in which the organization operates.

Explanation:

The contingency theory manifest that each and every single organisation is different, it operates and works in different situations, environment and scenarios, every organisation has different set of rules, values and culture, every organisation has different kinds of product portfolios, therefore, it needs different set of management style, organisational structure and control system. For example, the basic logic of contingency theory is that the strategies which worked very well for the Coke may not work well for Pepsi, Pizza Hut cant follow the exact strategies, control systems and organisational structure which is being followed by Domino's, therefore, each and every organisational rules, strategies are contextual.