According to Lawrence and Lorsch's contingency model of organizational structure, as the external environment increases in complexity, organizations must
A) increase in differentiation and integration.
B) decrease in differentiation and integration.
C) increase in differentiation and decrease in integration.
D) increase in integration and decrease in differentiation.

Question

Quizplus · Accepted Answer

Lawrence and Lorsch's contingency model of organizational structure suggests that as the external environment becomes more complex, organizations must increase in both differentiation (the degree of specialization) and integration (the degree of coordination between different units or departments) to effectively respond to the environment. This allows organizations to better adapt to changes and optimize their performance.

According to Lawrence and Lorsch's Contingency Model of Organizational Structure