Strategy
Strategy refers to a situation in which the way firm settle itself in the market place keeping in view their services or products. An organization may decide to be always the first to introduce the newest and best products in the market (differentiation of products strategy), or it will produce already established products in the market more cost effectively (cost-leadership strategy). Any of these strategies requires a structure that must fit the strategy.
Environment
The environment is the place in which the firm is operating, and the factors such economic conditions, social and cultural situation, law and order situation, technological position and natural environment condition influences the design of organizations
Organization understand the demands of their customers very well in a more stable environment, and then firms try to satisfy those demands accordingly. That is the reason organization remains in the market for a long period of time. The customers' demands keep changing in the opposite of stable environment and hence firms experience difficulty in satisfying them.
In conclusion mechanistic organizational structure can be more beneficial for those operating in a more stable environment and hence this system increases the efficiency level of the organization which ultimately will improve their performance in the longer run.
Technology
Advancement in technology is the cause of change in the design of organizations because it helps organization in achieving higher efficiency level and help them in reducing their long term cost of production. The following are the form of latest technological production techniques:
Batch Production
Batch production is the process in which instead of manufacturing items individually, things are produced in batches. The manufacturing process takes place for each item at the same and batch of products or items are not shifted to another stage individually instead all batches are moved to the other stage of production when the each batch of items is completed. Nope not plagirized. I just do alot of reaserch :)))
