Abstract: | The problem of which organization structure is most appropriate for current business conditions has perplexed managers for decades. Several management theorists have proposed that modifications of the firm's structural design were in response to changes in the organization's context. Recently, Child2 suggested that senior executives in the firm may have the discretion to strongly influence their organization unit's structure. This paper discusses the development of a contingency theory of structural determination which incorporates strengths of past theories, managerial discretion, fourteen dimensions of structure, and organizational effectiveness. It also reports on preliminary research which supports the importance of managerial discretion in the structural determination process. |