The environment of the organization can very in its degree of complexity, in how static or dynamic it is, in the diversity of its markets, and in the hostility it contains for the organization. The more complex the environment, the more difficulty central management has in comprehending it and the greater the need for decentralization. The more dynamic the environment, the greater the difficulty in standardizing work, outputs, or skills and so the less bureaucratic the structure. These relationship suggest four kinds of structure: two in stable environments (one simple, the other complex) leading, respectively, to a centralized and a decentralized bureaucracy: and to in dynamic environments(again, one simple, the other complex) leading, respectively, to a centralized and a decentralized organic structure. Market diversity, as noted earlier, encourages the organization to set up market-based division(instead of functional departments) to deal with each, while extreme hostility in the environment drives the organization to centralize power temporarily-no matter what its normal structure-to fight off the threat.