Adapting to the environment
company adjusts its structures and work processes
in uncertain environment caused by complexity, companies tend to decentralize decision making
empowerment-process of sharing power with employees
•enhances their confidence in their ability to perform their jobs
•engenders beliefs that they are influential contributors to the firm
in uncertain environments caused by dynamism, companies tend to establish more flexible structures
bureaucracy-suited for stable environments (low dynamism)
organic-provides flexibility required for changing environments (high dynamism)