Research Of Organizational Structure Design In Firm Under Environmental Uncertainty

Organizational structure is the outcome of manage decisions such as division of labor, departments, span of control, and authorize, combination of structure and power organically, it has great influence on productivity and manage benefit. The activity of organizational structure design is to assemble and harmonize task, power and responsibility effectively. First, considering the asymmetric information in firm, use principal-agent and Common agency theory, analyze the effect on Incentive scheme and expect revenue by function and matrix structure under different environmental uncertainty and supervisor cost. From the view of information theory, organizational structure can be regards as the network to process information, so through compute the information content in function and matrix structure, and use information content as index to measure efficiency and response time under different structure in firm, and we can see that firm can get more efficiency under function structure, and matrix structure has more advantage under environmental uncertainty, furthermore, the complex degree of technology may affect on organizational structure design. For the uncertainty both in interior of firm and environment, at the end, study of function and matrix structure dynamically by simulation, the result shows, firm focus on optimize of department to get the efficiency, and focus on single project or product under matrix structure to adapt the environmental uncertainty.In conclusion, for the horizontal relationship and harmonize in the different departments, firm more adapt the environmental uncertainty under matrix structure than function structure, but firm can get more efficiency under function structure than matrix structure. Organizational structure design work is not a simple exclusive decision, should be system engineering, affect by market environmental, industry, size of firm, technology, information degree, firm and culture etc. A unified, best organization structure does not exist. So, it is necessary to tradeoff between the efficiency and flexible in organizational structure design under environmental uncertainty.