Organization 21C: Someday All Organizations Will Lead This Way

The Dynamics of Organizational Fit and Fitness

Research over the past 40 years has shown clearly that organizations naturally evolve their design—work systems (structure), management processes, human-resource system, principles and values, and leadership behavior—to “fit” their business environment and their chosen strategy within that environment (see Figure 19-1).^[3] It is this alignment that enables the business to develop the organizational capabilities/culture (attitudes, skills, and behavior) needed to compete successfully. As firms meet challenges in their environments, they respond by developing management and business practices. These “habits of the business” become institutionalized through the process of recruitment, selection, promotion, ...