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The second generation of models of organization design emerged in the 1970s and 1980s, evolving from the first generation’s focus on universal structures towards a more contingent approach that considered environmental variability, strategic priorities, and human factors. While first-generation models, such as those of Max Weber’s bureaucracy or the classical school, assumed that one optimal structure could fit all organizations, the second generation recognized that effective design depends on the interplay of multiple variables. This phase was strongly influenced by contingency theory, socio-technical systems thinking, and the growing recognition of organizational complexity. The design parameters in this generation emphasized the alignment between an organization’s structure, its environment, and its internal capabilities. One of the primary design parameters was differentiation and integration. Differentiation referred to the extent to which tasks and responsibilities were divided into distinct units, departments, or roles. This was necessary for specialization and efficiency. However, as organizations became more complex, integration mechanisms were equally vital to ensure that these differentiated units worked together cohesively. This included liaison roles, cross-functional teams, integrator positions, and formal communication channels. Lawrence and Lorsch’s work on differentiation and integration became a cornerstone, showing that organizations in more uncertain environments needed _________ ______ ________ ____ _________.
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