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Characteristics of Organizational Environments and Perceived Environmental Uncertainty Twenty-two


decision groups in three manufacturing and three research and development organizations are studied to My Textbook Solutions
identify the characteristics of the en- vironment that contribute to decision unit members experiencing
uncertainty in decision making.' Two dimensions of the environment are identi ed. The simple-complex
dimen- sion is de ned as the number of factors taken into consideration in decision mak- ing. The static-
dynamic dimension is viewed as the degree to which these factors in the decision unit's environment
remain basically the same over time or are in a continual process of change. Results indicate that
individuals in decision units with dynamic-complex environments experience the greatest amount of
uncer- tainty in decision making. The data also indicate that the static-dynamic dimen- sion of the
Physics Fundamental Structural
environment is a more important contributor to uncertainty than the simple-complex dimensions. 7th Edition s of... Steel Design
8th Edition 6th Edition
Organizational theorists emphasize that organizations must adapt to their environ- ment if they are to
remain viable.2 One of the central issues in this process is coping with uncertainty (Crozier, 1964; View all solutions
Thompson, 1967). The concept of the environment, with its components and relevant dimensions,
however, has not been well speci ed in the literature (Dill, 1958; Emery and Trist, 1965; Lawrence and
Lorsch, 1967; Perrow, 1967; Thompson, 1967). If a theory of organization- environment interaction is to be
developed to facilitate empirical research, it is necessary that the components and dimensions of the
environment be more clearly de ned. This is the object of the research presented here. The components of
the environment as well as its speci c dimensions, are identi ed. This identi cation, in turn, then facilitates
the identi cation of types of environments 1 The research on which this article is based was supported by
a National Science Foundation Grant, No. GS-3054. This assistance is gratefully acknow- ledged. The
author also wishes to acknowledge the helpful comments of Clayton Alderfer, Chris Argyris, David Baron,
Douglas T. Hall, and Lawrence Zahn. 2 The author is also currently developing a model of how
organizations learn to adapt to their environ- ments (Duncan, 1971b)

that contribute to different degrees of un- certainty as perceived by individuals in- volved in decision
making.3 Twenty-two decision units are studied in three manufacturing organizations (ten de- cision units)
and in three research and de- velopment organizations (twelve decision units). An organizational decision
unit is de ned as a formally speci ed work group within the organization under a superior charged with a
formally de ned set of re- sponsibilities directed toward the attainment of the goals of the organization.
Decision making per se may be centered in the formal leader and/or distributed to various mem- bers of
the speci c unit. Decision making for this analysis is more broadly de ned than in most decision models to
include the gathering and processing of information carried out by groups of individuals, which precedes
the actual choice process. It should be emphasized that environ- mental uncertainty and the dimensions of
the environment are de ned here in terms 3 The author has also identi ed the types of struc- tural
modi cations decision units implement in mak- ing decisions under uncertainty and the relationship
between these adaptation processes and organiza- tional effectiveness (Duncan 1971c)
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