ABSTRACT

One of the most important concepts in organization theory is the concept of fit. Donaldson (2001) defines fit as a match “between the organization structure and contingency factors that has a positive effect on performance.” (pp. 7-10) Building on the notion of uncertainty and its consequences, Galbraith (1974) describes fit in information processing terms: fit is a match between the demand for information processing and the capacity for information processing. This reasoning derives from Ashby’s Law of Requisite Variety, which states that the variety of the organization must exceed the variety of the environment.