¶ … adopted the hierarchical structure, which takes into account the "unity of command principle," which is characterized by the division of labor and hierarchy of authority. In the hierarchy of authority, the organizational structure is illustrated where a member is a subordinate of a higher member, and the higher member a subordinate of the highest member, and so on, as each member becomes the subordinate of the individual with the highest position in the organization. However, the emergence of the service economy and employee-driven nature of Total Quality Management that emerged in the post-industrial American society gave birth to the development of the concepts of "reengineering" and "flat organizations." Reengineering simply means the re-designing or re-structuring of the distribution of labor and assignment of positions among members of an organization. The ultimate goal of reengineering is to provide efficiency and productivity within the organization's members. Thus, with the advent of reengineering came the flat organizational structure, where hierarchies are abolished, and an egalitarian division of labor and task assignments are implemented within the organization. This new development in organizational structuring were derived from: (1) the abolishment of bureaucracy within the workplace environment; and (2) newfound autonomy of the workforce from the administration. Because organizations are structured in a way wherein a member's output is considered as equal as the other member's output, members are given a chance to develop themselves by enhancing their talents and skills as a result of easy social mobility within the organization. Thus, with the flat organization structure,...

This degree of uncertainty depends on two dichotomies, which characterizes the nature of organizational structures: dynamic-static and simple-complex. The contingency approach to organization design is a perfect example of this organizational design, which seeks to "create an effective organization-environment fit."
The Contingency Approach to organization design is a two-dimensional model that generates a four-way classification system wherein organization-environment fits are determined. The first class, the static-simple fit, has Low Perceived Uncertainty, wherein organizations are stable and environment has a weak influence in the organization's structure and dynamics. The second class, static-complex, has a relatively weaker immunity from the environment (external factors), as a result of the complex structure of the organization vis-a-vis the environment, leading to saturation within the organization, hence, this fit has moderately low perceived uncertainty (e.g. food product manufacturing companies and organizations).

When there is a dynamic environment, there occurs a greater chance for instability or uncertainty within the organization to occur. This is evident in fits 3 and 4, where a higher perceived uncertainties are classified. Fit 3 is the dynamic-simple fit, which has a relatively high perceived uncertainty rating. The fast food industry is a good example of this kind of organization, where changes in prices and supply of commodities needed for…