Structural Contingency Theory: American Express Organization
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Structural contingency theory means that there is no single structure or structural type that is optimal for all organizations. The best way of organizing the company is contingent upon internal and external situation that might be in a company. That’s why the most effective structure is the structure that fits contingencies. The main point of this theory is to design such organizational structure that will be able to cope with some difficulties in the environment efficiently. We should understand that when environment change, organizations need to change also.
Environmental change and uncertainty, work technology, and the size of a company are all environmental factors impacting the effectiveness organization. Contingency theory shows that small organizations are more likely to work efficiently and are more organized in stable environment. The owner of a small organization can easily…show more content… Each day, American Express makes it easier, safer, and more rewarding for consumers and businesses to purchase the things they need and for merchants to sell their goods and services. The company develops relationships that make a positive difference in customers' lives. Leaders of a company set a high effort level in the organization. Moreover, the company has its own American Express Leadership Academy. It’s a program designed to address the special challenges nonprofit leaders face – from building coalitions to leading voluneers and to managing limited resources strategicaly. Ledership development is critical for the company . Organization is capable of solving any problem in the environment efficiently. The goal of organization is to be the world most respected service brand. American express focus on managing business as efficiently as possible to continually improve the quality of service and invest in growth. Organization has a good structure with high degree of