Organizational flexibility in Australia

This paper presents a typology that distinguishes two types of flexible organizations based on the clarity of purpose and the extensiveness of formal rules. The analysis shows that these forms of flexibility are related to whether organizations engage with their environments reactively or strategically. One form (strategic flexibility) is evident in a 'goal-directed' type of organization (having clear goals but low levels of formal rules), and the other can be observed in an informally-organized type (lacking clear goals, and with limited formal rules). These are compared with two other types: formally-organized (clear goals and extensive formal rules); and rule-governed (lacking clear goals, extensive formal rules). An analysis of a sample of fifty organizations shows clear differences between the four types with respect to contextual factors; environmental conditions; strategy and structure; and integrative mechanisms.