The core idea
Contingency thinking rejects a single organisational arrangement for every situation. Lawrence and Lorsch examined differentiation between organisational units and the integration needed to coordinate them under different environmental conditions. Applied to HR, the question becomes whether staffing, development, rewards and authority fit the organisation’s tasks and strategy. Vertical fit concerns alignment with strategy; horizontal fit concerns whether people practices reinforce one another. These are analytical ideas, not permission to lower employment standards.
Source and attribution [1]Using it in practice
Specify the contingency you think matters: task uncertainty, safety requirements, scale, technology, skill scarcity or customer needs. Then describe the mechanism through which a different practice should help. Compare plausible alternatives instead of declaring the current system “a fit” after the event. Keep common principles explicit so that local tailoring does not become arbitrary treatment. Revisit the decision when its underlying conditions change.
An example, not a reported case
Worked example · illustrative
A maintenance operation needs reliable handovers, clear authorisation and consistent safety checks. A product-discovery team needs room to test uncertain ideas. Both need fair treatment and competent managers, but identical targets and approval rules may frustrate one of them. HR pilots different feedback rhythms and decision boundaries, while keeping common pay principles, accessibility standards and routes to challenge decisions.
What to watch for
“It depends” is only useful when you name what it depends on. Apparent fit can become an excuse for preserving poor practice, and yesterday’s successful arrangement may fail after growth or technological change.
Take it into your next conversation
Three useful questions.
- Which contextual difference matters?
- What must remain consistent?
- What change would make this design stop fitting?
Related terms
Go to the evidence
Sources & attribution
[1] Lawrence & Lorsch (1967), Organization and Environment; HBS research review. ↗
The core idea is an original summary of the cited work. Application notes, examples and sketches are our interpretations, not quotations or reproductions of the authors’ figures. Publisher records may require access to read the full original work.
Published 2026-09-20 · Reviewed 2026-09-20. Editorial approach