Equifinality: Functional Equivalence in Organization Design

The assumptions regarding function and structure that underlie contingency theory are exposed and a functional equivalence view of design is developed, which implies a different agenda and emphasis for research on structure and design and has normative implications for how managers should design to achieve performance.

Abstract

Theorists have often acknowledged the importance of equifinality in organization design and, in recent years, several studies have demonstrated the concept empirically. This article exposes the assumptions regarding function and structure that underlie contingency theory and develops a functional equivalence view of design. By examining the degree of conflict in functional demands together with the latitude of structural options available, we reveal and describe three different types of equifinality: suboptimal. tradeoff, and configurational. The functional equivalence approach implies a different agenda and emphasis for research on structure and design and has normative implications for how managers should design to achieve performance.