Final answer:
According to the contingent view, an organization's structure should be designed to fit its environment, embracing adaptable and team-based structures rather than rigid hierarchical ones to respond effectively to change. Option D is correct.
Step-by-step explanation:
The contingent view in organizational structure suggests that an organization should be designed to fit its environment which means structuring organizations in such a way that they respond effectively to changing external conditions. This contrasts with traditional, hierarchical structures where authority is more rigid and decision-making is centralized. This view supports the idea that workplaces today need to be adaptable, often making use of team-based structures to bring together diverse skills and experiences. Such a structure allows for quick response to changes in technology, economics, globalization, and workplace demographics.
A functional perspective, in this context, might focus on ensuring maximum efficiency within an organization, but the contingent view recognizes that rigid approaches may lead to inefficiencies in a rapidly changing world. Instead, organizations with flat structures, where feedback is encouraged across all levels, may be more successful. This is because they can be more agile and better equipped to respond to new challenges and opportunities presented by external forces.