Managers have to understand their businesses to make them more efficient. Theoretical models are critical in this understanding because they provide a conceptual framework for analyzing organizational problems and planning corrective actions. One of these frameworks for analyzing small and large businesses is the congruence model, developed by Columbia University professors David A. Nadler and Michael L. Tushman.
The congruence model views organizations as interacting components that exist in relative harmony or fit with one another. The four main components are individuals, tasks, formal processes and informal processes. Organizational problems arise when there is a poor fit between some of these components. Changes in one component can affect other components because of the personal and process linkages that exist within organizations. The congruence model places the greatest emphasis on the transformation process between inputs and outputs. The inputs include the external environment, such as competition and government regulation; financial, human and other resources; organizational culture; and the strategic decisions necessary to meet future challenges and opportunities. The outputs refer to products and services, and overall performance and effectiveness.
The congruence model provides a rigorous framework for analyzing complex organizational problems. The model does not place restrictions on managers, according to management consulting firm Oliver Wyman. It is a tool for thinking through organizational problems, not a rigid template for classifying observations. It does not specify a particular approach for designing organizational structures or processes as long as there is a fit between the various components. The model also helps companies think through the impact of change management on organizational interactions and performance. The social components -- people and informal structures -- and technical components -- tasks and formal structures -- must fit as part of the congruence model. For example, if the product manager is not on speaking terms with the marketing manager, there could be design delays and poor market penetration.
Applying the congruence model could be a long and expensive process, especially for global organizations with several business units and thousands of employees. The model does not specify a direct way for incorporating group dynamics into organizational analysis. The absence of a structured template, while giving managers flexibility, might also limit their ability in quickly coming up with proven solutions to organizational problems. The application of this model may exclude the possibility that the absence of a fit does not necessarily imply a problem because there may not always be a perfect fit between tasks and individuals, especially in small entrepreneurial companies. However, this should not limit effectiveness because companies have to adapt continually to changes. For example, training and mentoring programs could bring new employees up to speed on new responsibilities.
The implementation of the congruence model involves identifying the symptoms of problems, determining the gaps between inputs and outputs, describing the fit between an organization's components, identifying problem areas and developing an action plan to deal with these problems.
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