According to lawrence and lorsch, the stability of an organization's environment determines the degree of

According to lawrence and lorsch, the stability of an organization's environment determines the degree of "differentiation or integration that is appropriate". 

The current investigation of Lawrence and Lorsch showed that the formality of the powerful association's structure was identified with the level of stability and security of its market and mechanical conditions. Successful firms working in generally powerful situations had a tendency to be decentralized, while those confronting more steady conditions were moderately unified.