ORGANIZATIONAL ENVIRONMENT,DIFFERENTIATION AND PERCEIVED ENVIRONMENTAL UNCERTAINTY1

Four propositions are derived from an a priori model which relates environmental characteristics, organizational differentiation, and perceived environmental uncertainty. The four propositions are: (P₁) the greater the magnitude of each of several task environmental dimensions confronting an organization, the greater the degree of organizational differentiation, (P₂) the greater the degree of task environment change, the greater the degree of organizational differentiation, (P₃) the greater the size of the organization, the greater the organizational differentiation, and (P₄) the greater the organizational differentiation, the less the degree of perceived environmental uncertainty seen by top administrators. These propositions were tested on 23 Employment Service District Offices with objective environmental and organizational differentiation measures and with self report indices of perceived environmental uncertainty. Zero-order correlational and regression analyses supported propositions P₁, P₃, and P₄. Based on the empirical findings, a revised model of environment, differentiation and uncertainty was developed. Suggestions for future research and theorizing are offered.