«...Organizational complexity is defined as the amount of differentiation that exists within different elements constituting the organization. This is often operationalized as the number of different professional specializations that exist within the organization. For example, a school would be considered a less complex organization than a hospital, since a hospital requires a large diversity of professional specialties in order to function. Organizational complexity can also be observed via differentiation in structure, authority and locus of control, and attributes of personnel, products, and technologies. Contingency theory states that an organization structures itself and behaves in a particular manner as an attempt to fit with its environment. Thus organizations are more or less complex as a reaction to environmental complexity. An organization’s environment may be complex because it is turbulent, hostile, diverse, technologically complex, or restrictive. An organization may also be complex as a result of the complexity of its underlying technological core. For example, a nuclear power plant is likely to have a more complex organization than a standard power plant because the underlying technology is more difficult to understand and control. There are numerous consequences of environmental and organizational complexity. Organizational members, faced with overwhelming and/or complex decisions, omit, tolerate errors, queue, filter, abstract, use multiple channels, escape, and chunk in order to deal effectively with the complexity. At an organizational level, an organizational will...»



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