Why does environmental complexity lead to organizational complexity and name some of the elements that contribute to greater complexity for international organizations. How do organizations address this complexity?
Environmental complexity, essentially the degree to which an industry or firm's environment is technologically-based or is otherwise specialized so as to be hard to replicate with general labor, leads directly to organizational complexity, basically the number of layers of employees and the breadth of the spectrum of specialties across which the firm's employees represent. For example, a construction company with fifty laborers, a foreman, and a few administrative professionals would be considered to be of lower relative ...
The solution describes why environmental complexity leads to organizational complexity and lists some of the elements that contribute to greater complexity for international organizations.