Thursday, September 29, 2011

Organization Theory - 14

In the last blog, we discussed a very important concept - "span of control". In today's blog, we would discuss another concept called relevant to complexity - "Spatial Differentiation"

In the earlier blog when we took the example of IBM and understood the various dimensions of complexity, we mentioned that the offices of IBM are spread over a lot of geographical locations

In today’s blog, we take the example of KTA Associates which is a company in the field of Executive search. Their offices are as shown in the diagram below. 

They have 54 offices spread across 38 countries!

The core function of the company is in the area of HR services to corporate, but so the number of departments would be small. If we link it back to the blog where we discussed Henry Mintzberg's model, we see that the operating core would be spread across continents but doing a similar kind of task. However given that the offices are spread across continents it would be difficult for people to really communicate with one another (the vocabulary used even in the same language would be different)

Thus, we could safely understand that the greater the spatial differentiation, the greater complexity.

Read in Kannada:

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