Tuesday, October 4, 2011

Organization Theory - 16

In the earlier blog, we discussed to see if there is an interrelation amongst the various dimensions of differentiation. In today's blog, we would look at the implications of complexity for an organization.

As the complexity of an organization increases - there is an increasing need for effective communication, co-ordination and control. Let’s take an example and attempt understanding this - our very famous IBM.

IBM has office all over the globe. Let us assume that they are working for a client in the United States of America and the development of the specific problem is being done in India. The sales team in the US would take the initial steam into getting the deal; this is then that the business analysts begin detailing the development cycle in association with the technical analyst. Given the cost factors, the technical analyst would stay in India. The technical analyst and project manager would details the technology road map of the project towards completion. The project manager then initiates the team leads under him to get the project implemented through the developer. Developers again are busy with development and too much time would be needed for the testing and quality aspects hence the product would be generally tested by the quality team. 

In all this, we see that there is an increasing complexity and along with that comes the issues of communication. It is important to ensure that every aspect of the project is communicated well and only then will the full team have the momentum. Given the large number of people working on this - ensuring that the resources are available at the right time is critical also come along is the aspect that the business has to be well controlled and not slip away.

Simply put - we could definitely say:  The higher the complexity, greater attention needs to be paid to these 3 aspects
  • Communication
  • Coordination
  • Control

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