Complexity as a Driver of Organizational Structure

Complexity as a Driver of Organizational Structure Technology

Complexity as a driver in organizational structure and technology is ostensibly an attempt to create value as a function of technological innovation. However, the question of uncertainty arises when technological progress is exceedingly complex. In fact, according to a study (Perrow, 1973), there are technologies that are highly complex yielding uncertainty in performance and "availability of inputs, and the variability of the transformation process. More complex technology leads to more uncertainty, fewer programmed decisions, and a greater use of discretion." (Perrow, 1973)

If such complexity in technological systems causes these issues, then why do organizations elect to invest into this complexity? According to Perrow (1973), "Technology is often seen as tools or equipment that converts inputs into outputs of some kind. This is not the only definition of technology, it is a modernist view, but even they introduce the terms of core, high, and service technology." (Perrow, 1973) Perrow argues that technology is a tool to convert inputs into outputs of a sort. However, at some point, the complexity of the technology interferes with the input/output and hence profitability and organizational performance.

The three perspectives of Modernism, Symbolic-Interpretivism, and Postmodernism incorporate technology and its benefits in a different paradigm. According to Hatch & Cunliffe (2006):

Modernism: Technology creates value for the organization. The technological imperative -- technology determines structure (objectivist). Technological complexity and uncertainty influence the type of social structure that will be most effective.

Symbolic-Interpretivism: Technology shapes and is shaped by macro and micro social interactions.

Postmodernism: Technology is a form of control.

Source: Hatch, M.J., & Cunliffe, A.L. (2006). Organization theory: Modern, symbolic and postmodern perspectives. Oxford, UK: Oxford University Press.

Organizations have become increasingly complex not taking into account the technological aspect. One would think an increasingly complex organization would perhaps require and utilize a complex technological framework. The complex technological framework is a function of what organizational development theorists term closed and open systems (Thompson, 1967). According to Ensign (1998), "Thompson provides a number of ways to examine interdependence, coordination, and structure in the complex organization. The ideas presented y Scott (1992) on open, rational, and natural systems are also helpful in examining the concepts being investigated in this study." (Ensign, 1998)

Open and closed systems reflect the organization's position in linking internal and external environmental variables. The technological complexity is a function of the organization's involvement with the integration of open and closed system design. The USPS organization is responsible for the delivery of postal mail to every residence throughout the United States and is responsible for the delivery of international mail to its destination as well.