Complexity As a Driver of Organizational Structure Essay

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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.

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" (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,….....

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