Current complexity
Organizational complexity indicates the degree of horizontal, vertical, and spatial differentiation.
As organizational complexity increases, so does the difficulty of coordinating activities and the requirement for information processing .
Key measures are the number of hierarchical levels, the number of locations of operation, and the skill level of employees at each level.
- Horizontal differentiation relates to the specialization within an organization
- Vertical differentiation relates to the number of hierarchical levels in an organization
- Spatial differentiation relates to the geographic dispersion of activities within the organization
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