Designing for Complexity: Using Divisions and Hierarchy to Manage Complex Tasks

• 成果类型: Article
• 署名作者: Zhou, Yue Maggie
• 署名单位: University System of Maryland; University of Maryland College Park
• 刊物名称: ORGANIZATION SCIENCE
• ISSN/ISSBN: 1047-7039
• DOI: 10.1287/orsc.1120.0744
• 发表日期: 2013
• 页码: 339-355
• 关键词: division; hierarchy; organization structure; complexity; Decomposability; modularity

摘要

This paper studies the impact of task complexity and decomposability on the degree of organizational divisionalization and hierarchy within firms. Drawing upon the team theory and modularity literature, it argues that the degree of divisionalization is predicated not only on the extent of interdependence (complexity) among tasks but also on the extent to which those interdependent relationships are decomposable. As such, the feasibility and benefits of modularization in organizational design may be overstated when the underlying tasks are not decomposable. In addition, this paper argues that organizational hierarchy serves to mitigate,the tension between complexity and decomposability by facilitating a higher degree of divisionalization. These arguments are tested using data on the business activities and organization structures of U.S. equipment manufacturers in 1993-2003. Results show that divisionalization increases with task complexity, suggesting that complex task systems encourage more division of managerial responsibilities. However, divisionalization decreases as task systems become less decomposable. Meanwhile, organizational hierarchy increases with task complexity, and it increases as task systems become less decomposable. These findings highlight the constraints firms face in designing modular organization structures and the role of hierarchy in coordinating complex task systems that are not fully decomposable.