2022
DOI: 10.3390/businesses2010005
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Organizational Complexity as a Contributing Factor to Underperformance

Abstract: A high organizational complexity above the cognitive limits of employees and management can contribute to a business performing sub-standardly in comparison to its competitors. As businesses can grow over time into a state of high complexity, an active approach to complexity management has to be taken. This paper presents the NES classification method, aimed at facilitating the modeling and assessment of organizational complexity. Here, any system is classified as belonging to one of three classes: class N nat… Show more

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Cited by 2 publications
(2 citation statements)
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“…The notion "manageability" is used in wide range of domains such as construction [2], software engineering [3], manufacturing [4], computing networks [5], transportation [6], production [7]. There are several key elements of the manageability that are essential to effectively managing an organization and these include: clear goals and objectives, effective communication, strong leadership, efficient use of resources, effective decision-making, continuous improvement, performance measurement, adapting to change, empowering employees.…”
Section: Introductionmentioning
confidence: 99%
“…The notion "manageability" is used in wide range of domains such as construction [2], software engineering [3], manufacturing [4], computing networks [5], transportation [6], production [7]. There are several key elements of the manageability that are essential to effectively managing an organization and these include: clear goals and objectives, effective communication, strong leadership, efficient use of resources, effective decision-making, continuous improvement, performance measurement, adapting to change, empowering employees.…”
Section: Introductionmentioning
confidence: 99%
“…Organizations with a high level of complexity also have higher levels of underperformance. Beyer and Ullrich (2022) found that performance was directly improved when measures were implemented to lessen organizational complexity. Zhou and Rosini (2015) analyzed the effects of diversity within teams and found that demographic, personality, and informational diversity positively impact team performance.…”
Section: Introductionmentioning
confidence: 99%