Complexity and responsiveness

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Chapter 6 in Organization in the Economic Firm, 2021, pp 65-74 from Edward Elgar Publishing

Abstract: Chapter 6 defines the complexity of a firm's organization in terms of the restrictions on activities that supervisors impose on employees. It is argued that the greater the restrictions, the greater the complexity and the less responsive the firm becomes in addressing such things as the changing market forces it faces. A measure of responsiveness (on a scale of 0 to 1) is proposed and its properties described. Complexity is measured as one-minus the measure of responsiveness. The impact of the firm hiring a new employee on its organizational complexity and responsiveness is analyzed.

Keywords: Economics and Finance (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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