As the complexity in the external environment increases, so does the number of positions and departments within the organization, which in turn increases internal complexity.

Question

Quizplus · Accepted Answer

As the external environment becomes more complex, organizations must adapt by creating new positions and departments to manage the various aspects of their operations. While this can help the organization manage the external complexity, it also adds layers of internal complexity, as different departments and positions may have different goals, priorities, and ways of operating. This can lead to challenges such as communication breakdowns, coordination difficulties, and inefficient processes.

As the Complexity in the External Environment Increases, So Does