Computerized Management Information Systems And Organizational Structures

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Computerized Management Information Systems And Organizational Structures
Zenon S Zannetos
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It has been pointed out in the literature by Simon (1954) and Zannetos (1965) that decentralized structures require fewer channels of communication, be- cause they do not need as much information flow as do relatively centralized organizations. Obviously, the lower the degree of interdependence the lower the manifested need for exchange of information. And to the extent that the necessary channels of communication as well as the flows tend to increase in an explosive manner with the increase in... size of organizations, other things being equal, the large r the f irm the greater the tendency toward relative d ecentraliza tion to avoid cluttering and confusion as well as cost.
(3) The need to reduce the instability within the organization. If the interdependencies between subunits are not checked, then the interactions, and the adjusting response to these, will create erratic behavior patterns within the organization. Furthermore, the continual need for response by a subunit to outside pressures will prevent it from specializing.


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