Toward the Development of Information Technology Variables to Help Predict Organizational Structure Page: 12
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Operations Technology and Vertical Span
Vertical span or, as it is sometimes called, vertical
complexity refers to the number of levels of managerial
hierarchy in a firm (Hickson et al. 1969). Vertical span
has consistently been shown to increase as operations
technologies become more routine (Caufield 1989) .
Operations Technology and Centralization
Centralization refers to the hierarchical level that
has authority to make a decision (Daft 1992). The
relationship between centralization and operations
technologies is more complex than is the relationship
between operations technologies and the other structural
variables. The relationship shows that increasing
operations technology has a curvilinear relationship with
centralization. At lower levels of operations technology,
centralization increases as operations technology increases.
Eventually, operations technology becomes intricate enough
that further operations technology increases decrease
centralization because higher level managers cannot
understand the processes (Blau, et al. 1976; Fry 1982;
Woodward 1965). Tests in which routineness of an operations
technology is used instead of the amount of operations
technology show that the associations between routineness
and centralization depend upon the industrial sector
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Sweo, Robert (Robert Edward). Toward the Development of Information Technology Variables to Help Predict Organizational Structure, dissertation, May 1995; Denton, Texas. (https://digital.library.unt.edu/ark:/67531/metadc278238/m1/21/: accessed April 22, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; .