Telecommunications and Organizational Choice

Organizations are becoming increasingly complex as a response to diverse environmental demands. The costs are high, in terms of managerial layers, administrative overhead, formal procedures and controls, and impersonal paper. This article describes how information technology can be employed to simplify organizations and reverse this trend. The article also describes the federated organizational structure, which is analogous to the United States. A key feature is that telecommunications can be employed to permit simultaneous centralization-with-decentralization. This permits organizations to reap the benefits of both organizational forms. The article concludes with suggestions for research on organizational pressures and the potential contribution of telecommunications in helping organizations cope with these pressures.