As organizations grow, they typically move to a more complex structure due to the inability to coordinate activities under a traditional functional structure.

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As organizations grow, there is often an increase in the number of employees and functional areas, which can create challenges in communication, decision-making, and coordination. This can lead to a need for a more complex structure, such as a divisional or matrix structure, to help the organization effectively manage its operations.

As Organizations Grow, They Typically Move to a More Complex