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Requisite organization
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== Business complexity == Companies differ in the values they provide to their societies and the complexity of the business as employment systems they create to deliver those values with the purpose of growing and maintaining their bottom line.<ref>{{Cite web|url=http://www.managementsite.com/461/managing-business-complexiuty.aspx|title=Managing Business Complexity|last=Jagersma|first=Pieter K.|date=2 March 2018|website=|access-date=}}</ref> According to requisite organization approach, the higher the complexity (quality and quantity) of a value that a company delivers to the society is, the higher the level of business complexity the company needs to create and maintain to deliver the value to the society effectively:<ref name=":0" /> * If the level of the value delivered to the society is lower than the complexity of the business, then there is a [[probability]] that the company will struggle to achieve the positive bottom line by maintaining the higher business complexity than is justified by the society. * If the level of the value delivered to the society is higher than the complexity of the business, then there is a probability that the quality and quantity and timeliness of the value delivered by the company to the society will be short of the society's expectations and, as a result, the company will be able to maintain the positive bottom line only over a short-term period β poor business sustainability. An identification of the level of business complexity for the company is the foundation of requisite organization as all the other Requisite dimensions (Strategy, Systems, Structure, Staff) are aligned to the level of business complexity.<ref>{{Cite book|title=The end of management alchemy : some fun with the findings of Elliott Jaques and how requisite organization began|last=Darwin|first=Mott|isbn=978-0994942807|edition= First|location=Regina, SK|oclc=1024097983|date = 2015-12-23}}</ref> In Requisite Organization, companies are classified into eight levels of business complexity based on such criteria as type of [[value chain]] (single or multiple), geography of [[asset]]s (local, regional, national, international, global), operating revenue, etc. For example, for a Level 6 International Company with single value chain in multiple countries the following stratified hierarchy of bottom line units may be considered optimal in Requisite Organization:<ref>{{Cite book|title=Human productivity enhancement|date=1986β1987|publisher=Praeger|others=Zeidner, Joseph, 1927-|isbn=978-0275921637|location=New York|pages=16|oclc=13560302}}</ref> * '''Stratum VI''' Corporate Bottom Line Unit * '''Stratum V''' Business Bottom Line Unit * '''Stratum IV''' Production Bottom Line Unit * '''Stratum III''' Operating or Mutual Recognition Unit Bottom Line Unit * '''Stratum II''' Output Teams or First Line Mutual Knowledge Bottom Line Unit * '''Stratum I''' Direct Output Employees as accountable Stratum I Bottom Line Unit that underpins the key idea of Requisite Organization that every employee contributes to the business bottom line and the importance for an employee to work at their full potential.
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