All organizations use some form of technology and equipment in pursuit of their business and this has a basic and critical impact on the nature, design, structure and conduct of work. Technology also has implications for compartmentalization, functionalization and specialization. Departments and divisions are created around the equipment used – whether for production, communications, information or control. It impacts on the physical environment – particular processes determine the layout and format in which work is conducted and the proximity of individuals and groups to each other. It therefore becomes a factor to be recognized in the creation of supervisory and managerial functions and activities (see Box 14.1).