What is a networked organizational structure?
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A network-based organizational model is a type of matrix structure that uses digital technology and specialized employees to complete assignments without the need of traditional work spaces. While this model allows employees and managers to function on more even ground, network-based organizational structure can also lead to conflicts due to a lack of formal hierarchy. Show Digital Communication: Problems and ChallengesA network-based organizational structure depends on clear lines of communication to deliver project assignments and due dates to employees. The organizational model's dependence on technology, including Internet connections and phone lines, to deliver these messages can cause delays in the process if computers crash or network traffic errors occur. Work progress effectively slows to a crawl while IT professionals work to repair digital communication issues. The lack of one physical location where all employees work leaves out the possibility of communicating project assignments in person. Managerial Issues of a Networked OrganizationThe nebulous nature of a network or matrix organization structure requires an extra layer of oversight to manage employees operating in many different locations. These additional managers and supervisors can easily create confusion among satellite employees, especially if employees have multiple managers communicating work orders at the same time. All it takes is for a couple managers to deliver work orders in different ways to the same employees to create errors in project development plans and cause delays in completion as employees sort through two different sets of assignment details. Forbes suggests a coaching approach to management in order to help compensate for these drawbacks. Network Organizational Structure: Sharing WorkersTraditional business departments don't exist in the network-based organizational model. Because of this, sharing skilled workers between departments is a mandatory part of the process for the organization to function properly. According to Investopedia, in a matrix system, employees often shoulder responsibilities for more than one area of operations. This can lead to unfriendly competition among project managers and supervisors to secure the best employees for given assignments. Skilled workers in high demand may have multiple assignments in progress at any given time depending on the company's total client roster. This can make it difficult for these employees to focus on assignments properly. Increased Work StressThe freedom associated with working away from a traditional office environment can disappear in a network-based or matrix organizational structure. At the same time, this organizational structure does not clearly define responsibility and jurisdiction within the company. Employees and managers may feel unable to associate with traditionally defined job roles. This leads to increased occupational stress because managers feel unable to supervise with customary authority and employees feel as though they're working without any guidance or feedback. Project development and assignment completion can quickly break down in this murky environment. A network organizational structure refers to a system of delegating and coordinating tasks among a number of partner companies or
business entities with a common goal of producing a specific product. This arrangement gives a company the chance to collaborate with other related business entities to concertedly work toward realizing a common goal. The working together of different business entities forms the premise on which this system is built. Network structures bring together different companies with the aim of obtaining and maintaining a competitive advantage over others outside of their network. The
merit of network organizational structure over any other form of organizational structure is its flexibility and efficiency. This is because coming up with a network structure requires a thorough selection and use of the best players available, who come together as partners. These partners are charged with the responsibility of providing specific needs within the network structure. The core objective of an organizational structure is to support and complement the strategy of any business arrangement used to realize the objectives and goals of the organization. However, over-reliance on individual partners within network organizational structures may make these systems susceptible to a number of challenges within the network structure. MORE FROM REFERENCE.COM What is example of network organizational structure?An organization that has been using network structure is H&M (Hennes & Mauritz), a very popular brand that has followers world over. H&M has outsourced the production and processing of their goods to different countries majorly Asian and South East Asian countries.
What are the three types of network organization?For the purpose of discussion, it is convenient to distinguish three types of network organizations: internal, stable, and dynamic.
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