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It. is widely argued that the typical twentieth century structured organisation has not operated well in a rapidly changing environment. This has led to the rise...

It. is widely argued that the typical twentieth century structured organisation has not operated
well in a rapidly changing environment. This has led to the rise of network organisations, a
model emerging in many progressive twenty first century organisations.
Required:
i. Describe three features of network organisations.
ii. Summarise four advantages of network organisations.

Answers

Kavungya
(i) Describe three features of network organisations.
A group of legally independent companies or subsidiary business units that use various methods
of coordinating and controlling their interaction in order to appear like a larger entity. In a
business context, three main types of network organization are typically seen:
a. Internal where a large company has separate units acting as profit centers,
b. Stable where a-central company outsources some work to others, and
c. Dynamic where a network integrator outsources heavily to other companies.

(ii) Summarise four advantages of network organisations.
1. Being closer to the customer - there is rapid communication between those at the sharpend
and those who support them.
2. Maximizing the knowledge potential of an enterprise; network members tap into
expertise wherever it may reside. -
3. Minimizing disruption; a network has resilience to operate even if some parts fail (e.g. in
a natural disaster).
4. Responsiveness and adaptiveness: a network is sensitive to stimuli and adjusts
accordingly.
Kavungya answered the question on May 18, 2019 at 08:09

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