Bussines Managment
BTEC HND IN BM
WEEK # 02
OB / NOTE # 02
THE NETWORKED ORGANIZATION
As organizations restructure to respond to their environment, there has been a growing recognition of the need for new kinds of organizational structure. The Networked Organization is one such response. It has been defined by Lipnack and Stamps as one:
"Where independent people and groups act as independent nodes, link across boundaries, to work together for a common purpose; it has multiple leaders, lots of voluntary links and interacting levels."
The notion of a network implies nodes and links. The nodes can be people, teams or even organizations - networks operate at many levels. Common examples are distributed geographic teams in large organizations, or small organizations operating as networks to compete against large corporations. The links are the various coordination and "agreement" mechanisms. In a network, high degrees of informal communications (both face-to-face and over electronic networks) achieve success where formal authority and communications in hierarchical organizations often fail. Two way links and reciprocity across the links are what makes networks work.
Benefits of the Networked Organization Being closer to the customer - there is rapid communication between those at the sharpend and those who support them. Maximizing the knowledge potential of an enterprise; network members tap into expertise wherever it may reside. Minimizing disruption; a network has resilience to operate even if some parts fail (e.g. in a natural disaster). Responsiveness and adaptiveness. Like an amoeba, a network is sensitive to stimuli and adjusts accordingly.
MAFAS R
PAGE 1 OF 6
BM 29
BTEC HND IN BM
WEEK # 02
OB / NOTE # 02
In a network flexibility is the key. Recognize that team players change and tasks change. Where networks fail, we observe that it is usually due to three main causes: Not identifying all the stakeholders and network partners. Having
WEEK # 02
OB / NOTE # 02
THE NETWORKED ORGANIZATION
As organizations restructure to respond to their environment, there has been a growing recognition of the need for new kinds of organizational structure. The Networked Organization is one such response. It has been defined by Lipnack and Stamps as one:
"Where independent people and groups act as independent nodes, link across boundaries, to work together for a common purpose; it has multiple leaders, lots of voluntary links and interacting levels."
The notion of a network implies nodes and links. The nodes can be people, teams or even organizations - networks operate at many levels. Common examples are distributed geographic teams in large organizations, or small organizations operating as networks to compete against large corporations. The links are the various coordination and "agreement" mechanisms. In a network, high degrees of informal communications (both face-to-face and over electronic networks) achieve success where formal authority and communications in hierarchical organizations often fail. Two way links and reciprocity across the links are what makes networks work.
Benefits of the Networked Organization Being closer to the customer - there is rapid communication between those at the sharpend and those who support them. Maximizing the knowledge potential of an enterprise; network members tap into expertise wherever it may reside. Minimizing disruption; a network has resilience to operate even if some parts fail (e.g. in a natural disaster). Responsiveness and adaptiveness. Like an amoeba, a network is sensitive to stimuli and adjusts accordingly.
MAFAS R
PAGE 1 OF 6
BM 29
BTEC HND IN BM
WEEK # 02
OB / NOTE # 02
In a network flexibility is the key. Recognize that team players change and tasks change. Where networks fail, we observe that it is usually due to three main causes: Not identifying all the stakeholders and network partners. Having