Network Organization-Part 2

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The Network Organization : 

copyright Marshall Scott Poole The Network Organization Part 2: The Network Organization

II. Network Organizations : 

copyright Marshall Scott Poole II. Network Organizations A. Definition Aggregates of free-standing organizations whose components are assembled to meet a particular set of demands Example: Textbook publishing

Slide 3: 

copyright Marshall Scott Poole

II. Network Organizations : 

copyright Marshall Scott Poole II. Network Organizations B. Characteristics of Network Designs Flexible, modular units assembled into structure Easy to reconfigure Sometimes all units from the same organization, sometimes from different organizations

II. Network Organizations : 

copyright Marshall Scott Poole II. Network Organizations B. Characteristics of Network Designs (cont) 2. Assembled by brokers 3. Team-based work organization

II. Network Organizations : 

copyright Marshall Scott Poole II. Network Organizations B. Characteristics of Network Designs (cont) 4. Flat organizational structure Relies on coordination and negotiation rather than hierarchy 5. Intensive use of communication and information technology To integrate the organization To automate coordination

II. Network Organizations : 

copyright Marshall Scott Poole II. Network Organizations B. Characteristics of Network Designs (cont) 6. Boundaries of network organizations are less clear than more traditional forms

II. Network Organizations : 

copyright Marshall Scott Poole II. Network Organizations C. An Example Calyx Flowers Headquarters organizes network Concierge takes orders and arranges for payment Direct arrangement with flower growers all over the world Growers arrange flowers Ship via UPS, other shippers Financial company collects payments keeps books, reimburses growers, shippers Growers Shipper Customer Financial Co. Call Center Calyx HQ

II. Network Organizations : 

copyright Marshall Scott Poole II. Network Organizations D. Communication Open communication system Organized for efficiency and problem solving Trust is very important: Relationship building Reputation

II. Network Organizations : 

copyright Marshall Scott Poole II. Network Organizations D. Communication (cont) 3. Formal systems for monitoring and control

IV. Postscript : 

copyright Marshall Scott Poole IV. Postscript A continuum of organizational forms Classical: Human : Human : Network Relations Resources Increasingly complex form Increasingly suited for changing environment