Network Organization

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Definition Network Organization?

Nowadays, knowledge workers create, share and leverage information through collaborating with colleagues in various flexible, international, multi-disciplinary and cross-functional teams. Organizations are increasingly viewed as part of these inter-organizational relationships.

The current business climate is characterized by profound and frequent changes and increasing complexity due to globalization, sudden increases in information and communication capabilities, and other forces.

Rapid developments of ICT are enabling, supporting and even driving the sudden change from the industrial to the information age and network economy.

A Network Organization is a pattern of social relations over a set of persons, positions, groups, or organizations. This type of "organization" is well adapted to unstable conditions, when problems and requirements for action arise which cannot be broken down and distributed among specialists' roles within a hierarchy.

Interactions run laterally as much as vertically. Communication between people of different ranks tends to resemble lateral consultation rather than vertical command and omniscience can no longer be imputed to the head of the concern. Such "organizations" are using social mechanisms for coordination and control.

Compared to the vertically integrated company, a networked company is characterized by greater Organizational Agility and adaptability. It has more flexible relations with external third parties such as customers, suppliers, outsourcing firms, and regulators.

100% networked organizations are still relatively rare. Especially for large organizations. But in many if not all business and public organizations we can see Hybrid Forms of Organizations being deployed with both mechanistic and organic elements.

Also called: Virtual Business / Organization or Network-centric Organization.

Forum Start a new topic about Network Organizations Write here. Ask a question or explain something. Forum about Network Organizations. 🔥 Useful Professional Networking??? Despite the fact that social networking is all around, many business people find networking activities distasteful and avoid them even if it can contribute to job and business opportunities, broader a... 24   20 comments The 6 Benefits of Networking for Organizations Networking can yield a number of benefits for individuals, but also for organizations. The Hunter Institute mentions 6 advantages that networking can have for organizations: INFORMATION SOURCE: ne... 11   13 comments Benefits of Social Media from a Networking Perspective A theoretical foundation that can explain the nature and impact of social media is the idea of “networking capability”. Networking capability is a key benefit of social media and helps to explain thei... 3   Entry Barriers, Mobility Barriers and Step-out Barriers What are the entry-, mobility, and step-out barriers in networks?... 3   1 comments What is Network Governance? Cases I am conducting a study on "network governance" and I would like to analyze some case studies. I will be very grateful if you can indicate me any company that adopts this model. Thank you very much.... 1

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Compare with: Chaordic Organization  |  Organization Chart  |  Hierarchical Organization  |  Matrix Organization  |  Relational Capital

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