Definition of Network Organizational Structure
The organizational structure of a company is the formal and informal framework of organizational policies, such as hierarchical levels, lines of communication and reporting, and the rights and responsibilities of employees.
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Facts
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A network organizational structure is more complicated and complex than any other structure because it is consists of multiple organizations that work together to produce goods or provide services.
Significance
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An organizational structure should reflect the appropriate culture the company is trying to instill in their workplace; this is crucial in a network structure because organizations are accountable for the business ethics of all partners in their supply chain.
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Function
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The primary function of an organizational structure is to complement and support the business strategy used to accomplish the objectives and goals of the organization.
Benefits
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Network organizational structures are flexible and highly efficient because of the selection and use of the best partners available that provide specific needs.
Warning
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Network structures are susceptible struggling because of the over-reliance on partners, resulting in less managerial control on every stage of the supply chain.
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References
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