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A network structure is suited to unstable envir...

A network structure is suited to unstable environment. Am I right to say so?

A network structure is suited to unstable environment. Am I right to say so?

0
Chiranjibi Chapagain Mar. 21, 2018

Yes you are!

Network structure is a newer and somewhat more radical organizational design. The network structure could be termed a "non-structure" as it virtually eliminates in-house business functions and outsource many of them.

An organisation organized in this manner is often called a virtual organization because it is composed of a series of project groups or collaborations linked by constantly changing non-hierarchical, cobweb-like networks. The network structure becomes most useful when the environment of a firm is unstable and is expected to remain so.

Under such conditions, there is usually a strong need for innovation and quick response. Instead of having salaried employees, it may contract with people for a specific project or length of time. Long-term contracts with suppliers and distributors replace services that the company could provide for itself.

A network structure is suited to unstable environment. Am I right to say so?

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