Network structure

MBA project

1. VIRTUAL NETWORK STRUCTURE 1

2. to be covered What is organizational Structure..?? Types of Organizational Structures Network Structure : Meaning Advantages and Disadvantages of Network Structure Examples 2 TOPICS

3. What is organizational Structure..??? Organizational structure is a system used to define a hierarchy within an organization. It identifies each job, its function and where it reports to within the organization. 3

4. Types of Organizational Structure Functional Structure Divisional Structure 4

5. Types of Organizational Structure (continued….) Matrix Structure Network Structure 5

6. Network Structure Meaning - The network structure is a newer type of organizational structure viewed as less hierarchical. It is more decentralized, and more flexible than other structures. It allows management to become flexible in responding to new technology, fashion or low-cost foreign competition. 6

7. Network Structure (continued…) In a network structure, managers coordinate and control relationships that are both internal and external to the firm. Sometimes network structure is described as a virtual organizational structure. 7

8. of Network Structure Maximizes the effectiveness of the core unit Highly flexible without much managerial layers High individual participation Crosses geographical boundaries Network partners can be replaced if they do not perform up to the standards Foster learning 8

9. Disadvantage of Network Structure 9 Tough to manage relationship with external stakeholders Possibility of conflicts Difficult to co-ordinate Increase dependency Loss of Control

10. Examples 10

11. Other functions Emerson Radio Corporation 11 Designs & Engineers (TVs, Stereos, other consumer electronic products) Manufacturing (Asian suppliers) Distribution

12. 12 Examples

13. Examples 13

14. Examples 14

15. 15 Thank You…