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Good Morning
I am a tad confused by what a Network Organisation is?
I think that internally it is similar to that of the matrix structure in so far as departments and individuals work for various managers/companies. In addition there is the external resources which can be utilised in the form of consultants, professionals and service providers.
In essence a network is formed of internal & external resources to achieve the objective.
Is this right?
Do you have an example of a Network organisation, sorry if this is a stupid question!
Your time is much appreciated.
Not stupid. Many organisational structures are not distinct form others: there is no limit to managers’ imagination.
As you say a network structure uses internal and external resources to achieve their objectives by coordinating how these interact. They usually involve a lot of out-sourcing to external firms.
For example, elements of Apple are a network structure. Apple does no make all of its components so they coordinate component manufacturers both to design and to deliver components. Construction of Apple devices is outsourced to very large manufacturers, mostly in China. Delivery of the products would be handled by a logistics company which might also customise the phones for their local market.
The idea is to concentrate on what you do well – your core activities. For Apple, a core activity is undoubtedly design and innovation. Other operations are best outsourced to companies who perform those functions very well.
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