The Network Level Needed in Determining Organizational Structure

Altin Kavadarli

doi:10.22610/imbr.v9i1.1594

Abstract

As the external operations of organizationsbecome more complex with increasing globalization and as structures encounter difficulties in multi-tasking and increased information flow management, there is a need for more flexible and faster way of organizing. In order to promote efficiency and flexibility, organizationsâ€™ restructuring efforts result from need for coordination and work that increasingly occurs through informal networks of relationships rather than through formal structures. As the rapid adoption of social media and mobile computing are transforming how organizations in all industries relate to their environment, organizationalnetworks can be found inside every business and shape how employees share, communicate and collaborate at the workplace. New structures are emerging that blend different types of networks and hierarchies. The nature and complexity of the business determines the best the way its organizational structure is organized and this paper presents a theoretical model to help determine ideal organizational structures for different needs in order to deal with the pace and ambiguity of the business environment.

Highlights

Traditional organizations integrate work vertically, where they place authority in a pyramidal, hierarchical structure
Hierarchies are structures consisting of internal networks, in which external network systems are almost not present,in the recent years, significant restructuring efforts have resulted in organizations with fewer hierarchical levels and more elastic functional and organizational boundaries
The use and popularity of the network concept by social science researchers intensified in recent years, as scholars started to recognize the relevance and importance of relations for business activity (Easton & Araujo, 1986; Harland, 1995; Nohria & Eccles, 1992)

Summary

Introduction

Traditional organizations integrate work vertically, where they place authority in a pyramidal, hierarchical structure. To function well as a group, mutually agreeable goals should be established as well as a coherent group identity, and norms for action and exchange that enable and disable group and non-group actions.With a network structure, knowledge workers are able to create and leverage information to increase competitive advantage through the collaboration of small and adaptable self-directed teams In order for this to happen, the organizational culture needs to change from a hierarchial to an agile structure enabling multiple forms of organizing within the same organization.Many studies show that synergy helps motivate agents to work together and grouping requires agents to balance several needs: flexibility and stability, generalization and specialization, and decentralization and centralization

Theoretical Model

Conclusion