v) Virtual/Networked

organisational development change management

. This typically is a small, core organisation that has outsourced its major business functions. In structural terms it is highly centralised with little or no departmentalisation. The movie industry is a good example, as most movies are made by a collection of individuals and small companies who come together project-by-project to make films; after each film they disperse.

. The advantages of this structure are

- It allows each project to be staffed with the most suitable talent (from inside and outside the organization)

- It minimises the bureaucratic overheads as there is no lasting organisation to maintain

- It lessens long-term risk and costs because there is no long-term: it is assembled for a finite period and then disbands

- It allows maximum flexibility to develop and can act on innovative ideas

- It creates a network of relationships/contacts

- It allows the organisation to concentrate on what it does best and outsource other functions

- It allows managers to spend most of their time coordinating and controlling external relations, typically by way of computer-network links

. Its major drawback is that it reduces management's control over key part of its business.


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