Discussion-4Managerial issues of a networked organization
Networked Organization is defined as “a bunch of legally independent organizations/ subsidiary business unitswhich use various ways to coordinate and control their interaction so as to appear as a single larger unit.” A network-based organizational model uses digital technology and specialized employees for assignment completion without the necessity of traditional workspaces. There are three types of network organizations –
•Internal – large company with separate units acting as profit units
•Stable – central company outsources some work to others
•Dynamic – network integrator outsources heavily to other companiesIn these networked organizations, the companies are restructured to respond to their environment where independent people/groups act as non-dependent nodes which act as links between boundaries to work towards a common goal with multiple leaders, voluntary links, and various interacting levels.
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