Question
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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