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Networked organization

In 1991, Rockart and Short mentioned eight dimensions of change involved in a networked approach to organizational functioning. The networked organization is recognizable through:
  1. Increased role complexity brought on by continuous changes in products, markets, processes, and organization.
  2. Managers need to cope with unclear lines of authority and decision-making.
  3. Increased skill requirements.
  4. Many teams that are problem-focused and outcome oriented.
  5. Appropriate measurement systems to assess individual, team.
  6. Cultural adjustments to face changes in accountability and authority.
  7. Changing the planning process.
  8. Changing the technology infrastructure, a senior management priority.
Today's networked organizations have flatter structures composed of task-focused teams. Flexible task performance shifts human interaction from superior-subordinate to peer-to-peer relationships. This requires that workforce and co-workers develop the ability to learn together and enjoy committed social gatherings.
Related organizational structures are:
  • The fan-like organizational structure with greater decentralization and division of authority. This gives a more stable network
  • The Matrix (Grid) organization for internal network
  • The Web organization with more a dynamic network
Illustrations