Intra-Organizational Networks

Abstract

The growing interest in internal networks within organisations has been spawned by the apparent ineffectiveness of the traditional hierarchical organisational structures to deal with the complexity of today's business environment. Even with matrix structures, which can generate their own operational complexities, there is always an extra dimensional lever that executives would like to have access to. In designing organisational structures executives can choose to design around product or service lines, geographies, business processes, supply chain flows, customers, core competencies and the like. With the desire to facilitate faster decision making, executives are looking to flatten organisational structures, pushing accountability further down the line. The consequences are that hierarchical power and the power of position is now being eroded. The proportion of work activities needing to be achieved through influence and negotiation, rather than direction, is continually growing. As identified in the previous chapter, this is having a major impact on the competency requirements of managers operating in a more networked environment.Request access from your librarian to read this chapter's full text.