Final answer:
The network organization structure is a decentralized form of organization that relies on self-managed teams or units. It promotes innovation, adaptability, and employee engagement but can face coordination challenges and a lack of control.
Step-by-step explanation:
The network organization structure is a decentralized form of organization that relies on self-managed teams or units to achieve goals. In this structure, employees are interconnected through communication networks, allowing for quick decision-making and information sharing.
The characteristics of a network organization structure include:
- Fluid communication: Communication flows freely between individuals and units, allowing for collaboration and sharing of knowledge.
- Flexibility and agility: The decentralized nature of the structure enables quick response to changes in the external environment.
- Empowerment and autonomy: Self-managed teams have autonomy in decision-making and are empowered to take ownership of their work.
- Collaboration and teamwork: The structure fosters collaboration and teamwork, as individuals from different units work together towards common goals.
The advantages of a network organization structure are:
- Innovation: The structure promotes innovation as it allows for diverse perspectives and ideas.
- Adaptability: The decentralized structure enables quick adaptation to changes in the business environment.
- Employee engagement: Empowered employees have a sense of ownership and are more engaged.
However, there are also disadvantages to a network organization structure:
- Coordination challenges: Without a central authority, coordination between teams and units can become complex.
- Lack of control: Managers may have limited control over the decision-making process, which can be challenging for some organizations.
- Dependency on communication networks: The effectiveness of the structure relies on efficient and effective communication networks.