MGT 500 Lecture 90: Alternate design options
25 Nov 2020
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Document Summary
In trend increasing toward flatter structures, a lot of organizations have been developing new options with less hierarchy layers and more emphasis on opening organizational boundaries. Asking yourself why own when you can rent deals with the essence of virtual structures. These are normally small, core organizations that outsource major business functions. The virtual structure is highly centralized, with little/no departmentalization. The prototype of the virtual structure is today"s filmmaking organization. Managers in virtual structures spend a lot of their time coordinating and controlling relations that are external to the organization. Network organizations take a lot of different forms. The franchise form: this is where there are managers, systems, and other experts in the central node. Customer sales and services are carried out by franchise units. This popular form of network organization is very common in service business models, such as:
