MGT 490 Lecture 51: Making Boundaryless Designs Work & Ambidextrous Org Designs
Document Summary
Virtual boundaryless organization requires: mechanisms to ensure effective coordination & integration, common culture & shared values, horizontal organizational structures: Org forms that group similar/related business units under common management control. Facilitate sharing resources & infrastructures to exploit synergies among operating units. Help to create sense of common purpose: communications & it, hr practices, awareness of benefits & costs of developing lasting internal & external relationships, benefits: Agency costs are reduced through use of relational systems. Transaction costs between firm & suppliers are reduced. Individual participants are less likely to perceive conflict of interest: costs: Relationships between individuals become more important than profits. Relationships are driven more by social connections than by needed competencies. Conflicts are resolved through ad hoc negotiations & processes: ambidextrous organizational designs: Address 2 contradictory challenges: how to maintain adaptability, proactive in expanding and/or modifying product-market scope to anticipate & satisfy market conditions, effectively exploit value of existing assets & competencies.
