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The document discusses two types of new organizational designs: virtual organizations and boundaryless organizations. A virtual organization is a temporary alliance between two or more organizations that collaborate to complete a specific project, with each partner contributing their core competencies. A boundaryless organization seeks to break down barriers both within the organization and between the organization and its suppliers/customers to encourage participation and information sharing. The document outlines the characteristics and types of both virtual organizations and boundaryless organizations.
The document discusses two types of new organizational designs: virtual organizations and boundaryless organizations. A virtual organization is a temporary alliance between two or more organizations that collaborate to complete a specific project, with each partner contributing their core competencies. A boundaryless organization seeks to break down barriers both within the organization and between the organization and its suppliers/customers to encourage participation and information sharing. The document outlines the characteristics and types of both virtual organizations and boundaryless organizations.
The document discusses two types of new organizational designs: virtual organizations and boundaryless organizations. A virtual organization is a temporary alliance between two or more organizations that collaborate to complete a specific project, with each partner contributing their core competencies. A boundaryless organization seeks to break down barriers both within the organization and between the organization and its suppliers/customers to encourage participation and information sharing. The document outlines the characteristics and types of both virtual organizations and boundaryless organizations.
Virtual Organization – is a temporary alliance between two or more organizations
that band together to accomplish a specific venture. Each partner contributes to partnership what it does best. Its goal is to deliver highest-quality product at the lowest possible cost in a timely manner.
Telecommuters - These companies have employees who work from their
homes. They interact with the workplace via personal computers connected with a modem to the phone lines. Outsourcing employees/competencies - These companies are characterized by the outsourcing of all/most core competencies. Areas for outsourcing include marketing and sales, human resources, finance, research and development, engineering, manufacturing, information system Completely virtual- These companies metaphorically described as companies without walls that are tightly linked to a large network of suppliers, distributors, retailers and customers as well as to strategic and joint venture partners. Boundaryless Organization – seek to break down vertical and horizontal barriers within the firm and between the firm and its suppliers and customers. An association where management has largely succeeded in breaking down barriers between internal levels, job functions and departments, as well as reducing external barriers between the association and those with whom it does business.
Joint ventures Mutual benefit Forms relationship Difficult to manage Participative Decision-making
Types of Boundaries
VERTICAL BOUNDARIES - create barriers between the different levels of
management that are part of the structure of an organization. HORIZONTAL BOUNDARIES - These boundaries are called vertical boundaries since they impede communication and interaction between organizational members who operate at different levels within the organization. EXTERNAL BOUNDARIES- it divides a company from others in its value chain. GEOGRAPHIC BOUNDARIES - these are special form of boundary of horizontal boundary. How will does a company cross national and cultural boundaries tha divides its international operations from each other and itself from foreign markets?