Network Organization

Description of Network Organization. Explanation.

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Definition Network Organization. Description.

A Network Organization is a pattern of social relations over a set of persons, positions, groups, or organizations that is well adapted to unstable conditions, when problems and requirements for action arise which cannot be broken down and distributed among specialists' roles within a hierarchy.

Interactions run laterally as much as vertically. Communication between people of different ranks tends to resemble lateral consultation rather than vertical command and omniscience can no longer be imputed to the head of the concern.

Compared to the vertically integrated company, a networked company is characterized by greater Organizational Agility and adaptability. It has more flexible relations with external third parties such as customers, suppliers, outsourcing firms, and regulators.

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Compare with: Chaordic Organization | Organization Chart | Hierarchical Organization | Matrix Organization | Relational Capital

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End of description Network Organization. An explanation.