Organizational Structures In The Future Essay

917 words - 4 pages

Organizational structures in the future

Changes are getting increasingly turbulent, competition even tougher and the resources scarce and more expensive. Changes in the companies are manifesting in faster automation, computerization, better employment structure, new interpersonal relations and democratization of governance. New organizational forms such as T-organization, virtual organization, fractal and lean organizations have been developed. Organizational solutions like total quality management or reengineering business processes are being investigated constantly. Globalization in the business environment has a strong influence on the theory and practice of the organization, as ...view middle of the document...

Modern organizations depend heavily on knowledge because information is still the main resource of organization, with a dynamic sphere of high technologies. Given the intense process of networking organization, the organization is orientated towards their core business, outsourcing everything else through the purchase from other network members. Modern trends in terms of shaping the organization do not question the existing organizational structures that are indispensable as a primary form of business, but add an organic dimension of the organization, representing a form of enterprise connectivity. The "rigid" structure collapses, default borders being deleted by networking. This is comparable with worldwide globalization, the barriers breaking down and the states, markets and organizations uniting. Information technology thus enables networking of the world across all meridians and parallels. This will change the world in the near and distant future, and open possibilities for new ways of shaping the organization.

The virtual organization is an organization of the 21st century. It literally means virtual organization, or a substitute for reality (virtual stocks, virtual staff, virtual offices, tele - workers, teleconferencing). Virtual organization is not an actual organization (it usually does not have its own structure, which is why we talk about virtual organization and not a virtual organizational structure). Virtual organization is the complete opposite of vertically integrated company (outsourcing all of the activities except for those in which it is the leader). Virtual organization is therefore an opportunistic alliance of companies with core competencies in response to market uncertainty. While all companies in a virtual organization are equal, some have greater significance in the network. These are the companies that attract many others and are considered to be a dominant member of the network.

Network organization also represents a new form of organization that is closely related to the virtual organization. What was previously discussed in the context of virtual organization can be equally applied to the network organization as a...

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