Network and systems structure: Like team Advantages Flexible, dynamic Disadvantages Lack stability => Network structure: It is increasingly the structure for the Modern organizations in fast moving and competitive environment. It is also the design for multinational companies.
Trang 1Systems or Network Structure
Lecture 6
Unit 3 Organizations and Behaviour
Trang 2Systems Structure = Network
Structure
Systems Structure– called by Drucker - as
a
relationship focused structure
(note the ‘s’ in Systems)
Network Structure – used by your text
book – page 73, 74,
75, 76, 77
Trang 3Original of Network/Systems
• 1960s – NASA to put a man on the
moon before the decade end
• Japanese companies have used this system with their suppliers for a long time
Trang 4Today, organizations are faced with a Dynamic and turbulent environment
If simple structure is no structure,
Then network Structure is non organization
(see text book page 73)
Trang 5Increasingly, companies focus on their
core competencies, and outsource
other functions to other companies
e.g Apple focuses on product development and marketing - their core competences
Network structure is studied as
‘outsourcing’ in international business
“
Trang 6Core firm
Supplier 3 Supplier 2
Supplier 1
Distributor
2
Distributor
1
Network Structure
Trang 7‘Economy’ of Network
Structure
Toyota
Division Producing
‘Windscreen’ Division (Assembly)
An internal division producing windscreen will sell only to in-house
It will be less motivated as business is guaranteed.
Trang 8‘Economy’ of Network
Structure
If ‘outsource’ or Use
Network
Supplier
Nissan Honda
Supplier sell to Toyota, Honda, and Nissan
Specialization and economy of scale
achieved This leads to lower cost.
Trang 9Why Systems or outsourcing
is feasible now
Advances in technologies:
1.Communication
2.Transport
Trang 10Communication
Techonology Internet
Optical fibre
Submarine cable
Skype
Steve Merkell used Skype to coordinates production in Ningbo (China) and USA from Singapore
Trang 11Communication Technology
Mr Aung Kyaw Using a set of amplifier, he simply turns on Gtalk for the whole duration of 8 to 10 hours when he is in the office to communicate with his colleague, Mr Kyaw Win in Myanmar,
as if they were in the same office
Trang 12Transport Technology
- Aircraft 1911, Jet Engine 1945
- Containerization
Trang 13Singapore
Haiphong
3 days
While aircraft and jet engine are sophisticated technology,
a simply inventor – container drastically reduces sea-freight cost
Without Container With Container
Loading 7 days 1 day
Unloading 7 days 1 day
Trang 14Containerization Reduces
Cost
1 Without containerization
7+7+3+7+7 = 31 days
2 With Containerization
1+1+3+1+1= 7 days
Throughput of a ship is increased by 31/7 =
4 times !
Trang 15“Network” is Team Structure
Team is made up of individuals
Network is made up of organizations
As such, the elements of a team
apply:
1)Clear missions or objectives
2)Complementary roles, or skills
3)Performance standards
Trang 16Network and Systems
Structure Like team
Advantages
Flexible, dynamic
Disadvantages
Lack stability
Trang 17To make Network Structure
Work
The crucial importance of face-to-face personal, of constant meeting, and of bringing people into decision making Process.
NASA initially thought such system
would
be run by computer based system
Trang 18Members must make efforts to know what
Was happened throughout the whole system
Trang 19Network Structure
It is increasingly the structure for the Modern organizations in fast moving and
competitive environment
It is also the design for multi-national companies