Managerial Issues of a Networked Organization

Managerial Issues of a Networked Organization

The dynamic and sensitive state of affairs in the modern organization calls for adjustments in organizational systems looking for the effective and efficient arrangement of the organization’s operations. As a result, it is ultimately important for enterprises to boost and expand a fitting statistic network and organizational shape, one with a focus on all assets and facts essential for operational and strategic choices. Most organizations are shifting from hierarchical systems of management to devolved and integrated systems of management. In a networked organization, units of organization are viewed as network nodes that are connected and independent silos. Its people are treated co-dependently and individually.

According to the article by Diaz-Gibson et al., (2017), hyperlinks and nodes are implied by the network concept. The authors of the article assert that the nodes may be agencies, human beings, or groups operating in many different stages. The hyperlinks, on the other hand, are various mechanisms of settlement and coordination. According to Halinen & Moller (1999), network markets pose a challenge for technology and industrial enterprises. These challenges may arise from looking beyond the typical supplier and customer relationships into sophisticated webs of organizations structuring the R & D networks. The article outlines the management abilities relevant to network business environments. The authors go further to propose an approach applicable to network management.

According to both articles, management in network organizations is different from the typical management since it takes place in a context that is negotiated. Despite certain tasks being under the manipulation of power, the differentiating aspect in network management lies in that managerial authority cannot dictate role execution. In a networked organization, issues involving size, task nature, objective accord, and trust may be experienced. Other challenges include issues in supervisory roles, increased work stress, and challenges relating to security.



Díaz-Gibson, J., Zaragoza, M. C., Daly, A. J., Mayayo, J. L., & Romaní, J. R. (2017). Networked leadership in educational collaborative networks. Educational Management Administration & Leadership, 45(6), 1040-1059.

Kristian K. Moller; Aino Halinen (1999). Business Relationships and Networks: Managerial Challenge of Network Era. Industrial Marketing Management. Vol. 28. Pp. 413-427.


Reply 1

      The network mode of working and conducting business operations necessitates high levels of flexibility. To deal with this, there is a need for a significant boost in ambiguity and complexity in skills. Most organizations often struggle in the justification of investments and identifying the concerned lines of business in a networked enterprise. One of the challenges lies in finding business value. While many enterprises are willing to apply ESN in their organization, confusion from the hype regarding collaboration may arise. Regardless, companies ought to at least seek to gather knowledge on the network aspects. Another challenge lies in overcoming cultural differences and barriers. Most organizations encounter cultural barrier challenges regarding the application of ESN. Organizations have to invest heavily in resources and time required to understand, design and implement this concept rather than just incorporating in the hope that everything will end up well. It is ultimately crucial for organizations to understand every aspect of their business before the implementation of any policy that impacts their business operations.

Reply 2

     In the modern business world and environment, investors are not only faced with challenges in management, but also with issues regarding future uncertainty, performance monitoring, and regulation compliance. In order to make an impact on the economic climate, the accurate prediction of crucial business aspects such as market trends and customer trends is important. However, not every investor or business manager has the ability to predict the market with 100% efficiency. For this reason, organizations have to bring in trained consultants in predicting and reading all the important business trends. Additionally, it is essential for every organization management to apply well-rounded indicators of performance which give the organization insights on the level of performance. With the shift in technology and markets, certain rules have also shifted. Depending on the type of industry, it makes sense to incorporate consultants to aid with certain sophisticated areas for a smoother compliance learning process.

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