How network design is similar to and different from other types of organization design

All types of organization design attempt to structure work units to achieve the organization's goals. Network design is similar to other types of organization design in two ways. 

 

First, it incorporates manifestations (albeit limited) of the bureaucratic principles identified by Weber (i.e., hierarchy of authority, centralization, division of labor, rules, procedural specifications, impersonality, chain of command, and span of control). Second, it represents an attempt to manage the effects of differentiation, integration, and uncertainty between work units. 

 

The network design is different primarily in that it represents a fundamental breakthrough in overcoming the disadvantages inherent in the other types of design. It helps managers cope with turbulent environments and technologies. It emphasizes communications across firms and processes needed to manage complex sequential and reciprocal inter-dependencies among individuals, teams, departments, and divisions. 

 

The design also draws on the revolution in information technologies (including groupware) that enable formation of convenient and low-cost networks and change as needs and goals change. The network design generally requires a management philosophy and organizational culture that supports an organic system. Thus, the network design is at the cutting edge of contemporary organizational design principles is used by hospitals, movie studios, R&D companies, and publishing industries.