Networked organisations are those that break down traditional hierarchies and foster connections among different parts of the company. They are characterised by three key principles. Firstly, they are open, meaning they share information freely and encourage collaboration. Secondly, they are decentralised, with decision-making power distributed among employees rather than concentrated at the top. Lastly, they are participatory, engaging all members in shaping the company’s direction and future.
A networked organisation’s structure is fluid and adaptable, allowing it to respond quickly to changes in the business environment. This flexibility is achieved by fostering a culture of trust and openness, where employees feel empowered to share ideas and take risks.
However, becoming a networked organisation is not without challenges. It requires a shift in mindset from traditional, hierarchical thinking to a more collaborative and inclusive approach. This can be difficult for employees used to working in a more structured environment. Managers in networked organisations also need to develop new skills, such as the ability to nurture relationships and facilitate collaboration.
Despite these challenges, the benefits of becoming a networked organisation are significant. These include increased agility, improved decision-making, and greater employee engagement. Ultimately, networked organisations are better equipped to navigate the complexities and uncertainties of the modern business world.
Go to source article: https://hbr.org/2015/06/what-makes-an-organization-networked