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NETWORKING

Creation of network organizational structures

  • "Networking" stimulates high-efficiency development quicker, than other organizational forms
  • Search of ideal organizational structure contacts with principle of variety, but not to the optimality
  • Failures of restructuring are explained by undercount of human factor

In an occident 80th passed under the banner of fight for quality of products, in 90th the slogan of decade were principles of reengineering of productive processes, and by the end of century, passing becomes a leading theme to network principles of organization of enterprises. It contingently that productive and commercial activity more becomes complicated and enterprises for the survival and development must search the methods of adaptation to the changes of environment. It is thus necessary to take into account the factor of time (the increase of operationability of actions requires the new going near the methods of production and management) and expansion of space of enterprise (if it wants to survive, it is necessary very quickly to move apart the market to national, and then international scales).

Enterprises must also quicker master a management a new strategic resource - information.

Meantime a traditional administrative tool became less effective, if not already out-of-date. From here necessity for the countries of transition-type to be more careful to perception that takes place in the world, and not to copy obsolete. There must be in highlight new methods allowing to pass some stages of development of management and obtain the substantial winning in time.

Passing to the modern methods of management is related to the network organizational structures.

Theory of question

First works on networks as it applies to the questions of management related organizations to the analysis of behavior of individuals and value of informal connections which play today the not last role in Russia. In the last developments examined influence of  intercompany collaboration on strategy of enterprises, and also bases of forming of networks of enterprises.

Strongly hierarchical organizational structure yield a place already to the network systems which reflect connections between the elements of internal and external environment of enterprises. Networking can result in two organizational models:

• to the network structure of large company which collects round itself the firms of less size, charging implementation of the different special tasks to them. Firms can have own subdivisions necessary for a production in turn, but requiring very high specialization. In this case a network is hierarchical and major concern occupies dominant position in business operations, being a head customer. Shallow structures quickly get in dependence on more powerful partner, that for them undesirable. Advantages of major concern allow to carry out control not due to participating in a capital, but through a market mechanism. Large firms (enterprise-network) pick up partners different high flexibility, by an adaptivity to the changing terms, by creative potential;

• most which are independent (legally) the aggregate (networks) of enterprises near in size, but support stability of each other (in an economic plan), that it is very important for all. Like concord, operating often within the limits of one region or within the framework of one type of activity, promotes a competitiveness produced goods and services. Constancy of connections which are managed a few key firms, by a stimulant innovative and commercial processes, simplifies the administrative tasks of small-scale and middle enterprises - members of network.

Important question  - about the place of networking in the system of measures of strategic management. In principle enterprises have the limited number of possible base strategies of development. It was even considered to the last time that the simultaneous use a few from them eliminated. However a like statement refutes appearance of the flexible productive systems and satellite communication, conceptions of the so-called unitary market segments.

Creation of network structure of large company is called to provide favourable terms for high-efficiency development (regardless of that whether expansion it horizontal type, vertical integration or diversification), rather, apparently, stimulates a joint height. It is not very much important thus, assumed to conduct an investment project on national territory or abroad. The choice of network organizational structure becomes the condition of realization of the special type of height, when he in the direct understanding of word is not foreseen, as the question is about co-operation agreements.

Strategy of networking is comparable with the methods of narrowing of own productive activity, when an enterprise stops self to engage in some types of production and turns to their external performers. Similar strategy appears appropriate on the diversifyed state enterprises Russia or some new private firms which can be concentrated on the priority on your own areas of specialization, and to pass to other types of activity the external performers, getting along at them more successful, than internal subdivisions (for example, enterprises on sewing or constructing of clothes charge to the contractors of function on the electronic cutting out of fabrics et cetera).

Network organizational structures can be built within the framework of strategy, supposing a search the enterprise of prospects of creation of "foods (markets) of technologies", using partner relationships with other firms or formation of joint branch.

In the mode of network gives new competitive edges functioning. Strategic management allows to shorten costs networks and promote profits, provide the quickness of reaction of enterprise on the change of the state of affairs.

Presently many organizations try to conduct decentralization, renounce some types of activity, abbreviate a personnel et cetera. In these aims used, in particular, reengineering, restructuring et cetera. As practice testifies, all these methods do not give noticeable success on western firms, if they are used independent of each other. It it is necessary to take into account to the Russian enterprises. Their passing requires to the network structure, to our opinion, three-dimensional approach, supposing the use of the next actions coordinated with each other : rethinkingе of conception of firm with corresponding adjustments of strategic priorities, reengineering of mechanism of functioning and structural alteration. Only in the zone of crossing of three fields it is possible to search decisions, providing efficiency of enterprise and, consequently, competitiveness and viability.

Mechanism and transition

Forms to the network structure must there the first stage of motion of traditional enterprise be rethinking of reference-points : who we? what do we do? where do we go? where would like to go?

After determination of orientation the analysis of mechanism of functioning of enterprise is possible. A way is here opened for the gradual passing to such type of firms which are specialized only on own (individual) "now-how" with that, to provide a competitiveness at the market.

Reengineering - one of the last fashionable fascinations in the world of management. It is assumed that he must revolutionize an enterprise at the level of both methods of work and arrived at results. For the last three years the very large number of firms tried to use this method for the improvement of all parameters of work. However results appeared disappointing, that must guard the Russian enterprises.

On one of determinations of reengineeringг is the method of perfection of descriptions of enterprise, which results in radical changes along with such methods, as a strategic planning, management by changes, achievement of total quality and architecture of development. In this case reengineering means radical alteration at the level of both structure of enterprise and his procedures. Procedure can be examined as an aggregate of types of activity, providing producing goods or favour for a certain client or market segment.

Procedures are on the nature interfunctional, interdivisional and even by the in-divisional attributes of activity. An enterprise must show innovative approach, ingenuity for an acceptance on the armament of revolutionary on maintenance methods of work on the base of new technologies.

Sometimes reengineering bind to the radical revision of working procedures with the purpose of sharp improvement of such parameters, as costs, quality, services and operationability. The question, consequently, is about the means of increase of efficiency of organizational structure.

On other determination of reengineering is this rapid and radical reconstructing of strategic procedures of productive character (creating a valueadded) with the purpose of optimization of working streams and productivity.

If to consider, that an enterprise engages in two types of activity - basic, creating a valueadded, and auxiliary, then the aim of reengineering are an increase of efficiency of the first kind and maximally possible exception second - unproductive operations. Control functions, though fall into the category of unproductive, often are necessary for the estimation of types of activity.

Reengineering of working procedures requires corresponding adaptation of structures of enterprise.

The classic problems of constructing of structures of enterprise are related to specialization. In many works 60th are beginning of 70th this theme was well investigational, that allowed to create the formalized model of stage-by-stage strategic development of firm. Some scientists describe the evolution of firms with the selection of a few large stages.

At the beginning of century an enterprise was completely managed an owner frequently. In subsequent years organization differs on executable functions: production, sale, finances, record-keeping. The period of creation of corporations comes then, which are pay attentions on the questions of expansion, relationships with competitors, creation of new markets and foods. The structures of type are herein seen "matrix".

In 80th enterprises begin to give preference to the structures of type "dynamic networks". There is an evolution from the procedures coordinated hierarchically, to the procedures oriented to the market.

The first structural form is an enterprise with one type of activity (by monospecialization), which is oriented on one strategic market segment (it behaves to the large number of the recently created Russian productive enterprises). Here a management requires specific competenses which determine character of association of functions the only internal stream of operations (from a supply to realization). It is possible to talk about a structure with functional specialization.

If an enterprise operates on a few strategic market segments, it accepts another structure radically - divisional (with the corresponding number of separations). Differentiation of plenary powers comes true on different segments or separations. Finally, an array pattern is the hybrid of two first types of organization.

A functional organizational structure provides effective work only in the conditions of stability of external environment and technology. Being strongly centralized and hierarchical she does a firm mobile not enough. Divisional structure reminds the complex of the small-scale monospecialized enterprises.

Within the framework of matrix principle of hierarchy is called in a question. Power is not constantly set, it becomes the temporal resultant of co-operation of different forces, that it contingently complication and instability of environment in which it is necessary to operate to the enterprise.

Organization in form network - a hybrid decision, uniting three previous types of structures (functional, divisional matrix), providing more effective variant of differentiation of activity and connections, and also proportions between an autonomy and control.

The study of forms of organization of enterprises allows to draw conclusion about that gradually finds confession principle of variety. The search of single conception, ideal structure adapted to any organization, is replaced by aspiring to the varied conception, which the idea of optimal model is fully absent as it applies to.

Technology of transformations

Reengineering helps to identify procedures, being strategic for organization, corresponding to the values, tasks and priorities of enterprise. Organization is pay attention on key workers procedures, those, the results of which are consonant with aims and setting of firm. The methods of work change by means of reengineering. Appearance is related mainly to that traditionally enterprises were structured on a vertical chart, on the functions (of НИОКР, financial department, commercial service et cetera), and workers appeared reserved in subdivisions, their actions were limited to these scopes. The method of reengineering is aimed at the increase of competitiveness of enterprise due to reorganization of productive processes, orienting them on the necessities of clients. An ideal decision on this chart is forming of such complex of productive processes, when for each of them it is possible to distinguish beginning and end, and also incoming and outgoing elements.

However consider that reengineering too mechanistic reception, not taking a human factor into account. Insufficiency of account of his role during transformations is explain the high degree of failures. In addition, reengineerng is, rather, by an instrument from a tactical arsenal, and the scales of necessary changes require strategic approach necessarily.

An enterprise in the process of reengineering modifies the system of functioning, skilled policy, management sphere et cetera Accordingly his structure will suffer changes, because reengineering of working procedures and control physical persons or command of people, but not subdivisions, must carry out above them.

While specialists were not able to give determination to the organizational structures which would answer the specific of method of reengineering to a full degree. It is talked about the corporation of horizontal type, kvazifirm, use expression "symbiotic enterprise", name such organization and "virtual". Restructuring equates also with a method which is reduction of number of hierarchical levels.

The operation of forming of network structure can not be presented as the consistently carried out stages. It iterative and continuous in time process. Passing to network organization takes place only after realization of corresponding procedures.

The phenomenon of transformation of organizational structure is globally described. A country achieves success already not only in separate industries, and in development of "clusters" of the industrial sectors incorporated by vertical and horizontal connections. Russia just like this was organized during great while. Why not to make an effort turn to advantage from these historically existing connections between former productive structures?

In modern terms success brings already not only economy on the scales of production but also constantly communicated between necessities and accepted for their satisfaction of decision. Has the special importance ability quickly to identify problems. Connection of technological and commercial knowledge takes place due to ability to foresee. Positive in this plan passing of enterprises to the network structures. If a firm wants to take the deserving place in a competition at the global market, it must get used to perception of new world economy as network structures. For this purpose it is important to identify the levels of strategic and organizational development of firm and obtain their accordance to each other.

If a network structure is a strategic choice, it is necessary to consider a question about the type of decisions. The evolution of organizational structure is begun with a strategic decision. It is necessary rethinking an organizational structure from the point of view of efficiency of strategic priorities. Then in tying up with the conducted analysis some tactical decisions are accepted, touching reengineering. In the last turn an enterprise engages in restructuring (again in tying up with the results of preceding transformations), affecting a policy in the different areas of activity of enterprise, working procedures, operative decisions, role functions and plenary powers. An enterprise which wants to create control system in form network must pass all these stages necessarily.

We live in the epoch of enterprises-networks and networks from enterprises, firms hearing the confession new principles of management.It is necessary to accept challenge from the side of organizational structures, to provide their survival. In final analysis the question is about a challenge  to administrative science, first of all to the strategic management. Especially it touches Russia, which is able to prove that she all better seizes subtleties of market economy.


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