What are the advantages of a network organisational structure?

A network organisational structure offers flexibility, cost efficiency, access to global talent, and faster decision-making processes.

A network organisational structure is a more modern and flexible approach to structuring a business. It allows for a more fluid and adaptable way of working, which can be particularly beneficial in fast-paced industries where change is constant. This structure is often decentralised, meaning decisions can be made more quickly and efficiently, without the need for multiple layers of approval. This can lead to increased responsiveness and agility, allowing the organisation to adapt to changes in the market more swiftly.

One of the key advantages of a network structure is cost efficiency. Rather than having all functions and departments in-house, a network organisation can outsource certain functions to external providers. This can lead to significant cost savings, as the organisation only pays for the services it needs, and can avoid the overhead costs associated with maintaining these functions internally.

Another significant advantage is the access to global talent. In a network structure, an organisation is not limited to hiring employees in a specific geographical location. Instead, it can source talent from across the globe, allowing it to tap into a wider pool of skills and expertise. This can lead to increased innovation and competitiveness.

Furthermore, a network organisational structure can foster a more collaborative and inclusive culture. As the structure is less hierarchical, it can encourage more open communication and collaboration between different parts of the organisation. This can lead to improved problem-solving and decision-making, as ideas and information can flow more freely across the organisation.

In summary, a network organisational structure offers numerous advantages, including increased flexibility and responsiveness, cost efficiency, access to global talent, and a more collaborative culture. However, it's important to note that this structure may not be suitable for all types of organisations, and its effectiveness can depend on factors such as the nature of the industry and the organisation's strategic objectives.