Page 31 - E1 Integrated Workbook STUDENT 2018

Organisational structure

Organisational forms and boundaries

6.1 Open and closed systems

A modern organisation should operate as an open (and not a closed) system since
interaction with the environment is the key to success.

6.2 Boundaryless structures

Boundaryless structures
are unstructured with a focus on
flexibility and new approaches to where,

when and how people work.

Hollow Modular Virtual

organisations organisations organisations

 Rely heavily on  An extension of  Outsource
outsourcing for a hollow many or all of
its non-core organisation. its functions.
activities.
 Breaks down  Exist as a
 Can focus on production network of
its core process into contracts with
competencies. modules. very few, if
any, functions
 Production is
being kept in-
outsourced with house.
each provider

being  A small,
responsible for central staff

only one co-ordinate the
module. third parties.

 Enabled due to
technological
developments.

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