Electronic Communication and Changing Organizational Forms

1
Electronic Communication and Changing
Organizational Forms

• Janet Fulk, Gerardine DeSanctis

2
The article is about new communication
technologies and changing organizational forms.

• Changes in organizational forms
• Intraorganizational Forms
• Vertical Control
• Horizontal Control
• Interorganizational Forms

3
New Communication Technologies Offer

• Increase in the speed of communication
• Reduction in the cost of communication
• Rise in communication bandwidth
• Expanded connectivity

4
Intraorganizational Form

• Changes in Vertical Control
• The traditional management structure is replaced
  by a leaner structure.
• The workers are empowered.

5
Changes in Horizontal Coordination

• Concurrent Engineering
• Workers can work on different parts of a product
  simultaneously.
• Stockless Production
• The materials needed for an operation delivered
  just at the right time.
• Virtual Organization
• Consist of workers working remotely not tied to
  any particular workspace.

6
Interorganizational Forms

• Rise in interest of interlinking organizations.
• Strategic Alliances
• Partnerships
• Joint Ventures
• Franchises
• Networked Organizations

7
Advantages Disadvantages

• Reduction in the Costs
• Increasing Bandwidth
• Concurrent Engineering
• Stockless Production

• Economic Pressure
• Downsizing
• Lay-offs