Organizational design needs to be understood holistically and applies “simplicity” principles to architecture.
Network Organization: In a network organization, a central hub firm collaborates with long-term corporate partners to supply goods and services. This network comprises relatively small companies that collectively present the appearance of a large corporation. This structure allows for a flexible ecosystem of companies organized around web-based information systems, enabling them to concentrate on their core competencies and outsource other parts of their value chain.
Cluster Organization: A cluster organization consists of permanent and temporary teams of individuals with complementary skills. Team members are often dispersed globally and use web resources, corporate intranets, and collaboration systems to work together. This structure facilitates around-the-clock knowledge work, leveraging global virtual teams that "follow the sun".
Adhocracy: Adhocracy is an organizational design characterized by high flexibility, loose coupling, and frequent change. It is designed to address complex and turbulent environments, with decisional authority resting with highly trained technical experts. Adhocracies are less hierarchical, tolerate ongoing changes in their subunits, and are often found in high-technology firms and innovative research units.
Virtual Organization: Virtual organizations do not rely on physical offices or standard organizational charts. They leverage information systems to enable new organizational structures, allowing employees to work virtually anywhere. This model includes home offices, regional work centers, and mobile offices, promoting the idea that "work is the thing you do, not the place you go to".
Decentralized Autonomous Organization: A decentralized autonomous organization is a blockchain-based organization governed by computer code. Smart contracts establish rules and track actions, enabling members to participate democratically in the organization's development and operation. DAOs replace traditional centralized management systems with smart contracts that support voting and decision-making.
Restructured Hierarchy: In response to the challenges posed by complex problems and a rapidly globalizing world, some organizations have restructured their hierarchies by reducing the number of layers. This aims to make the organization more responsive and attentive to the diverse interests of its stakeholders.
Organizational design needs to be understood holistically and applies “simplicity” principles to architect and design an ecological organization that can self-adapt and self-renew, being able to reconfigure its own structure and change its own behavior during the execution of its adaptation to environmental changes dynamically.
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