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Network economy improves the internal organizational structure of enterprises

Source: Shangpin China | Type: website encyclopedia | Time: November 21, 2014
Network economy can change enterprise organization and make it develop in the direction of networking, flattening and scientization. The enterprise will transform from a vertical command and control organization to an information network organization dominated by experts. Microelectronics technology has blurred the boundary between blue collar workers and white-collar workers, and has greatly increased the importance of information materials owned by computer programming workers and marketing, development and design personnel close to the market and consumers. This development will inevitably impact the company's bureaucracy and various vertical hierarchies and their concepts. The development of network technology will make intermediate management increasingly redundant, because production orders can be put in place in one step, and the enterprise organizational structure shows a flat development trend. Through the interaction with production managers, information networks increase the knowability and transparency between managers and management objects, so as to improve the order of productivity system operation.

 internet economy

(1) Traditional linear organizational structure
The characteristics of the straight-line structure are that information such as command and order is conveyed and implemented from top to bottom, information transmission is simple, command and order system is single, duty and authority are clear, horizontal contact is few, and it is easy to maintain the activity order of the organization. Its advantage is that it can effectively manage a large amount of investment, division of labor and large-scale mechanized production. However, it has great defects in itself. It has a professional management division of labor, and all management functions are undertaken by one person in charge. Objectively, it requires managers to have various management capabilities and business skills, which is difficult to do in fact. With the expansion of organization scale and the complexity of organization activities, its defects are more obvious under the impact of information network.

(2) Network economy challenges linear organizational structure
With the emergence of the network economy, the original social economic activities, whether the main body of the design economic activities or the actual operation of the social economy, have almost all been brought into the orbit of the information network. Especially with the development of Internet, the scope of network economy has rapidly expanded from one country or region to the whole world. On the one hand, the emergence of the network economy has changed the economic operation pattern centering on the production, exchange, distribution and consumption of material products, resulting in a substantial increase in the proportion of the tertiary industry represented by the information service industry; On the other hand, people's social and economic activities, including online shopping, consumption, savings, securities investment, tourism and other new product development and research, discovery of new marketing opportunities, trade negotiations on the Internet, have undergone unprecedented changes from the form of transactions to the operating mechanism. The development of knowledge economy and information networking has posed new challenges to the economic organizational structure.

The deep-seated reason why the network economy challenges the linear organizational structure lies in the transaction mode and operation mechanism of the network economy, which is different from the industrial economy. First, there are differences between the individual behaviors of the network economy and the industrial economy. Industrial economy believes that individuals are the foundation of organizations, and these individuals appear as representatives in economic operation in a certain way and act as the main body of economic activities. Under the condition of network economy, individuals, as the nodes of social and economic networks, have a crisscross interest relationship, thus forming a network group interest structure composed of different individuals. Secondly, there are differences between the network economy and the industrial economy in dealing with the relationship between the enterprise organization and the external environment. The enterprise and the market in the industrial economy are opposed to each other and replace each other. The essence of this relationship is to save transaction costs, and there is a clear and measurable boundary between the enterprise organization and the external environment, It is helpful for enterprises to prevent risks and carry out future strategic management and decision-making.

(3) Organizational Structure in Network Economy
The network economy is a knowledge-based economy, which needs a more dynamic and intelligent organization. However, in the significant and far-reaching economic transformation from industrial economy to network economy, the organization of network economy cannot be achieved overnight and needs a long historical evolution. Even if the society has fully entered the network economy, its organizational structure is also faced with the choice of diversified structures of different subjects, different industries and different departments, rather than a simple and simple organizational structure. Organizational structure is the contact way or form in which various organic elements interact within an organization. It involves the determination of management welfare and management levels, the establishment of institutions, the division of management functions, and the identification of management responsibilities and authorities. Therefore, the organizational structure is an important issue in the theoretical research of network economy management Website Design The objective requirements of the network.
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