April 22 2014
1. Theoretical Background
A boundaryless organization is a modern approach in organization design. It is an organization that is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined or traditional structure. This term was coined by former General Electric chairman Jack Welch because he wanted to eliminate vertical and horizontal boundaries within the company and break down external barriers between the company and its customers and suppliers. Traditional companies with boundaries, rules, and extensive plans are at a supreme disadvantage in today's globalized world, where technology changes daily and the value chain commands changes of its own. In a traditional company where people are categorized into neatly defined positions with their job descriptions filed in three copies in the human resources department, the way a company plans its business can cause it to sink or swim. Bad planning can mean lost opportunities, being overtaken by the competition, loss of revenues, or watching its position slip away because of a new technology, an alteration in the global marketplace, or simply a failure to market its product effectively. When changes occur, they happen too quickly for its organizational processes to meet them. As a result, opportunities are quickly lost, problem situations take over rapidly, and before the company can respond appropriately, it has lost customers, opportunities, and market share. Although that company likely has more than enough talent within its walls to offset all of those disasters, the talent is never put to use, because employees are constrained to operate within the confines of their job descriptions, where only the prescribed talents can be put to good use. The answer to this dilemma lies in boundaryless organizations. The boundaryless organization does not operate according to volumes of planning documents, job descriptions, or tradition, instead it regroups and innovates. The boundaryless organization has developed primarily due to the widespread distribution of information and the presence of information technology. But if you have great innovative companies such as Newskool Grooves that is always ready and ahead of the game, with a little guidance, the company can make it through. The company has to always be alert of impacts of every decision made. Boundaryless organizations communicate mainly through email, phone and other virtual methods rather than more traditional face-to-face communication. The freedom to telecommute with international employees removes geographical barriers to productivity and allows for schedule flexibility. By organizing expert employees in groups and giving them decision-making authority, these companies can change quickly to meet needs and function efficiently in an ill-defined hierarchy. 2. Facts of case
Employees no longer work in isolation but work as part of a team on broad, company-wide projects, quality management, just-in-time methods, lean production, and supply-chain management. The advantages of a boundaryless organization are that it is highly flexible and responsive and draws on talent wherever it is found. The disadvantages are that there is a lack of control and it presents communication difficulties. As in the case study, we can find that Newskool Groove has a decentralized culture and a company which reinvents itself 2 to 3 years; the bigger fight is a constant war against stagnation and rigidity. In boundaryless organization developers had a major communication breakdown about their hardware DJ controller, which required many hours of discussion to resolve. The boundaries of an organization can be divided into following four types: Vertical - Boundaries between layers within an...
References: 1. URL: http://mysite.verizon.net/lpang10473/web/ldc_flat.htm
3. URL: smallbusiness.chron.com › ... › Organization Structure
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