Preview

The Boundary less Organization

Powerful Essays
Open Document
Open Document
1628 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Boundary less Organization
The Boundary less Organization
General Electric’s former chairman, Jack Welch, PROBABLY coined the term boundary less organization to describe his idea of what he wanted GE to become.
He wanted to turn his company into a family grocery store. That is, to eliminate vertical and horizontal boundaries within GE and break down eternal barriers between the company and its customers and suppliers.
The boundary less organization seeks to eliminate the chain of command have limitless spans of control and replace departments with empowered teams.
It relies so heavily on information technology some have turned to calling this structure the T-form (or technology based) organization.
Other “boundaryless” co’s are - Hewlett-Packard, AT&T Motorola and Oticon A/S
GE - Current CEO = Jeff Immelt
Below is a statement about boundarylessness by Jack Welch.
GE's diversity creates a huge laboratory of innovation and ideas that reside in each of th businesses, and mining them is both our challenge and an awesome opportunity. Boundaryless behavior is what integrates us and turns this opportunity into reality, creating the real value of a multi-business company -- the big competitive advantage we call Integrated Diversity.12

Boundarylessness can be seen along four dimensions: vertical, horizontal, external, and geographic. Vertical boundaries divide management from employees and divide layers ofmanagement from each other. Do the different layers communicate effectively? Horizontal boundaries divide divisions and departments within a corporation from each other. Do different functional areas cooperate with or compete against each other? External boundaries divide a company from others in its value chain. How well does a company collaborate with its customers and suppliers ?Does it take an “us against them” attitude, or does it view cooperation and collaboration among members of its value chain as a way to improve everyone’s bottom line? Geographic boundaries are a special

You May Also Find These Documents Helpful

  • Good Essays

    CMGT/430 Week 4

    • 622 Words
    • 3 Pages

    Companies all over, are faced with the decision of how to incorporate technology into their organization’s structure. While it is available in many forms, each company is different and would require just enough of it to enhance their organization’s strategy, structure, communication, employee relationships and their performance as a whole.…

    • 622 Words
    • 3 Pages
    Good Essays
  • Good Essays

    LDR 531 Study Guide Wk

    • 1288 Words
    • 6 Pages

    Boundaryless – empowers teams instead of using traditional managers; employees from all levels of the company participate in decision making…

    • 1288 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    In April 1981, when Jack Welch became the CEO of GE, US was in recession. There were high interest rates. Strong dollar resulted in country’s highest unemployment rates. In this rapid changing and uncertain environment it was extremely difficult task for him to handle a conglomerate as big as GE and ensure that general confidence among the investors is not lost. His predecessor, Reg Jones, had set the bar extremely high at the company leaving a legacy for Welch to compete with as the new CEO. Also, acquiring new businesses and ensuring that each business unit under the GE umbrella was one of the best in its field was another challenge.…

    • 1330 Words
    • 6 Pages
    Satisfactory Essays
  • Best Essays

    Ppt Dq Research Paper

    • 2066 Words
    • 9 Pages

    Ashkenas, R., Ulrich, D., Jick, T., & Kerr, S. (2002). The boundryless organization: Breaking the chains of organizational structure. (2nd ed.). San Francisco, CA: Jossey-Bass.…

    • 2066 Words
    • 9 Pages
    Best Essays
  • Satisfactory Essays

    An organization’s structure influences the flow of information throughout the firm and determines who reports to whom. In some firms, decision-making powers are concentrated at the upper echelons of the organization, whereas in others, this role is distributed among various management levels in the organization. A lateral organization a structure embraces decentralization whereby various departments work together in order to achieve common organizational goals (Hall, 1972).…

    • 613 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    Bassett-Jones, N. (2005). The Paradox of Diversity Management, Creativity and Innovation. Creativity and Innovation Management, 14(2), 169-175.…

    • 2068 Words
    • 9 Pages
    Best Essays
  • Better Essays

    What defines diversity and inclusion in the workplace? A diverse and inclusive workplace is necessary and crucial for companies to be successful on a global scale, and enables them to be able to attract and retain needed employees with a specific skill set. “It is no longer simply a matter of creating a heterogeneous workforce, but using that workforce to create the innovative products, services, and business practices that can set a company apart, and give it a competitive advantage in the market place” (Egan, n.d, p. 4). One of the key benefits to companies that have diversity and inclusion strategies in place is the ability to encourage, and allow the growth of different perspectives, ideas that are the seeds of innovation. It is the multiple voices with different ideas that lead to new services being offered, new products being created, insightful ideas that help ensure long term happy customers. But do all companies create this atmosphere in order to use it to their advantage?…

    • 1581 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    References: Ashkenas, R., Ulrich, D., Jick, T., & Kerr, S. (2002). The boundaryless organization: Breaking the chains of organizational structure (2nd ed.). San Francisco, CA: Jossey-Bass.…

    • 672 Words
    • 3 Pages
    Powerful Essays
  • Better Essays

    The concept of diversity has broadened in scope in the recent past, evolving from the concept of mandated quotas and affirmative action, to the reality of a diverse workforce being capable of providing quantifiable business value. A variety of external factors have influenced the conceptual evolution of diversity within the workplace. For example, globalization of markets has provided the concept of diversity with an opportunity to demonstrate a clear competitive advantage. A native understanding of the cultural values, norms and business practices of a foreign market can give an organization a clear advantage over their competition. Another area where diversity offers advantages is in the area of innovation. It can be argued that "a multi-cultural workforce translates into a richer variety of approaches to work-related problems and processes. Such approaches, in turn, are conducive to innovation that raises business performance" (Rajan & Harris, 2003).…

    • 1275 Words
    • 6 Pages
    Better Essays
  • Good Essays

    The idea that all the parts of a group or organization are ultimately connected to one another and hat low leverage change can shift large structures within an organization.…

    • 1867 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    Norman joined the organization with a very strong intent of completely overhauling its current operation. Norman had no previous grocery business experience, which is why called McKinsey consulting organization to help him formulate a new strategy. Norman created a new top management team that would assist with his new vision, and kept all middle managers in the organization. Heifetz and Laurie’s article shares the same the idea that an organization should tackle the challenges that will make a company adaptive, instead of going to the opposite direction to avoid it. Norman quickly identifies the adaptive challenge needed to overcome the soon to be bankrupt grocery chain. To make his plan effective as possible, Norman assembled a new team to lead the different sections of the organization. It was easier to change the decision makers of the organization, then face the challenges that come with accommodation to change, as mentioned in Heifetz and Laurie’s article.…

    • 1590 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    In today’s global marketplace, managers are told that diversity should be valued in order to achieve the…

    • 641 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Aldrich, H. E. Organizations and Environment, Prentice-Hall, Englewood Cliffs, NJ, 1979. Ansoff, H. I. Implanting Strategic Management, Prentice-Hall, Englewood Cliffs, NJ, 1984. Astley, W. G. and C. J. Fombrun. 'Collective strategy: social ecology of organizational environments ', Academy of Management Review, 8, 1983a, pp. 576-587. Astley, W. G. and C. J. Fombrun. 'Technological innovation and industrial structure: the case of telecommunications. In Lamb, R. (ed.), Advances in Strategic Management, vol. 1, JAI Press, Greenwich, CT, 1983b, pp. 205-229. Blau, P. M. and W. R. Scott. Formal Organizations, Chandler, San Francisco, 1962. Bresser, R. K. 'The captives of collective strategies ', Proceedings of the American Institute for Decision Sciences, Toronto, 1984, pp. 383-385. Bresser, R. K. and J. E. Harl. 'Collective strategy: vice or virtue?, Academ.y of Management Review, 11, 1986, pp. 408-427. Bunting, D. and J. Barbour. 'Interlocking directorates in large American corporations, 1896-1964 ', Business History Review, 45, 1971, pp. 317-335. Business Week. 'How Kennecott has mismanaged Carborundum ', 23 May, 1983, pp. 127-130. Emery, F. E. and E. L. Trist. 'The causal texture of organizational environments ', Human Relations, 18, 1965, pp. 21-32. Fombrun, C. J. and W. G. Astley. 'The telecommunian institutional cations community: overview ', Journal of Communication, 32(4), 1982, pp. 56-68. Fombrun, C. J. and W. G. Astley. 'Beyond corporate strategy ', Journal of Business Strategy, 4(1), 1983, pp. 47-54. Hawkins, R. G. and I. Walter. 'Planning multinational operations '. In Nystrom, P. C. and W. H. Starbuck (eds), Handbook of Organizational Design, vol. 1, Oxford University Press, New York, 1981, pp. 253-267. Khandwalla, P. N. 'Properties of competing organizations '. In Nystrom, P. C. and W. H. Starbuck (eds), Handbook of Organizational Design, vol. 1, Oxford University Press, New York, 1981, pp. 409-432. Litwak, E. and J. Rothman. 'Towards the theory and practice of coordination between formal organizations '. In Rosengren, W. R. and M. Lefton (eds), Organizations and Clients: Essays in the Sociology…

    • 6664 Words
    • 27 Pages
    Powerful Essays
  • Satisfactory Essays

    In this case, that Neal Middleton is trying to decide why Golden Valley Foods, inc., isn’t as profitable as it once was. I would suggest to Neil Middleton to do a big change in the company’s policy, and do market segmentation. Golden Valley Foods has a line-forcing policy, requiring any store that wants to carry its brand name to carry most of 65 items in the Golden Valley Foods line. This policy, resulted in a decreasing in its sales. Unfortunately, smaller stores are not generally to accept the Golden Valley Foods policy. Then most of their sales come from major supermarket chain store such as Safeway, Kroger, and A$P. According to the last president of the company said “The influence of our old parent company is still with us. As long as new products look like they will increase the company’s sales volume, they are introduced. traditionally, there has been little, if any, attention paid to margins. we are well aware that profits will come through good products produced in large volume.”…

    • 281 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service…

    • 8668 Words
    • 47 Pages
    Powerful Essays

Related Topics