What Do You Mean By Network Structure Of An Organisation? Explain With Example.


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A network structure of an organisation is a relatively modern type of organisation structure. This type of format is generally more decentralised and less hierarchical. The focus lies on social networking between the managers and both internal and external (inter-organisational / intra-organisational) networks of the organisation.

These networks can be extremely vast and sophisticated in their format. Spanning wide regions and including many sub-networks. The relationships between them are often both formal and informal, depending on the nature of the organisation. 

An example of this can be found with the clothing company H&M. The network structure of this organisation outsources it's product to hundreds of suppliers via this construct. Due to the fact that H&M do not own their own factories, this allows them more leeway with the flexibility of their pricing. 

I hope this helps.

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