boundaryless organisation
ACE INSTITUTE
OF
MANAGEMENT
REPORT
ON
CASE 4
BOUNDARYLESS ORGANIZATIONS
Prepared By:
Group 4
Binindra Shrestha
Gaurav Khatiwada
Sakunda Ojha
Sumit Bajracharya
Yadav Basnet
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
OF
MANAGEMENT
REPORT
ON
CASE 4
BOUNDARYLESS ORGANIZATIONS
Prepared By:
Group 4
Binindra Shrestha
Gaurav Khatiwada
Sakunda Ojha
Sumit Bajracharya
Yadav Basnet
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
References: 1. URL: http://mysite.verizon.net/lpang10473/web/ldc_flat.htm 2. URL:http://www.slideshare.net/AnujSharma4/presentation-on-boundaryless-organization 3. URL: smallbusiness.chron.com › ... › Organization Structure