Organizational Design | Describe the boundaryless organization. What types of boundaries are there? What are the advantages and disadvantages of this organizational design?

Describe the boundaryless organization. What types of boundaries are there? What are the advantages and disadvantages of this organizational design?

Answer

Another approach to contemporary organizational design is the concept of a boundaryless organization, an organization whose design is not defined by, or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure. Although the idea of eliminating boundaries may seem odd, many of today’s most successful organizations are finding that they can operate most effectively by remaining flexible and unstructured: that the ideal structure for them is not having a rigid, bounded, and predefined structure. There are two types: internal boundaries—the horizontal boundaries imposed by work specialization and departmentalization and the vertical boundaries that separate employees into organizational levels and hierarchies; and external boundaries—the boundaries that separate the organization from its customers, suppliers, and other stakeholders. To minimize or eliminate these boundaries, managers might use virtual or network structural designs. 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.

Source: Management, 11e (Robbins/Coulter)