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In organizations that operate with team structures, both permanent and temporary teams are used extensively to accommodate tasks. Cross-functional teams bring together members from different functional departments or areas of work responsibility. Organizations such as General Electric, Ford, and Intel are trying to utilize teams as basic building blocks of new organizational structures as a way of changing more traditional vertical structures in favor of more horizontal ones.
As illustrated in Figure 11-9, a team structure involves teams of various types working together as needed to solve problems either on a part-time or full-time basis.
VIRTUAL ORGANIZATION (BOUNDARYLESS)
Today, “information technology innovations can result in work groups or teams that are no longer bound by departmental barriers, resulting in a concept termed the virtual workplace or boundaryless organization. Communication can also be established by voicemail, fax, e-mail, and videoconferencing, enabling people to work together or individually on their work-related tasks without coming into the office, a concept called telecommuting., a practice of working at a remote site by using a computer linked to a central office, or other employment location.”[1]
These are network organizations that utilize the latest communications and information technology while engaging in a shifting variety of strategic alliances and business contracts that sustain operations without the cost of owning all supportive functions. These organizations operate with the support of extensive computer networks and, in so doing, are able to work across large geographical distances with a minimum number of full-time employees.
According to Daft, “the most recent approach to departmentalization extends the idea of horizontal coordination and collaboration beyond the boundaries of the organization. Vertically integrated, hierarchical organizations are giving way to loosely interconnected groups of companies with permeable boundaries. Outsourcing, which means farming out certain activities such as manufacturing or credit processing, has become a significant trend. Moreover, partnerships, alliances, and other complex collaborative forms are now a leading approach to accomplishing strategic goals.”[2]
Organizing trends are toward shorter chains of command, using more cross-functional teams, task forces, and horizontal structures as well as wider spans of control as empowerment gains prominence.
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