The newest, and most divergent, team structure is commonly known as a Network Structure (also called "lean" structure) has central, core functions that operate the strategic business. It outsources or subcontracts non-core functions. When an organization needs to control other organizations or agencies whose participation is essential to the success, a network structure is organized.
The newest, and most divergent, team structure is commonly known as a Network Structure (also called "lean" structure) has central, core functions that operate the strategic business. It outsources or subcontracts non-core functions. When an organization needs to control other organizations or agencies whose participation is essential to the success, a network structure is organized. In this, the main organization creates a network of relevant agencies and it influences in different ways.
A network structure has little bureaucracy and features decentralized decision making. This structure is very flexible, and it can adapt to new market challenges almost immediately. Flexibility is one of the main reasons why firms pursue network organizational structure in the first place. This allows them to change its production techniques, quantity, products’ designs or stop the production completely without facing any major problems.
Such an organization works like an advanced computer network where many autonomous organizational units interact with each other and the external world to deliver outcomes. Goals and strategy is set by central management but there involvement is limited to building on the capabilities of network units and monitoring progress. Network structure is widely used in non-business organizations which have sociopolitical objectives.
For instance, the National Industrial Development Corporation assigned with the task of rapid industrial development in the country may resort to a network structure in their objective to build an industrial estate. They will act as the lead agency and involve the various other agencies like Electricity Boards, Municipal Authorities, Land Development Authorities, Authorities for Water & Sewage Control, Department for communication facilities etc. They will also need to establish a network with people who would ultimately be using the industrial estate. It would also use the services of an advertising agency to promote the industrial estate and attract maximum number of entrepreneurs. For the construction of sheds and factories they may have to utilize the services of private construction agencies. Thus, a network structure envisages the utilization of a number of different services offered by different agencies. There is need to coordinate the different inputs and synchronize them towards the ultimate objective.
A network structure is meant to promote communication and the free flow of information between different parts of the organization as needed. Managers coordinate and control relations both internal and external to the firm. A social structure of interactions is fostered to build and manage formal and informal relationships. The goal of this structure is to achieve rapid organizational evolution and adaptation to constantly changing external and internal environments. But there's an almost inevitable loss of control due to its dependence on third parties, and all the potential problems that come from managing outsourced or subcontracted teams.
An organization that has been using network structure is H&M (Hennes & Mauritz), a very popular brand that has followers world over. H&M has outsourced the production and processing of their goods to different countries majorly Asian and South East Asian countries. H&M is the core company in its case. As it can be seen, the core company distributes its functions to different companies which, in this case, are present in different countries: product development company in Australia, Call center company in New Zealand, the Accounting company in Australia, Distribution company in Singapore and Manufacturing company in Malaysia.
Five Core General Ledger Accounts
Typically, the accounts of the general ledger are sorted into five categories within a chart of accounts. Double-entry accounting uses five and only five account types to record all the transactions that can possibly be recorded in any accounting system. These five accounts are the basis for any accounting system, whether it is a manual or an automated accounting system. These five categories are assets, liabilities, owner's equity, revenue, and expenses.
What is Accounting & Book Keeping
Accounting is a process designed to capture the economic impact of everyday transactions. Each day, many events and activities occur in an entity, these events and activities are in the normal course of business; however, each of these events may or may not have an economic impact. Events or activities that have an effect on the accounting equation are accounting events.
In this article, we explain some commonly used subsidiary ledgers like accounts receivable subsidiary ledger, accounts payable subsidiary ledger or creditors' subsidiary ledger, inventory subsidiary ledger, fixed assets subsidiary ledger, projects subsidiary ledger, work in progress subsidiary ledger, and cash receipts or payments subsidiary ledger.
Understand what we mean by GAAP to STAT adjustments. This article discusses the different standards that are used for multiple representations of the financial results for global organizations. Understand the meaning of US GAAP, Local GAAP, STAT, IFRS, and STAT. Finally, understand why accounting differences arise and how they are adjusted for different financial representations.
Multi Currency - Functional & Foriegn
Currency is the generally accepted form of money that is issued by a government and circulated within an economy. Accountants use different terms in the context of currency such as functional currency, accounting currency, foreign currency, and transactional currency. Are they the same or different and why we have so many terms? Read this article to learn currency concepts.
What is a Business Eco System?
The goal of a business is to generate capital appreciation and profits for its owners or stakeholders by engaging in provision of goods and services to customers within the eco system/framework governed by respective laws(local/international). The eco system involves various entities that the business works with for delivery of a product or service.
Generally Accepted Accounting Principles define the accounting procedures, and understanding them is essential to producing accurate and meaningful records. In this article we emphasize on accounting principles and concepts so that the learner can understand the “why” of accounting which will help you gain an understanding of the full significance of accounting.
A Company (also called corporation) may be understood as an association of persons in which money is contributed by them, to carry on some business or undertaking. Persons who contribute the money are called the shareholders or the members of the company. A corporation is an artificial being, invisible, intangible and existing only in contemplation of law. Being the mere creature of law, it possesses only those properties which the charter of its creation confers upon it.
Reversing Journals are special journals that are automatically reversed after a specified date. A reversing entry is a journal entry to “undo” an adjusting entry. When you create a reversing journal entry it nullifies the accounting impact of the original entry. Reversing entries make it easier to record subsequent transactions by eliminating the need for certain compound entries. See an example of reversing journal entry!
Different Types of Organizational Structures
Modern business organizations run multiple product and service lines, operate globally, leverage large number of registered legal entities, and operate through complex matrix relationships. To stay competitive in the current global business environment, they must often develop highly diverse and complex organizational structures that cross international borders.
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