8.2 Structure and information transfer
Traditional management models support the barriers that develop between different divisions within an organisation. Both centralised and decentralised management models do nothing to eliminate the build up of these barriers. Centralised management creates dependence on a central decision making structure whilst decentralised management creates independence in business units but often fosters intense competition between business units.
Botkin (1999) has suggested that what is needed for true knowledge transfer is networked management. As the complexity of organisational operating environments increases ‘organising’ knowledge to achieve strategic purpose is often not possible within the ‘walls’ of a single entity. If organisations are to exist it may no longer be with a rigid conceptualisation of their structure. The concept of networked organisations or a network of individuals with mapped capabilities is increasingly replacing organisational structures and job roles as the 'glue' or cohesive force that provides common purpose (Bowles, 2000: 45).
Figure 8 Organisational structures and knowledge transfer
Under the network model the information and knowledge management systems inside the organisation support the sourcing of knowledge and capabilities outside the organisation. The organisation is less distinct and hierarchical and organisational structure gives way to the utility of harnessing the individual’s capabilities towards the performance outcome.
Network organisations are most evident in information technology but have become more popular in manufacturing where outsourcing production limits exposure and resource commitments of the organisation. As such, skills and technical knowledge are predominantly sourced rather than developed.
The agility of the network ‘organisation’ is great, but the cohesion may only exist through the knowledge and information frameworks established to orient effort.
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