Organizational Structure Without Hierarchy in a Dynamic Global Business Environment

Abstract

The chapter deals with the inefficiency of classical business systems in a dynamic global business environment. The main reasons for inefficiency are complicated processes, which are limited and influenced by inadequate classical business structures. But in new circumstances business structures must be designed according to process needs. Classical business systems should be urgently renewed to survive. Furthermore the author concludes that a single business system re-engineering project is not the definitive answer. In the global business environment, changes are constant. The efficiency of business processes can be maintained and increased in the long term only by constant but effortless adaptation of structures. This is possible by the introduction of the organizational structure without hierarchy and the mechanism for dynamic adaptation of structures to business.