What is Functional Organization

This chapter addresses the link between e-government, organizational networks related to it, and the possibilities for structural reform of local-level public administration. In the general discussion, e government is often reduced to the electronic delivery of services. However, the most important potential of e-government can only be realized if new ICT solutions are used for inter-organizational network-oriented work structures. Examples of various forms of such networks exist worldwide and are commonly used to increase citizen orientation and/or to improve efficiency. However, the fact that these networks can have a deeper impact upon the organization of the traditional state is often neglected. Even the macro-organization of a state may be affected; this will be the focus of this chapter. It aims to analyze and explore whether new ICT-enabled networks make it possible to change the size of an administrative jurisdiction or even eliminate levels of government. Using the German situation as an example, the main argument of this chapter is that in the e-government era, the amalgamation of municipalities is no longer an adequate reform policy.