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punkybrewster punkybrewster
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Compare and contrast an unstructured organization with a conventional organization.
Textbook 

Business in Action


Edition: 9th
Authors:
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rangeliferangelife
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Unlike a conventional organization, an unstructured organization assembles talent as needed from the open market, thus taking the virtual and networked organizational concepts to the extreme. Virtual organizations can be assembled, reconfigured as needed, and disassembled much faster than a conventional employee-based organization can be created, changed, or dismantled. Hiring employees to build organizational capacity increases a company's fixed costs, which are incurred regardless of production or sales volumes. With the unstructured approach, companies have much more flexibility in adjusting their expense levels to match revenue levels. The bond that develops between employers and employees over time creates a sense of loyalty that can carry both parties through hard times. However, this sense of "all for one and one for all" is not likely to factor heavily in most unstructured scenarios, where workers are more like competing vendors than members of a family.

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