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Research at least two articles on the topic of managerial issues of a networked organization. Write a brief synthesis and summary of the two articles. How are the topics of the two articles related? What information was relevant and why?Provide the references in your responses.Your post should be 300 words long (30 points). Respond to at least two other postings (10 points each).I am uploading related postings(250 words each). Response for these two should be in two different pages.


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Information Systems Infrastructure
Mohammad Zaheer Qureshi
Campbellsville University
Discussion 4
As successful organizations are described as moving towards a dynamic network form,
Information Technology has been both an enabler and a strategic instigator, fueling the rise of
the network type of organizations, as well as weaving the customer into the ever-changing web
that adds value to the organization by collectively getting inputs and delivering services around
the world. In today’s competitive environment, most organizations are networked, making the IT
a critical enabler for both communication and delivery of products and services to the
consumers. Using databases, knowledge-based systems, and high-end communication systems,
employees interact with one another as well as with the customers. (Sirkka, Jarvenpaa & Blake
Ives, 1994)
Although the rise and ubiquity of network organization is prevalent in western markets,
managing them has also brought many challenges and issues that need management attention.
First and foremost, managers should understand their position within a network organization and
the fact that they can impact the form, structure, and culture of the organization. To make this
happen, managers should play the role of a spiritual leader by inspiring employees and
encouraging information use and sharing. While they can actively take part in reengineering the
organization into its new network form, managers can also educate organizational members
about how to they can use information to add context and perspective to their decision making.
Last and not least managers bear the responsibility of designing the information architecture
together with its corporate highway systems and its social engineering. (Sirkka et al, 1994)
Networked organizations can be of either large organizations, but also small and medium size
enterprises (SMEs). However, unlike large organizations, SMEs face certain managerial
challenges as they undertake the network innovation path, simply because they perform limited
research and development due to lack of funding, making them undesirable for investors.
However, SMEs can establish alliances with third parties in the form of a large supplier or a lead
customer, or they can network with other SMEs forming districts or geographical clusters.
Lacking the previous experience and knowledge, as well as the lack of funds, SMEs face
network innovation challenges in many forms. These challenges can be disruptive as networking
can divert resources and management time from the company’s core business, may generate
unintended knowledge leakage, or it may increase employee’s turnover, all of these having a
direct effect on firm’s performance. (Colombo, Laursen, Magnusson & Rossi, 2012)
Although these challenges can be disruptive, if management knows how to handle them
properly, they can be turned into benefits for the firm. To manage those issue properly,
management must consider a few dimensions of the networked innovation. The first dimension,
search breadth, or the number of different external sources or partnerships a firm relies on, is
crucial as a large search breadth can be both beneficial or problematic. While beneficial refers to
the many novel ideas that can be gathered from a wide search breadth, problematic refers to
managing diversity or the multitudes of partnerships in a harmonizing manner, something not
easy to do. Another dimension of SME’s networking activity, coordination modes, focuses on
specific combinations of different coordination tools, giving an outstanding role to the network
hub. When dealing with this dimension, managers should take into consideration the
interdependency of the network partners as well as the phase of the project the networked
organization is working on. Last, but not least dimension, the strength of the network ties, refers
to firms combining their alliance network by mixing strong and weak ties and by leveraging the
advantages of each. (Colombo et al, 2012)
Managing large networked organizations has proven to be challenging as IT has reshaped the
way interactions take place between employees. By encouraging information sharing, actively
taking part in reengineering, or by adding context and perspective, managers play a vital role in a
large, networked organization. Unlike large organizations, SMEs lack funding, do not attract
investors, and do not invest in Research and Development, so that SME’s management must deal
with issues related to search breath, coordination modes, and the strength of the network ties.
However, in both cases, the management role is vital, as they are the ones that make decisions
and can give the networked organization the upper hand if they manage their challenges
Colombo, M. G., Laursen, K., Magnusson, M., & Rossi, L. C. (2012). Introduction: Small
business and networked innovation: Organizational and managerial challenges. Journal of
Small Business Management, 50(2), 181–190.
Sirkka L. Jarvenpaa, & Blake Ives. (1994). The Global Network Organization of the Future:
Information Management Opportunities and Challenges. Journal of Management
Information Systems, 10(4), 25. Retrieved from,cpid,url
Running head: DISCUSSION 4
Mitali Sanjekar
Campbellsville University
Managerial Issues of a Networked Organization
An organization has networks when its distributed cross-functionally in many locations.
Networked organizations can also mean when there are multiple employers working together
towards providing services. I have discussed two articles below:
Article 1
I am referring a large organization which is into distribution of financial products viz any Bank,
across the network. There are large number of complex issues which such an organization is
required to encounter on literally everyday and this needs a specific directional managerial skill.
In my opinion, some of the critical managerial issues of a such a networked organization can be
as enumerated here under:
The success of organizations selling financial products lies in service quality and service
quality is directly proportional to skill sets of employees. Even in today’s technologically
advanced time, everything cannot be left to technology when money is involved. And this
money is kept in trust and therefore in addition to honesty, integrity, the appropriate skill
set is needed. So, this needs lot of time and energy spending by managers.
In such organizations, we must manage large work force and to do that effectively,
adequate span of control amongst leadership positions is required. This is an important
managerial issue and, in my opinion, it’s a backbone.
The awareness level of customers about managing financial matters is not uniform,
across the network.
The managers must keep an eye on product development, keeping in mind the market
forces as well as knowledge of products range with peers.
The most important issues which managers must keep in mind is Growth, Profitability
and sustainability. This coupled with organizational values forms core strength of any
networked entity (Colombo, Laursen, Magnusson & Rossi, 2012).
All financial entities are subjected to regulatory guidelines. The line managers are
expected to ensure that every transaction is executed as per the internal and external
guidelines. There is absolutely no scope for any regulatory breach.
Article 2
Another example of a networked organization is any company involved in FMCG (fast moving
consumer goods) products and that too globally. Here the issues are different for different
countries and therefore needs very careful handling. Few of the important managerial issues are:
The consumer behavior changes from country to country and within a country, from state
to state. In some of the countries, consumer tastes change every 100 miles. To address
this, managers must ensure enough investment in R & D.
Controlling cost is a huge challenge before managers. In FMCG segment, lot of spending
is needed to create visibility of products because of stiff competition. This can be done
only through print, electronic and digital media which entails large investments.
There are too many players in FMCG segment and therefore attrition is very common.
Therefore, HR managers in consultations with business managers must maintain this
delicate balance. This is an issue needs priority engagement of organization leaders.
Managers are tested quite frequently on agility front. The current competition amongst
FMCG players is crazy and therefore managers must be extremely agile on their
execution strategy. Howsoever good the product may be but if it is not packaged well
from all aspects, sustainable profitability cannot be achieved.
Another managerial issue is complying with regulatory requirements. Whether it is about
timely filing of statutory financial returns or payment of taxes, must be ensured by
managers on top priority (Cheikhrouhou, Pouly & Madinabeitia, 2013).
FMCG business requires lot of work on supply chain management for ultimate delivery
to consumers. Managers are expected to ensure availability of proper logistic partner in
supply chain for a cost-effective delivery.
Another important aspect is ensuring a competitive TAT (turn around time) by various
units within the organization. This is needed to remain profitable in market.
Colombo, M. G., Laursen, K., Magnusson, M., & Rossi, L. C. (2012). Introduction: Small
business and networked innovation: Organizational and managerial challenges. Journal
of Small Business Management, 50(2), 181–190. Retrieved from
Cheikhrouhou, N., Pouly, M., & Madinabeitia, G. (2013). Trust categories and their impacts on
information exchange processes in vertical collaborative networked
MANUFACTURING, (1/2), 87. Retrieved from,cpid,url

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