Which of the following is true of a network organization?
A) A network organization limits the amount of information shared between its members.
B) In a network organization, the technical specialization of the functional structure is absent.
C) A network organization lacks the market responsiveness of the product structure.
D) In a network organization, managers within the organization interact closely with members outside it.
E) A network organization is a single firm in which jobs are specialized and grouped according to business functions.

Question

Quizplus · Accepted Answer

A network organization is characterized by flexible and temporary relationships between organizations or individuals that collaborate to achieve mutual goals. In such an organization, managers interact closely with members outside the organization to exchange ideas and resources, allowing for greater flexibility and adaptability. Option A is incorrect because a network organization encourages the sharing of information and resources among its members. Option B is incorrect because technical specialization is still present in a network organization, but it may not be organized in a hierarchical functional structure. Option C is incorrect because a network organization is more responsive to the market due to its flexible structure. Option E is incorrect because a network organization does not have a traditional functional structure, but instead relies on flexible, temporary collaborations.

Which of the Following Is True of a Network Organization