A network structure is likely to be poorly managed if
A)it ensures that the right partners are included and the activities are coordinated.
B)it encourages more effective collaboration and cooperation among partners.
C)it includes a hand-picked, integrated network of suppliers.
D)the arrangement of independent organizations is involved in a common undertaking.
E)no one firm has a central control over the others.

Question

Quizplus · Accepted Answer

A network structure is designed to be decentralized without a central control, allowing independent organizations to work together towards a common goal. However, this lack of central control also means that the management of the network structure can be challenging as there may be conflicts, communication breakdowns, and decision-making difficulties among the partners. Therefore, a poorly managed network structure is likely to occur when there is no effective governance, coordination, or trust among the partners, leading to inefficiencies, delays, and conflicts in achieving the desired outcomes. Hence, option E is the best choice as it reflects the potential problem that can arise in a network structure due to the absence of central control.

A Network Structure Is Likely to Be Poorly Managed If