A network structure helps lower costs and improves flexibility in dealing with changing environments because:
A) it brings together members from different functional departments in the organization.
B) the central core is relatively small and the surrounding networks can be expanded or shrunk as needed.
C) the central core consists of temporary employees and focuses on cross-functional teams to improve lateral relations.
D) it has vertical levels of management and hierarchical levels of authority.
E) the central core is relatively big, and that provides the advantage of economies of scale.

Question

Quizplus · Accepted Answer

A network structure is characterized by a relatively small central core that serves as a nexus for a surrounding network of external alliances, outsourcing relationships, and other types of working partnerships. This allows the organization to expand or shrink its network as needed, making it more flexible and adaptable to changing environments. Additionally, a network structure can help reduce costs by outsourcing non-core functions and leveraging the capabilities of external partners.

A Network Structure Helps Lower Costs and Improves Flexibility in Dealing