Boundaryless enterprise
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This concept of boundaryless enterprise involves recognition of an organization that is growing, but within existing boundaries that can fluctuate. An example would be the reduction of the number of levels between the leadership of senior management, and executive positions, the lowest in the hierarchy of the organizational structure. The other example is combining individual functions to take advantage of the varied skills of employees. Such an approach is reflected in the assignment of groups of people representing different functions for the implementation of the various processes in the enterprise.
It should be noted that the boundaryless enterprise concept involves also activities of the enterprise which adjust in response to changes in the market conditions. This applies in particular to the strengthening of cooperation with other entities, which can interfere with the current activities of the organization. The ranges of the tasks performed by such entities can also significantly change. As an example, starting cooperation with specialist in outsourcing service provider, may be associated with periodic expansion or limitation of action ranges outsourced to such entity.
Features of boundaryless organization
Conditions that should be met to effectively manage knowledge in boundaryless enterprise:
- permeability of the internal and external organizations boundaries,
- ensuring the flow of information between cooperating individuals, but also between cooperating organizations
- free shaping of the informal relationship between the employees, between the cooperating entities, as well as between partner organizations.
It should be added that, in the case of the cooperation of several organizations transfer of knowledge requires the fulfilment of the above conditions by all companies.
See also:
Examples of Boundaryless enterprise
- Globalization: The most common example of a boundaryless enterprise is the globalizing of business operations. This involves expanding the scope of the business to include operations in multiple countries, often across different continents. By doing this, companies can take advantage of different markets and take advantage of different labor costs, regulations, and taxation policies.
- Remote Working: Companies are using remote working solutions to increase productivity and reduce costs. Through the use of digital tools and platforms, companies are able to connect employees from all over the world and provide them with the tools and resources they need to work without having to be in the same physical space. This allows for a more distributed workforce, allowing for more flexibility and scalability.
- Outsourcing: Companies are also increasingly outsourcing certain processes to other companies or individuals that are located outside of their country. This allows companies to take advantage of different cost structures and to access skillsets and resources that may not be available within their own organization.
- Cloud Computing: Cloud computing is another example of a boundaryless enterprise. By using cloud computing, companies can access and store data and applications on remote servers, which can be accessed and updated from anywhere in the world. This allows them to increase their agility and scalability, while reducing their IT costs.
- Process Automation: Companies are also using process automation to streamline operations and reduce costs. By using software solutions, companies can automate mundane tasks and reduce the time and effort needed to complete them. This allows companies to reduce their labor costs and increase their productivity.
Advantages of Boundaryless enterprise
A boundaryless enterprise offers a variety of advantages for the organization. These include:
- Increased efficiency and productivity, as the organization is better able to leverage the skills of its employees and utilize the most efficient processes.
- Improved communication and collaboration between employees, as they are all able to work together on projects, and discuss ideas more effectively.
- A greater sense of ownership among employees, as they all feel responsible for the success of the organization.
- Increased flexibility in decision making, as the organization is able to respond quickly to changes in the market or customer demands.
- Enhanced innovation, as employees are able to work together to develop new ideas and solutions.
- Reduced costs, as the organization is able to streamline processes and eliminate redundancies.
Limitations of Boundaryless enterprise
The concept of boundaryless enterprise has its limits and the following are some of the key limitations:
- One limit is that it can be difficult to implement and sustain in larger organizations, as there must be a cohesive framework to ensure that the changes are appropriate and that there are adequate resources to support them.
- Another limit is that there can be a lack of clarity regarding roles and responsibilities, leading to confusion and potential inefficiencies.
- Additionally, it can be difficult to maintain a boundaryless structure if there is not an effective system of communication in place to ensure that all employees are on the same page and understand their roles and responsibilities.
- Lastly, boundaryless enterprises can be costly, as there can be a need for additional resources to support the changes and ensure that the organization is functioning optimally.
- A one-sentence introduction to the list of other approaches related to Boundaryless enterprise: Here are some other approaches that organizations can take to implement a Boundaryless enterprise:
- Organizations can look to use technology to break down departmental silos and create better collaboration. This could involve the use of cloud-based collaboration tools, such as Google Docs and Microsoft Office 365, to enable employees to easily share documents and other data.
- Organizations can also focus on developing an organizational culture that encourages the sharing of ideas and knowledge through all levels of the organization. This could involve creating a platform for the sharing of ideas, or utilizing the latest digital tools to facilitate the exchange of knowledge.
- Organizations can also look to create a flatter organizational structure that reduces the amount of bureaucracy and red tape that can slow down the decision-making process and hinder innovation.
- Organizations can also look to create a more flexible workplace that allows employees to work remotely or on flexible hours. This could enable employees to be more productive and creative in their work, as well as reduce the amount of time spent commuting.
In summary, the concept of boundaryless enterprise involves the recognition of an organization that is growing, but within existing boundaries that can fluctuate. Organizations should look to use technology, develop a culture that encourages knowledge sharing, create a flatter organizational structure, and create a more flexible workplace as ways to implement a boundaryless enterprise.
References
- Ashkenas R., Ulrich D., Jick T., Kerr S. (1998), Boundaryless Organization. Behind the Chains of Organizational Structure, Jossey - Bass Inc. Publishers, San Francisco
- Philpott E., Hamblin D. J., Baines T., Kay G. (2004), The use of models and methods of strategic planning: Towards a holistic view of strategy, International Transactions in Operational Research, vol. 11, International Federation of Operational Research Societes, Blackwell Publishing Ltd.
- Rajan, R. G., & Zingales, L. (2000). The governance of the new enterprise (No. w7958). National Bureau of Economic Research.
- Stace, D., & Dunphy, D. C. (2001). Beyond the boundaries: Leading and re-creating the successful enterprise. McGraw-Hill.
