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Writer's pictureCorey Portell

Creating the competitive organization of the 21st century: The boundaryless corporation

Updated: Jun 23, 2020

Devanna, M. A., & Tichy, N. (1990). Creating the competitive organization of the 21st

century: The boundaryless corporation. Human Resource Management, 29(4), 455.

As globalism and modernization impacted organizations in the 1980s, the 1990s and beyond brought the need for organizations to address speed with the advent of advancing technology. Because of this, organizations need to shift from a linear, hierarchical structure to one that is “boundaryless” where information is shared more openly. This is a particularly challenging for large, multi-business companies that are organized in old ways of scientific management. To succeed in a rapidly changing environment, these groups and their leadership need to think strategically; there is a need to become increasingly horizontal, with more open communication and cross-functional teams. Networks will help these organizations to increase connections between internal and external stakeholders, and geographic location will become less important. To be a “self-renewing” organization, levels of trust must be enhanced throughout all levels. Processes will need to be less mechanized and more organic, empowering employees at all levels to communicate both internally and externally. Even so, organizations will need to become comfortable and plan for increased levels of technical, political, and cultural uncertainty; they will need to expand understanding of their values for a diverse set of stakeholders as a priority in order for empowerment and decentralization to work in their favor. They will need to reconsider the way they address their assessment of their human resources and their reward structures in order to develop their entire organization, not just their managers.

This article forecasted many changes that would occur in the beginning of the 21st century well without knowing the degree to which technology would rapidly change or outpace some businesses. Having an understanding about the type of change organizations have encountered over the last several decades helps me to be a more strategic employee and consumer when it comes to working within fast-paced organizational changes.

LO3: address complex challenges by collaboratively leading teams across disciplines, distances, and sectors.

LO4: apply communication-centered scholarship to strengthen communication effectiveness.


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