Changes in the Corporate Structure Brought by Telecommunications

The left part of this figure presents a traditional corporate structure leaning on an hierarchical organization, where the decision-thinking and making processes are compartmentalized. Decisions and information move vertically between levels of the structure. For a small to medium-sized corporation, this structure is usually contained within the same building, over several floors when required. Managers usually have a direct physical contact with the employees under their supervision.

The right part presents a networked organizational structure where the cohesion is supported by a wider array of telecommunication services, such as faxes, cellular phones, e-mail, intranets, and teleconferencing, just to name a few. Proximity and direct contacts, at least for mundane tasks, are no longer a priority. As a result, some tasks can be relocated elsewhere, either in different regions/countries (offshoring) (A), or within the region (suburban offices or a home) (B).

Home | Contents | Media | Glossary | Links | About | Contact | Purchase

Copyright © 1998-2012, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University, New York, USA.
This material (including graphics) cannot be copied or redistributed, in whole or in part, in ANY FORM (printed or electronic) and on ANY MEDIA. For specific uses permission MUST be requested and the material must be cited.