In: Operations Management
How is the cellular/modular structure different from the network structure? Give at least three differences. – Max 200 words
Cellular/modular structure
This entity consists of numerous smaller units that work independently to accomplish certain tasks. Even though these units perform tasks separately, still they communicate with each other through their intercommunication systems. This structure offers better customer service facilities due to their expertise in a particular field. This structure is very effective when a single unit is not capable of performing alone, they will get the support from other units. An automobile manufacturer is one of the example of a modular structure.
Network structure
This is a form of business structure where a major company creates a network of other branches to accomplish certain tasks. Specific managers are assigned in maintaining communication between other companies. This is mostly a decentralized way of handling things. In other terms, when an entity is trying to expand its territories through multiple divisions for convenience in manufacturing or in providing customer services for a particular location or assigns the branches for additional support. Example: A fast-food restaurant chain.
The three usual differences are given below.
1) Cellular Structure has a more centralized management system but Network Structure prefers decentralized management.
2) Cellular/modular Structure consists of separate units, assigned for doing different tasks that have been coordinated together but Network Structure performs different tasks in a single unit and is mostly independent.
3) In Cellular Structure, job assignment is vastly different for every staff due to a centralized hierarchy but Network Structure relies on its managers for each division to control and coordinate with each other.