Question

Discuss the advantages and disadvantages of the three types of boundaryless organizations: (1) barrier free organizations, (2) modular organizations, and (3) virtual organizations.

Answer 1

1) Barrier free organisation
Advantages
1. It ensures lower response time to the changing market environment.
2. It allows maximum utilization on the capabilities of the employees.
3. It promotes cooperation and coordination among the various stakeholder  

Disadvantages:
1. It prevent creation of a strong central leadership.
2. It might create trust deficit which will increase decision taking time.
3. Overcoming political authority might be concern

2) Modular organizations

Advantages
1. Focus will be high on core operation.
2. Other operations are outsources which saves resources and time.
3. Information and knowledge sharing increases among the supplier.

Disadvantages:
1. Control over quality and delivery of all products might be difficult.
2 Reliance on outside vendors for certain operations might reduce focus on the main goal.
3. Competitive advantage might be compromised if information shred to suppliers.

3) Virtual organizations

Advantages
1. Market response is faster.
2. Skill and knowledge are shared effectively
3. Organizational learning increases and costs are also shared.

Disadvantages:
1. Higher interdependence causes less control over operations.
2 Requires skill updating very frequently.
3. Competitive advantage might be compromised if information shared to suppliers.

Best of Luck. God Bless