Organizational structure is the arrangement of positions in an organization. While an organization's goals, environment, technology, and other factors influence organizational structure, national culture also contributes to specific organizational arrangements including the degree of complexity, centralization, and formalization.

Examples of variations in organizational structure affected by cultures include family businesses, Japanese Keiretsu, and Korean Chaebols. Because of a variety of changes in the global economy--including the economic problems throughout Asia--these culture-influenced structures appear to be changing in the late 1990s toward Western corporate models.

At the same time that Asian organizational structures are possibly becoming Westernized as a response to an economic crisis, as a result of the globalization of the economy many Western organizations are changing to new structures. Emerging Western organizational structures include boundaryless organizations, virtual organizations, multinational and transnational structures.

Perhaps the most interesting type of new organizational structure is the "virtual" organization. It is characterized by its geographic dispersion and human resource flexibility, both of which contribute to a radical departure from traditional hierarchic, centralized, geographically-bound organizations.

Using the following Web sites, explore the uses of virtual organizations and the other novel structural arrangements that are developing. Also, consider how traditional organizations can become virtual organizations.

1. A Virtual Organization
   http://www.open.ac.uk/
   This is the home page of The Open University, a virtual organization, which is an example of a new organization design. How does the Open University compare with your university? Is your university structured in a traditional manner? How does the design and structure of The Open University differ from your university? What are the strengths and weaknesses of either approach?
   
   
2. AT&T
   http://www.research.att.com/
   This site describes the history and organizational evolution of AT&T. Recently, AT&T was split into three companies and radically restructured. At present, AT&T is in merger negotiations with a major cable television company that may again result in a corporate restructuring. Is there any evidence that AT&T is becoming a virtual organization? What changes would have to occur for AT&T to become a virtual organization?
   
   

• How will virtual organizations affect the role of manager?
  
  
• What industries can benefit most from virtual organizational principles?
  
  
• In what ways will virtual organizations shape employee behavior?
  
  
• Are there any aspects of national culture that can either facilitate or act to create resistance to the establishment of virtual organizations?