ABSTRACT

In this chapter, we elaborate the network concept. In Section 2.2, we compare the network model with the hierarchical model of organizations. In Sections 2.3 to 2.5, we deal with the characteristics of the structure of a network, which differ fundamentally from the characteristics of hierarchies. Section 2.7 discusses the characteristics of processes of decision making within this network structure. Again, these processes differ markedly from processes in a hierarchy. In a hierarchy, decision making is a well-structured process; in a network, decision making is a meandering, sometimes even chaotic process. Finally, Section 2.8 contains a number of observations about the language used to discuss decision making in networks.