On The Network Organization And The Operation Of Our Business

The design and constitution of enterprise's organization and structure is always making adaptable changes with the successive development of the actualsocial economy and science and technology. From beeline system to beeline-function system, from matrix system to project-department system, the powerful economic development engine have being continually driven the innovation and reform of the organization and structure of enterprise. Network system is just the new mode of enterprise organization and structure established and developed based on today's modern information technical means with high progress speed.In the past twenty years, the studies of network organization are paid much attention to .scholars do a great deal of researchs on the definition of network, running mechanism.form of expression and the mode of management from the angles of economics, management and sociology. But in general , the studies on this field are still in the stage of being perfected.This paper presents the background of the generation of network system and gives a commonly acceptable definition of network system, i.e. network is a combined system composed of many independent individuals, departments and enterpr i ses for a common assignment. The run of the system is to accomplish the common objective via dense multi-aspect communications and mutual beneficial and interactive cooperation based on the defining of roles and tasks for each member (Achrol, 1999). And at the same time, this paper has also analyzed the causation of the forming of network system by using economics andmanagement theories. And the characteristics, types, advantages and disadvantages of network system have been analyzed in this paper by combining cases. The coupling ligament and running mechanism of network system is discussed. The management of network system is studied based on the using of basic theories of management. At the end of this paper, the implications of network system on enterprise's operation in China are expected.