Amoeba-shaped Organisation:
is other form of boundary-less organisation, which is structured like an amoeba with a central nucleus and a flexible operating structure enabling it to move into various kinds of projects and markets although operating as cross- functional teams.
An amoeba structured organization could spin off into smaller independent companies. For instance, ENTACT Inc. environmental services organization based in Texas, U.S. divides such as an amoeba to form new companies. While it has about 40 employees, it spins off within another business along with the first company retaining a 90 percent stake contain in the new business, although the employees of the spin off unit retain 10 %. In this manner, ENTACT Inc. has been able to attract new organization. Since it operates without much of a structure and has no central level management, there is a lot of latitude and freedom in its operations and it could be divided within new operative units with ease. Below table presents the advantages & disadvantages of the amoeba shaped organisation.
Table: Advantages and Disadvantages of Amoeba Shaped Organisation
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Advantages
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1. Flexibility in operations.
2. Freedom to take decisions within the organisation, that motivates the employees.
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Disadvantages
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1. Absence of middle level management affects the flow of communication from first line employees to the top management.
2. Increase in the number of operating units may drive the organisation into confusion if there is lack of cooperation and coordination.
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