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This essay will discuss how boundaries between organisations are increasingly becoming fluid across a diverse range of networks and the implications that these network forms have on the maintenance and development of skills for individuals and organisations. Reasons for diversification of networks The thinning of the boundaries between organisations has to a large extent been caused by the diversification of organisations, this has seen most of the organisations increase their product diversity to minimise risks and increase their capability to take advantage of opportunities in the market (Johnson, 2010, p65).
In addition, organisations have also diversified their markets in several regions in order to reach a larger client base. These processes of diversification have caused major shifts in the way the companies conduct their operations (Hill & Jones, 2007, p85). In the case of concentric diversification where organisations are concerned with increasing the scope of their products through the adding related goods and services, integration of different skills has been a necessity; this is to increase the strategic fit in the running of the organisations (Gu?
Nther, 2007, p152). The related products that an organisation includes in its operation depends on the field that it operates in, for instance, organisations that offer services in the service industries are likely to add to their products other services that compliment their operations or those that add value to the initially existing services. For instance, a company that has a conservancy for wild animals or that is manages a game reserve is more likely to diversify its operation to include offering travelling packages for tourists who visit their facility.
In addition, it may wish to own a hotel within the conservancy where the tourists can stay when they are visiting the region, this would encourage more tourists to visit the conservancy or the game reserve. Still to increase the visibility of the organisation to possible tourists, the organisation is likely to acquire an advertising firm. This diversification in operations of a service company would require that the workers especially in the management levels to acquire new skills to enable them run the organisation efficiently and effectively.
Diversification in organisations that deal in goods is more likely to be extensive and complex than for the organisations that are in the service industry, this makes the workers in the goods producing organisations more affected by the organisation’s operations in different networks (Toxvaerd, 2010, p72). Most of the organisations that have their final products in form of goods require a lot of technological and management expertise, this is because in the production of goods, there are a lot of stages that are involved before the goods are ready to be taken to the market (Gregory & Cooper, 2009, p111).
These stages include; procurement and transportation of raw materials, the processing of raw materials that may involve several stages, quality assurance checks, packaging and branding of the product, warehousing search and transportation
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